Question

Federal statute 12 USC 61 prohibits a national bank as trustee from voting shares of its own stock _____________.

1) in all circumstances.
2) only where there are non-routine or controversial issues to be voted on.
3) unless the bank as fiduciary first polls the beneficiaries for instructions on how it should vote the stock.
4) in the election of bank directors.
5) only when such prohibition is contained in the governing instrument.

Answer 1

Federal statute 12 USC 61 prohibits a national bank as trustee from voting its own stock in the election of bank directors to avoid conflicts of interest.

Step-by-step explanation:

The answer to the student's question regarding Federal statute 12 USC 61 and a national bank's ability to vote its own shares is that it prohibits a national bank as trustee from voting shares of its own stock in the election of bank directors. The prohibition is specific to this context to prevent conflicts of interest and ensure that the bank operates with a degree of independence in its governance.