76-1

76-1

May 11, 1976

Re: ________

Dear Mr. ________:

This is in reply to your letter of April 5, 1976.

In our view, acting as trustee under deeds of trust given solely for the purpose of securing obligations for the repayment of money other than corporate bonds is a function that a commercial bank which is not authorized to transact trust business, may perform. Therefore, a commercial bank may, subject to the requirements and restrictions of Financial Code Section 772, acquire and hold the stock of one or more corporations which engage in the business of acting as trustee under deeds of trust given solely for the purpose of securing obligations for the repayment of money other than corporate bonds.

Please contact the Department’s Los Angeles Office for instructions which ________ should follow in submitting an application for the approval of the Superintendent pursuant to Financial Code Section 772.

Very truly yours,

CARL J. SCHMITT
Superintendent of Banks

By

JAMES F. CARRIG
Counsel

JFC:nd

cc: State Banking Department, L.A.