12 U.S.C. § 66 — Personal liability of representatives of stockholders

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in plain englishAI-generated · not legal advice

People who hold bank stock as an executor, administrator, guardian, or trustee aren't personally liable as stockholders. Instead, the estate or trust fund they manage is liable, to the same extent the actual owner would be if alive and able to hold the stock themselves.

This section protects people who hold bank stock only in a representative role. If someone holds stock as an executor, administrator, guardian, or trustee, that person is not personally subject to any liabilities as a stockholder. Instead, the liability falls on the estate or funds in that representative's hands. Those estates and funds are liable in the same way, and to the same extent, that the testator, intestate, ward, or other person whose interest is held in trust would be liable — if that person were alive, legally competent, and holding the stock in their own name.

the actual law source: uscode.house.gov ↗public domain

Persons holding stock as executors, administrators, guardians, or trustees, shall not be personally subject to any liabilities as stockholders; but the estates and funds in their hands shall be liable in like manner and to the same extent as the testator, intestate, ward, or person interested in such trust funds would be, if living and competent to act and hold the stock in his own name.

Source credit: (R.S. § 5152.)

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