Question: What are the feature and requirement for operation of Trust Account?
Answer:
Features of Trust Account
i. Trustee can open the account in the name of Trust or in the name of Trustees.
ii. Trust property to be controlled for the benefit of beneficiary.
iii. Violation of Trust Rules/Deed by the Trustees is called Breach of Trust.
iv. A/C will be operated as per delegation laid down in the Trust Deed.
v. No Trustee can delegates his power fag 3rd party.
Operation of Trust Account
i. A/C will be operated & opened jointly.
ii. Cash Transaction should be done cautiously.
iii. Bankers should prefer open A/C in the name of Trust.
iv. In case of death, lunacy, retire or change of trustee, new trustee will be appointed in writing trustees should have financial soundness.
v. Bankers should have vigilant eye on ‘Brach of Trust’.
vi. No transfer from Trust A/C to personal A/C.
vii. Mark “Trust A/C” on Ledger boldly.
viii. No borrowing will be allowed without Head Office approval.
ix. There should always be a clause in the mandate binding the trustees to be jointly and severally liable to the Bank for any liability incurred by them in A/C.
Question: What are the requirements for opening and operation of Executors Account?
Answer:
I. Must produce Grant of Probate certified copy & scrutiny the same name & address of Executors.
II. Identify of Executors & Registered the probate with Branch.
III. List of Executors name with signature & account will be opened in Official Capacity.
IV. Executors power to open & operation of Banks Account.
V. AOF/SS Card/Photograph properly filled in.
VI. Not to mix with Personal Account.
VII. Mode of operation – jointly or all to sign.
VIII. After death/ retirement/ lunacy new Executors will be appointed as per Probate .
Question: What are the requirements for opening and operation of Administrator Account?
Answer:
I. Certified copy of Letter of Administration will be obtained & registered with Branch.
II. Request letter for open Bank Account.
III. Account opening & operation as per Letter of Administration. Administrator can only operate upon Account.
IV. Mode of operation should joint in case of several Administrators.
V. No mixing with personal Account.
VI. Administrators can not delegates his power to 3rd party.
Operation
I. Account will be operated as per Court Order.
II. Avoid Cash Transaction & should operate jointly.
III. No mixing with Personal Account.
IV. Combining of the Company Accounts may be done.
V. Liquidators can not delegate his power favouring 3rd party.
VI. No overdraft should be allowed.
VII. In case of death, Lunacy, Transfer or retirement, fresh liquidators appointment letter will be taken from the Court.
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