Application for authorization to engage in trust business -- Criteria for granting -- Authority of trust company.

Checkout our iOS App for a better way to browser and research.


  • (1) A person seeking authorization to become a trust company and engage in the trust business in this state shall file an application with the commissioner in the manner provided in Section 7-1-704, and shall pay the fee prescribed in Section 7-1-401.
  • (2) The commissioner shall, in deciding whether or not to approve the application, take into account:
    • (a) the character and condition of the applicant's assets;
    • (b) the adequacy of its capital;
    • (c) its earnings record;
    • (d) the quality of its management;
    • (e) the qualifications of any person proposed to be an officer in charge of the trust operations;
    • (f) the needs of the community for fiduciary services;
    • (g) the volume of business that the applicant will probably do; and
    • (h) any other relevant facts and circumstances, including the availability of legal counsel to advise and pass upon matters relating to the trust business.
  • (3) The commissioner may not apply criteria making it more difficult for a state chartered depository institution to obtain approval to engage in the trust business than for a federally chartered depository institution of the same class.
  • (4) The commissioner may impose such conditions when authorizing a person to engage in the trust business as he considers appropriate to protect the public interest.
  • (5) Upon receiving authorization from the commissioner to become a trust company and engage in the trust business, the trust company is qualified to act as fiduciary in any capacity without bond.




Download our app to see the most-to-date content.