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Can you summarize 5 ALCA Chapter 11A?
BANKS AND FINANCIAL INSTITUTIONS. > REGULATION OF TRUST BUSINESS OF BANKS AND TRUST COMPANIES.
Short Summary
This legal document, found in the Code of Alabama under the section ‘Regulation of Trust Business of Banks and Trust Companies,’ governs the deposit of security for the operation of trust businesses by corporations organized and operating as trust companies or banks authorized to do a trust business. These entities are required to deposit certain types of bonds, notes, debentures, Alabama bonds, bonds of any city or county in Alabama, or mortgages that are first liens on real estate in the state. The value of the deposit must be double the face value of the mortgage and not less than $25,000. The deposit can be increased, reduced, or withdrawn, provided that the trust companies or banks have made final settlement and accounted for all assets in their possession. When appointed as a guardian, administrator, executor, receiver, trustee, or other fiduciary by a judge, the bank or trust company must be certified to the State Treasurer, who will charge the liability under the appointment against the deposit. This document does not mention any specific exemptions or penalties.
Whom does it apply to?
Corporations organized and operating as trust companies or banks authorized to do a trust business
What does it govern?
Deposit of security for the operation of trust businesses
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Alabama