83-7

April 14, 1983

Dear Mr. ________ :

This is in reply to your letter of April 7, 1983.

The requirement of Financial Code Section 1562 that a commercial bank secure deposits made by its trust department applies only if the funds deposited consist of funds awaiting investment or distribution. The requirement does not apply if the deposit itself constitutes an investment of the funds.

If you require any additional information, please feel free to contact us.

Very truly yours,

HAROLD D. DOYLE
Acting Superintendent of Banks

By: Original Signed by James F. Carrig

JAMES F. CARRIG
Chief Counsel

JEC:ldc