Financial Institutions

CHAPTER 19-3.1
Trust Powers

SECTION 19-3.1-7

§ 19-3.1-7. Assets equal to capital stock as pledged – Preference over other creditors.

A portion of the assets of every financial institution subject to this chapter, equal in value to the par value of its capital stock, shall stand pledged, and shall be taken and considered as the security required by law, for the faithful performance of the institution's duties as trustee, executor, administrator, custodian, conservator, guardian, assignee or receiver, except as otherwise provided, and for the deposits made by executors, administrators, custodians, conservators, assignees, or receivers, trustees, or guardians. In case of loss, any person beneficially entitled to these estates, and any executor, administrator, custodian, conservator, assignee, or receiver, trustee, or guardian making the deposits shall be first indemnified in full from the amounts so pledged in preference to all other creditors.

History of Section.
(P.L. 1995, ch. 82, § 41.)