6.1-195.83 - (Repealed effective October 1, 2010) Association's operation and supervision of trust department.
§ 6.1-195.83. (Repealed effective October 1, 2010) Association's operationand supervision of trust department.
A. The board of directors of an association is responsible for the properexercise of fiduciary powers by the association. All matters pertinentthereto, including the determination of policies, the investment anddisposition of property held in a fiduciary capacity, and the direction andreview of the actions of all officers, employees, and committees utilized bythe association in the exercise of its fiduciary powers, are theresponsibility of the board. In discharging this responsibility, the board ofdirectors may assign, by action duly entered in the minutes, theadministration of such of the association's trust powers as it may considerproper to assign to such directors, officers, employees, or committees as itmay designate.
B. No fiduciary account shall be accepted without the approval of thedirectors, officers, or committees to whom the board may have assigned theperformance of that responsibility. A written record shall be made of suchacceptances and of the relinquishment or closing out of all fiduciaryaccounts.
C. Upon the establishment of a trust account for which the association hasinvestment authority, a prompt review of the assets of such account shall bemade. The board of directors shall also ensure that at least once duringevery calendar year thereafter, and within fifteen months of the last review,all the assets held in or held for each trust account for which theassociation has investment authority are reviewed to determine theadvisability of retaining or disposing of such assets. The board of directorsshall act to ensure that all investments have been made in accordance withthe terms and purposes of the governing instrument and in accordance withapplicable law.
D. The trust department may utilize personnel and facilities of otherdepartments of the association, and other departments of the association mayutilize personnel and facilities of the trust department to the extent nototherwise prohibited by the law.
E. Every association exercising trust powers shall adopt written policies andprocedures to ensure that the securities laws of the United States and theCommonwealth are complied with in connection with any decision orrecommendation to purchase or sell any security. Such policies andprocedures, in particular, shall ensure that the association's trustdepartment shall not use material inside information in connection with anydecision or recommendation to purchase or sell any security.
F. Every association exercising fiduciary powers shall designate, employ, orretain legal counsel who shall be readily available to pass upon fiduciarymatters and to advise the association and its trust department.
(1984, c. 303.)