Banking
The banking functions of trust companies may include any or all of the following:
The receipt of money deposits payable on demand and subject to check, or payable at a fixed date, or according to special agreement. Interest is usually allowed on all deposits above a fixed maximum amount or on the total sum.
Money advances secured by the hypothecation of stocks, bonds, life insurance policies, bonds and mortgages, or other personal property.
Real estate loans, secured by bond and mortgage. It is customary to loan not over two-thirds of the value of improved property; when the property is unimproved, not more than half.
Discounting paper is engaged in principally by companies transacting a commercial banking business. The purchase of unsecured paper is permitted in some states where discounting is not allowed.
The purchase and sale of securities.
Trust companies sometimes guarantee issues of bonds, or at least set their stamp of approval upon them.
The issue or guarantee of letters of credit, and the transaction of a foreign exchange business.
The care of savings deposits. For this purpose a separate department is usually maintained.