362.116. Trust accounts, originated by one bank or trust company, administration by another--requirements.
Trust accounts, originated by one bank or trust company,administration by another--requirements.
362.116. 1. Any bank or trust company may, with the approval of thedirector of the division of finance, originate trust accounts which will beadministered, pursuant to contract, by a bank or trust company having fullfiduciary powers and located in this state. The bank or trust companyoriginating such accounts shall be known as the originating trustee and theinstitution with which it contracts shall be referred to as the contractingtrustee.
2. The application for authority to act as originating trustee shalldesignate the contracting trustee and shall be accompanied by a certifiedcopy of the contract between the originating and contracting trustees.
3. The director of the division of finance shall approve anyapplication by a bank or trust company seeking to act as originatingtrustee if he or she determines that the nature of the supervision to begiven to the fiduciary activities, and the circumstances under which theagency relationship shall be terminated warrant belief that the customerswill be protected. He or she shall issue a certificate approving theapplication and one certified copy shall be filed in the public records ofthe division of finance with the original certificate sent to the bank ortrust company.
4. The originating trustee shall function as an agent of thecontracting trustee, and such relationship shall be disclosed to thecustomers. The originating trustee may provide the administrative,advertising and safekeeping services incident to the trust business but thecontracting trustee shall perform any and all fiduciary services inconnection with trust relationships accepted under this section.
5. The contracting trustee shall assume any and all fiduciaryliability the originating trustee may have or incur with no right ofcontribution or recovery from the originating trustee, except for liabilityresulting from negligence in the performance of duties actually performedby the originating trustee.
6. Any trust or estate administered under this section shall besubject to the provisions of sections 362.550 and 362.580.
(L. 1983 S.B. 331 § 362.116, subsecs. 1 to 6, A.L. 1984 H.B. 1141, A.L. 2000 S.B. 896)