"to exercise fiduciary powers, and grants you authority to act, when not in contravention of State or local law, as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies or other corporations which come into competition with national banks are permitted to act under the laws of the State of California, the exercise of all such rights to be subject to the provisions of the Federal Reserve Act and the regulations of the Board of Governors of the Federal Reserve System."This letter will be your authority to exercise the fiduci-ary powers granted by the Board pending the preparation of a formal certificate covering such authorization, which will be forwarded to you in due course."The Board's grant of fiduciary powers to you has been given on the assumption that The First National Bank of Santa Ana, California, will by appropriate proceedings be placed in voluntary liquidation as soon as it is possible to do so and the Board feels that, if you are tendered any of the trusts now held by such bank, you should carefully scrutinize their condition and that you should not accept any of such trusts which through their assumption may be detrimental to your interests."Approved unanimously.Letter to Mr* E. J. Walsh, Vice President, Third National Bank, Nashville, Tennessee, reading as follows:"Your letter of October 25, 1935, addressed to the Comptroller of the Currency, has been referred to the Board of Governors of the Federal Reserve System for reply. lou request advice as to whether an increase in the capital of the Third National Bank, Nashville, Tennessee, will make it necessary for the bank to increase its surplus in order to continue to exer-cise trust powers, in view of the provision of the laws of the State of Tennessee requiring a State bank to have a surplus 'equal to twenty per cent of its capital stock* to entitle it to receive appointment to *accept and execute trusts'."The records of the Board of Governors of the Federal Re-serve System show that, on July 21, 1927, the Third National Bank was granted permission to act in all of the fiduciary capacities authorized by section 11 (k) of the Federal Reserve Act and that, at the time of granting such permission, the bank had the capital and surplus required by that Act to exercisetrust power s.