§ 3-518. Registration of assets in name of nominee

   (a) Registration. -- A trust company may register in the name of a nominee any assets of a common trust fund that it administers.

(b) Nominee. -- The nominee may be either an individual or a partnership.

(c) Records and supervision. -- A trust company that registers assets in the name of a nominee shall:

   (1) Show the assets and the name of the nominee on its records; and

   (2) If the nominee is operated or controlled by the trust company, supervise any possession or control of the assets by the nominee.

(d) Liability. -- A transfer agent or registrar of a corporation whose stocks, bonds, securities, or other obligations are registered in the name of a nominee under this section is not required to investigate and may not be held liable for treating the nominee as the owner of the assets.

HISTORY: An. Code 1957, art. 11, § 62; 1980, ch. 33, § 2.