Current through Register Vol. 24-06, March 15, 2024
(1)
(a) The
board of directors is responsible for the proper exercise of fiduciary powers
by the trust company. 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, employees, and committees utilized by the trust company 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 trust company's
fiduciary powers as it may consider proper to assign to such director(s),
officer(s), employee(s) or committee(s) as it may designate.
(b) No fiduciary account shall be accepted
without the prior approval of the board, or of the director(s), officer(s) or
committee(s) to whom the board may have designated 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 acceptance of
an account for which the trust company 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, all the assets held in or for each
fiduciary account where the bank has investment responsibilities are reviewed
to determine the advisability of retaining or disposing of such
assets.
(2) All officers
and employees taking part in the operation of the trust department shall be
adequately bonded.
(3) Every
qualified fiduciary subject to this regulation and exercising fiduciary powers
in this state shall designate, employ or retain legal counsel who shall be
readily available to pass upon fiduciary matters and to advise the trust
company and its trust department.
(4)
(a) The
trust department may utilize personnel and facilities of other departments of
the trust company or its affiliates, and other departments of the trust company
may utilize the personnel and facilities of the trust department or its
affiliates only to the extent not prohibited by law and as long as the separate
identity of the trust department is preserved.
(b) Agency agreements. Pursuant to a written
agreement, a trust company exercising fiduciary powers may perform services
related to the exercise of fiduciary powers for another trust company or other
entity, and may purchase services related to the exercise of fiduciary powers
from another trust company or other entity.
(5) Fiduciary records shall be kept separate
and distinct from other records of the trust company and maintained in
compliance with the provisions of RCW 30.04.240. All fiduciary records shall be
kept and retained for such time as to enable the fiduciary to furnish such
information or reports with respect thereto as may be required by the
director.
(6) Every such fiduciary
shall keep an adequate record of all pending litigation to which it is a party
in connection with its exercise of fiduciary powers.
Statutory Authority: RCW 30.04.030 and
43.320.040. 00-17-141, amended and
recodified as §
208-536-020, filed 8/22/00,
effective 9/22/00. Statutory Authority:
RCW
43.320.010, 43.329.040 and 30.04.030.
99-01-119, § 50-36-020, filed 12/18/98, effective 1/18/99; Order 22,
§ 50-36-020, filed 8/14/73.
