Pennsylvania Act 1935-201 — FIDUCIARIES, STAY OF SUITS AGAINST

Act text

FIDUCIARIES, STAY OF SUITS AGAINST
                  Act of Jul. 2, 1935, P.L. 524, No. 201              Cl. 07
                                  AN ACT

     Authorizing courts to stay suits or proceedings brought against
        any corporate fiduciary to enforce payment of cash by the
        fiduciary, for the reason that it has made and carried a
        trust investment solely in its corporate name on the public
        records, provided such investment has been kept separate and
        apart from its corporate assets by the fiduciary, and clearly
        designated on its records as the property of the trust
        estate.

        Be it enacted, &c., as follows:
        Section 1.  In any suit, action or proceeding hereafter
     commenced to enforce the payment of cash by a bank, bank and
     trust company, or a trust company, acting as fiduciary by reason
     of the fact that any mortgage upon real estate securing a bond,
     or real estate acquired thereunder constituting a trust
     investment has been carried in the name of such corporate
     fiduciary on the public records, the court having jurisdiction
     over such suit, action or proceeding may, upon such terms and
     conditions as to it seem necessary and proper under the
     circumstances of each case, stay such suit, action or
     proceeding, for a period not exceeding two years from the
     effective date of this act, upon petition of the corporate
     fiduciary, showing the investment to have been made in good
     faith for the account of the cestuis que trustent, and otherwise
     in compliance with law, and that such investment has been kept
     separate and apart from the corporate assets of the fiduciary on
     its own books and records, and clearly designated thereon as the
     property of the cestuis que trustent.
        Section 2.  In exercising the powers conferred by this act,
     the courts shall have the discretion of a chancellor sitting in
     equity. It shall be a sufficient reason for the grant of a stay
     that the proceeding would work serious inequity by reason of the
     economic emergency, and the right to stays on writs of execution
     under existing laws.
        Section 3.  This act shall not in any manner alter, limit or
     repeal any rights or powers heretofore or hereafter granted to
     banks, banks and trust companies, and trust companies respecting
     the investment of fiduciary funds in mortgage or securities
     pools, or participations therein.
        Section 4.  If any clause, phrase, section, or part of this
     act is held by any court to be unconstitutional, such ruling
     shall not affect the validity of the remaining or other portions
     of this act; it being the legislative intent that the provisions
     of this act are severable.
        Section 5.  All acts or parts of acts inconsistent herewith
     are suspended while this act is in effect.
        Section 6.  This act shall become effective immediately upon
     final passage by the Legislature and approval by the Governor.