Section 51A-6A-55 - Agreements between contracting trustee and original trustee as to authority ofcontracting trustee.
51A-6A-55. Agreements between contracting trustee and original trustee as to authority of contracting trustee. Any contracting trustee and any originating trustee may enter into an agreement which provides that the contracting trustee, without any further authorization of any kind, succeeds to and is substituted for the originating trustee as to all fiduciary powers, rights, duties, privileges, and liabilities with respect to all accounts for which the originating trustee serves in any fiduciary capacity, except as may be provided in the agreement. No agreement is effective unless notice of the agreement has been filed with the director in an application as prescribed by the director, and the director has not disapproved the notice within thirty days. Unless the agreement expressly provides otherwise, upon the effective date of the substitution:
(1) The contracting trustee shall be considered the fiduciary in all writings, including trust agreements, wills, and court orders, which pertain to the affected fiduciary accounts;
(2) The originating trustee is absolved from all fiduciary duties and obligations arising under the writings and shall discontinue the exercise of any fiduciary duties with respect to the writings, except that the originating trustee is not to be absolved or discharged from any duty to account to clients, nor is the originating trustee absolved from any breach of fiduciary duty or obligation occurring prior to the effective date of the agreement.
The agreement also may authorize the contracting trustee to establish and maintain a trust service desk at any office of the originating trustee at which the contracting trustee may conduct any trust company business and any business incidental to trust company business and which the contracting trustee may otherwise conduct at its principal place of business and to engage the originating trustee as the agent of the contracting trustee, on a disclosed basis to clients, for the purposes of providing administrative, advertising, and safekeeping services incident to the fiduciary services provided by the contracting trustee.
Any contracting trustee also may enter into an agreement with a financial institution providing that the contracting trustee may maintain a trust service desk in the offices of the financial institution and which provides the financial institution, on a disclosed basis to clients, may act as the agent of a contracting trustee for purposes of providing administrative services and advertising incident to the fiduciary services to be performed by the contracting trustee.
Source: SL 1995, ch 268, § 53.