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Can you summarize NDCC Chapter 6-05.2?
Banks and Banking > Fiduciary Powers
Short Summary
This legal document governs the administration of fiduciary powers by banking institutions. It outlines the responsibilities of the board of directors in exercising fiduciary powers, including the determination of policies, investment and disposition of property held in a fiduciary capacity, and the direction and review of actions taken by officers, employees, and committees involved in fiduciary activities. The document also requires prior approval for accepting fiduciary accounts and the maintenance of written records for all acceptances and closures of fiduciary accounts. Regular reviews of assets held in fiduciary accounts must be conducted, and adequate bonding of officers and employees involved in trust activities is required. Banking institutions must employ legal counsel for advice on fiduciary matters and comply with written policies and procedures to ensure compliance with federal securities laws. The document also specifies the requirements for keeping fiduciary records separate, maintaining records of pending litigation, conducting audits of trust activities, and managing uninvested or undistributed funds. It prohibits the investment of fiduciary funds in the banking institution’s own stock or obligations, restricts the sale or transfer of fiduciary property to the institution or its affiliates, and regulates the investment of fiduciary funds in the institution’s stock or obligations. The document allows certain transactions between fiduciary accounts and emphasizes the need to keep investments separate or adequately identified. Overall, the document aims to ensure the proper management of fiduciary funds and prevent self-dealing by banking institutions.
Whom does it apply to?
Banking institutions exercising fiduciary powers
What does it govern?
Administration of fiduciary powers by banking institutions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
North Dakota