§ 23-51-119 - Requirements for a private trust company.
23-51-119. Requirements for a private trust company.
(a) Application. (1) A private trust company requesting an exemption from the provisions of this chapter pursuant to 23-51-118 shall file an application with the Bank Commissioner containing the following:
(A) A non-refundable application fee on an amount not less than three thousand dollars ($3,000.00) nor more than five thousand dollars ($5,000.00), as set by regulations issued by the commissioner;
(B) A detailed statement under oath showing the private trust company's assets and liabilities as of the end of the month previous to the filing of the application;
(C) A statement under oath of the reason for requesting the exemption;
(D) A statement under oath that the private trust company is not currently transacting business with the public and that the company will not conduct business with the public without the prior written permission of the commissioner;
(E) The current street mailing address and telephone number of the physical location in this state at which the private trust company will maintain its books and records, together with a statement under oath that the address given is true and correct and is not a U.S. Postal Service post office box or a private mail box, postal box, or mail drop; and
(F) Listing of the specific provisions of the chapter for which the request for exemption is made.
(2) The commissioner shall not approve a private trust company exemption unless the application is completed as required in subsection (a)(1) of this section.
(b) Requirements. To maintain status as an exempt private trust company under this chapter, the private trust company shall comply with the following:
(A) An exempt private trust company shall not transact business with the public.
(B) An exempt private trust company shall file an annual certification that it is maintaining the conditions and limitations of its exempt status. This annual certification shall be filed on a form provided by the commissioner and be accompanied by a fee set by regulations issued by the commissioner. The annual certification shall be filed on or before June 30 of each year. No annual certification shall be valid unless it bears an acknowledgment stamped by the State Bank Department. The department shall have thirty (30) days from the date of receipt to return a copy of the acknowledged annual certification to the private trust company. The burden shall be on the exempt private trust company to notify the department of any failure to return an acknowledged copy of any annual certification within the thirty-day period. The commissioner may examine or investigate the private state trust company periodically as necessary to verify the certification.
(C) An exempt private trust company shall comply with the principal office provisions of 23-51-172 and with the address and telephone requirements of subdivision (a)(1)(E) of this section.
(D) The exempt private trust company shall pay all applicable corporate franchise taxes.
(c) Change of Control. Control of an exempt private trust company may not be transferred or sold with exempt status. In any change of control, the acquiring control person must comply with the provisions of this chapter and the exempt status of the private trust company shall automatically terminate upon the effective date of the transfer. A separate application for exempt status must be filed if the acquiring person wishes to obtain or continue an exemption pursuant to this section.
(d) Authority to Revoke. The commissioner shall have authority to revoke the exempt status of a private trust company in the following circumstances:
(1) The exempt private trust company makes a false statement under oath on any document required to be filed by the chapter or by any regulation promulgated by the commissioner; or
(2) The exempt private trust company fails to submit to an examination as required by 23-51-184; or
(3) The exempt private trust company withholds requested information from the commissioner; or
(4) The exempt private trust company violates any provision of this section applicable to exempt private trust companies.
(e) Notification of Revocation of Exemption. If the commissioner determines from examination or other credible evidence that an exempt private trust company has violated any of the requirements of this section, the commissioner may by personal delivery or registered or certified mail, return receipt requested, notify the exempt private trust company in writing that the private trust company's exempt status has been revoked. The notification must state grounds for the revocation with reasonable certainty. The notice must state its effective date, which may not be sooner than five (5) calendar days after the date the notification is mailed or delivered. The revocation takes effect for the private trust company if the private trust company does not request a hearing in writing before the effective date. After taking effect the revocation is final and nonappealable as to that private trust company, and the private trust company shall be subject to all of the requirements and provisions of the chapter applicable to non-exempt state trust companies.
(f) Compliance Period. A private trust company shall have five (5) calendar days after the revocation is effective to comply with the provisions of this chapter from which it was formerly exempt. If, however, the commissioner determines, at the time of revocation, that the private trust company has been engaging in or attempting to engage in acts intended or designed to deceive or defraud the public, the commissioner may shorten or eliminate, in the commissioner's sole discretion, the five (5) calendar days compliance period.
(g) Remedies for Failure to Comply. If the private trust company does not comply with all of the provisions of this chapter, including such capitalization requirements as have been determined by the commissioner as necessary to assure the safety and soundness of the private trust company, within the prescribed time period, the commissioner may:
(1) Institute any action or remedy prescribed by this chapter, or any applicable rule or regulation, or
(2) Refer the private trust company to the Attorney General for institution of a quo warranto proceeding to revoke the charter.