§ 53-337. Required initial capital.

§ 53‑337.  Requiredinitial capital.

(a)        The Commissionershall not issue a charter to a proposed State trust company having initialcapital of less than two million dollars ($2,000,000), except as provided insubsection (b) of this section.

(b)        The Commissionermay require additional initial capital for a proposed State trust company ifthe Commissioner finds the proposed scope or type of operation of a proposedState trust company requires additional initial capital for the safe and soundoperation of the State trust company. The Commissioner may reduce the amount ofminimum initial capital required for a proposed State trust company if theCommissioner finds the proposed scope or type of operation of a proposed Statetrust company may be formed with reduced initial capital consistent with thesafe and sound operation of the State trust company. The safety and soundnessfactors to be considered by the Commissioner in the exercise of theCommissioner's discretion include:

(1)        The nature and typeof business proposed to be conducted;

(2)        The nature andliquidity of assets proposed to be held in a corporate capacity;

(3)        The amount offiduciary assets projected to be under management;

(4)        The type offiduciary assets proposed to be held and the proposed depository of the assets;

(5)        The complexity offiduciary duties and degree of discretion proposed to be undertaken;

(6)        The competence andexperience of proposed management;

(7)        The extent andadequacy of proposed internal controls;

(8)        The proposedpresence or absence of annual unqualified audits by an independent certifiedpublic accountant;

(9)        The reasonablenessof business plans for retaining or acquiring additional equity capital; and

(10)      The existence andadequacy of insurance proposed to be obtained by the trust company for thepurpose of protecting its clients, beneficiaries, and grantors. (2001‑263, s. 1.)