§412:5-205  Authority to engage in trust
business.  (a)  A bank may not engage in any activity requiring a charter
as a trust company under article 8 of this chapter, including without
limitation serving as trustee, personal representative, registrar or transfer
agent for stocks and bonds, guardian, agent, assignee, or receiver, or in any
other fiduciary capacity, unless it has received the approval of the
commissioner under this section.  If approved, the trust business may be
conducted through a subsidiary, division or department of the bank.



(b)  The bank shall file an application for
such approval with the commissioner on a form prescribed by the commissioner,
together with an application fee of $5,000, or such greater amount as the
commissioner shall establish, no part of which shall be refundable.  The
application shall contain the following information:



(1)  Appropriate board resolutions authorizing the
establishment of a trust company, division or department;



(2)  Employment history, education, management
experience, and other biographical information for all executive officers,
trust officers, and managers of the trust company, division or department;



(3)  Proposed policies concerning common trust funds,
overdrafts, disaster recovery plans, dividends, management of assets and
liabilities, conflicts of interest, investments, and fee schedules.  The
commissioner may consider any existing bank policies that will be adapted and
utilized for its trust business;



(4)  A business plan and financial projections
regarding profitability of the proposed trust business;



(5)  Evidence that the bank has or will have the
financial ability, responsibility, and experience to engage in the trust
business; and



(6)  Any other information which the commissioner may
require.



(c)  If the proposed trust business will be
conducted in a subsidiary of a bank, the application shall contain the
following additional information:



(1)  The name of the subsidiary, the location of its
principal office, and any lease agreements for such principal office;



(2)  Employment history, education, management
experience, and other biographical information for all directors of the
subsidiary; and



(3)  A proposed capital plan.



(d)  A bank engaging in the trust business
shall establish and maintain the same amount of capital and surplus required of
a trust company under article 3, in addition to any capital and surplus
required to engage in the business of a bank under this article.  A bank
engaging in the trust business shall also maintain the reserves required of a
trust company under section 412:8-202.



(e)  The commissioner's decision shall be in
the form of a written order, and if approved, may contain such conditions and
restrictions as may be in the public interest.  The application shall be approved
only if the commissioner is satisfied that the proposed trust business will not
jeopardize the safety and soundness of the bank; that the applicant has
sufficient capital, surplus, and cash reserves; that the proposed management of
the trust business is financially responsible, honest, and qualified; and that
the trust business will be carried on in a safe and sound manner.  If the
commissioner grants approval to a bank to carry on its trust business through a
subsidiary, the commissioner shall issue a trust charter to such subsidiary.



(f)  Any bank which is authorized to engage in
the trust business through a division or department of the bank shall maintain
books, records, and accounts for its trust business that are separate from its
banking business.



(g)  A bank which is authorized to engage in
the trust business through a subsidiary shall not be considered a trust holding
company under this chapter.



(h)  Any bank authorized to engage in the trust
business under this section with respect to such trust business shall also be
subject to all the provisions applicable to trust companies under article 8;
provided that if there is any conflict between the provisions of article 8 and
this article with respect to the operation of a trust business, the provisions
of article 8 shall control with respect to such trust business. [L 1993, c 350,
pt of §1]



 



Cross References



 



  Modification of fees, see §92‑28.