PART II. 
POWERS OF TRUST COMPANIES



 



§412:8-200  General powers.  (a)  Except
as expressly prohibited or limited by this chapter, a trust company shall have
the fiduciary powers specified in section 412:8-201, such powers as are granted
to trustees generally by law, such other powers usual and incidental to the
business of a trust company, and all rights, powers and privileges of a
corporation organized under the laws of this State including but not limited to
the power to:



(1)  Borrow money from any source within or without
the State; provided that a trust company shall not pledge or encumber any
client assets for the purpose of borrowing money for its own account or
benefit;



(2)  Enter into repurchase agreements; and



(3)  Make investments as permitted under this article.



(b)  Except as otherwise expressly authorized
by this chapter, a trust company shall not:



(1)  Issue bills of exchange or letters of credit;



(2)  Discount commercial paper;



(3)  Solicit, accept, or hold deposits;



(4)  Engage in a general banking, savings bank, or
savings and loan association business;



(5)  Engage in any business for which a real estate
broker's license is required, in any business for which an insurance producer
license is required, or in any business of a securities broker or dealer; and



(6)  Make any loans or extensions of credit to any
person; except, a trust company may:



(A)  Make loans to its affiliates not exceeding
in the aggregate amount twenty per cent of the trust company's capital and
surplus;



(B)  Make loans to its clients for the sole
purpose of preventing overdrafts in the client's account or accounts or
securing repayment of overdrafts in the client's account or accounts.  A trust
company may charge interest on such advances, subject to chapter 478.  A trust
company shall have a lien on the assets in the client's account or accounts for
the amount of the advance or credit and interest; and



(C)  Pay or advance premiums due and owing by
any person to an insurance company, before the payment by the person; provided
that the total amount of the payments and advances at any one time for the
benefit of any one person shall not exceed two per cent of the capital and
surplus of the trust company, and for the benefit of all such persons shall not
exceed fifteen per cent of the capital and surplus of the trust company. [L
1993, c 350, pt of §1; am L 1995, c 56, §1; am L 2003, c 212, §12]