| (a) As used in this section, "trust services"
mean services provided to the public as a fiduciary for hire or compensation,
to hold or administer accounts established through a customer relationship
involving the transfer of title to funds or property to the bank,
including a fiduciary relationship in which the bank acts as trustee,
executor, administrator, guardian, custodian, conservator, receiver,
registrar of stocks and bonds, mortgage or indenture trustee, escrow
agent, transfer agent, or investment advisor, except that "trust
services" do not include customer services in which:
(1) the bank's duties as trustee or custodian are essentially
custodial or ministerial in nature; and
(2) the bank may only invest customer funds:
(A) in its own time or savings deposits; or
(B) in other assets at the explicit direction of the
customer, provided the bank does not exercise any investment discretion
or provide any investment advice with respect to such other assets.
(b) A state bank that does not currently provide trust
services and has not provided trust services for a period in excess
of one year may not begin offering or providing trust services except
upon compliance with this section and with any requirements imposed
by the bank's primary federal regulator.
(c) A state bank described in subsection (b) of this
section that intends to offer and provide trust services shall submit
a notice to the banking commissioner describing the proposed trust
services and the anticipated date for initiation of such services.
In addition, the bank must submit:
(1) the bank's proposed business plan for providing
trust services, including the policies and procedures the bank will
employ to manage its fiduciary risk;
(2) sufficient biographical information on proposed
trust management personnel to enable the banking commissioner to assess
their qualifications;
(3) a description of the locations where the bank proposes
to offer trust services and the manner in which such services will
be provided at each location, including the extent to which fiduciary
authority is proposed to be delegated to personnel at such location;
(4) if the bank's certificate of formation does not
authorize the bank to exercise the trust powers necessary to provide
the proposed trust services, an application for amendment of its certificate
of formation pursuant to Finance Code, §32.101, accompanied by
the filing fee required by §15.2 of this title (relating to Filing
and Investigation Fees); and
(5) a copy of any filings made with the bank's primary
federal regulator providing notice or seeking approval to offer trust
services.
(d) Provided the bank's certificate of formation authorizes
the bank to exercise trust powers sufficient to provide the proposed
trust services, and subject to any conditions imposed by the banking
commissioner and any required approval of the bank's primary federal
regulator, the bank may begin offering and providing trust services
on the 31st day after the date the banking commissioner receives the
bank's notice under subsection (c) of this section unless the banking
commissioner specifies an earlier or later date. The banking commissioner
may extend the 30-day period on a determination that the bank's notice
raises issues that require additional information or additional time
for analysis. If the period is extended, or if the bank is amending
its certificate of formation to authorize trust powers, the bank may
not offer or provide trust services until it has received written
approval of the banking commissioner.
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