Section 11-1.6. Property held as fiduciary to be kept separate

(a) Every fiduciary shall keep property received as fiduciary separate
  from  his  individual  property.  He  shall  not  invest or deposit such
  property with any corporation or other person doing business  under  the
  banking  law,  or with any other person or institution, in his own name,
  but all transactions by him affecting such property shall be in his name
  as fiduciary; provided, however, that any bank or  trust  company,  when
  acting  as  fiduciary,  whether alone or jointly with an individual, may
  with the consent of the individual fiduciary,  if  any  (who  is  hereby
  authorized  to  give  such  consent),  register  and hold stock or other
  securities (referred to in this section as "securities") in the name  of
  the  nominee  of such bank or trust company; and provided, further, that
  any individual acting as fiduciary is authorized to direct any  bank  or
  trust  company  incorporated  under the laws of this state, any national
  bank located in this state or any private banker duly authorized by  the
  superintendent  of  banks of this state to engage in business here (who,
  as private banker, maintains a permanent capital of not  less  than  one
  million  dollars)  to  register and hold any securities in the name of a
  nominee of such bank, trust company or private banker  (referred  to  in
  this  section  as "bank"). Such bank shall not redeliver such securities
  to the individual fiduciary, who authorized their  registration  in  the
  name  of a nominee of the bank, without first registering the securities
  in the name of the individual fiduciary, as such. But, any sale of  such
  securities  by  the  bank  at  the direction of the individual fiduciary
  shall not be treated as a redelivery. The bank may make any  disposition
  of such securities which is authorized or directed by an order or decree
  of the court having jurisdiction of the estate or trust.
    (b) Any bank shall be absolutely liable for any loss occasioned by the
  acts of its nominee with respect to the securities so registered.
    (c)  The records of such bank shall at all times show the ownership of
  any such securities and of those held in bearer  form.  Such  securities
  and  those  held in bearer form shall at all times be kept separate from
  the assets of the bank and may be kept by such bank
    (A) in a manner such that all certificates representing the securities
  from time to time constituting the assets of a particular estate,  trust
  or  other  fiduciary  account  are held separate from those of all other
  estates, trusts or other fiduciary accounts; or
    (B) in a manner such  that,  without  certification  as  to  ownership
  attached,  certificates representing securities of the same class of the
  same issuer and from time to  time  constituting  assets  of  particular
  estates, trusts or other fiduciary accounts are held in bulk, including,
  to   the   extent   feasible,  the  merging  of  certificates  of  small
  denomination into  one  or  more  certificates  of  large  denomination,
  provided  that  a  bank,  when operating under the method of safekeeping
  security certificates described  in  this  subparagraph  (B),  shall  be
  subject to such rules and regulations as, in the case of state chartered
  institutions,  the  state  banking  board  and,  in the case of national
  banking associations, the comptroller of the currency may from  time  to
  time  issue.  Such  banks  shall, on demand by the fiduciary, certify in
  writing the securities held for such fiduciary.
    (d) Any person violating any of the provisions of this  section  shall
  be guilty of a misdemeanor.
    (e)  This  section  shall  apply  to  all  estates  and  trusts now in
  existence or which may hereafter come into existence.