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? 11. 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. IO. 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. Of course, any other arrangement, as long as it was fairly definite, would probably work out just as well. § 538. The Trust Committee The trust committee is composed of members of the board of directors of the bank or trust company. They are chosen by reason of their particular qualifications for this kind of work. The members of the trust committee should be successful business men whose judgment, as proved in their particular line of business, has been good. It is best to have men versed in different kinds of business, so that when any question is placed before them there is someone experienced along the particular line who can render an intelligent decision. One of the chief functions of the committee is to pass upon investments made by the trust department for estates for which the bank or trust company is acting as a fiduciary. The committee has nothing to do with the details relating to the conduct of the department. In some companies it passes upon the acceptance of business, but not in all. § 539. Duties of the Trust Officer The trust officer is responsible for the conduct of the entire department. He must be ready to interview customers and to advise on the different kinds of business transacted by the department. He should delegate certain work, as indicated in the chart, to his assistants, who in turn will be responsible to him for the work of these particular divisions with which they are charged. The trust officer should avoid, as much as possible, attending to the details, leaving these to his subordinates. It has been found well worth while for the trust officer to hold conferences with his assistants at stated times. In some cases where the volume of business is great, a conference takes place every morning; in other cases, once a week. Of course, all matters before they are accepted should be referred to the |