Practice question
A trust entity keeps client trust securities in one undifferentiated pool with its general corporate assets and maintains no separate accounts. It says trust authority alone permits this. Which is correct?
- Trust authorization abolishes accounting duties
- Section 87 independently requires separate and distinct trust business, assets and accounts.
- Only the size of the pool matters
- General assets always become trust assets
- Only the entity’s name determines compliance
Legal references
- General Banking Law, RA 8791, Sections 3, 55, 87-88 and 92-93: https://lawphil.net/statutes/repacts/ra2000/ra_8791_2000.html
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