State Codes and Statutes
Statutes > Utah > Title-07 > Chapter-05 > 7-5-17-5-1. Definitions -- Allowable trust companies -- Exceptions.
(1) As used in this chapter:
(a) "Business trust" means an entity engaged in a trade or business that is created by adeclaration of trust that transfers property to trustees, to be held and managed by them for thebenefit of persons holding certificates representing the beneficial interest in the trust estate andassets.
(b) "Trust business" means, except as provided in Subsection (1)(c), a business in whichone acts in any agency or fiduciary capacity, including that of personal representative, executor,administrator, conservator, guardian, assignee, receiver, depositary, or trustee under appointmentas trustee for any purpose permitted by law, including the definition of "trust" set forth inSubsection 75-1-201(53).
(c) "Trust business" does not include the following means of holding funds, assets, orother property:
(i) funds held in a client trust account by an attorney authorized to practice law in thisstate;
(ii) funds held in connection with the purchase or sale of real estate by a personauthorized to act as a real estate broker in this state;
(iii) funds or other assets held in escrow by a person authorized by the department inaccordance with Chapter 22 or by the Utah Insurance Department to act as an escrow agent inthis state;
(iv) funds held by a homeowners' association or similar organization to pay maintenanceand other related costs for commonly owned property;
(v) funds held in connection with the collection of debts or payments on loans by aperson acting solely as the agent or representative or otherwise at the sole direction of the personto which the debt or payment is owed, including funds held by an escrow agent for payment oftaxes or insurance;
(vi) funds and other assets held in trust on an occasional or isolated basis by a personwho does not represent that he is engaged in the trust business in Utah;
(vii) funds or other assets found by a court to be held in an implied, resulting, orconstructive trust;
(viii) funds or other assets held by a court appointed conservator, guardian, receiver,trustee, or other fiduciary if:
(A) the conservator, receiver, guardian, trustee, or other fiduciary is responsible to thecourt in the same manner as a personal representative under Title 75, Chapter 3, Part 5,Supervised Administration, or as a receiver under Rule 66, Utah Rules of Civil Procedure;
(B) the conservator, trustee, or other fiduciary is a certified public accountant or hasqualified for and received a designation as a certified financial planner, chartered financialconsultant, certified financial analyst, or similar designation suitable to the court, that evidencesthe conservator's, trustee's, or other fiduciary's professional competence to manage financialmatters;
(C) no trust company is willing or eligible to serve as conservator, guardian, trustee, orreceiver after notice has been given pursuant to Section 75-1-401 to all trust companies doingbusiness in this state, including a statement of the value of the assets to be managed. That noticeneed not be provided, however, if a trust company has been employed by the fiduciary to managethe assets; and
(D) in the event guardianship services are needed, the person seeking appointment as aguardian under this Subsection (1) is a specialized care professional, as that term is defined inSection 75-5-311, or a business or state agency that employs the services of one of thoseprofessionals for the purpose of caring for the incapacitated person, so long as the specializedcare professional, business, or state agency does not:
(I) profit financially or otherwise from, or receive compensation for acting in thatcapacity, except for the direct costs of providing guardianship or conservatorship services; or
(II) otherwise have a conflict of interest in providing those services;
(ix) funds or other assets held by a credit services organization operating in compliancewith Title 13, Chapter 21, Credit Services Organizations Act;
(x) funds, securities, or other assets held in a customer account in connection with thepurchase or sale of securities by a regulated securities broker, dealer, or transfer agent; or
(xi) funds, assets, and other property held in a business trust for the benefit of holders ofcertificates of beneficial interest if the fiduciary activities of the business trust are merelyincidental to conducting business in the business trust form.
(d) "Trust company" means an institution authorized to engage in the trust business underthis chapter. Only the following may be a trust company:
(i) a Utah depository institution or its wholly owned subsidiary;
(ii) an out-of-state depository institution authorized to engage in business as a depositoryinstitution in Utah or its wholly owned subsidiary;
(iii) a corporation, including a credit union service organization, owned entirely by oneor more federally insured depository institutions as defined in Subsection 7-1-103(8);
(iv) a direct or indirect subsidiary of a depository institution holding company that alsohas a direct or indirect subsidiary authorized to engage in business as a depository institution inUtah; and
(v) any other corporation continuously and lawfully engaged in the trust business in thisstate since before July 1, 1981.
(2) Only a trust company may engage in the trust business in this state.
(3) The requirements of this chapter do not apply to:
(a) an institution authorized to engage in a trust business in another state that is engagedin trust activities in this state solely to fulfill its duties as a trustee of a trust created andadministered in another state;
(b) a national bank, federal savings bank, federal savings and loan association, or federalcredit union authorized to engage in business as a depository institution in Utah, or any whollyowned subsidiary of any of these, to the extent the institution is authorized by its primary federalregulator to engage in the trust business in this state; or
(c) a state agency that is otherwise authorized by statute to act as a conservator, receiver,guardian, trustee, or in any other fiduciary capacity.
Amended by Chapter 301, 2003 General Session
