Trust companies, insurance and bond requirements revised.
be amended to read as follows:
For purposes of this section, the capital of a trust company
the total of
the aggregate par value of its outstanding shares of capital stock or ownership units, its surplus, and
its undivided profits. The minimum capital of a trust company shall be two hundred thousand
dollars. The commission may require that the trust company have more capital than the amount
specified if the commission determines that the amount and character of the anticipated business
of the trust company and the safety of the customers so require. This chapter recognizes that capital
for a trust company serves a different purpose than does capital for a bank. It is not intended that
capital requirements for trust companies be judged by the same standards as banks. Basic protection
for fiduciary clients of a trust company shall be provided by the purchase of a
surety bond or
, or both
, as provided in
. The bond shall be
in an amount of not less than one million dollars. Any bond required to be secured by a trust
company shall provide that the bonding company providing the bond shall give at least ninety days
notice of cancellation or renewal of the bond to the trust company and to the director.
may be provided elsewhere in this chapter, no trust company may reduce voluntarily its capital
stock or ownership units or surplus below the amount required in this section.