| (a) Purpose. The purpose of this section is to provide
for the preservation and location of trust company records to enhance
the examination process by the department and to provide flexibility
to trust companies in conducting their affairs. A trust company that
maintains fiduciary records at one or more locations other than its
principal place of business should be aware that a separate examination
may be required at each such location, the cost of which will be borne
by the trust company. This section may not be construed to prevent
the maintenance of a duplicate set of records if the trust company
considers such to be advisable.
(b) Corporate records. Those books and records of a
trust company that are related to corporate governance and operations
must be kept and maintained at the trust company's principal place
of business in this state. Such books and records include but are
not necessarily limited to:
(1) general and subsidiary ledgers;
(2) income and expense ledgers;
(3) supporting documentation for assets and liabilities;
(4) contracts with suppliers and service providers;
(5) corporate state and federal tax information and
documentation;
(6) correspondence with the department;
(7) directors minutes;
(8) shareholders minutes;
(9) corporate governance documents such as bylaws,
certificate of formation, and stock register; and
(10) reports of condition and income.
(c) Fiduciary records. Those books and records of a
trust company that are related to fiduciary accounts and operations
may be kept and maintained either at the trust company's principal
place of business in this state or at the place where the trust company's
fiduciary accounts are administered; provided that such books and
records may not be divided and kept partially at different locations
without the prior consent of the department. Such books and records
include but are not necessarily limited to:
(1) governing documents for each trust, custodial account,
agency or other type of account administered;
(2) documentation supporting the purchase or sale of
any investments from or to the accounts administered, including broker
confirmations and safekeeping receipts;
(3) documentation on any assets accepted in-kind with
supporting documentation justifying the amount booked;
(4) account reviews, including administrative and asset
reviews;
(5) copies of all correspondence on each account administered,
including documents relating to litigation, bankruptcy proceedings
or other court action;
(6) copies of income tax returns on any accounts which
are required to submit income tax returns;
(7) copies of customer account statements;
(8) trial balance of all accounts administered reflecting
all investments, including principal cash and income cash, at market
value and cost;
(9) overdraft listing of any overdrawn account administered
and reflecting date of overdraft;
(10) large cash balance listing of accounts administered;
(11) safekeeping report from each institution holding
items for safekeeping, with reconcilement to the trust company account
trial balance;
(12) master asset listing of all investments by type,
reflecting account holder, number of units held with cost and market
values;
(13) assets by account holder reflecting investments
with number of units, cost and market values;
(14) broker commission report reflecting all brokers
utilized for purchase or sale of investments, dollar volume, commissions
paid and number of transactions;
(15) reconcilement of fiduciary cash accounts including
copies of bank account statements;
(16) reconcilement of suspense accounts with listing
of items outstanding and origination dates;
(17) complaint file; and
(18) copies of quarterly report of trust assets.
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