Majority
p. 713In the Matter of the Construction of the Will of Robert M. Pettit, Deceased. Surrogate’s Court, New York County, March 13, 1956.
Hervey, Barber & McKee for Bankers Trust Company, as trustee, petitioner.
Francis R. Curry, special guardian for Sarah W. Pettit and another, infants, respondents.
In this proceeding the court is called upon to construe the testator’s direction, in a will admitted to probate in 1930, that his trustees invest “ in such securities and investments as are recognized by the law of the State of New York relating to investments by trustees and savings banks.”
p. 714
As a result of a recent modification, it has been held that section 235 of the Banking Law, which regulates investments by savings banks, cannot govern trust investments. (Matter of Peck, 199 Misc. 1051 ; Matter of Uhlich, 123 N. Y. S. 2d 891 ; Matter of Walbridge, 138 N. Y. S. 2d 847 ; Matter of Daly, 203 Misc. 851 ; Matter of Rosenblum, 132 N. Y. S. 2d 604 , mod. on other grounds 137 N. Y. S. 2d 479 ; Matter of Brown, 1 Misc 2d 234 .) So long as “ the law of New York relating to # * * savings banks ” remains inapplicable, the trustees are confined to the other category of investments provided in the will, those the law renders eligible for trustees. Accordingly they may invest in the “ securities and investments ” authorized by law for testamentary trustees at the time of the investment. (Personal Property Law, § 21.)
Submit decree on notice construing the will accordingly.
Cases cited
- In re the Accounting of Bank of New York & Fifth Avenue Bank 199 Misc. 1051 p. 714
- In re the Accounting of Bankers Trust Co. 203 Misc. 851 p. 714
- In re the Accounting of City Bank Farmers Trust Co. 1 Misc 2d 234 p. 714