71-4

71-4

San Francisco, California

October 1, 1971

Dear ____________:

This is with reference to your inquiry dated August 9, 1971.

As we understand the situation described in your letter, three attorneys who previously practiced as a partnership frequently acted as a Trustee in Bankruptcy. These attorneys have now formed a professional corporation. Your inquiry is whether this corporation can act as a Trustee in Bankruptcy without being subject to the jurisdiction of our Department.

The question from our point of view is not whether an individual or corporation is involved in these activities, but whether the activities mentioned in your letter constitute the doing of a trust business under Division 1 of the Financial Code.

After reviewing this matter we have concluded that these activities do not require licensing by our Department, inasmuch as a trustee in bankruptcy is appointed under authority of the federal courts, has well-defined duties established under federal law and is generally supervised by the federal courts.

Very truly yours,

DONALD E. PEARSON
Superintendent of Banks
By

LORRAINE A. SMITH
Counsel