PART II. POWERS OF TRUST COMPANIES

 

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

(1)  Borrow money from any source within or withoutthe State; provided that a trust company shall not pledge or encumber anyclient assets for the purpose of borrowing money for its own account orbenefit;

(2)  Enter into repurchase agreements; and

(3)  Make investments as permitted under this article.

(b)  Except as otherwise expressly authorizedby 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, orsavings and loan association business;

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

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

(A)  Make loans to its affiliates not exceedingin the aggregate amount twenty per cent of the trust company's capital andsurplus;

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

(C)  Pay or advance premiums due and owing byany person to an insurance company, before the payment by the person; providedthat the total amount of the payments and advances at any one time for thebenefit of any one person shall not exceed two per cent of the capital andsurplus of the trust company, and for the benefit of all such persons shall notexceed fifteen per cent of the capital and surplus of the trust company. [L1993, c 350, pt of §1; am L 1995, c 56, §1; am L 2003, c 212, §12]