2016 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 3 - Banks and Trust Companies 286.3-146 Out-of-state trust company doing business in Kentucky -- Scope of activities -- Fiduciary-related activities limited by reciprocity -- Evidence and notice to be provided to commissioner.
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286.3-146 Out-of-state trust company doing business in Kentucky -- Scope of
activities -- Fiduciary-related activities limited by reciprocity -- Evidence and
notice to be provided to commissioner.
(1)
(2)
(3)
(4)
An out-of-state trust company may establish or acquire and maintain a trust office
or a trust representative office in this state only if trust companies chartered under
the laws of Kentucky are permitted to establish or acquire and maintain offices, and
engage in substantially similar activities permissible for out-of-state trust companies
as established in KRS 286.3-145, in the state where the out-of-state trust company
has its principal office. An out-of-state trust company that establishes or acquires
and maintains a trust office or trust representative office in Kentucky pursuant to
this section may conduct any activity in Kentucky that would be authorized under
the laws of this state for a Kentucky state trust company.
An out-of-state trust company:
(a) May, at its trust office or offices in Kentucky, act as a fiduciary in Kentucky,
and may conduct any activity at the trust office or offices that would be
authorized under the laws of this state for a Kentucky state trust company; and
(b) May not, at its trust representative office or offices in Kentucky, act as a
fiduciary, but it may otherwise engage in other fiduciary related activities
including but not limited to marketing, soliciting, and operating through the
trust representative office, but only to the extent the home state of the out-ofstate trust company permits trust companies chartered in Kentucky to engage
in similar activities in the other state.
An out-of-state trust company shall have and continuously maintain a trust office or
trust representative office in this state.
(a) An out-of-state trust company desiring to establish or acquire and maintain a
trust office in this state shall:
1.
Provide, or cause its home state regulator to provide, on a form
prescribed by the commissioner written notice of the proposed
transaction. This form shall be provided to the commissioner on or after
the date on which the out-of-state trust company applies for approval to
establish or acquire and maintain an office in this state. The written
notice shall set forth:
a.
The name of the out-of-state trust company;
b.
The location of the proposed office or offices; and
c.
The designation of the additional office or offices as trust offices
or trust representative offices;
2.
Furnish the commissioner with a copy of the resolution adopted by the
board of directors of the out-of-state trust company authorizing the
office;
3.
Pay the filing fee, if any, prescribed by the commissioner;
4.
Commence business at the trust office no sooner than sixty-one (61)
days after the date the commissioner receives the notice specified by this
(5)
(6)
subsection, unless the commissioner specifies an earlier or later date.
With respect to an out-of-state trust company that is not a depository
institution and for which the commissioner shall have conditioned
approval upon satisfaction by the out-of-state trust company of any
requirement applicable to a Kentucky state trust company, the out-ofstate trust company must have satisfied those conditions and provided
the commissioner with satisfactory evidence thereof. The sixty (60) day
period of review may be extended by the commissioner if he or she
determines the written notice raises issues that require additional
information or additional time for analysis. If the period of review is
extended, the out-of-state trust company may establish or acquire and
maintain the office only on prior written approval of the commissioner.
The commissioner may deny approval of the office if the commissioner
finds that:
a.
The out-of-state trust company lacks sufficient financial resources
to undertake the proposed expansion without adversely affecting
its safety or soundness;
b.
The proposed office is contrary to the public interest; or
c.
The proposed expansion is not authorized under applicable law.
An out-of-state trust company acquiring an office shall:
(a) Provide evidence to the commissioner of compliance with:
1.
Requirements of the trust company's home state regulator and home
state law for establishing or acquiring and maintaining the office; and
2.
Requirements to qualify as a foreign corporation under KRS Chapter
271B; and
(b) Provide evidence to the commissioner that all fiduciary obligations and
liabilities of the trust company being acquired have been properly discharged
or assumed. An acquiring trust company shall succeed by operation of law to
all of the rights, privileges, and obligations of the selling trust company.
Fulfillment of the requirements of this subsection shall not result in the
establishment of an office of an out-of-state trust company in Kentucky until the
commissioner, acting within sixty (60) days after receiving notice pursuant to this
subsection, has certified to the home state regulator of the proposed out-of-state
trust company that the requirements of this section have been met and the notice has
been approved or, if applicable, that any conditions imposed by the commissioner
pursuant to this subsection have been satisfied.
An out-of-state trust company that establishes or acquires and maintains an office in
this state shall confirm in writing to the commissioner prior to commencing to do
business in this state, and at least annually thereafter, that for so long as it maintains
a trust office or trust representative office in this state it will comply with all
applicable laws of this state.
Effective: June 8, 2011
History: Created 2011 Ky. Acts ch. 67, sec. 4, effective June 8, 2011.
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