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For example, private property may not be confiscated, and there is an obligation to paycompensation for requisitions of private property. 316 On the other hand, public propertygenerally may be seized or captured without any obligation to pay compensation. 31711.18.4.1 Beneficial Ownership Test. Under modern conditions, the distinctionbetween public and private property is not always easy to draw. For the purpose of treatment ofproperty under military occupation, it is often necessary to look beyond strict legal title and toascertain the character of the property on the basis of the beneficial ownership thereof. Thus, forexample, trust funds, pension funds, and bank deposits generated by private persons are not to beregarded as public property simply by reason of their being held by a State-owned bank. 31811.18.4.2 Property of Mixed Ownership. For the purpose of determining whattype of control the Occupying Power may exercise over property (by way of confiscation,seizure, requisition, etc.), the most cogent evidence of public character is such a complete orpartial assumption by the State of the economic risk involved in the holding and management ofthe property in question that the enemy State, rather than private individuals or corporations,would be subjected to a substantial portion of the loss were the property to be appropriated forthe use of the Occupying Power. 319 Should property that is ostensibly private be subjected to alarge measure of governmental control and management, or perform functions that areessentially public, these facts would tend to indicate that the property should be regarded inpractice as public. 320If property that is appropriated by the Occupying Power is beneficially owned in part bythe enemy State and in part by private interests, the occupation authorities should compensate theprivate owners to the extent of their interest. Such compensation should bear the samerelationship to the compensation that would be paid if the property were entirely privately316 Refer to § 11.18.6.1 (Prohibition on Confiscation of Private Property in Occupied Territory); § 11.18.7.3 (Pricesand Compensation for Requisitioned Articles and Services).317 Refer to § 11.18.5 (Treatment of Enemy Public Property).318 1956 FM 27-10 (Change No. 1 1976) 394a (“Beneficial Ownership. Under modern conditions, the distinctionbetween public and private property is not always easy to draw. For the purpose of treatment of property underbelligerent occupation, it is often necessary to look beyond strict legal title and to ascertain the character of theproperty on the basis of the beneficial ownership thereof. Thus, for example, trust funds, pension funds, and bankdeposits generated by private persons are not to be regarded as public property simply by reason of their being heldby a State-owned bank.”).319 1956 FM 27-10 (Change No. 1 1976) 394b (“Property of Mixed Ownership. For the purpose of determiningwhat type of control the occupant may exercise over property (by way of confiscation, seizure, requisition, etc.), themost cogent evidence of public character is such a complete or partial assumption by the State of the economic riskinvolved in the holding and management of the property in question that the State, rather than private individuals orcorporation, would be subjected to a substantial portion of the loss were the property to be appropriated for the useof the occupant.”).320 1956 FM 27-10 (Change No. 1 1976) 394b (“Should property which is ostensibly private be subjected to a largemeasure of governmental control and management or perform functions which are essentially public, these factswould tend to indicate that the property should be regarded in practice as public.”).791