45-2-2001 - Private trust company.

45-2-2001. Private trust company.

(a)  A private trust company acting as a fiduciary in this state is a company that does not transact business with the general public. The company shall comply with this chapter and chapter 1 of this title, and the rules thereof of this chapter and chapter 1 of this title applicable to a public trust company unless expressly exempted therefrom in writing by the commissioner pursuant to this section or by rule adopted by the department.

(b)  A private trust company or proposed private trust company may request in writing that it be exempted from any provision of the Banking Act or the rules thereof. The commissioner may grant the exemption in whole or in part if the commissioner finds that the private trust company does not and will not transact business with the general public. As used in this section, unless the context otherwise requires:

     (1)  “Family member” means any individual who is related within the fourth degree of affinity or consanguinity to any individual or individuals who control a private trust company or that is controlled by one (1) or more trusts or charitable organizations established by the individual or individuals. All individuals who control a private trust company or establish trusts or charitable organizations controlling the private trust company must be related within the second degree of affinity or consanguinity; and

     (2)  “Transact business with the general public” means any sales, solicitations, arrangements, agreements, or transactions to provide fiduciary services, whether or not for a fee, commission, or any other type of remuneration, with any client that is not a family member or a sole proprietorship, partnership, joint venture, association, trust, estate, business trust, or other company that is not one hundred percent (100%) owned by one (1) or more family members.

(c)  At the expense of the private trust company, the commissioner may examine or investigate the private trust company in connection with an application for exemption. Unless the application presents novel or unusual questions, the commissioner shall approve the application for exemption not later than the sixty-first day after the date the commissioner considers the application complete and accepted for filing. Otherwise, the application shall be deemed approved unless the commissioner extends the time for review by requiring the submission of additional information as considered necessary to an informed decision.

(d)  Any exemption granted under this section may be made subject to conditions or limitations imposed by the commissioner consistent with this chapter.

(e)  The department may adopt rules defining other circumstances that do not constitute transaction of business with the public, specifying the provisions of the Banking Act that are subject to an exemption request, and establishing procedures and requirements for obtaining, maintaining, or revoking exempt status.

[Acts 1999, ch. 112, § 18.]