What is the role of the custodian bank in the trust?

The basic duty of a trust company is to prevent the trust funds from being misappropriated by the trust company and ensure that the trust funds are used according to the purposes agreed in the trust documents. According to the law, the custodian bank mainly performs the following duties in the process of trust and investment:

1. Take good care of the trust property.

2. Set up separate accounts for different trust plans to ensure the independence of trust property.

3. Confirm and implement the instructions on the management and use of trust property, and check the transaction records, funds and property accounts of trust property.

4. Record the distribution of trust funds and keep the instructions for the use of trust funds.

5. Submit the custody report to the trust company on a regular basis. This is the role of the custodian bank in trust; The introduction of custodian bank is more conducive to the bank to monitor the flow of funds and whether the project party uses funds according to regulations, thus effectively controlling the risk of trust funds.

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