Gordon, 090933 PAAGO, AGO 91

Case DateSeptember 09, 1933
CourtPennsylvania
Honorable William D. Gordon
AGO 91
Opinion No. 91
Pennsylvania Attorney General Opinions
Opinion of the Attorney General
September 9, 1933
         Banks and Banking—Banks and trust companies—Commercial department—Assets.          Section 1111 of the Banking Code of 1933, P. L. 624, applies to assets acquired by the commercial department of a bank and trust company prior to July 3, 1933, with the same force as in the, case of assets acquired after that date.          Honorable William D. Gordon,          Secretary of Banking,          Harrisburg, Pennsylvania.          Sir: You have asked to be advised on the application of Section 1111 of the Banking Code, Act No. 112, approved May 15, 1933, to assets which were purchased by the commercial department of a bank and trust company prior to July 3, 1933, the effective date of the Banking Code.          Section 1111 of the Banking Code provides, as follows:
"Limitation upon Purchase or Exchange of Assets of Commercial Department.—A bank and trust company shall not, directly or indirectly, purchase with funds held by it as fiduciary, or exchange for any real or personal property held by it as fiduciary, any asset of its commercial department, but this prohibition shall not apply in the case of bonds or other interest-bearing obligations of the United States, of this Commonwealth, or of any county, city, borough, township, school district, or poor district of this Commonwealth, nor in the case of assets of its commercial department earmarked for future trust investment at the time of acquisition by the commercial department, and purchased or exchanged, within one year after acquisition, with funds or for property held by it as fiduciary. A report shall be made monthly to the board of directors and to the Department of all transactions, including earmarked acquisitions, within the exception to the foregoing prohibition."
         It is clear under the terms of this section that no transfers of assets, other than those expressly specified therein, may be made from the commercial...

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