Delaware General Assembly


CHAPTER 164 - BANKS, SAVINGS SOCIETIES AND TRUST COMPANIES PROVIDING THAT UNINVESTED FUNDS HELD BY A TRUST COMPANY ACTING IN A FIDUCIARY CAPACITY SHALL BE A PREFERRED CLAIM OVER ALL UNSECURED CLAIMS

AN ACT TO AMEND CHAPTER 66 OF THE REVISED CODE OF DELAWARE, 1935, BY PROVIDING THAT UNINVESTED FUNDS HELD BY A TRUST COMPANY ACTING IN A FIDUCIARY CAPACITY SHALL BE A PREFERRED CLAIM OVER ALL UNSECURED CLAIMS.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Chapter 66 of the Revised Code of Delaware, 1935, be and the same is hereby amended by striking out and repealing all of 2392. Sec. 135 and inserting in lieu thereof a new Section, to be styled 2392. Sec. 135. as follows:

2392. Sec. 135. Uninvested Funds Held on Deposit by a Trust Company Acting in Fiduciary Capacity Shall be a Preferred Claim:--When a trust company shall act under appointment covered by the provisions of Section 134 of this Article and shall hold on deposit uninvested funds as a part of its deposit liabilities for the account of the estate for which it is acting under such appointment the liability of such institution to the estate entitled to such uninvested funds shall be at all times a preferred claim superior to all unsecured claims of other creditors including depositors of such institution; provided that this act shall not be construed to subordinate the security of any secured creditor of any such institution to the preference hereby accorded to the deposits of any such estate.

Approved April 9, 1945.