Ask Reggi Your Question Now
Can you summarize 11 CORS Article 106?
Colorado Banking Code > FIDUCIARY BUSINESS
Short Summary
The provided legal document content pertains to the fiduciary business of state banks in Colorado. It states that a state bank is prohibited from acting as a fiduciary, except as an escrow agent, unless it is authorized by its charter or amendments to exercise trust powers. A bank acting as a fiduciary is granted the same investment powers as an individual fiduciary under similar circumstances. Unless otherwise provided by statute, a bank acting as a fiduciary has the same rights, powers, privileges, and obligations as an individual fiduciary. Additionally, a bank authorized to exercise fiduciary powers has the power to act as a fiduciary in any capacity, as well as perform functions such as registrar, transfer agent, attorney-in-fact, and managing sinking funds. The document also mentions the substitution of fiduciary business, outlining the scenarios where substitution is allowed, such as when the successor is a Colorado affiliate of the transferor, when the transferor is discontinuing its fiduciary business, or when there is a merger or consolidation. The document specifies the requirements for adoption of resolutions and proper notice for substitution, as well as the effective date of the substitution. Furthermore, the document highlights that Colorado banks and trust companies are permitted to invest and reinvest trust assets in securities of registered investment companies or investment trusts, even if they exercise investment discretion as a fiduciary. The document also references the duties of banks regarding uninvested or undistributed funds, which are governed by specific acts and standards. Overall, this document provides the legal framework for fiduciary business in Colorado state banks.
Whom does it apply to?
State banks
What does it govern?
Fiduciary business
What are exemptions?
Escrow agents are exempted from the prohibition on acting as fiduciaries without authorization.
What are the Penalties?
Penalties for non-compliance are not specified in the document.
Jurisdiction
Colorado