Gordon, 090931 PAAGO, AGO 26

• Case Date: September 09, 1931
• Court: Pennsylvania

Honorable William D. Gordon AGO 26 Opinion No. 26 Pennsylvania Attorney General Opinions Opinions of the Attorney General September 9, 1931          Department of Banking—Duties of Secretary in Possession of Trust Companies —Administration of Trust Department Prior to Liquidation—Banking Act of 1923, Sec. 40.          Under the provisions of Section 40, of the Act of 1923, P. L. 809, it is the right and duty of the Secretary of Banking in possession of closed institutions under his supervision actively to administer the trust department thereof pending his decision to liquidate the affairs of the institution with the power to secure the appointment of a substitute fiduciary during such period and the duty to apply for such substitution following the order of liquidation.          Honorable William D. Gordon,          Secretary of Banking,          Harrisburg, Pennsylvania.          Sir: You have requested an opinion from this Department with respect to your duties as Secretary of Banking in possession of institutions maintaining trust departments.          The Banking Act of June 15, 1923, P. L. 809 provides, in Section 40, entitled "Trust Funds," as follows:

"(a) Taking Possession by Secretary.—Whenever the secretary takes possession of the business and property of a corporation or person in accordance with the provisions of this act, he shall also take possession of all funds, property, and investments held by such corporation or person in any fiduciary capacity, but shall keep the same separate and apart from the assets thereof.

"(b) Substituted Fiduciaries.—Upon determining to liquidate the affairs of such corporation or person, the secretary shall forthwith give written notice to all parties interested in any such funds, property, or investments held in a fiduciary capacity, so far as such notice is practicable, requiring' them within thirty days to apply to the proper court or official for the appointment of substituted fiduciaries to take the place of such corporation or person. On the failure or neglect of the parties so notified to make such application within the time designated, or in ease the parties in interest can not be notified, the secretary shall himself apply for such appointment of substituted fiduciaries.

"(c) Settlement "Without Accounting.—In any instance where there shall be no dispute as to the amount or identity of such funds, property, or investments, and all parties in interest are sui juris and so request in

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