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Transfer of Securities Public Trustee

payment, sale, deed and account

TRANSFER OF SECURITIES (PUBLIC TRUSTEE). In addition to the information given under PUBLIC TRUSTEE (q.v.) regard ing the powers and ?duties of the Public Trustee, bankers should note the somewhat peculiar practice of the Department in connection with the transfer of securities. ' • By Rule 25 of the Statutory Rules and Orders, 1907 :— " (1) No transfer by the Public Trustee of any securities or assurance by him of any land forming part of the trust property shall be made except under the hand and official seal of the Public Trustee, or under the hand and seal of an officer of the Public Trustee au thorised in writ ing by him to act in that behalf either generally or in any particular case.

" (2) Any such transfer or assurance by an officer so authorised shall have the same effect as if the same were made by the Public Trustee under his hand and official seal." Sales and purchases of investments are made only upon the written order of the Public Trustee.

Where registered stocks are to be trans ferred to the Public Trustee, the deed of transfer is signed by the Public Trustee. If there are several accounts in his name, each account is car-marked by a name, a letter, a figure, or a combination thereof. The ear-marking is added to the deed of transfer in the Department of the Public Trustee. The object of the ear-mark is to enable the Public Trustee to identify each holding with the particular trust to which it belongs. In the case of a joint account in the names of the Public Trustee and another person, no ear-marking is necessary as the additional name is sufficient identifi cation, but if there arc two or more joint accounts in the same names it is requisite to ear-mark them.

Banks and other companies recognise this practice, and make out separate dividend warrants for each account.

When a sale or transfer of registered stock takes place, the deed of transfer is executed by the Public Trustee. Upon a sale, the Public Trustee requires payment of the proceeds by means of a banker's draft. Upon a purchase, payment is made by the Public Trustee only when a duly certified transfer, or an executed transfer with the relative certificate attached, is delivered at the Securities Department of the Public Trustee Office or at a bank, as may be arranged.

In connection with the purchase or sale of bearer securities the Public Trustee may, upon a sale, request a banker to surrender such securities against payment of the proceeds, and, upon a purchase, may request him to make payment therefor upon delivery of the securities.

In the case of inscribed stocks, no regis tering authority will accept stock on behalf of the Public Trustee unless the sanction of the Public Trustee is first obtained. This sanction is given in a form of lodgment, signed by the Public Trustee or one of the principal clerks. The form is as follows :—