Current through Register Vol. 54, No. 12, March 23, 2024
(a)
The responsibility of the board of directors and the administration of accounts
shall be as follows:
(1)
Responsibility of the board of directors. The board of
directors is responsible for the proper exercise of fiduciary powers by the
association. All matters pertinent thereto, including the determination of
policies, the investment and disposition of property held in a fiduciary
capacity, and the direction and review of the actions of all officers, employes
and committees utilized by the association in the exercise of its fiduciary
powers are the responsibility of the board. In discharging this responsibility,
the board of directors may assign, by action duly entered in the minutes, the
administration of such of the association's trust powers as it may consider
proper to assign to such director, officer, employe, or committee as it may
designate.
(2)
Administration of accounts. No fiduciary account shall be
accepted without the prior approval of the board or of the director, officer,
or committee to whom the board may have assigned the performance of that
responsibility. A written record shall be made of such acceptances and of the
relinquishment or closing out of all fiduciary accounts. Upon the acceptances
of an account for which the association has investment responsibilities, a
prompt review of the assets shall be made. The board shall also ensure that at
least once during every calendar year thereafter, and within 15 months of the
last review, all the assets held in or for each fiduciary account for which the
association has investment responsibilities are reviewed to determine the
advisability of retaining or disposing of such assets. The board of directors
should act to ensure that all investments have been made in accordance with the
terms and purposes of the governing instrument.
(b) The trust department may utilize
personnel and facilities of other departments of the association, and other
departments of the association may utilize personnel and facilities of the
trust department only to the extent not prohibited by law.
(c) Every association exercising fiduciary
powers shall designate, employ, or retain legal counsel who shall be readily
available to pass upon fiduciary matters and to advise the association and its
trust department.
(d) All
institutions shall meet the minimum bond coverage set out in the regulations of
the Federal Savings and Loan Insurance Corporation,
12 CFR
563.19. In addition, directors, officers, and
employes of an association engaged in the operation of a trust department shall
acquire such additional bond coverage as the Department may require.
