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Can you summarize 28 ARCO Chapter 69, Subchapter 2?
Fiduciaries Generally > Banks and Trust Companies
Short Summary
This legal document governs fiduciary relationships for banks and trust companies. It covers various aspects such as the Uniform Common Trust Fund Act, foreign banks and trust companies as fiduciaries, and limited relaxation of the prudent person rule for fiduciaries and financial institutions. The document also mentions the effective dates of different acts related to fiduciary relationships. Acts from 1947 and 1985 address the use of a single common trust fund for the benefit of fiduciaries and beneficiaries. An emergency clause is declared in both acts, stating the necessity for the immediate preservation of public peace, health, and safety. Another act from 1989 authorizes banks located in Arkansas to utilize their affiliates to perform services for a trust administered by the banks, aiming for efficiency and economy. The act also declares an emergency and is immediately necessary for the preservation of public peace, health, and safety. The document further defines the term ‘fiduciary’ to include various roles such as trustee, executor, administrator, guardian, curator, agent, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, officer of a public or private corporation, public officer, nominee, or any other person acting in a fiduciary capacity. It also governs the establishment and operation of common trust funds by banks and trust companies, allowing them to invest funds lawfully held for investment in such funds. The document specifies that the bank or trust company operating common trust funds is not required to render a court accounting, unless ordered by a court of competent jurisdiction. It also governs the handling of investments held in fiduciary capacity, allowing banks and trust companies to register and hold investments in the name of a nominee or nominees. The document establishes that any loss caused by the acts of the nominees will result in absolute liability for the bank or trust company. However, no liability will be imposed on any corporation or its transfer agent or registrar that registers its stock or other securities in the name of the bank or trust company or its nominee. Additionally, the document allows funds belonging to banks, trust companies, and fiduciaries to be invested in obligations issued, assumed, or guaranteed by international development banks. It also governs the deposit of funds held as trustees by banks or savings and loan associations, allowing them to deposit the funds in their commercial department under certain conditions. Finally, the document authorizes banks and trust companies to utilize their affiliates to provide services for trusts or estates for which they act as trustees or fiduciaries, as long as the services are reasonably necessary and can be rendered competently. The compensation charged by the affiliate should be equal to or less than that charged by nonaffiliates, and no specific approval or consent is required unless expressly withheld in the trust instrument.
Whom does it apply to?
Banks, trust companies, fiduciaries, financial institutions
What does it govern?
Fiduciary relationships for banks and trust companies
What are exemptions?
No specific exemptions or penalties are mentioned in this document.
What are the Penalties?
No specific penalties for non-compliance or violation are mentioned in this document.
Jurisdiction
Arkansas