CSHB 157(JUD) am: "An Act relating to trust companies and providers of fiduciary services; amending Rules 6 and 12, Alaska Rules of Civil Procedure, Rule 40, Alaska Rules of Criminal Procedure, Rules 204, 403, 502, 602, and 611, Alaska Rules of Appellate Procedure, and Rules 7.2 and 7.3, Alaska Rules of Professional Conduct; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 157(JUD) am 01 "An Act relating to trust companies and providers of fiduciary services; amending Rules 02 6 and 12, Alaska Rules of Civil Procedure, Rule 40, Alaska Rules of Criminal Procedure, 03 Rules 204, 403, 502, 602, and 611, Alaska Rules of Appellate Procedure, and Rules 7.2 04 and 7.3, Alaska Rules of Professional Conduct; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 06.05.235(g) is amended to read: 07 (g) For the purpose of this section and AS 06.05.570, a trust company 08 organized under AS 06.26 [AS 06.25] that is engaged in the business of banking shall 09 be considered a state bank. 10 * Sec. 2. AS 06 is amended by adding a new chapter to read: 11 Chapter 26. Providers of Fiduciary Services. 12 Article 1. General Authority. 13 Sec. 06.26.010. Persons authorized to act as fiduciaries. (a) 14 Notwithstanding other provisions of law and except as provided in AS 06.26.020, a
01 person may not act as a fiduciary in this state unless the person is 02 (1) a trust company organized under this chapter; 03 (2) a private fiduciary that has received an exemption under 04 AS 06.26.200; 05 (3) a state financial institution; 06 (4) a national bank having its principal office in this state and 07 authorized by the United States Comptroller of the Currency to act as a fiduciary; 08 (5) a federally chartered savings association having its principal office 09 in this state and authorized by its federal chartering authority to act as a fiduciary; 10 (6) an international bank that has a branch bank in this state established 11 or maintained under AS 06.05.550; in this paragraph, "international bank" has the 12 meaning given in AS 06.05.990; 13 (7) an interstate national bank with a branch bank in this state 14 established or maintained under AS 06.05.550; in this paragraph, "interstate national 15 bank" means a national bank whose principal office, as designated in the bank's 16 articles of incorporation, is not located in this state; 17 (8) an entity that 18 (A) is organized under the laws of a state of the United States 19 other than this state; 20 (B) holds a charter, license, certificate, or other type of 21 authorization from this or another state of the United States to engage in 22 banking; and 23 (C) has a branch bank located in this state established or 24 maintained under AS 06.05.550; 25 (9) an interstate state trust company or international trust company 26 with a trust office authorized by the department under AS 06.26.810 - 06.26.895; 27 (10) a trustee of only charitable trusts, does not offer fiduciary services 28 to the general public with regard to noncharitable trusts, and observes the requirements 29 applicable to trustees under AS 13.36.225 - 13.36.290 (Alaska Uniform Prudent 30 Investor Act); or 31 (11) a federally chartered credit union having its principal office in this
01 state and authorized by the National Credit Union Administration to act as a fiduciary. 02 (b) In this section, "branch bank" has the meaning given in 06.05.990. 03 Sec. 06.26.020. Exemptions. (a) Notwithstanding any other provision of this 04 chapter, a person does not act as a fiduciary under this chapter if the person 05 (1) is licensed to practice law in this state, the person is acting within 06 the scope of the license, and the person and any law firm of the person are not trustees 07 of more trusts than the number established for the person and law firm by the 08 department by regulation or order; in this paragraph, "law firm" means a partnership, a 09 professional corporation organized under AS 10.45, or another association organized 10 for the practice of law and in which the person practices law; 11 (2) acts as trustee under a deed of trust delivered only as security for 12 the payment of money or for the performance of another act; 13 (3) receives and distributes on behalf of a principal rents and proceeds 14 of sales as a real estate broker or other licensee under AS 08.88; 15 (4) engages in securities business activity or investment advisory 16 business activity as a registered broker-dealer, a broker-dealer agent, a state 17 investment adviser, or an investment adviser representative, or as a federal covered 18 adviser who has made a notice filing under AS 45.55.040(h), the person is acting 19 within the scope of the person's registration or notice filing, and the activity is 20 regulated by the department under AS 45.55 or by the United States Securities and 21 Exchange Commission; in this paragraph, "agent," "broker-dealer," "federal covered 22 adviser," "investment adviser representative," "investment advisory business," 23 "securities business," and "state investment adviser" have the meanings given in 24 AS 45.55.990; 25 (5) engages in the sale and administration of an insurance product as 26 an insurance company licensed under AS 21 or an insurance producer licensed under 27 AS 21 and is acting within the scope of that license; 28 (6) handles escrow transactions and is a title insurance company that 29 has a certificate of authority issued under AS 21.09, a title insurance limited producer 30 that is licensed as required by AS 21.66.270, or an employee of the title insurance 31 company or title insurance producer when acting in the scope of the employee's
01 employment; in this paragraph, 02 (A) "escrow transaction" has the meaning given in 03 AS 34.80.090; 04 (B) "title insurance company" has the meaning given in 05 AS 21.66.480; 06 (C) "title insurance limited producer" has the meaning given in 07 AS 21.66.480; 08 (7) is a cemetery association organized and acting under AS 10.30; 09 (8) is a trustee for a voting trust under AS 10.06 and is acting in that 10 capacity; 11 (9) has a certified public accountant certificate issued under AS 08.04, 12 the person is acting within the scope of the certificate, and the person and any 13 accounting firm of the person are not trustees of more trusts than the number 14 established for the person and accounting firm by the department by regulation or 15 order; in this paragraph, "accounting firm" means a partnership, a professional 16 corporation organized under AS 10.45, or another association organized for the 17 practice of public accounting and in which the person practices public accounting; 18 (10) holds real property in trust for the primary purpose of subdivision, 19 development, or sale or to facilitate a business transaction with respect to the real 20 property; 21 (11) serves as a trustee of a trust created by the person's family 22 members; 23 (12) holds money or other assets as a homeowners' association or 24 similar organization to pay maintenance and other related costs for commonly owned 25 property; in this paragraph, "homeowners' association" includes an association of 26 apartment owners under AS 34.07.450 and a unit owners' association or master 27 association under AS 34.08.990; 28 (13) holds money or other assets in connection with the collection of 29 debts or payments on loans by a person acting solely as the agent or representative at 30 the sole direction of the person to whom the debt or payment is owed, including 31 engaging in the business of an escrow agent;
01 (14) acts as a conservator if the person is appointed by a court of this 02 or another state or is qualified to act as a conservator under AS 13.26.320; 03 (15) acts as a personal representative if the person is appointed a 04 personal representative by a court of this or another state or is qualified to act as a 05 personal representative under AS 13.21.035; in this paragraph, "personal 06 representative" has the meaning given in AS 13.06.050; 07 (16) acts as a guardian or receiver if the person is appointed as a 08 guardian or receiver by a court of this or another state; 09 (17) is a business partner acting with regard to the business, or a co- 10 owner of property acting with regard to the co-owned property; 11 (18) serves as a trustee of one or more trusts in which the settlor is not 12 a family member of the person, except that the person may not at any one time serve 13 as a trustee for trusts that cumulatively have more than 10 different settlors; however, 14 the department may change by regulation or order the maximum number of settlors 15 allowed for this exemption; in this paragraph, a husband and wife who create a joint 16 trust are considered to be one settlor. 17 (b) When establishing the number of trusts that are allowed for an exemption 18 under (a)(1) or (9) of this section or when changing the maximum number of settlors 19 that are allowed for an exemption under (a)(18) of this section, the department shall 20 consider the protection of the public, the effect on efficient delivery of trust services at 21 a reasonable cost, and the likelihood that the particular exemption can make the trust 22 services available to the persons who need the service. 23 (c) In addition to the exemptions identified in (a) of this section, the 24 department may by regulation or order grant an exemption to a person if the person 25 demonstrates good cause for needing the exemption and the department determines 26 that the exemption would not conflict with public order or convenience. 27 (d) In addition to any other requirements established for the exemption, to 28 maintain an exemption under this section, a person who is exempt under (a) or (c) of 29 this section may not offer fiduciary services to the general public. 30 Sec. 06.26.030. Location of operation. (a) A trust company may act as a 31 fiduciary in this state, another state, or a foreign country, subject to complying with
01 applicable laws of the state or foreign country, at an office or branch established and 02 maintained under this chapter. 03 (b) A trust company may conduct any activities at an office outside this state 04 that are permissible for a trust company chartered by the host state, except to the 05 extent those activities are expressly prohibited by the laws of this state or by a 06 regulation or order of the department applicable to the trust company. 07 Article 2. Name, Powers, Organization, and Capitalization. 08 Sec. 06.26.040. Name of trust company. (a) A person may not use the 09 words "trust" or "trust company" or any other words in a manner that could reasonably 10 be expected to convey the impression that the person is acting as a fiduciary unless the 11 person is authorized to act as a fiduciary under AS 06.26.010. 12 (b) This section does not prohibit the use of the words "trust" or "trust 13 company" in the name of a corporation that is in existence as of the effective date of 14 this Act and that is not subject to this chapter if the corporation was originally 15 organized under the laws of this state and has not, since the date of its original 16 organization, amended or restated its articles of incorporation to delete from its name 17 the words "trust" or "trust company." 18 Sec. 06.26.050. Powers of trust company. (a) A trust company may perform 19 any act as a fiduciary that a state financial institution, or a national bank exclusively 20 exercising trust powers, may perform, including 21 (1) acting as trustee under a written agreement; 22 (2) receiving money and other property as trustee for investment in 23 real or personal property; 24 (3) acting as a trustee and performing the fiduciary duties committed 25 or transferred to it by a court; 26 (4) receiving money or other assets under AS 06.35; 27 (5) acting as an executor, an administrator, or a trustee of the estate of 28 a deceased person; 29 (6) acting as a custodian, guardian, conservator, or trustee for a minor 30 or an incapacitated person; 31 (7) acting as a successor fiduciary to a depository;
01 (8) receiving for safekeeping any type of personal property; 02 (9) acting as a custodian, an assignee, a transfer agent, an escrow 03 agent, a registrar, or a receiver; 04 (10) acting as an investment adviser, an agent, or an attorney-in-fact in 05 any agreed upon capacity; 06 (11) exercising additional powers expressly authorized by a regulation 07 adopted under this chapter; and 08 (12) exercising an incidental power that is reasonably necessary to 09 enable it to fully exercise the powers expressly conferred according to commonly 10 accepted fiduciary customs and usage. 11 (b) A trust company may exercise the powers of a business incorporated under 12 the laws of this state that are reasonably necessary to enable the exercise of its specific 13 powers under this chapter. 14 (c) A trust company may contribute to community solicitations, or to 15 charitable, philanthropic, or benevolent instrumentalities that operate to promote 16 public welfare, amounts that its board considers appropriate and in the interests of the 17 trust company. 18 (d) Subject to AS 06.26.370, a trust company may deposit trust money or 19 other assets with itself. 20 (e) Subject to the approval of the department and to being insured by the 21 Federal Deposit Insurance Corporation or its successor, a trust company may accept 22 deposits from the public. 23 (f) A trust company organized under this chapter may apply for a certificate of 24 authority under AS 06.05. 25 (g) A trust company organized under this chapter with a certificate of 26 authority issued under AS 06.05 may exercise all powers granted to it under AS 06.05 27 to the extent the powers do not conflict with this chapter. A trust company with a 28 certificate of authority issued under AS 06.05 is subject to all of the provisions of 29 AS 06.05. In case of a conflict between the provisions of this chapter and AS 06.05, 30 the provisions of this chapter apply. 31 (h) In (a) of this section, "national bank exclusively exercising trust powers"
01 means a person issued a charter by the United States Comptroller of the Currency if 02 the charter confers only trust powers. 03 Sec. 06.26.060. Organizers. One or more persons may organize a trust 04 company. 05 Sec. 06.26.070. Incorporation. (a) A trust company shall be incorporated 06 under AS 10.06. 07 (b) In addition to the items required under AS 10.06.208 to be included in 08 articles of incorporation, the articles of incorporation of a trust company must specify 09 (1) the judicial district where the trust company will be located and the 10 community where the trust company will locate its principal place of business; 11 (2) the amount of the trust company's stock, which must be divided 12 into shares having a par value of not less than $1 each; 13 (3) that there will be at least five but not more than 25 directors; 14 (4) the period for which the trust company is organized, whether 15 limited or perpetual; 16 (5) the name by which the trust company will be known, which must 17 contain the words "trust company" as a part of the name; and 18 (6) a declaration that each incorporator will, if elected, accept the 19 responsibilities and faithfully discharge the duties of a director. 20 Sec. 06.26.080. Amendment of articles or bylaws. (a) A trust company may 21 amend its articles of incorporation or bylaws in a manner consistent with its articles, 22 its bylaws, AS 10.06, and this chapter by a vote of its shareholders representing at 23 least a majority of the capital at a regular meeting or at a special meeting called for 24 that purpose. The trust company shall file a written notice of an amendment with the 25 department. 26 (b) The department has 60 days from the date that the department receives a 27 notice under (a) of this section to review the amendment, and the amendment becomes 28 effective on the 61st day after the department receives the notice unless the department 29 specifies a different date. The department may extend the 60-day period of review if 30 the department determines that the notice raises significant issues that require 31 additional information or if the department needs additional time for analysis. If the
01 60-day period of review is extended, the amendment becomes effective only when the 02 department approves the amendment in writing. 03 Sec. 06.26.085. Certificate of authority required. A person may not act as a 04 trust company until a certificate of authority is received from the department. 05 Sec. 06.26.090. Application for certificate of authority. (a) An application 06 for a certificate of authority shall be made in the form required by the department and 07 must be supported by the information, data, records, and opinions of counsel required 08 by the department. The application must be accompanied by all fees and deposits 09 required by this chapter. 10 (b) The department may grant a certificate of authority only if the department 11 receives evidence from the applicant that the department determines demonstrates that 12 the establishment of the proposed trust company will serve public convenience and 13 well-being. The evidence must address the following factors: 14 (1) the market to be served; 15 (2) whether the proposed organizational structure, capital structure, 16 and amount of initial capitalization are adequate for the proposed trust company and 17 its location; 18 (3) whether the anticipated volume and nature of the proposed trust 19 company indicates a reasonable probability of success and profitability based on the 20 market sought to be served; 21 (4) whether, as a group, the proposed officers, directors, and 22 employees have sufficient fiduciary experience, ability, standing, competence, 23 trustworthiness, and integrity to justify a belief that the proposed trust company will 24 operate in compliance with the law and that success of the proposed trust company is 25 probable; 26 (5) whether each principal shareholder has sufficient experience, 27 ability, standing, competence, trustworthiness, and integrity to justify a belief that the 28 proposed trust company will be free from improper or unlawful influence or 29 interference with respect to the trust company's operation in compliance with the law; 30 and 31 (6) whether the persons organizing the trust company are acting in
01 good faith. 02 (c) The applicant for a certificate of authority bears the burden of establishing 03 that public convenience and well-being will be served by the establishment of the trust 04 company. The failure of an applicant to furnish required information, data, opinions 05 of counsel, other material, the required fee, or a required deposit is considered an 06 abandonment of the application. 07 (d) An applicant shall pay under AS 06.01.010 the investigation expenses 08 incurred by the department in processing an application for a certificate of authority. 09 When submitting an application to the department, the applicant shall pay the 10 department $2,000 as an advance payment of the investigation expenses incurred by 11 the department. If the investigation expenses incurred by the department are less than 12 $2,000, the department shall promptly refund the excess to the applicant. If the 13 investigation expenses incurred by the department are greater than $2,000, the 14 department may obtain reimbursement from the applicant. 15 (e) The department shall determine whether all of the applicable requirements 16 of this section have been satisfied and shall enter an order granting or denying the 17 certificate of authority. The department may deny the application if the department 18 determines that the requirements of this chapter have not been met. The department 19 may set conditions on the certificate of authority and shall include any conditions in 20 the order granting the certificate of authority. 21 (f) If a protest of the application is not filed with the department on or before 22 the 15th day after the last date that the notice is published under AS 06.26.100, the 23 department may immediately determine whether the application meets the 24 requirements of this section based on the application and investigation. 25 Sec. 06.26.100. Department notices regarding application. (a) The 26 department shall notify the organizers of a proposed trust company when the 27 application under AS 06.26.090 is complete and accepted for filing and all required 28 fees and deposits have been paid. Promptly after notification, the organizers shall 29 publish in a form specified by the department notice of the filing of the application in 30 a newspaper of general circulation published in the community proposed as the trust 31 company's principal place of business. If a newspaper of general circulation is not
01 published in the community, the organizers shall publish the notice in a newspaper of 02 general circulation near the community. The department may require the organizers to 03 publish the notice at other locations reasonably necessary to solicit the views of 04 potentially affected persons. The notice must include a solicitation of comments and 05 protests. 06 (b) To prove that the publication required by (a) of this section has been 07 accomplished, the organizers shall file with the department an affidavit of publication 08 from the newspaper in which the notice was published. 09 Sec. 06.26.110. Issuance of certificate of authority; required operation. 10 (a) The department may not deliver a certificate of authority to a person to act as a 11 trust company until the person has 12 (1) received cash or marketable securities in at least the full amount of 13 the capital required under AS 06.26.120 from subscriptions for the issuance of shares; 14 (2) elected or qualified the initial officers and directors named in the 15 application for the certificate of authority or other officers and directors approved by 16 the department; and 17 (3) complied with all other requirements of this chapter related to the 18 organization of a trust company. 19 (b) A person who receives a certificate of authority, including a certificate of 20 authority with conditions, shall open a home office and begin providing fiduciary 21 services within six months after the date that the person receives the certificate of 22 authority or by the end of any extension of the six-month period allowed by the 23 department. If the person does not open the home office or begin providing fiduciary 24 services within the six months or by the end of any extension, the department shall 25 revoke the certificate of authority. 26 Sec. 06.26.120. Required capital; change in outstanding capital and 27 surplus. (a) A trust company may not act as a fiduciary unless the trust company has 28 paid-in capital in an amount acceptable to the department, but not less than $400,000, 29 and paid-in surplus equal to 20 percent of paid-in capital. The trust company shall 30 hold its unimpaired capital as security for the faithful discharge of the fiduciary duties 31 undertaken by the trust company and for the claims of creditors.
01 (b) The department may by order require or permit adjustment to capital for a 02 proposed or existing trust company if the department finds the condition and 03 operations of an existing trust company or the proposed scope or type of operations of 04 a proposed trust company requires adjustment to capital to protect the safety and 05 soundness of the trust company. The safety and soundness factors to be considered by 06 the department in the exercise of its discretion to adjust capital include 07 (1) the nature and type of business conducted; 08 (2) the nature and degree of liquidity of the assets held by the trust 09 company other than trust assets; 10 (3) the amount of fiduciary assets being managed; 11 (4) the type of fiduciary assets held and the depository of those assets; 12 (5) the complexity of the fiduciary duties and degree of discretion 13 undertaken; 14 (6) the competence and experience of management; 15 (7) the extent and adequacy of internal controls; 16 (8) the presence or absence of annual unqualified audits by an 17 independent certified public accountant; 18 (9) the reasonableness of the trust company's plans for retaining or 19 acquiring additional capital; and 20 (10) the existence and adequacy of insurance held by the trust 21 company to protect its customers, beneficiaries, and grantors. 22 (c) If the department orders a trust company to increase or adjust its capital, 23 the order must state the date by which the increase or adjustment must be made. An 24 order under this subsection does not prohibit the trust company from later applying to 25 the department to reduce capital requirements for the trust company under (b) of this 26 section. 27 (d) Subject to (b) of this section, a trust company to which the department 28 issues a certificate of authority shall at all times maintain capital in at least the amount 29 required under (a) of this section, as increased or decreased under (b) of this section. 30 (e) A trust company may not reduce or increase its outstanding capital through 31 dividend, redemption, issuance of shares, or otherwise without the prior written
01 approval of the department, unless otherwise permitted by this chapter. 02 (f) Prior approval by the department is not required for a decrease in surplus 03 caused by incurred losses that exceed undivided profits. A decrease to surplus as a 04 result of losses shall be replaced before payment of further dividends. 05 Sec. 06.26.130. Capital notes or debentures. (a) A trust company may, with 06 the written consent of the department, and if authorized by its articles of incorporation 07 or approved by persons owning two-thirds of the stock of the trust company entitled to 08 vote, issue convertible or nonconvertible capital notes or debentures. The principal 09 amount of notes and debentures outstanding at any time may not exceed 33 1/3 10 percent of the capital stock and surplus fund of the trust company on the date of 11 issuance. The rate and term are subject to the approval of the department, but the term 12 may not exceed 20 years. 13 (b) A trust company may not retire capital notes or debentures if the 14 retirement creates an impairment of its capital. Capital notes and debentures are 15 subordinated in right of payment in the event of insolvency or liquidation of the trust 16 company to the prior payment of all deposits and all claims of other creditors except 17 the holders of securities on a parity with the capital notes and debentures and the 18 holders of securities expressly subordinated to the capital notes and debentures. 19 Sec. 06.26.140. Cumulative voting. Shareholders may not use cumulative 20 voting in the election of directors unless cumulative voting is allowed by the trust 21 company's articles of incorporation. 22 Article 3. Operation of Offices. 23 Sec. 06.26.150. Trust company home office. (a) A trust company shall 24 continuously maintain in this state a home office where the trust company operates 25 and keeps its records. At least one executive officer shall maintain an office at the 26 home office. 27 (b) Each executive officer at the home office is an agent of the trust company 28 for service of process. 29 (c) A trust company may change its home office to any of its offices existing 30 at the time of the change within this state by filing a written notice with the 31 department setting out the name of the trust company, the street address of its home
01 office before the change, the street address to which the home office is to be changed, 02 and a copy of a resolution adopted by the trust company's board authorizing the 03 change. 04 (d) The change of the location of a home office takes effect on the 61st day 05 after the date the department receives the notice under (c) of this section, unless the 06 department establishes a different date or unless, before the 61st day, the department 07 notifies the trust company that the trust company shall establish to the satisfaction of 08 the department that the relocation is consistent with the original determination made 09 under AS 06.26.090 for the establishment of a trust company at that location, in which 10 event the change of home office takes effect when approved by the department. 11 Sec. 06.26.160. Trust company branch offices. (a) A trust company may 12 establish branch offices anywhere in the state by 13 (1) filing a written notice with the department setting out the name of 14 the trust company, the street address of the proposed branch office, and a description 15 of the activities proposed to be conducted at the branch office; 16 (2) filing with the department a copy of a resolution adopted by the 17 trust company's board authorizing the establishment or acquisition of the branch 18 office; and 19 (3) paying the filing fee established by the department by regulation. 20 (b) The department has 60 days from the date the department receives the 21 notice under (a) of this section to review the proposal for the branch office, and the 22 trust company may begin operating the branch office on the 61st day after the date the 23 department receives the notice, unless the department specifies a different date. 24 (c) The department may extend the 60-day period of review provided by (b) of 25 this section if the department determines that the proposed branch office raises issues 26 that require additional information or if the department needs additional time for 27 analysis. If the 60-day period of review is extended, the trust company may establish 28 the branch office only after the department approves the branch office in writing. The 29 department may deny the trust company permission to establish a branch office if the 30 department has safety or soundness concerns. 31 Sec. 06.26.170. Trust company representative offices. (a) A trust company
01 may establish or acquire representative trust offices anywhere in this state. To 02 establish or acquire a representative office, a trust company shall 03 (1) file a written notice with the department that sets out the name of 04 the trust company and the location of the proposed representative office; 05 (2) file with the department a copy of a resolution adopted by the trust 06 company's board authorizing the establishment or acquisition of the representative 07 office; and 08 (3) pay the filing fee established by the department by regulation. 09 (b) The department has 60 days from the date the department receives the 10 notice filed under (a) of this section to review the establishment or acquisition of a 11 representative office, and the trust company may begin operating the representative 12 office on the 61st day after the date the department receives the notice, unless the 13 department specifies a different date. 14 (c) The department may extend the 60-day period of review provided by (b) of 15 this section if the department determines that the written notice raises issues that 16 require additional information or if the department needs additional time for analysis. 17 If the 60-day period of review is extended, the trust company may establish the 18 representative office only after the department approves the office in writing. The 19 department may deny permission to establish or acquire a representative office of the 20 trust company if the department has safety or soundness concerns. 21 Sec. 06.26.180. Offices outside the state. (a) With the prior written approval 22 of the department, a trust company may establish a branch office or a representative 23 office outside this state. To establish a branch office or representative office outside 24 this state, a trust company shall 25 (1) submit an application to the department specifying the location of 26 the proposed office, the business to be conducted at the proposed office, and the laws 27 of the jurisdiction where the office will be located that permit the office to be 28 established; 29 (2) file with the department a copy of a resolution adopted by the trust 30 company's board authorizing the establishment or acquisition of the office; and 31 (3) pay the filing fee established by the department by regulation.
01 (b) The department may approve an application under (a) of this section for a 02 branch office or representative office if the department finds that 03 (1) the laws of the jurisdiction in which the office is to be located 04 permit the establishment of the office; and 05 (2) the department does not have a significant supervisory or 06 regulatory concern regarding the proposed office. 07 (c) If a trust company submits with the application a certified statement of the 08 governmental regulator for the jurisdiction in which the office is to be located 09 expressly permitting the establishment of the office, the trust company may establish 10 the office by following the procedures under AS 06.26.090, except that the trust 11 company may not establish the office before the 91st day after the date the department 12 receives the notice filed under AS 06.26.160(a) unless the department notifies the trust 13 company that the trust company may establish the office on an earlier date. 14 (d) The department may deny a trust company permission to establish a 15 branch office or representative office outside this state if the department has safety or 16 soundness concerns regarding 17 (1) the market to be served; 18 (2) whether the proposed organizational structure, capital structure, 19 and amount of capitalization are adequate; 20 (3) whether the anticipated volume and nature of the proposed office 21 indicate a reasonable probability of success and profitability based on the market 22 sought to be served; 23 (4) whether, as a group, the officers, directors, and employees have 24 sufficient fiduciary experience, ability, standing, competence, trustworthiness, and 25 integrity to justify a belief that the proposed office will operate in compliance with 26 law. 27 Sec. 06.26.190. Hours of operation. (a) A trust company and an interstate 28 state trust company or an international national trust company maintaining a trust 29 office under AS 06.26.810 - 06.26.895 may close on the legal holidays described in 30 AS 44.12.010 - 44.12.025. A notice of holiday closings shall be made available to the 31 trust company's customers by mail, by the Internet, or by other means.
01 (b) A trust company and an interstate state trust company or international trust 02 company maintaining a trust office under AS 06.26.810 - 06.26.895 may close on any 03 business day if the trust company 04 (1) notifies the department in advance of the closure; and 05 (2) makes a closure notice available to its customers by mail, by the 06 Internet, or by other means. 07 (c) The hours of operation, and any changes in the hours of operation, of a 08 trust company and an interstate state trust company or international trust company 09 maintaining a trust office under AS 06.26.810 - 06.26.895 must be submitted to the 10 department and must be made available to the trust company's customers by mail, by 11 the Internet, or by other means. 12 (d) Notwithstanding this section, the hours of operation of a trust company 13 with a certificate of authority issued under AS 06.05 are subject to AS 06.05.166. 14 Article 4. Private Fiduciaries. 15 Sec. 06.26.200. Private fiduciaries. (a) Unless the department expressly in 16 writing exempts the person under this section from all or some of the provisions of this 17 chapter, a private fiduciary shall comply with the provisions of this chapter applicable 18 to a trust company. 19 (b) A private fiduciary may apply in writing for an exemption from specific 20 provisions of this chapter. The department may grant the exemption, in whole or in 21 part, if the department finds that the private fiduciary does not and will not offer 22 fiduciary services to the general public. 23 (c) At the expense of the private fiduciary, the department may examine or 24 investigate the private fiduciary in connection with an application for an exemption 25 under this section. Unless the application presents novel or unusual questions, the 26 department shall approve or deny the application for exemption not later than the 61st 27 day after the date that the department considers the application complete and accepted 28 for filing. If the application presents novel or unusual questions, the department may 29 extend the time for approving or denying the application. The department may require 30 the private fiduciary to submit additional information the department considers 31 necessary to make an informed decision.
01 (d) The department may make an exemption under this section subject to 02 conditions or limitations imposed by the department that are consistent with this 03 chapter. 04 (e) The department may adopt regulations that are consistent with this chapter 05 defining the activities that do not constitute providing or offering fiduciary services to 06 the general public, specifying the provisions of this chapter that are subject to an 07 exemption under this section, and establishing procedures and requirements for 08 obtaining, maintaining, or revoking an exemption granted under this section. 09 Sec. 06.26.210. Requirements to apply for and maintain status as a 10 private fiduciary. (a) To obtain an exemption under AS 06.26.200, a private 11 fiduciary shall file an application with the department containing 12 (1) a nonrefundable application fee established by the department by 13 regulation; 14 (2) a detailed statement under oath showing the private fiduciary's 15 assets and liabilities as of the end of the month that precedes the date of the filing of 16 the application with the department; 17 (3) a statement under oath of the reason for requesting the exemption; 18 (4) a statement under oath that the private fiduciary currently does not 19 offer fiduciary services to the general public and that the private fiduciary will not 20 offer fiduciary services to the general public without the prior written permission of 21 the department; 22 (5) the current street address of the physical location in this state where 23 the private fiduciary will maintain its records, the private fiduciary's current telephone 24 number at that location, and a statement under oath that the address given is true and 25 correct and not a United States Postal Service post office box or a private commercial 26 mail drop; 27 (6) a list of the specific provisions of this chapter or regulations 28 adopted under this chapter from which the private fiduciary requests an exemption. 29 (b) The department may not approve an exemption under this section unless 30 the application complies with (a) of this section. 31 (c) To maintain its exemption under AS 06.26.200, a private fiduciary
01 (1) may not offer fiduciary services to the general public; 02 (2) shall file an annual certification on or before December 31 of each 03 year on a form provided by the department that the private fiduciary is maintaining the 04 conditions and limitations of its exempt status; the annual certification must be 05 accompanied by a fee established by the department by regulation. 06 (d) The annual certification required under (c) of this section is valid only if it 07 bears an acknowledgment stamped by the department. The department has 60 days 08 from the date it receives the annual certification to review the annual certification and 09 return a copy of the acknowledged annual certification to the private fiduciary. The 10 burden is on the exempt private fiduciary to notify the department of a failure to return 11 a copy of an acknowledged annual certification within the 60-day period. 12 (e) The department may examine or investigate the private fiduciary 13 periodically as necessary to verify the annual certification. 14 (f) Notwithstanding having an exemption under AS 06.26.200, a private 15 fiduciary shall comply with the home office provisions of AS 06.26.150 and shall 16 report to the department any change of address or telephone number within 30 days 17 after the change. 18 Sec. 06.26.220. Transfer of control. Control of an exempt private fiduciary 19 may not be sold or otherwise transferred with an exemption under AS 06.26.200. In 20 any change of control, the exempt status of the private fiduciary automatically 21 terminates on the effective date of the transfer, and the person acquiring control must 22 comply with this chapter. After transfer of control, a separate application for an 23 exemption under AS 06.26.200 must be filed with the department if the acquiring 24 person wishes to obtain or continue an exemption under AS 06.26.200. 25 Sec. 06.26.230. Revocation of exemption. (a) The department may revoke an 26 exemption under AS 06.26.200 if the exempt private fiduciary 27 (1) makes a false statement under oath on any document required to be 28 filed by this chapter; 29 (2) fails to submit to an examination as required by AS 06.26.200; 30 (3) withholds requested information from the department; or 31 (4) violates a provision of this section applicable to exempt private
01 fiduciaries. 02 (b) If the department determines from examination or other credible evidence 03 that an exempt private fiduciary has violated a requirement of this chapter, the 04 department may by personal delivery or registered or certified mail, return receipt 05 requested, notify the exempt private fiduciary in writing that the department will 06 revoke the private fiduciary's exemption as of a stated date, which may not be before 07 the fifth calendar day after the date that the notification is delivered or mailed. The 08 notification must state the grounds for the revocation with reasonable certainty. After 09 a revocation takes effect, the revocation is final, and the private fiduciary is subject to 10 all of the requirements and provisions of this chapter that are applicable to private 11 fiduciaries not exempt under AS 06.26.200. 12 (c) A private fiduciary shall comply with the provisions of this chapter from 13 which it was formerly exempt within five calendar days after the effective date of a 14 revocation of its exemption under this section. However, if the department determines 15 at the time of revocation that the private fiduciary has been engaging in or attempting 16 to engage in acts intended or designed to deceive or defraud, the department may, in 17 the department's sole discretion, shorten or eliminate the five-calendar-day compliance 18 period. 19 (d) If, within the time allowed under (c) of this section, the private fiduciary 20 does not comply with all of the provisions of this chapter, including the capitalization 21 requirements that have been determined by the department as necessary to assure the 22 safety and soundness of the private fiduciary, the department may 23 (1) file a court action or pursue another remedy provided by this 24 chapter; or 25 (2) refer the private fiduciary to the attorney general for institution of 26 appropriate legal proceedings against the private fiduciary. 27 Sec. 06.26.240. Conversion to trust company. (a) A private fiduciary may 28 not offer fiduciary services to the general public as a trust company until the private 29 fiduciary satisfies the requirements of this section. 30 (b) The private fiduciary shall file a notice with the department on a form 31 prescribed by the department, furnish a copy of a resolution adopted by the board
01 authorizing the private fiduciary to offer fiduciary services to the general public, pay 02 any filing fee established by the department by regulation, and comply with the 03 requirements of this chapter for trust companies. The notice must provide the name of 04 the private fiduciary and acknowledge that any exemption granted or otherwise 05 applicable to the private fiduciary under AS 06.26.200 ceases to apply on the effective 06 date of the notice. 07 (c) The department has 60 days after the department receives the notice under 08 (a) of this section to review the conversion, and a private fiduciary may begin 09 providing or offering fiduciary services to the general public on the 61st day after the 10 date that the department receives a notice under (a) of this section from the private 11 fiduciary, unless the department specifies a different date. 12 (d) The department may extend the 60-day period of review provided by (c) of 13 this section if the department determines that the notice raises issues that require 14 additional information or if the department needs additional time for analysis. If the 15 60-day period of review is extended, the private fiduciary may offer fiduciary services 16 to the general public only after written approval by the department. 17 (e) The department may deny a private fiduciary permission to offer fiduciary 18 services to the general public as a trust company if the department finds that the 19 private fiduciary does not meet the requirements of this chapter for trust companies. 20 Article 5. Investments, Loans, and Deposits. 21 Sec. 06.26.250. Regulations on investments. The department may adopt 22 regulations to establish limits, requirements, or exemptions for particular classes or 23 categories of investment, or limit or expand investment authority for trust companies 24 for particular classes or categories of securities or other property. 25 Sec. 06.26.260. Pledge of assets. (a) A trust company may not pledge or 26 create a lien on any of the assets belonging to the trust company except to secure 27 (1) the repayment of money borrowed; 28 (2) trust deposits as specifically authorized or required by 29 AS 06.26.370 or by regulations adopted under this chapter; or 30 (3) deposits made by the United States government, the state, or a 31 municipality, or an agency of those governmental bodies.
01 (b) An act, a deed, a conveyance, a pledge, or a contract that violates this 02 section is void. 03 Article 6. Trust Assets. 04 Sec. 06.26.370. Deposits of trust assets. (a) A trust company may deposit 05 trust money or other trust assets with itself as an investment if the settlor or the 06 beneficiary authorizes the deposit and if 07 (1) the trust company maintains as security for the deposits a separate 08 fund of securities that may be used for trust investments and that are under the control 09 of a federal reserve bank or a clearing corporation in this state or elsewhere; in this 10 paragraph, "clearing corporation" has the meaning given in AS 45.08.102; 11 (2) the total market value of the security fund maintained under (1) of 12 this subsection is at all times at least equal to the deposit; 13 (3) the security fund maintained under (1) of this subsection is 14 expressly designated as a security fund; and 15 (4) the security fund maintained under (1) of this subsection is 16 maintained under the control of a person listed in AS 06.26.010(a). 17 (b) A trust company may make periodic withdrawals from or additions to the 18 security fund required by (a) of this section if the trust company maintains the value 19 required by (a) of this section for the security fund. Income from the securities in the 20 security fund belongs to the trust company. 21 (c) Notwithstanding (a) of this section, security under (a) of this section for a 22 deposit is not required to the extent the deposit is insured by the Federal Deposit 23 Insurance Corporation or its successor. 24 Sec. 06.26.380. Common investment funds. Subject to regulations adopted 25 by the department, a trust company may invest trust assets in common investment 26 funds. 27 Sec. 06.26.390. Fee determination; investment and management costs. (a) 28 A trust company shall deal at arm's length with a person when arranging the 29 compensation to be paid by the person for the services of the trust company. Any 30 compensation paid to the trust company must be a reasonable amount with respect to 31 the services rendered.
01 (b) When investing and managing trust assets, a trust company may only incur 02 costs that are appropriate and reasonable in relation to the assets, the purposes of the 03 trust, and the skills of the trust company. 04 Sec. 06.26.400. Disclosure of conflicts of interest. Before accepting 05 appointment as a trustee, a trust company shall disclose any conflict of interest that 06 may reasonably be expected to arise in the relationship. 07 Sec. 06.26.410. Requirements for handling trust assets. A trust company, 08 its representatives, and its appointees shall observe the requirements applicable to 09 trustees under AS 13.36.225 - 13.36.290 (Alaska Uniform Prudent Investor Act). 10 Article 7. Ownership. 11 Sec. 06.26.450. Acquisition of control. (a) Except as expressly otherwise 12 permitted under this chapter, a person may not, without the prior written approval of 13 the department, directly or indirectly acquire control of a trust company through a 14 change in a legal or beneficial interest in voting securities of a trust company or a 15 corporation or other person who owns voting securities of a trust company. 16 (b) This section does not apply to 17 (1) the acquisition of securities in connection with the exercise of a 18 security or other interest in full or partial satisfaction of a debt previously contracted 19 for in good faith if the acquiring person files written notice of acquisition with the 20 department before the person votes the securities acquired; 21 (2) the acquisition of voting securities in any class or series by a 22 person in control who has previously complied with and received approval to acquire 23 control under AS 06.26.450 - 06.26.480 or who was identified as a person in control in 24 an earlier application filed with and approved by the department; 25 (3) an acquisition or transfer by operation of law, a will, or in testate 26 succession if the acquiring person files written notice of acquisition with the 27 department before the person votes the securities acquired; or 28 (4) a transaction exempted by the department by regulation or order 29 because the transaction is not within the purposes of AS 06.26.450 - 06.26.480. 30 Sec. 06.26.460. Application for acquisition of control. (a) A proposed 31 transferee seeking approval under AS 06.26.450 to acquire control of a trust company
01 shall file with the department 02 (1) an application in the form prescribed by the department; 03 (2) the filing fee established by the department by regulation; and 04 (3) all information required by regulation or that the department 05 requires for a particular application in order to make an informed decision to approve 06 or reject the proposed acquisition. 07 (b) If the proposed transferee under (a) of this section includes a group of 08 persons acting together, the department may require each member of the group to 09 provide information to the department. 10 (c) If the proposed transferee is not a resident of the state, a corporation 11 organized under AS 10.06, or a foreign corporation qualified under AS 10.06 to 12 transact business in this state, the proposed transferee shall file with the department a 13 written consent to service of process on a resident of this state for any court action 14 arising out of or connected with the proposed acquisition of control. 15 (d) Promptly after the department accepts the application as complete, the 16 proposed transferee shall publish notice of the application, the date of filing the 17 application, and the identity of each participant in the acquisition of control in the 18 form specified by the department in a newspaper of general circulation published in 19 the community proposed as the trust company's principal place of business. If a 20 newspaper of general circulation is not published in the community, the notice shall be 21 published in a newspaper of general circulation near the community. Publication of 22 notice of an application may be deferred for up to 31 days after the date the 23 application is filed if 24 (1) the proposed transferee requests confidential treatment and 25 represents that a public announcement of the tender offer and the filing of appropriate 26 forms with the United States Securities and Exchange Commission or the appropriate 27 federal banking agency, as applicable, will occur within the period of deferral; and 28 (2) the department determines that public interest will not be harmed 29 by the requested confidential treatment. 30 (e) The department may waive the requirement that a notice be published or 31 permit delayed publication of the notice if the department makes a written
01 determination that waiver or delay is in the public interest. 02 Sec. 06.26.470. Decision on application for acquisition of control. (a) The 03 department shall approve or deny an application for acquisition of control not later 04 than the 60th day after the date that the notice regarding acquisition of control is 05 published under AS 06.26.460. 06 (b) If the department approves an application filed under AS 06.26.460, the 07 applicant may acquire control. Any written commitment from the proposed transferee 08 offered to and accepted by the department as a condition for approval of the 09 application is enforceable against the trust company and the transferee. 10 Sec. 06.26.480. Objection to other transfer. AS 06.26.450 - 06.26.480 may 11 not be construed to prevent the department from investigating, commenting on, or 12 seeking to enjoin or set aside a transfer of voting securities that evidence a direct or 13 indirect interest in a trust company if the department considers the transfer to be 14 against the public interest. 15 Article 8. Governance. 16 Sec. 06.26.500. Voting securities held as trust assets. (a) Voting securities 17 of a trust company held by the trust company as trust assets under a will or trust, 18 whether registered in the trust company's own name or in the name of its nominee, 19 may not be voted in the election of directors or on a matter affecting the compensation 20 of directors, officers, or employees of the trust company unless 21 (1) under the terms of the will or trust, the manner in which the voting 22 securities are to be voted may be determined by a donor or beneficiary of the will or 23 trust and the donor or beneficiary actually makes the determination in the matter at 24 issue; 25 (2) the terms of the will or trust expressly direct the manner in which 26 the securities must be voted to the extent that no discretion is vested in the trust 27 company as fiduciary; or 28 (3) the securities are voted solely by a person who is a joint fiduciary, 29 but who is not a person who is affiliated with the trust company, as if the joint 30 fiduciary were the sole fiduciary. 31 (b) Voting securities of a trust company that may not be voted under this
01 section are considered to be authorized but unissued for the purpose of determining the 02 procedures for and results of the vote under this section. 03 Sec. 06.26.510. Board of directors. (a) The board of directors of a trust 04 company shall consist of at least five but not more than 25 directors, and the majority 05 of the directors must be residents of this state. The principal executive officer of the 06 trust company is a member of the board and the board's presiding officer unless the 07 board elects a different presiding officer. The presiding officer shall perform the 08 duties designated by the board. 09 (b) Unless the department consents in writing, a person may not serve as a 10 director of a trust company if 11 (1) the trust company incurs an unreimbursed loss attributable to a 12 charged-off obligation of the person or holds a judgment against the person or against 13 another person who was controlled by the person when the loan that gave rise to the 14 judgment or charged-off obligation was funded and went into default; 15 (2) the person has been convicted of a felony, or of another crime 16 involving moral turpitude or breach of trust; or 17 (3) the person, acting as a personal representative, made a loan of trust 18 money or other assets, or a purchase or sale of trust assets, that is voidable under 19 AS 13.16.400 and the person has not corrected the situation; in this paragraph, 20 "personal representative" has the meaning given in AS 13.06.050. 21 (c) If a trust company does not elect directors before the 61st day after the date 22 of its regular annual meeting, the department may appoint a person to operate the trust 23 company and elect directors. If the appointed person is unable to locate or elect 24 persons willing and able to serve as directors, the department may close the trust 25 company for liquidation. 26 (d) A vacancy on a board that reduces the number of directors to fewer than 27 five shall be filled not later than the 30th day after the date that the vacancy occurs. If 28 the vacancy on the board is not filled within 30 days after the date that the vacancy 29 occurs, the department may appoint a person to operate the trust company and elect a 30 board of at least five persons. If the appointed person is unable to locate or elect five 31 persons willing and able to serve as directors, the department may close the trust
01 company for liquidation. 02 (e) Before beginning each term to which a person is elected to serve as a 03 director of a trust company, the person shall submit an affidavit to be filed with the 04 minutes of the trust company stating that the person, to the extent applicable, 05 (1) accepts the position and is not disqualified from serving in the 06 position; 07 (2) will not violate or knowingly permit a director, an officer, or an 08 employee of the trust company to violate any law applicable to the conduct of business 09 of the trust company; and 10 (3) will diligently perform the duties of the position. 11 Sec. 06.26.520. Board meetings and review of reports. (a) The board of 12 directors of a trust company shall meet at least once every three months. The 13 department or a director may call a special meeting of the board. A majority of the 14 board constitutes a quorum. The board shall keep minutes of each board meeting, 15 including a record of attendance and a record of all votes. 16 (b) At least once every three months, the board of directors of a trust company 17 shall review written reports prepared by the president, other officers of the trust 18 company, or a trust committee appointed under AS 06.26.550. The reports must 19 include the accounts that have been opened or closed during the calendar quarter 20 before the meeting and the trust accounts subject to annual review during the calendar 21 quarter before the meeting. 22 Sec. 06.26.530. Officers. (a) The board shall annually appoint the officers of 23 the trust company. The officers serve at the pleasure of the board. 24 (b) The president of the trust company is the principal executive officer 25 primarily responsible for the execution of board policies and operation of the trust 26 company. The trust company shall have an officer responsible for the maintenance 27 and storage of all records of the trust company and for required attestation of 28 signatures. These positions may not be held by the same person. The board may 29 appoint other officers of the trust company as the board considers necessary. 30 Sec. 06.26.540. Prohibition of certain action by officer or employee. 31 Unless expressly authorized by a resolution of the board recorded in the minutes of the
01 board, an officer or employee may not create or dispose of a trust company asset or 02 create or incur a liability on behalf of the trust company. 03 Sec. 06.26.550. Trust committee. (a) The board may appoint a trust 04 committee to act for the company in matters dealing with the initial and annual 05 reviews of accounts, account acceptance, and investment strategies. A trust committee 06 shall consist solely of directors, officers, or employees of the trust company, or any 07 combination of these positions. The trust committee shall keep a record of its actions 08 and shall report in writing to the board on all actions taken by the trust committee 09 since the previous board meeting. The board shall ratify or rescind each action. 10 (b) The trust committee shall meet at least once a month to review existing 11 accounts and to ratify or rescind newly accepted accounts. The trust committee may 12 not ratify a new account unless it is approved by a majority of the members of the trust 13 committee present at the meeting at which the new account is considered. 14 (c) A trust committee may elect one or more officers to accept new accounts, 15 subject to the requirements of (b) of this section. 16 Sec. 06.26.560. Prohibited acts. (a) A director, an officer, an employee, or a 17 shareholder of a trust company may not 18 (1) conceal information or a fact, or remove, destroy, or conceal a 19 book or record of the trust company, for the purpose of concealing information or a 20 fact from the department or an agent of the department; or 21 (2) for the purpose of concealing, remove or destroy a book or record 22 of the trust company that is material to a pending or anticipated court or administrative 23 proceeding. 24 (b) A director, an officer, or an employee of a trust company may not make a 25 false entry in the records, a report, or a statement of the trust company. 26 Sec. 06.26.570. Transactions with management and affiliates; penalties. 27 (a) Without the prior approval of a disinterested majority of the board recorded in the 28 minutes, or, if a disinterested majority cannot be obtained, the prior written approval 29 of the department, a trust company may not directly or indirectly 30 (1) sell or lease an asset of the trust company to a director, an officer, a 31 principal shareholder, or an affiliate of the trust company;
01 (2) purchase or lease property in which a director, an officer, a 02 principal shareholder, or an affiliate of the trust company has an interest; or 03 (3) extend credit to a director, an officer, a principal shareholder, or an 04 affiliate of the trust company. 05 (b) In addition to the requirements of (a) of this section, a lease transaction 06 described in (a)(2) of this section involving real property may not be consummated, 07 renewed, or extended by the trust company without the prior written approval of the 08 department. 09 (c) A trust company may not extend credit to a director, an officer, an 10 employee, a principal shareholder, or an affiliate of the trust company unless the 11 extension of credit 12 (1) is made on substantially the same terms, including interest rates 13 and collateral requirements, as the terms prevailing at the time for comparable 14 transactions by the trust company with persons who are not directors, officers, 15 employees, principal shareholders, or affiliates of the trust company; 16 (2) does not involve more than the normal risk of loss or present other 17 unfavorable features; and 18 (3) follows credit underwriting procedures that are as stringent as the 19 underwriting procedures applicable to comparable transactions by the trust company 20 with persons who are not directors, officers, employees, principal shareholders, or 21 affiliates of the trust company. 22 (d) The department may adopt regulations to implement this section, including 23 regulations to establish limits, requirements, or exemptions other than those specified 24 by this section for particular categories of transactions. 25 (e) In this section, "affiliate" does not include a subsidiary of the trust 26 company. 27 Sec. 06.26.580. Trust asset transactions involving certain securities, assets, 28 or information. (a) Except as provided in this chapter, or as authorized under the 29 instrument creating the relationship, a trust company may not invest trust assets in the 30 stock or obligations of, or use trust assets to acquire property from, the trust company 31 or any of the trust company's officers, directors, or employees. A trust company may
01 not sell trust assets to the trust company or to any of the trust company's directors, 02 officers, or employees. 03 (b) A trust company may not use material inside information in connection 04 with a decision or recommendation to purchase or sell a security that is a trust asset. 05 Sec. 06.26.585. Policies and procedures. A trust company shall adopt 06 written policies and procedures regarding decisions or recommendations to purchase 07 or sell a security that is a trust asset to facilitate compliance with federal and state 08 securities laws. These policies and procedures must include the prohibition in 09 AS 06.26.580(b). 10 Sec. 06.26.590. Fiduciary responsibility. The board of a trust company is 11 responsible for the proper exercise of fiduciary powers by the trust company and for 12 each matter that is related to the exercise of fiduciary powers, including 13 (1) the determination of policies; 14 (2) the investment and disposition of trust assets; and 15 (3) the direction and review of the actions of each officer, employee, 16 and committee employed or used by the trust company in the exercise of its fiduciary 17 powers. 18 Sec. 06.26.600. Trust account record keeping. A trust company shall keep 19 its trust assets records separate and distinct from other records of the trust company in 20 the manner required by state and federal law. The trust assets records must contain all 21 material information relating to each trust assets account, as appropriate under the 22 circumstances. 23 Sec. 06.26.610. Customer records confidential. (a) The trust company 24 records relating to customers are confidential and may not be made public unless 25 (1) disclosure is compelled by a court or administrative order; 26 (2) disclosure is required by federal or state law; 27 (3) disclosure is authorized in writing by the customer; 28 (4) disclosure is made to the holder of a negotiable instrument drawn 29 on the trust company as to whether the drawer has sufficient money or other assets in 30 the financial institution to cover the instrument; or 31 (5) an inquiry has been made by a state financial institution, or by a
01 credit-reporting agency regulated under 15 U.S.C. 1681 - 1681u (Fair Credit 02 Reporting Act) solely for the express purpose of determining the credit worthiness of 03 the customer as an applicant for credit, and the information disclosed by the trust 04 company, state financial institution, or credit-reporting agency relates only to the 05 payment habits of the customer in connection with loans or other credit 06 accommodations and does not pertain to records concerning deposit balances in 07 savings or checking accounts. 08 (b) When disclosure of trust company records is required or allowed under 09 (a)(1) or (2) of this section, the trust company shall notify the customer of the 10 disclosure. If notification before disclosure is not possible, the trust company shall 11 immediately notify the customer of the disclosure or inquiry. However, the trust 12 company may not notify the customer if disclosure is made under a search warrant or 13 under a court order issued at the request of a grand jury. 14 (c) When disclosure of trust company records is compelled by a court order 15 under (a)(1) of this section, the court may provide in the order for the reimbursement 16 of the trust company for the costs allowed by the rules of court and incurred by the 17 trust company to comply with the order. 18 Sec. 06.26.620. Insurance; bonds. (a) The board of directors of a trust 19 company shall maintain bonding and other insurance for the trust company against 20 dishonesty, fraud, defalcation, forgery, theft, embezzlement, burglary, robbery, theft, 21 and other similar insurable losses and hazards as required by the department by 22 regulation. The board shall obtain the bonding and other insurance from a person 23 authorized under AS 21 to act as an insurer or a surety insurer in this state. 24 (b) The board of directors shall procure errors and omissions insurance in the 25 amount of at least $500,000. 26 (c) At least once each year, the board of directors shall review the bonding and 27 other insurance required by this section to determine whether the coverage is adequate 28 in relation to the exposure of the trust company. The minimum amount of insurance 29 required by this section does not automatically represent adequate bonding and 30 insurance coverage in relation to the exposure. Immediately after procuring the 31 bonding and other insurance, the board shall file copies of the documents representing
01 the bonding and other insurance with the department. 02 Sec. 06.26.630. Reports of apparent crime. (a) A trust company that is the 03 victim of a robbery, that has a shortage of money or other assets in excess of $5,000, 04 or that is the victim of an apparent or suspected misapplication of its money or other 05 assets in any amount by a director, an officer, or an employee shall report the robbery, 06 shortage, or apparent or suspected misapplication to the department within 48 hours 07 after it is discovered. The initial report may be oral if the trust company promptly 08 confirms the report in writing to the department. The trust company or a director, an 09 officer, an employee, or an agent of the trust company is not liable for defamation to 10 or subject to any another cause of action based on supplying the information in the 11 report. 12 (b) A trust company may satisfy the requirements of (a) of this section by 13 filing with the department a copy of a written report filed with the appropriate law 14 enforcement agency. 15 Article 9. Organic Change. 16 Sec. 06.26.650. General provisions for conversions, mergers, and 17 consolidations. (a) A national bank whose main office is located in the state or a 18 state bank whose main office is located in the state may convert to a trust company or 19 merge or consolidate with a trust company, and a trust company may merge or 20 consolidate with another trust company, if the conversion, merger, or consolidation is 21 consistent with federal and state law and approved by the department. The 22 requirements of AS 06.26.650 - 06.26.670 are in addition to the merger and 23 consolidation requirements of AS 10.06. 24 (b) Before merger or consolidation under (a) of this section, a trust company 25 shall file with the department a merger or consolidation application and other 26 information and reports that the department requires under AS 06.26.660. 27 (c) The department, in the exercise of its power to approve or disapprove 28 applications for merger or consolidation under (a) of this section, shall act in the 29 interests of promoting and maintaining a sound trust company system, promoting the 30 security of deposits and customers, preserving of the liquid position of trust 31 companies, and preventing injurious credit expansions and contractions.
01 (d) A trust company converting to or merging or consolidating with a national 02 bank shall submit to the department a copy of any application to the United States 03 Comptroller of the Currency for a national bank charter or any other application to the 04 United States Comptroller of the Currency to convert, merge, or consolidate when the 05 applications are forwarded to the United States Comptroller of the Currency. 06 Sec. 06.26.660. Merger or consolidation. (a) To merge or consolidate under 07 AS 06.26.650, the merging persons shall file with the department the original articles 08 of merger or consolidation, a number of copies of the articles of merger or 09 consolidation equal to the number of trust companies involved in the merger or 10 consolidation, and an application in the form required by the department. The 11 department may require the submission of additional information it considers 12 necessary to make an informed decision. 13 (b) The department may approve a merger or a consolidation if 14 (1) the surviving or new trust company will be solvent and have 15 adequate capitalization for its operations and location; 16 (2) the surviving or new trust company has in all respects complied 17 with the statutes and regulations governing the organization of a trust company in this 18 state; 19 (3) all obligations and liabilities of each trust company that is a party 20 to the merger or consolidation have been properly discharged or otherwise lawfully 21 assumed or retained by a trust company or other fiduciary; 22 (4) a surviving or new trust company is not authorized to act as a 23 fiduciary under this chapter, will not act as a fiduciary, and has otherwise complied 24 with the laws of this state; 25 (5) the surviving or new trust company satisfies the provisions in 26 AS 06.26.090 that the department determines apply to the trust company; and 27 (6) all conditions imposed by the department have been satisfied. 28 (c) If the department approves the merger or consolidation and finds that all 29 investigative expenses incurred by the department and all required filing fees have 30 been paid, the department shall issue a certificate of merger or consolidation. 31 Sec. 06.26.670. Rights of dissenters. In addition to the dissenter's rights
01 under AS 10.06 for a merger or consolidation, if a shareholder of a trust company 02 objects to a conversion of the trust company, the dissenting shareholder's rights shall 03 be exercised under and governed by AS 10.06.574 - 10.06.582 as if the conversion 04 were a merger. 05 Sec. 06.26.680. Authority to purchase assets of another trust company. 06 (a) A trust company with the prior written approval of the department may purchase 07 all or substantially all of the assets of another trust company, including the right to 08 control accounts established with the trust accounts. Except as otherwise expressly 09 provided by another statute, the purchase by a trust company of all or part of the assets 10 of another trust company does not make the purchasing trust company responsible for 11 a liability or obligation of the selling trust company that the purchasing trust company 12 does not expressly assume. Except as otherwise provided by statute, AS 06.26.450 - 13 06.26.480 do not govern or prohibit the purchase by a trust company of all or part of 14 the assets of a person who is not a trust company or an exempt private fiduciary. 15 (b) To purchase assets under (a) of this section, a trust company shall file with 16 the department an application in the form required by the department. The department 17 shall investigate the condition of the purchaser and seller and may require the 18 submission of additional information it considers necessary to make an informed 19 decision. The department shall approve the purchase if 20 (1) the purchasing trust company will be solvent after the purchase and 21 have sufficient capitalization for its operations and location; 22 (2) the purchasing trust company has complied with all applicable 23 statutes and regulations in this state; 24 (3) all fiduciary obligations and liabilities of the purchasing trust 25 company and selling trust company have been properly discharged or otherwise 26 lawfully assumed by the purchasing trust company; 27 (4) all conditions imposed by the department have been satisfied or 28 otherwise resolved; and 29 (5) all expenses incurred by the department and all required fees have 30 been paid. 31 (c) A purchase under this section is effective on the date the department
01 approves the purchase unless the purchase agreement provides for, and the department 02 consents to, a different effective date. 03 Sec. 06.26.690. Authority to act as disbursing agent. A purchasing trust 04 company may hold the purchase price and any additional money or other assets 05 delivered to it by the selling trust company in trust for the selling trust company and 06 may act as an agent of the selling trust company in disbursing the money or other 07 assets by paying the creditors of the selling trust company. If the purchasing trust 08 company acts under a written contract of agency approved by the department that 09 specifically names each creditor and the amount to be paid each creditor, and if the 10 agency is limited to the purely ministerial act of paying creditors the amounts due 11 them as determined by the selling trust company and reflected in the contract of 12 agency and does not involve discretionary duties or authority other than the 13 identification of the creditors named, the purchasing trust company 14 (1) may rely on the contract of agency and the instructions included in 15 it; and 16 (2) is not responsible for 17 (A) an error made by the selling trust company when 18 determining its liabilities, the creditors to whom the liabilities are due, or the 19 amounts due to the creditors; or 20 (B) a preference that results from the payments made under the 21 contract of agency and the instructions included in the contract. 22 Sec. 06.26.700. Liquidation of selling trust company. If a selling trust 23 company is at any time after the sale of assets voluntarily or involuntarily closed for 24 liquidation by a state or federal regulatory agency, the purchasing trust company shall 25 pay to the receiver of the selling trust company the balance of the money or other 26 assets held by the purchasing trust company in trust for the selling trust company and 27 not yet paid to the creditors of the selling trust company. Without further action, the 28 purchasing trust company is then discharged of all responsibilities to the selling trust 29 company and the selling trust company's receiver, creditors, and shareholders. 30 Sec. 06.26.710. Payment to creditors. A purchasing trust company may pay 31 a creditor of the selling trust company the amount to be paid the creditor under the
01 terms of the contract of agency entered into under AS 06.26.690 by opening an agency 02 account in the name of the creditor, crediting the account with the amount to be paid 03 the creditor under the terms of the agency contract, and mailing or personally 04 delivering a duplicate of the written evidence of the credit to the creditor at the 05 creditor's address shown in the records of the selling trust company. With regard to 06 the creditor, the purchasing trust company is an agent of the selling trust company 07 only to the extent of the credit reflected by the written evidence of the credit. 08 Sec. 06.26.720. Sale of assets. (a) The board of a trust company, with the 09 department's approval, may cause a trust company to sell all or substantially all of its 10 assets, including the right to control accounts established with the trust company for 11 trust assets, without shareholder approval if the department finds 12 (1) the interests of the trust company's creditors and depositors and 13 other customers are not jeopardized because of an unsafe or unsound condition of the 14 trust company; 15 (2) the sale is in the best interest of the trust company's creditors and 16 depositors and other customers; and 17 (3) the Federal Deposit Insurance Corporation or its successor 18 approves the transaction unless the deposits of the trust company are not insured by 19 the Federal Deposit Insurance Corporation or its successor. 20 (b) A sale under this section must include an assumption and promise by the 21 purchaser to pay or otherwise discharge 22 (1) all of the trust company's liabilities to customers; 23 (2) all of the trust company's liabilities for the salaries of the trust 24 company's employees incurred before the date of the sale; 25 (3) the obligations incurred by the department arising out of the 26 supervision or sale of the trust company; and 27 (4) the fees and any other payment due to the department under this 28 chapter and assessments due to the department under AS 06.01.010. 29 (c) This section does not limit the incidental power of a trust company to buy 30 and sell assets in the ordinary course of its operations. 31 (d) The sale by a trust company of all or substantially all of its assets with
01 shareholder approval is considered a voluntary dissolution and liquidation and is 02 governed by AS 06.26.730 - 06.26.800. 03 Article 10. Dissolution and Liquidation. 04 Sec. 06.26.730. Voluntary liquidation. (a) Without department approval, a 05 trust company may not cease acting as a fiduciary in this state and voluntarily 06 surrender its certificate of authority and as a consequence be relieved of the necessity 07 to comply with the requirements of this chapter. 08 (b) A trust company proposing to cease acting as a fiduciary in this state shall 09 submit to the department 10 (1) a certified copy of a resolution of the trust company's board of 11 directors reflecting the board's decision that the trust company should cease acting as a 12 fiduciary in this state; and 13 (2) the trust company's plan adopted by its board for winding up its 14 fiduciary operations in this state. 15 (c) The department may approve or disapprove the trust company's plan for 16 winding up its fiduciary operations in this state based on the department's evaluation 17 of whether the plan provides adequate protection for those persons and interests for 18 whom the trust company acts as a fiduciary. The department's approval may be 19 subject to any condition the department determines appropriate under the 20 circumstances. 21 (d) During the implementation of a trust company's plan for winding up its 22 fiduciary operations in this state, the department retains the authority to supervise the 23 trust company and may conduct any examination relating to either the trust company 24 or the plan for winding up that the department considers necessary or appropriate. 25 (e) If the department has reason to conclude that the trust company is not 26 safely or expeditiously implementing the approved plan for winding up the trust 27 company's fiduciary operations in this state, the department may 28 (1) begin revocation proceedings under AS 06.26.740; 29 (2) take possession of the trust company's trust business in this state in 30 the same manner, with the same effect, and subject to the same rights accorded to the 31 trust company under AS 06.26.750.
01 (f) The department shall cancel the trust company's certificate of authority if 02 the department approves the trust company's plan for winding up its fiduciary 03 operations in this state and if all of the following conditions that apply to the trust 04 company have been met: 05 (1) the trust company has completed its plan for winding up its 06 fiduciary operations in this state consistent with any conditions that the department 07 imposed on the plan under (c) of this section; 08 (2) the trust company has been relieved under all applicable laws of all 09 duties as trustee, executor, administrator, registrar of stocks and bonds, or any other 10 type of fiduciary position under court, private, or other appointment that the trust 11 company had accepted; 12 (3) if the trust company has its principal place of business in this state, 13 the trust company has, under all applicable laws, wound up its fiduciary operations in 14 each of the other jurisdictions where the trust company solicited appointment or 15 served as a fiduciary, or otherwise acted as a fiduciary; 16 (4) if the trust company has its principal place of business in this state 17 and is not authorized to engage in activities other than acting as a fiduciary, the trust 18 company is being liquidated under AS 06.26.760 - 06.26.800. 19 (g) Upon the department's canceling the trust company's certificate of 20 authority, the trust company may not without obtaining a new certificate of authority 21 act as a fiduciary in this state, or in any jurisdiction. 22 Sec. 06.26.740. Revocation. (a) If the department determines that any of the 23 following factors exist, the department may revoke, consistent with AS 06.01.030 and 24 regulations adopted by the department under AS 06.01.030 and this chapter, a trust 25 company's certificate of authority: 26 (1) the existence of the trust company, or its authority to act as a 27 fiduciary, has been terminated or suspended under the laws of the state or other 28 jurisdiction in which the trust company is organized; 29 (2) the trust company's authority to act as fiduciary has been 30 terminated or suspended under the laws of the state or other jurisdiction in which the 31 trust company is organized, or its license to act as a fiduciary has been terminated or
01 suspended under the laws of any other jurisdiction in which the trust company had 02 been authorized to act as a fiduciary; 03 (3) a receiver, liquidator, or conservator has been appointed for the 04 trust company under the laws of the state or other jurisdiction in which the trust 05 company is organized, or for its operation in any other jurisdiction in which the trust 06 company operates; 07 (4) the trust company is violating or has violated or the department has 08 reasonable cause to believe is about to violate 09 (A) a law or regulation; 10 (B) a condition imposed by the department in writing in 11 connection with approving an application or notice under this chapter or 12 granting any other request of the trust company under this chapter; 13 (C) a written agreement that the trust company entered into 14 with the department; 15 (D) a cease and desist order issued by the department under 16 AS 06.01.030; 17 (5) the trust company is engaging in or has engaged in, or the 18 department has reasonable cause to believe the trust company is about to engage in an 19 unsafe or unsound practice; 20 (6) the trust company has ceased to pay its debts in the ordinary course 21 of business, is incapable of paying its debts as they mature, has liabilities in excess of 22 its assets, or is subject to or has applied for an adjudication in bankruptcy, 23 reorganization, or other relief under any bankruptcy, reorganization, insolvency, or 24 moratorium law; 25 (7) the trust company has ceased to act as a fiduciary in this state; 26 (8) the trust company has failed to pay any fees, charges, forfeitures, 27 penalties, or other payment due to the department under this title. 28 (b) If the department has reasonable cause to believe any of the factors 29 identified in (a) of this section is true, and if the department determines it is necessary 30 to protect the persons and interests in this state for whom the trust company acts as a 31 fiduciary or to protect the property in this state to which the trust company holds title
01 as a fiduciary or in which the trust company holds an interest as a fiduciary, the 02 department may immediately suspend the trust company's certificate of authority. 03 Sec. 06.26.750. Authority to take possession. If the department revokes a 04 trust company's certificate of authority under AS 06.26.740(a), the department may 05 take possession of the trust company's fiduciary operations in this state and may 06 appoint a receiver for the liquidation of the trust company's fiduciary operations in this 07 state. If the trust company has its principal place of business in this state, the 08 department may take possession of, and appoint a receiver for the liquidation of all the 09 trust company's fiduciary operations wherever they are conducted. 10 Sec. 06.26.760. Department in possession. (a) When the department has 11 taken possession of a trust company, it is vested with the full and exclusive power of 12 management and control, including the power to act as a trustee for trust assets, to 13 continue or discontinue the operation of the trust company, to stop or limit the 14 payment of the trust company's obligations, to employ necessary assistants, to execute 15 an instrument in the name of the trust company, to commence, defend, and conduct in 16 the trust company's name any action or proceeding to which the trust company may be 17 a party, to terminate the possession by restoring the trust company to its board, and to 18 reorganize or liquidate the trust company under this chapter. As soon as practicable 19 after taking possession, the department shall make an inventory of the trust assets and 20 the trust company assets and file a copy of the inventory with the superior court. 21 (b) When the department has taken possession, the following dates are 22 postponed until six months after the possession begins: 23 (1) notwithstanding other provisions of law, the date on which any 24 period of limitation fixed by a statute or agreement would otherwise expire on a claim 25 or right of action of the trust company; or 26 (2) the date on which an appeal must be taken or a pleading or other 27 document must be filed by the trust company in any pending court action or other 28 proceeding. 29 (c) A judgment, lien, or attachment may not be enforced against trust company 30 assets while the assets are in possession of the department. Upon the election of the 31 department in connection with a liquidation or reorganization,
01 (1) any lien or attachment, other than an attorney's or mechanic's lien, 02 obtained upon a trust company asset during the department's possession or within four 03 months before beginning that possession may be vacated, except liens created by the 04 department while in possession; and 05 (2) any transfer of trust company assets made after or in contemplation 06 of the trust company's insolvency or in anticipation of the department's takeover, with 07 intent to effect a preference of one creditor over another creditor or to prevent the 08 distribution of the trust company assets according to law, is void. 09 (d) The department may borrow money in the name of the trust company in 10 the department's possession and may pledge trust company assets as security for the 11 loan. 12 (e) All necessary and reasonable expenses resulting from the department's 13 possession of a trust company and of its reorganization or liquidation shall be paid 14 from trust company assets. 15 Sec. 06.26.770. Reorganization. (a) If the department decides to reorganize 16 a trust company, the department, after providing an opportunity for a hearing to all 17 interested parties, shall enter an order proposing a reorganization plan. The 18 department shall send a copy of the plan to each depositor and other customers and to 19 each creditor who will not receive payment of a claim in full under the plan and a 20 notice that, unless within 30 days the plan is disapproved in writing by persons 21 holding one-third or more of the aggregate amount of the claims, the department will 22 reorganize the trust company. 23 (b) A plan of reorganization may not be established under this chapter unless, 24 in the opinion of the department, 25 (1) the plan is fair to all classes of depositors, other customers, 26 creditors, and shareholders; 27 (2) subject to a fair adjustment for new capital that a class will pay 28 under the plan, the face amount of the trust company asset interest provided to a class 29 of depositors, other customers, creditors, or shareholders under the plan does not 30 exceed the value of the assets at liquidation less the full amount of the claims of all 31 prior classes;
01 (3) the plan provides for the issuance of common stock in an amount 02 that will provide an adequate ratio to deposits; 03 (4) any exchange of new common stock for obligations or stock of the 04 trust company will be made 05 (A) in the inverse order of the priorities in liquidation of the 06 classes that will retain an interest in the trust company; and 07 (B) upon terms that adjust in a fair manner any change in the 08 relative interest of the respective classes that will be produced by the 09 exchange; 10 (5) the plan assures the removal of a director, an officer, or an 11 employee responsible for a problem identified by the department, including an unsafe, 12 unsound, or unlawful action or the existence of an unsafe or unsound condition; 13 (6) any merger or consolidation provided by the plan complies with 14 this chapter. 15 (c) When in the course of reorganization, supervening conditions render a plan 16 of reorganization unfair or its execution impractical, the department may modify the 17 plan or liquidate the trust company. 18 Sec. 06.26.780. Involuntary liquidation powers. (a) When liquidating a 19 trust company, the department may exercise any power incidental to liquidating a trust 20 company, but it may not, without the approval of the superior court, 21 (1) sell trust company assets having an appraised value in excess of 22 $100,000; 23 (2) compromise or release a claim that exceeds $100,000 exclusive of 24 interest; 25 (3) make full payment on a claim, other than a claim upon an 26 obligation incurred by the department, before preparing and filing a schedule of the 27 department's determinations under AS 06.26.790(d)(3). 28 (b) Within six months after beginning the liquidation of a trust company, the 29 department may terminate an executory contract for services or advertising to which 30 the trust company is a party or an obligation of the trust company as a lessee. A lessor 31 who receives 60 days' notice of the department's decision to terminate a lease does not
01 have a claim for rent other than rent accrued to the date of termination or for damages 02 due to the termination. 03 (c) As soon as practical after beginning the involuntary liquidation of a trust 04 company, the department shall take the steps necessary to terminate all fiduciary 05 positions held by the trust company, to surrender all property held by the trust 06 company as a fiduciary, and to settle the trust accounts of the trust company. 07 Sec. 06.26.790. Claims. (a) As soon as practical after beginning the 08 liquidation of a trust company, the department shall 09 (1) mail a notice of the liquidation proceedings to the last known post 10 office address of each depositor, creditor, lessee of a safe deposit box, bailor of 11 property, and trustor and beneficiary of trust assets held by the trust company; 12 (2) post a notice of the proceedings conspicuously on the premises of 13 the trust company; and 14 (3) publish a notice that the department determines to be appropriate 15 for the proceedings. 16 (b) The department shall mail with the notice sent under (a)(1) of this section a 17 statement of the amount shown on the trust company's records to be the claim of the 18 depositor or creditor. The notice must also include a demand that a person who is 19 entitled to property held by the trust company as bailee or trustee or in a safe deposit 20 box of the trust company withdraw the property within 30 days. The notice must 21 direct those depositors and creditors who claim amounts different from the amounts in 22 the notice to file their claims with the trust company under the procedure described in 23 the notice and before a specified date. The specified day may not be less than 60 days 24 from the date of the first publication of the notice. 25 (c) A safe deposit box whose contents have not been removed within 30 days 26 after demand shall be opened. The department shall retain the contents of the box and 27 the other unclaimed property held by the trust company as bailee until the conclusion 28 of the liquidation proceedings. At the conclusion of the liquidation proceedings under 29 this section, the property held by the department under this subsection is considered 30 abandoned, and the department shall deliver the property to the Department of 31 Revenue under AS 34.45.110 - 34.45.780.
01 (d) Within six months after the last day specified in the notice for the filing of 02 claims, or within a longer period if allowed by the superior court, the department shall 03 (1) reject a claim that it determines to be invalid; 04 (2) determine the amount, if any, owing to each known creditor or 05 depositor and the priority class of the person's claim under this chapter; 06 (3) prepare a schedule of its determinations for filing in the superior 07 court; 08 (4) publish a notice in a newspaper once each week for three 09 successive weeks, of the times and places where the schedule of determinations will 10 be available for inspection and the date when the department will file its schedule in 11 court; the date may not be sooner than 30 days after the first publication. 12 (e) Within 30 days after the filing with the superior court of the department's 13 schedule under (d)(3) of this section, a creditor, depositor, or stockholder may file 14 with the court an objection to a determination. The court shall hear and determine the 15 filed objections after the notice to the department and interested claimants that the 16 court establishes. If the court sustains an objection, the court shall direct that the 17 schedule be modified appropriately. 18 (f) After filing its schedule, the department may make partial distribution to 19 the holders of the claims that are undisputed or are allowed by the court if an adequate 20 reserve is established for the payment of disputed claims. As soon as practicable after 21 the determination of all objections, the department shall make the final distribution. 22 (g) The following claims have priority in liquidation proceedings, in the order 23 listed: 24 (1) obligations incurred by the department in liquidating the trust 25 company; 26 (2) wages and salaries of officers and employees earned during the 27 three-month period preceding the department's possession in an amount not exceeding 28 $3,000 for each person; 29 (3) fees and assessments owed by the trust company to the department; 30 (4) deposits; 31 (5) claims secured by trust company assets.
01 (h) After the payment of all other claims, including interest at the rate of 10.5 02 percent a year, the department shall pay claims that are otherwise valid but that were 03 not filed within the time prescribed. 04 (i) If the sum available for a class of creditors is insufficient to provide 05 payment in full, the sum shall be distributed pro rata to the claimants in the class. 06 (j) Unclaimed property remaining after the completion of the liquidation 07 proceedings under this section is presumed abandoned, and the property shall be 08 delivered to the Department of Revenue for handling under AS 34.45.110 - 34.45.780. 09 (k) After payment of the expenses of the liquidation and the claims against the 10 trust company arising from its fiduciary obligations in this state under AS 06.26.760 - 11 06.26.800, the receiver shall distribute any remaining money or other assets from the 12 liquidation of the trust company's fiduciary operations in this state equitably among, as 13 applicable, the receivers for liquidation of the trust company's fiduciary operations in 14 other states of the United States and under the laws of the United States, for payment 15 of the expenses of liquidation and claims against the trust company's fiduciary 16 operations. If the trust company's fiduciary operations are not being liquidated in 17 another state or under the laws of the United States, the receiver shall, after satisfying 18 the requirements of AS 06.26.760 - 06.26.800, pay any remaining money or other 19 assets from the liquidation of the trust company's fiduciary operations in this state to 20 the trust company. 21 (l) When the receiver has completed the liquidation of the trust company's 22 fiduciary operations in this state, the receiver shall, with notice to the department, 23 petition the court for an order declaring the trust company's fiduciary operations in this 24 state properly wound up under AS 06.26.760 - 06.26.800. Upon the filing of the 25 petition, the court shall proceed as provided in AS 06.26.760 - 06.26.800. 26 (m) An order issued by the court under a petition filed under (l) of this section 27 may only declare the trust company's fiduciary operations in this state have been 28 properly wound up and may not declare the trust company is dissolved. The court 29 may make whatever additional orders and grant whatever additional relief that the 30 court determines is proper under the evidence submitted. 31 (n) After an order is issued under (m) of this section declaring the trust
01 company's fiduciary operations in this state are properly wound up, 02 (1) the trust company shall, except for any further winding up, cease 03 acting as a fiduciary in this state or in any jurisdiction; and 04 (2) the receiver shall promptly file with the department a copy of the 05 order certified by the clerk of the court. 06 Sec. 06.26.800. Federal Deposit Insurance Corporation as receiver or 07 liquidator. The department may appoint the Federal Deposit Insurance Corporation 08 or its successor as receiver for a trust company that the department has taken 09 possession of if the deposits of the trust company are insured by that corporation or its 10 successor. Upon filing with the court a certificate indicating the acceptance of the 11 appointment by the Federal Deposit Insurance Corporation or its successor, the 12 possession of and title to all the assets, business, and property of the trust company are 13 transferred to that corporation. The department is then relieved of all responsibility 14 and liability with respect to the reorganization or liquidation of the trust company. 15 The Federal Deposit Insurance Corporation or its successor may liquidate, reorganize, 16 merge, or consolidate the trust company in the manner permitted by the laws of the 17 United States or by this chapter, and possesses all the rights, powers, duties, and 18 obligations of the department in the liquidation, reorganization, merger, or 19 consolidation of the trust company under this chapter. 20 Article 11. Interstate State Trust Company, Interstate National 21 Trust Company, and International Trust Company Offices. 22 Sec. 06.26.810. Fiduciary operations at a branch or trust office. (a) An 23 interstate state trust company, interstate national trust company, or international trust 24 company may not act as a fiduciary in this state unless the trust company maintains a 25 trust office in this state as permitted under AS 06.26.810 - 06.26.895. 26 (b) If an interstate state trust company, interstate national trust company, or 27 international trust company establishes or acquires a trust office in this state under 28 AS 06.26.810 - 06.26.895, the trust company may conduct at the trust office any 29 activity that a trust company may conduct at a trust office under this chapter. 30 Sec. 06.26.820. Establishing or acquiring a trust office. If an interstate state 31 trust company, interstate national trust company, or international trust company that
01 does not operate a trust office in this state meets the requirements of AS 06.26.810 - 02 06.26.895, the trust company may establish a new trust office in this state or acquire a 03 trust office in this state that is in existence at the time of acquisition. 04 Sec. 06.26.830. Requirement of notice. To establish a new trust office or 05 acquire a trust office that is in existence at the time of acquisition in this state under 06 AS 06.26.810 - 06.26.895, an interstate state trust company, interstate national trust 07 company, or international trust company shall provide, or cause its home jurisdiction 08 regulator to provide, written notice of the proposed transaction to the department on or 09 after the date on which the trust company applies to its home jurisdiction regulator for 10 approval to establish or acquire the trust office. The trust company shall file with the 11 notice and maintain a copy of a resolution adopted by the board of the trust company 12 authorizing the establishment or acquisition of the office and shall pay the filing fee 13 established by the department by regulation. 14 Sec. 06.26.840. Conditions for approval. (a) An interstate state trust 15 company or international trust company may not establish or acquire a trust office in 16 this state under AS 06.26.810 - 06.26.895 unless 17 (1) the trust company confirms in writing to the department that, while 18 the trust company maintains a trust office in this state, the trust company will comply 19 with all applicable laws of this state, including, except where the context or this 20 section indicates otherwise, the provisions of this chapter applicable to trust 21 companies organized under this chapter; 22 (2) the trust company provides satisfactory evidence to the department 23 of compliance with the 24 (A) requirements for foreign corporations under AS 10.06; and 25 (B) applicable requirements of its home jurisdiction regulator 26 for establishing or acquiring and maintaining the office; 27 (3) the department, acting within 90 days after receiving notice under 28 AS 06.26.830, certifies to the home jurisdiction regulator that the requirements of 29 AS 06.26.810 - 06.26.895 have been met and the notice has been approved or, if 30 applicable, that any conditions imposed by the department under (b) of this section 31 have been satisfied;
01 (4) the department receives evidence from the trust company that the 02 department determines clearly demonstrates that the establishment or acquisition will 03 serve the public interest and well-being; the evidence must address the factors listed in 04 AS 06.26.090(b); and 05 (5) the department has received all required fees and the affidavit of 06 publication required by AS 06.26.100(b). 07 (b) An interstate state trust company or international trust company may begin 08 acting as a fiduciary at a trust office on the 91st day after the date that the department 09 receives the notice under (a) of this section for the trust office unless the department 10 specifies a different date. 11 (c) The department may extend the 90-day period of review provided by (a) of 12 this section if the department determines that the written notice raises issues that 13 require additional information or additional time for analysis by the department. If the 14 department extends the 90-day period of review, the trust company may establish the 15 trust office only after written approval by the department. 16 (d) The department may deny an interstate state trust company or international 17 trust company permission to establish or acquire the trust office if the department finds 18 that the trust company lacks sufficient financial resources to undertake the proposed 19 expansion without adversely affecting its safety or soundness or that the proposed trust 20 office would be contrary to the public interest. When acting on the notice provided 21 under (a) of this section, the department shall consider the views of the home 22 jurisdiction regulator. 23 (e) If an interstate state trust company or international trust company is not 24 required by AS 10.06 or another law of this state to maintain a registered agent in this 25 state, the trust company shall file a written consent with the department permitting the 26 commissioner to act as the agent for the trust company for service of process in a court 27 action arising out of or connected with the proposed trust office. 28 (f) An interstate national trust company may not establish or acquire a trust 29 office in this state unless the trust company provides satisfactory evidence to the 30 department of compliance with the applicable requirements of its home jurisdiction 31 regulator for establishing or acquiring and maintaining the office.
01 Sec. 06.26.850. Representative office business; registration. (a) An 02 interstate state trust company, interstate national trust company, or international trust 03 company may not provide fiduciary services, but may otherwise engage in trust 04 business, at a representative office as permitted by AS 06.26.810 - 06.26.895. 05 (b) Subject to the requirements contained in AS 06.26.810 - 06.26.895, an 06 interstate state trust company, interstate national trust company, or international trust 07 company may establish or acquire representative offices in any location in this state. 08 (c) If an interstate state trust company or international trust company that does 09 not maintain a trust office in this state wants to establish or acquire a representative 10 office in this state, the trust company shall file a notice with the department on a form 11 prescribed by the department. The trust company shall furnish a copy of a resolution 12 adopted by its board authorizing the establishment or acquisition of the representative 13 office and shall pay the filing fee established by the department by regulation. The 14 notice required under this subsection must provide the name of the trust company, the 15 location of the proposed representative office, and satisfactory evidence that the trust 16 company is chartered or otherwise organized in another jurisdiction to act as a 17 fiduciary. 18 (d) An interstate state trust company or international trust company may 19 commence business at a representative office on the 61st day after the date that the 20 department receives the notice required under (c) of this section unless the department 21 specifies a different date. 22 (e) The department may extend the 60-day period of review provided by (d) of 23 this section if the department determines that the written notice raises issues that 24 require additional information or additional time for analysis by the department. If the 25 60-day period of review is extended, the trust company may establish the 26 representative office only after written approval by the department. 27 (f) In addition to the other requirements of this section, in order to receive 28 permission to establish or acquire a representative office in this state, an interstate 29 state trust company or international trust company must have sufficient financial 30 resources to undertake the proposed expansion without adversely affecting its safety or 31 soundness and the proposed representative office may not be contrary to the public
01 interest. When acting on the notice provided under (c) of this section, the department 02 shall consider the views of the home jurisdiction regulator. 03 (g) The department may determine by order that an interstate state trust 04 company or international trust company does not meet the requirements for 05 establishing or acquiring a representative office in this state under this section. An 06 order issued under this subsection is effective on the date of its issuance or on another 07 date as the department may determine. 08 (h) An interstate national trust company shall give the department notice of its 09 intent to establish or acquire a representative office in this state. 10 Sec. 06.26.860. Additional trust offices. If an interstate state trust company 11 or international trust company maintains a trust office in this state under AS 06.26.810 12 - 06.26.895, the trust company may establish or acquire additional trust offices or 13 representative offices in this state to the same extent and in the same manner that a 14 trust company may establish or acquire branch offices in this state under the 15 procedures for establishing or acquiring branch offices under AS 06.26.160. 16 Sec. 06.26.870. Examinations; periodic reports; cooperative agreements; 17 assessment of fees. (a) When the department considers it necessary to protect the 18 public interest, the department or a competent person designated by the department 19 may examine an interstate state trust company or international trust company that has 20 a trust office or a representative office in the state. The trust company shall pay a fee 21 established under AS 06.01.010 for the examination. 22 (b) The department may require periodic reports from an interstate state trust 23 company or international trust company if the trust company maintains a trust office in 24 this state and from a bank holding company that controls the trust company. The 25 reports shall be made under oath and filed as frequently as required by the department. 26 The reports must contain the information and detail that the department determines to 27 be appropriate as required under regulations adopted by the department. 28 (c) If an interstate state trust company or international trust company 29 maintains a trust office or a representative office in this state, the trust company may 30 be assessed and, if assessed, shall pay supervisory and examination fees as required by 31 the laws of this state and regulations of the department. Fees may be shared with other
01 governmental regulators or any organization affiliated with or representing 02 governmental regulators under agreements between the department and the regulators 03 or organization. 04 Sec. 06.26.880. Enforcement. (a) Consistent with AS 06.01.030 and 05 regulations adopted by the department under AS 06.01.030 or this chapter, the 06 department may determine that 07 (1) an office maintained by an interstate state trust company or 08 international trust company is being operated in violation of a provision of the laws of 09 this state or in an unsafe and unsound manner; or 10 (2) an interstate state trust company or international trust company is 11 engaged in an activity that the trust company may not engage in under this chapter. 12 (b) If either of the conditions in (a) of this section exists, the department may 13 take the enforcement actions it would be empowered to take if the office or the 14 company were a trust company established under this chapter, including issuing an 15 order temporarily or permanently prohibiting the trust company from acting as a 16 fiduciary in this state. 17 (c) If a matter involves extraordinary circumstances that require immediate 18 action, the department may take any action permitted by this section without providing 19 notice or an opportunity for a hearing before taking the action. The department shall 20 promptly give notice to the home jurisdiction regulator of each enforcement action 21 taken against an interstate state trust company or international trust company and, to 22 the extent practicable, shall consult and cooperate with the home jurisdiction regulator 23 when pursuing and resolving an enforcement action. 24 Sec. 06.26.890. Notice of subsequent merger, consolidation, or closing. If 25 an interstate state trust company, interstate national trust company, or international 26 trust company maintains a trust office or a representative office in this state under this 27 chapter, the trust company shall give at least 60 days' prior written notice, or, in the 28 case of an emergency transaction, shorter notice that is consistent with applicable state 29 and federal law, to the department of 30 (1) a merger, consolidation, or other transaction that would cause a 31 change of control with respect to the trust company or any bank holding company that
01 controls the trust company if an application would be required to be filed under 12 02 U.S.C. 1817(j) (Change in Bank Control Act of 1978) or 12 U.S.C. 1841 - 1850 (Bank 03 Holding Company Act of 1956); 04 (2) a transfer of all or substantially all of the trust accounts or trust 05 assets of the trust company to another person; 06 (3) the closing or other disposition of any trust office of the trust 07 company in this state. 08 Sec. 06.26.895. Definitions. In AS 06.26.810 - 06.26.895, 09 (1) "international trust company" means an international trust company 10 whose home office is not located in this state; 11 (2) "interstate national trust company" means an interstate national 12 trust company whose home office is not located in this state; 13 (3) "interstate state trust company" means an interstate state trust 14 company whose home office is not located in this state. 15 Article 12. Miscellaneous Provisions. 16 Sec. 06.26.900. Powers of department. The department may 17 (1) exercise general supervision over trust companies, interstate trust 18 companies, and international trust companies, and the subsidiaries and affiliated 19 corporations of trust companies, interstate state trust companies, and international trust 20 companies; 21 (2) in addition to other authority in this chapter to adopt regulations, 22 adopt regulations necessary to interpret and implement this chapter, including 23 regulations providing for the retention and preservation of records; 24 (3) review and approve or disapprove applications for trust companies 25 under AS 06.26.090, trust company branch offices under AS 06.26.160, representative 26 offices under AS 06.26.170, and trust offices and representative offices under 27 AS 06.26.810 - 06.26.895; 28 (4) issue permits authorizing trust company holding companies to do 29 business in this state; 30 (5) determine for each trust company the amount of paid-in capital 31 necessary to operate under AS 06.26.120;
01 (6) review and approve transfers of trust company ownership under 02 AS 06.26.450; 03 (7) perform examinations of trust companies, branch offices, 04 representative offices, and subsidiaries of trust companies and private fiduciaries 05 under AS 06.01.015 and this chapter; 06 (8) relieve a trust company from the examination requirements of 07 AS 06.01.015 if the trust company's deposits are insured by the Federal Deposit 08 Insurance Corporation, a successor of the Federal Deposit Insurance Corporation, or 09 another agency of the United States that insures trust company deposits; 10 (9) approve under AS 06.26.190 the operation of a branch trust 11 company on a schedule different than normal banking days; 12 (10) approve the operation by a trust company of an automated teller 13 machine in accordance with AS 06.05; 14 (11) approve certain trust company subsidiaries; 15 (12) approve the acceptance by a trust company of the trust company's 16 stock or of the stock of the trust company's holding company as security for a loan 17 under circumstances approved by the department; 18 (13) restrict the withdrawal of deposits from a trust company if the 19 department finds that extraordinary circumstances make restriction necessary for the 20 proper protection of depositors; 21 (14) require a trust company to 22 (A) maintain its capital and reserve accounts in amounts 23 determined appropriate by the department; 24 (B) observe the methods and standards that the trust company 25 adopts for determining the value of various types of assets; 26 (C) charge off part or all of an asset that has not been lawfully 27 acquired; 28 (D) write down an asset to its market value; 29 (E) record liens and other interests in property; 30 (F) obtain a financial statement from a borrower or prospective 31 borrower to the extent that the trust company can obtain the statement;
01 (G) obtain insurance against damage to real property taken as 02 security; 03 (H) search or obtain insurance on the title to real property taken 04 as security; 05 (I) maintain adequate insurance against risks as the department 06 determines necessary and appropriate for the protection of depositors and the 07 public; 08 (J) charge off that portion of an asset classified as a loss, or 09 charge off or reserve up to 50 percent of loans classified as doubtful, in a state 10 or federal report of examination; or 11 (K) charge off all debts owed to the trust company in which 12 interest is past due and unpaid for a period of six months, unless the debt 13 principal is adequately secured and the trust company is in the process of 14 collection; 15 (15) require the board of directors of a trust company to hold a meeting 16 under AS 06.26.520; 17 (16) order the removal of a board member of a trust company under 18 AS 06.26.510; 19 (17) order a trust company to suspend the payment of dividends under 20 AS 06.26.120 and regulations adopted by the department; 21 (18) require a trust company to increase its capital accounts under 22 AS 06.26.120; 23 (19) take possession of a trust company in the manner provided in 24 AS 06.26.730 - 06.26.750, and operate, reorganize, or liquidate the trust company after 25 taking possession; 26 (20) issue an order under AS 06.01.030 that the department determines 27 is necessary to ensure compliance with this chapter; and 28 (21) exercise other powers expressly or implicitly granted under this 29 chapter. 30 Sec. 06.26.905. Cooperative agreements. (a) The department may enter into 31 cooperative, coordinating, or information-sharing agreements with other governmental
01 regulators or with an organization affiliated with or representing governmental 02 regulators to handle the periodic examination or other supervision of a trust office that 03 is located in this state and owned by an interstate state trust company or of a trust 04 office that is located in a host state and owned by a trust company. Under the 05 agreements, the department may accept reports of examination and reports of 06 investigation instead of conducting the department's own examinations or 07 investigations. 08 (b) The department may enter into joint enforcement action agreements with 09 other governmental regulators having concurrent jurisdiction over a trust company that 10 is located in this state and owned by an interstate state trust company organized in 11 another state or over a trust office that is located in a host state and owned by a trust 12 company. 13 (c) Notwithstanding the existence of an agreement under this section, the 14 department may at any time make an examination or take independent supervisory or 15 enforcement action if the department determines that the examination or action is 16 necessary or appropriate to carry out the department's responsibilities under this 17 chapter or to ensure compliance with the laws of this state. 18 Sec. 06.26.910. Appeals. (a) A person may appeal to the department 19 (1) a denial of an application under AS 06.26.090(e); 20 (2) an order under AS 06.26.120 to increase or adjust capital; 21 (3) a denial under AS 06.26.150 of a change of the location of a home 22 office under AS 06.26.150; 23 (4) a denial under AS 06.26.160 of permission for a trust company to 24 establish a branch office; 25 (5) a denial under AS 06.26.170 of permission to establish or acquire 26 a representative office; 27 (6) a denial under AS 06.26.180(d) of permission to establish an office 28 outside this state; 29 (7) a denial of a private fiduciary exemption under AS 06.26.200 and 30 06.26.210; 31 (8) the conditions or limitations established for an exemption under
01 AS 06.26.200(d); 02 (9) the revocation of an exemption under AS 06.26.230; 03 (10) a denial of permission for a private fiduciary to convert to a trust 04 company under AS 06.26.240; 05 (11) a denial under AS 06.26.470 of an application to acquire control 06 of a trust company; 07 (12) the disapproval under AS 06.26.650 of a conversion, merger, or 08 consolidation; 09 (13) a denial under AS 06.26.840(d) of permission to establish or 10 acquire a trust office in this state; 11 (14) a denial under AS 06.26.850(g) of permission to establish or 12 acquire a representative office in this state; and 13 (15) a denial under AS 06.26.860 of permission for additional trust 14 offices or representative offices. 15 (b) The department shall adopt regulations, consistent with the provisions of 16 this chapter, establishing the procedures for appeals allowed under (a) of this section. 17 (c) The provisions of AS 44.62 (Administrative Procedure Act), including 18 judicial review under AS 44.62.560, apply to an appeal under this chapter to the extent 19 the provisions of AS 44.62 do not conflict with the procedures established under (b) of 20 this section or other provisions of this chapter. 21 Sec. 06.26.920. Civil enforcement. The department may bring any 22 appropriate civil court action against a person who the department determines has 23 committed or is about to commit a violation of this chapter. 24 Sec. 06.26.930. Trust company reports to the department; publication of 25 reports. (a) A trust company shall make at least four reports of its condition each 26 year to the department as required by and on forms prescribed by the department. 27 Each report shall be signed by a duly authorized officer of the trust company verified 28 by at least one independent director, and each verifying director shall certify under 29 oath that the director has personal knowledge of the facts stated in the report and that 30 the facts are true. Each report must exhibit in detail and under appropriate headings 31 the resources and liabilities of the trust company and must be received by the
01 department within 30 calendar days after the end of the period covered by the report. 02 (b) The department may require that a trust company submit special reports 03 whenever the department considers a report necessary in order to obtain full 04 knowledge of the trust company's condition. 05 (c) In addition to the other reports required by this section, a trust company 06 shall make at least one report of income and dividends to the department each year. 07 The trust company shall submit the report to the department within 30 calendar days 08 after the end of the calendar or fiscal year covered by the report. 09 (d) All of the reports of condition required by this section shall be made 10 available to all customers on request and at no charge to the customer. 11 Sec. 06.26.940. Remedy of person damaged by violation. In addition to any 12 other remedies available under law to the person, a person who suffers damages as a 13 result of a violation of this chapter by a person subject to this chapter may bring an 14 action in court against the person violating this chapter to recover the damages. In this 15 section, "person subject to this chapter" means a trust company, a private fiduciary, an 16 exempt private fiduciary, a person who is required to obtain a certificate of authority 17 under AS 06.26.090, and an interstate state trust company or international trust 18 company. 19 Sec. 06.26.950. Limitation on powers. This chapter does not allow a trust 20 company to engage in banking. 21 Article 13. General Provisions. 22 Sec. 06.26.960. Application of laws relating to general business 23 corporations. (a) Unless expressly authorized by this chapter, a trust company may 24 not take an action that is authorized by AS 10.06 regarding its corporate status, capital 25 structure, or a matter of corporate governance and for which AS 10.06 requires a filing 26 with the department unless the trust company first makes the required filing with the 27 department and receives the department's approval. 28 (b) The department may adopt regulations to alter or supplement the 29 procedures and requirements of AS 10.06 applicable to an act taken under this chapter 30 by a trust company. 31 Sec. 06.26.990. Definitions. (a) In this chapter, unless the context otherwise
01 requires, 02 (1) "banking" has the meaning given in AS 06.05.990; 03 (2) "board" means board of directors; 04 (3) "certificate of authority" means the certificate of authority issued to 05 a corporation under AS 06.26.110; 06 (4) "chapter" includes regulations adopted under this chapter; 07 (5) "commissioner" means the commissioner of community and 08 economic development; 09 (6) "customer" means a person using the services of a trust company or 10 a private fiduciary, and includes a depositor; 11 (7) "department" means the Department of Community and Economic 12 Development; 13 (8) "depository" means a person authorized by state or federal law to 14 accept deposits of trust assets; 15 (9) "exempt private fiduciary" means a private fiduciary that has 16 received an exemption under AS 06.26.200; 17 (10) "family member" means an individual who is related, including 18 relation established by adoption, within the fourth degree by blood or marriage, to the 19 individual whom the relationship is measured; 20 (11) "fiduciary" means a person to whom the property of another 21 person is entrusted for a purpose specified in a trust instrument or by a court order; 22 (12) "fiduciary operations" means operations performed by a fiduciary; 23 (13) "fiduciary services" means services of a fiduciary; 24 (14) "financial institution" has the meaning given in AS 06.05.990; 25 (15) "governmental regulator" means a governmental agency 26 responsible for regulating persons who act as fiduciaries; 27 (16) "home jurisdiction regulator" means the governmental agency 28 responsible for regulating an interstate state trust company, interstate national trust 29 company, or international trust company in the jurisdiction where the trust company is 30 chartered or otherwise organized; 31 (17) "insider" has the meaning given in 12 C.F.R. 215.2;
01 (18) "international trust company" means an organization that provides 02 fiduciary services and has offices in countries other than the country in which the 03 home office of the entity is located; 04 (19) "interstate national trust company" means an organization 05 (A) that is chartered as a bank by the United States; 06 (B) whose powers are limited to providing fiduciary services; 07 and 08 (C) that has offices in a state of the United States other than the 09 state in which the home office of the organization is located; 10 (20) "interstate state trust company" means an organization that 11 (A) provides fiduciary services; 12 (B) holds a charter, license, certificate, or other type of 13 authorization from this or another state of the United States that authorizes the 14 organization to provide fiduciary services; and 15 (C) has offices in a state of the United States other than the 16 state in which the home office of the organization is located; 17 (21) "issuer" has the meaning given in AS 45.55.990; 18 (22) "national bank" has the meaning given in AS 06.05.990; 19 (23) "offer fiduciary services to the general public" means to advertise 20 fiduciary services, solicit fiduciary services work, or market fiduciary services in any 21 medium, including an electronic medium, regardless of whether a fee, commission, or 22 any other type of remuneration is charged or received; 23 (24) "private fiduciary" means a person who acts as a fiduciary, is not 24 exempt under AS 06.26.020(a) or (c), and does not offer fiduciary services to the 25 general public; 26 (25) "purchasing trust company" means a trust company purchasing all 27 or substantially all of the assets of another trust company; 28 (26) "representative office" means an office that provides support 29 services for a trust company, but at which the trust company does not provide 30 fiduciary services; 31 (27) "resident of this state" means an individual who is physically
01 present in Alaska and who intends to remain indefinitely in Alaska; 02 (28) "selling trust company" means a trust company selling all or 03 substantially all of its assets; 04 (29) "state bank" has the meaning given in AS 06.05.990; 05 (30) "state financial institution" means an institution organized under 06 this title if the deposits of the institution are insured by an agency of the federal 07 government; 08 (31) "trust account" means an account at a trust company for trust 09 assets; 10 (32) "trust assets" means assets held in trust for another person; 11 (33) "trust company" means a person who is organized under this 12 chapter to act as a fiduciary and to provide fiduciary services to the general public; 13 (34) "trust company assets" means assets that are not trust assets and 14 that are owned by a trust company; 15 (35) "trust holding company" means an organization formed for the 16 purpose of owning a trust company; 17 (36) "trust office" means an office that provides fiduciary services; 18 (37) "within the fourth degree" means a child, a grandchild, a great- 19 grandchild, a parent, a sister, a brother, a niece, a nephew, a grandniece, a 20 grandnephew, a grandparent, an aunt, an uncle, a first cousin, a great-grandparent, a 21 great-aunt, a great-uncle, and a great-great-grandparent. 22 (b) In AS 06.26.220, 06.26.450 - 06.26.470, 06.26.510, 06.26.860, and 23 06.26.880, "control" means owning, or holding with the power to vote, 25 percent or 24 more of the voting securities or other capital stock. 25 Sec. 06.26.995. Short title. This chapter may be cited as the Revised Alaska 26 Trust Company Act. 27 * Sec. 3. AS 13.36.025 is amended by adding a new subsection to read: 28 (b) The provisions of (a) of this section are not intended to override any 29 provision of AS 06.26, and AS 06.26 governs to the extent of any conflict. 30 * Sec. 4. AS 13.36.320(a) is amended to read: 31 (a) If at least one qualified person serves as trustee of a trust whose state
01 jurisdiction provision is valid, effective, and conclusive under AS 13.36.035(c), then 02 the following persons also may serve as trustees even though they are not qualified 03 persons: 04 (1) individuals who do not reside in the state [ALASKA]; 05 (2) trust companies that have their principal place of business outside 06 the state [OF ALASKA] and that are not organized under AS 06.26 [AS 06.25]; and 07 (3) banks that have their principal place of business outside the state 08 [OF ALASKA] or that are not organized under AS 06.05. 09 * Sec. 5. AS 13.36.390(2) is amended to read: 10 (2) "qualified person" means 11 (A) an individual who, except for brief intervals, military 12 service, attendance at an educational or training institution, or for absences for 13 good cause shown, resides in this state, whose true and permanent home is in 14 this state, who does not have a present intention of moving from this state, and 15 who has the intention of returning to this state when away; 16 (B) a trust company that is organized under AS 06.26 17 [AS 06.25] and that has its principal place of business in this state; or 18 (C) a bank that is organized under AS 06.05, or a national 19 banking association that is organized under 12 U.S.C. 21 - 216d, if the bank or 20 national banking association possesses and exercises trust powers and has its 21 principal place of business in this state; 22 * Sec. 6. AS 21.66.250 is amended to read: 23 Sec. 21.66.250. Trust funds. Except as provided in AS 34.80, trust funds or 24 assets held in a fiduciary capacity by a title insurance company that is authorized to do 25 a trust business shall be invested in accordance with AS 06.26 [AS 06.25]. 26 * Sec. 7. AS 34.77.100(a) is amended to read: 27 (a) An arrangement is a community property trust if one or both spouses 28 transfer property to a trust, the trust expressly declares that some or all the property 29 transferred is community property under this chapter, and at least one trustee is a 30 qualified person whose powers include or are limited to maintaining records for the 31 trust on an exclusive or a nonexclusive basis and preparing or arranging for the
01 preparation of, on an exclusive or a nonexclusive basis, any income tax returns that 02 must be filed by the trust. A community property trust is enforceable without 03 consideration. Both spouses or either spouse may be a trustee. The trust must be 04 signed by both spouses. In this subsection, "qualified person" means 05 (1) an individual 06 (A) who, except for brief intervals, military service, attendance 07 at an educational or training institution, or absences for good cause shown, 08 resides in this state; 09 (B) whose true and permanent home is in this state; 10 (C) who does not have a present intention of moving from this 11 state; and 12 (D) who intends to return to this state when away; 13 (2) a trust company that is organized under AS 06.26 [AS 06.25] and 14 that has its principal place of business in this state; or 15 (3) a bank that is organized under AS 06.05 or a national banking 16 association that is organized under 12 U.S.C. 21 - 216d if the bank or national banking 17 association possesses and exercises trust powers and has its principal place of business 18 in this state. 19 * Sec. 8. AS 06.25.010, 06.25.020, 06.25.030, 06.25.040, 06.25.050, 06.25.080, 06.25.085, 20 06.25.090, 06.25.100, 06.25.105, 06.25.110, 06.25.120, 06.25.130, 06.25.140, 06.25.150, 21 06.25.160, 06.25.170, 06.25.180, 06.25.190, 06.25.200, 06.25.210, 06.25.215, 06.25.220, 22 06.25.230, 06.25.240, 06.25.255, 06.25.260, 06.25.270, 06.25.280, 06.25.290, 06.25.300, 23 06.25.310, 06.25.315, and 06.25.350 are repealed. 24 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 COURT RULE CHANGES. (a) AS 06.26.020(d), enacted by sec. 2 of this Act, 27 amends Rules 7.2 and 7.3, Alaska Rules of Professional Conduct, by prohibiting certain 28 advertising and solicitation by certain exempt attorneys and their law firms. 29 (b) AS 06.26.760(b)(2), enacted by sec. 2 of this Act, amends 30 (1) Rule 6, Alaska Rules of Civil Procedure, by postponing the deadlines for 31 the filing of pleadings and other documents by a trust company in a civil action when the
01 Department of Community and Economic Development has taken possession of the trust 02 company; 03 (2) Rule 12, Alaska Rules of Civil Procedure, by postponing the deadlines for 04 serving an answer to a complaint, a third-party answer, a reply to a counterclaim, a cross- 05 claim, and an answer to a cross-claim by a trust company in a civil action when the 06 Department of Community and Economic Development has taken possession of the trust 07 company; 08 (3) Rule 40, Alaska Rules of Criminal Procedure, by postponing the deadlines 09 set in the Alaska Rules of Criminal Procedure for the filing of documents by a trust company 10 in a criminal action when the Department of Community and Economic Development has 11 taken possession of the trust company; 12 (4) Rule 204, Alaska Rules of Appellate Procedure, by postponing the 13 deadlines for the filing of appeals to the supreme court and the court of appeals by a trust 14 company when the Department of Community and Economic Development has taken 15 possession of the trust company; 16 (5) Rule 403, Alaska Rules of Appellate Procedure, by postponing the 17 deadline for the filing of petitions for review or cross-petitions for review by a trust company 18 when the Department of Community and Economic Development has taken possession of the 19 trust company; 20 (6) Rule 502, Alaska Rules of Appellate Procedure, by postponing the 21 deadlines set in the Alaska Rules of Appellate Procedure for the filing of documents by a trust 22 company when the Department of Community and Economic Development has taken 23 possession of the trust company; 24 (7) Rule 602, Alaska Rules of Appellate Procedure, by postponing the 25 deadlines for the filing of appeals to the superior court from a district court or an 26 administrative agency by a trust company when the Department of Community and Economic 27 Development has taken possession of the trust company; 28 (8) Rule 611, Alaska Rules of Appellate Procedure, by postponing the 29 deadlines set in the Alaska Rules of Appellate Procedure for the filing of petitions for review 30 to the superior court from a district court of an administrative agency by a trust company 31 when the Department of Community and Economic Development has taken possession of the
01 trust company. 02 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 TRANSITION. (a) The certificate of authority of a trust company incorporated under 05 former AS 06.25 before January 1, 2002, remains in effect until the department either issues 06 the trust company an amended certificate of authority under (c) of this section or revokes the 07 certificate of authority issued under former AS 06.25 under (d) of this section. 08 (b) An existing trust company shall, before April 1, 2002, submit to the department, if 09 the capital of the trust company 10 (1) meets the minimum capital requirements, a request that the department 11 issue the trust company an amended certificate of authority; the request must be accompanied 12 by 13 (A) a statement signed under oath by an officer of the trust company 14 that the capital of the trust company meets the minimum capital requirements; and 15 (B) a copy of a balance sheet for the trust company showing that the 16 capital of the trust company meets the minimum capital requirements; or 17 (2) does not meet the minimum capital requirements, a plan acceptable to the 18 department to meet the minimum capital requirements before January 1, 2007, and a request 19 that the department issue the trust company an amended certificate of authority. 20 (c) Notwithstanding AS 06.26.110(a), enacted by sec. 2 of this Act, upon satisfaction 21 of the requirements of (b)(1) or (2) of this section by an existing trust company, the 22 department shall issue the trust company an amended certificate of authority under AS 06.26, 23 enacted by sec. 2 of this Act. 24 (d) The department may revoke the certificate of authority issued to an existing trust 25 company under former AS 06.25 if the trust company fails to comply with the submittal 26 requirements of (b) of this section that apply to the trust company. 27 (e) If the department issues, under (c) of this section, an amended certificate of 28 authority to an existing trust company that submitted a plan under (b)(2) of this section, the 29 department may revoke the amended certificate of authority if the trust company fails to meet 30 the minimum capital requirements before January 1, 2007. 31 (f) In this section,
01 (1) "department" means the Department of Community and Economic 02 Development; 03 (2) "existing trust company" means a trust company that has a certificate of 04 authority issued under former AS 06.25 before January 1, 2002; 05 (3) "minimum capital requirements" means the minimum capital requirements 06 under AS 06.26.120(a), enacted by sec. 2 of this Act. 07 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 TRANSITION: REGULATIONS. The Department of Community and Economic 10 Development may proceed to adopt regulations necessary to implement the changes made by 11 secs. 1 - 8 of this Act. The regulations take effect under AS 44.62 (Administrative Procedure 12 Act), but not before January 1, 2002. 13 * Sec. 12. Sections 10 and 11 of this Act take effect immediately under AS 01.10.070(c). 14 * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect January 1, 2002.