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Can you summarize IC 28-1-12?
DEPARTMENT OF FINANCIAL INSTITUTIONS > Regulation of Bank and Trust Company Fiduciaries
Short Summary
This legal document, governed by the Indiana Code, provides the authority for courts or officers to appoint a bank or trust company as a fiduciary in various proceedings or actions. The document outlines the criteria for qualification, including being organized under specific provisions, being a national bank authorized to act as a fiduciary, or being organized and doing trust company business under the laws of a specified state or territory. It also allows a bank or trust company from another state to establish a place of business or agency in Indiana for fiduciary activities, subject to approval. The document further states that appointed fiduciaries are subject to the orders, judgments, and decrees of the court and must provide required accounts, statements, and reports. Another section of the document governs the establishment and maintenance of trust departments by banks or trust companies. It requires separate books and accounts for the trust department and segregation of securities and property held by the trust department. The document also allows for the deposit of securities held as a fiduciary in a clearing corporation and the use of the Federal Reserve Book-Entry procedure for United States government securities. It permits banks or trust companies to invest in securities of registered investment companies or trusts, even if they provide services to the investment company or trust. The document also prohibits banks or trust companies from taking or receiving any profit or commission from sales or purchases to or from any estate, guardianship, or trust, unless specifically authorized. Violation of this provision may result in surcharge and removal as a fiduciary. In the event of liquidation, the document grants preference and priority to persons beneficially entitled to receive property or proceeds held by the bank or trust company acting as a fiduciary. The document also specifies that a person who violates this chapter commits a Class B infraction and may be subject to removal from office if an officer of a bank or trust company. Lastly, the document authorizes banks and trust companies to use fiduciary funds or property to purchase products, services, or securities from themselves, their affiliates, or syndicates/selling groups, subject to certain conditions. It requires disclosure of such purchases or sales and outlines notice and consent requirements, with exemptions available under specific authorization or agreement.
Whom does it apply to?
Banks, trust companies, and corporate fiduciaries
What does it govern?
Regulation of Bank and Trust Company Fiduciaries
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No penalties are mentioned in this document.
Jurisdiction
Indiana