transfer agency frequently carries with it a deposit account which is, of course, valuable and adds to the attractiveness of the business.

REVIEW QUESTIONS

1. What are the duties of a transfer agent? What is the procedure when shares of stock are sold? What are the books kept by a transfer agent?

2. Why do small corporations not require a transfer agent? Why do the largest corporations maintain their own transfer offices? 3. What are the reasons for employing banks and trust companies as transfer agents?

4. Why do banks and trust companies investigate carefully before accepting a transfer agency or registrarship? What papers are filed before a bank acts as transfer agent for a corporation?

5. Who has charge of the book of stock certificates? What is the first duty of the transfer agent? What does the transfer agent do with funds as received? Can the trust department hold funds subject to check?

6. What is the transfer agent's book of original entry? To what books are these entries posted? What is the federal tax on original issues of stocks on transfer? What tax laws has your state as to original issues and transfers? How is the signature of the transferor proved?

7. When stock belonging to an estate is to be transferred, what must the transfer agent require to make the transfer safe? When is it necessary to have a waiver of notice from the state comptroller? Why does a transfer agent want to be sure that the 60-day notice has been filed with the collector of internal revenue for the district? If the corporation whose stock is to be transferred was incorporated in another state, what caution is necessary? Why should the transfer agent have laws of all the states accessible? Who signs the certificates belonging to an estate? When is a decree of the court of probate needed? In case of a specific legacy of stock, what is needed? 8. When are lists of stockholders required? What fixes the date of a dividend?

9. What is the function of the registrar of stock? What do the rules of the New York Stock Exchange require?

10. What is the object of having a registrar of stock? Does a bank exercise caution as to undertaking the registrarship of a corporation?

II. What are the usual fees charged in your locality for services as

transfer agent and registrar?

CHAPTER LXII

ORGANIZATION OF A TRUST DEPARTMENT OF

A BANK OR TRUST COMPANY

§ 537. Divisions of a Trust Department

It is well in connection with the work of this or any other department of a bank or trust company, to have the functions performed by the department laid out on a chart, and to follow the divisions of the work thus laid out as closely as possible. A typical trust department would include the following divisions:

1. Corporate trust division

2. Reorganization division

3. Personnel division

4. Transfer and registration division.

5. Fiscal agent division

6. Personal trust division

7. Custodies and safe-keeping division

8. Accounting division

9. Bond and mortgage division

10. Real estate division

These in turn will be divided in accordance with the work to be done in each particular division, but this will be more clearly shown in the accompanying charts and those shown in Form 25. There will be one or more officers in charge of the work, depending on the size of the bank and the volume of business transacted. If business is transacted with all of the different divisions shown in the chart, it will be necessary to

have one officer in charge and two or three assistants to handle the work in each division.

The chart here shown is of a moderate sized trust department, outlined as far as executives are concerned. (The complete charts of a bank organization will be found under Form

25.) In this case there is a trust officer in charge of the entire department, and three assistant trust officers.

One has the custodies division, personal trust division, bond and mortgage division, and real estate division under his supervision.

Another has the corporate trust division, reorganization division, and personnel division.

The other has the fiscal agent division, transfer and registration division, and trust accounting division under his supervision.