2013 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 3 - Banks and Trust Companies 3.3-146 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-of-state 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 subsection, unless the commissioner specifies an
(5)
(6)
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-of-state 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 companys 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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