Ask Reggi Your Question Now
Can you summarize Savings Institutions > TRUST POWERS?
Savings Institutions > TRUST POWERS
Short Summary
These legal documents govern the exercise of fiduciary powers by savings institutions in North Carolina. They establish the framework for savings institutions to act in fiduciary capacities and exercise trust powers. Savings institutions desiring to exercise fiduciary powers must submit a letter to the Commissioner of Banks indicating the trust services they wish to offer. The Commissioner considers factors such as the financial condition of the savings institution and the character and ability of its management before granting approval. The board of directors of the savings institution is responsible for the exercise of fiduciary powers and may assign the administration of trust powers to directors, officers, employees, or committees. Fiduciary accounts require prior approval, and a written record must be made of acceptances and relinquishments. The assets of each fiduciary account must be reviewed annually by the board of directors. The savings institution must comply with rules applicable to State Trust Entities and the FDIC Statement of Principles on Trust Department Management. Fiduciary records must be kept separate and distinct from other records of the savings institution. A record of all pending litigation related to trust powers must also be maintained. The savings institution’s trust department must be audited by independent auditors at least once a year, and a copy of the audit report must be filed with the Commissioner of Banks. The document also governs the custody of investments in fiduciary accounts, compensation for acting in a fiduciary capacity, collective investment and reinvestment of funds held as fiduciary, sale or transfer of property by savings institutions acting as fiduciaries, and reporting requirements for savings institutions engaging in trust operations. No specific exemptions or penalties are mentioned in these documents.
Whom does it apply to?
Savings institutions exercising fiduciary powers in North Carolina
What does it govern?
Trust powers for savings institutions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
North Carolina