Current through Reg. 49, No. 38; September 20, 2024
(a)
Compliance required. A trust company may not deposit trust funds with itself as
an investment pursuant to Finance Code, §
RSA 184.301,
unless it first complies with this section and §
RSA
21.32 of this title (relating to Acceptance
of Trust Deposits).
(b) Notice of
activity. At least 30 days before accepting trust deposits, a trust company
shall file a notice with the banking commissioner containing the following
information, together with the filing fee required by §
RSA
21.2 of this title (relating to Filing and
Investigation Fees):
(1) an estimate of the
anticipated dollar volume of trust deposits, an estimate of the maximum trust
deposit for any one account, and an estimate of the total number of accounts
that will invest in trust deposits;
(2) a copy of the added or revised portion of
the trust company's strategic plan that addresses the acceptance of trust
deposits, in compliance with Texas Department of Banking Policy Memorandum
Number 1009, regarding strategic plans;
(3) if trust deposits are to be insured by
the Federal Deposit Insurance Corporation (FDIC), or its successor, evidence of
such insurance;
(4) if trust
deposits are to be secured by a pledged fund of securities:
(A) a description of the initial fund of
securities securing the anticipated trust deposits, including disclosure of
current market value and an evaluation of the securities under the standards of
Finance Code, §
RSA
184.101(e); and
(B) identification of the federal reserve
bank, state or nationally chartered depository institution, or clearing
corporation, that controls the securities pledged against the trust deposits
and a copy of the executed pledge agreement with such institution;
(5) if trust deposits are to be
secured by a pledged certificate of deposit:
(A) evidence of the certificate of deposit
that discloses its value and associated costs, including penalties, for early
redemption or withdrawal; and
(B)
identification of the FDIC-insured depository institution that issued the
certificate of deposit, a copy of the executed pledge agreement with such
institution, and an acknowledgment of the pledge from the issuing
institution;
(6) a
certified copy of a board resolution directing management of the trust company
to:
(A) maintain adequate security and/or
FDIC insurance to fully secure and/or insure the trust deposits; and
(B) maintain adequate policies, procedures,
and records regarding trust deposits; and
(7) such other information that the banking
commissioner may reasonably request.
(c) Action by banking commissioner.
(1) The trust company may begin accepting
trust deposits on the 31st day after the date the banking commissioner receives
the trust company's completed notice letter unless the banking commissioner
specifies an earlier or later date, requests additional information, or
prohibits the activity as provided in this subsection. The banking commissioner
may prohibit the trust company from accepting trust deposits only if the
banking commissioner concludes that:
(A) the
trust deposits would not be fully insured or secured as required by Finance
Code, §
RSA 184.301, and
this section;
(B) the activity
would adversely affect the safety and soundness of the trust company;
(C) the trust company has a less than
satisfactory rating as of the trust company's most recent examination;
or
(D) the trust company is subject
to an enforcement order issued pursuant to Finance Code, Chapter 185, or is not
otherwise operating in substantial compliance with all applicable state and
federal laws and regulations.
(2) The banking commissioner may extend the
30-day period under paragraph (1) of this subsection if the banking
commissioner determines that the trust company's notice raises issues requiring
additional information or additional time for analysis. If the 30-day period is
extended, the trust company may accept trust deposits only on prior written
approval by the banking commissioner, except that the banking commissioner must
approve or prohibit the proposed activity or convene a hearing under Finance
Code, §
RSA
181.201, not later than the 60th day after
the date the banking commissioner receives the trust company's notice. If a
hearing is convened, the banking commissioner must approve or prohibit the
proposed activity not later than the 30th day after the date the hearing is
completed.
(3) A trust company that
is denied the right to accept trust deposits by the banking commissioner under
this section may appeal as provided by Finance Code, §§
RSA
181.202-RSA
181.204, or may file a new notice under this
section with additional information relevant to the banking commissioner's
determination, with applicable filing fee.
(d) Authority to accept trust deposits. Only
a trust company which transacts business with the public may deposit trust
funds with itself as an investment pursuant to Finance Code, §
RSA 184.301. An
exempt trust company under Finance Code, §§
RSA
182.011-RSA 182.019, may
not accept trust deposits.
(e)
Records. A trust company shall maintain written documentation adequate to
demonstrate compliance with this section, which documents must be available at
all times to the department for examination and review. For purposes of this
subsection, required documentation need not be retained beyond three
years.
