6-851

6-851. Definitions

A. In this chapter, unless the context otherwise requires:

1. "Trust business" means the holding out by a person to the public at large by
advertising, solicitation or other means that such person is available to act as a
fiduciary in this state and accepting and undertaking to perform the duties as such
fiduciary in the regular course of his business.

2. "Trust company" means a corporation holding a certificate issued under this
article.

B. In this article, unless the context otherwise requires:

1. "Agent" means a person who receives compensation to regularly perform services
specifically related to the conduct of the trust business.

2. "Asset" means any property or property right held by a licensee for the benefit
of another.

3. "Capital" means the total of outstanding common stock, preferred stock and
surplus and undivided profits.

4. "Certificate" means a certificate of authority issued under the provisions of
this chapter to engage in trust business.

5. "Contingency plan" means a document stating a trust company's means of
conducting business and preserving records in the event of any power outage, flood or
other physical emergency.

6. "Discretionary assets" means those assets in which the trust company has the
unilateral authority to determine investment strategies and execute investment
transactions without seeking the concurrence, approval or authority from the customer or
any other external party.

7. "Fiduciary" means a personal representative, administrator, guardian,
conservator, trustee, agent or other person who acts in a fiduciary capacity and who is
not exempt by section 6-852.

8. "Impaired" or "insolvent" means the trust company does not possess assets that
are at least equal to liabilities, required reserves and total issued and outstanding
capital.

9. "Liquid capital" means capital in the form of certificates of deposit issued by
banks, savings banks or savings and loan associations doing business in this state and
insured by the federal deposit insurance corporation or any successor institution or
direct obligations of the United States government with maturity of not more than five
years.

10. "Nondiscretionary assets" means those assets for which the trust company must
obtain from the customer, broker or investment advisor specific direction and
instructions regarding both investment strategies and investment executions.

11. "Surplus" means the total amount paid by shareholders in excess of the par or
stated value of the shares of capital stock of a trust business in consideration for the
shares.