Title 06, Banks and Financial Institutions

Unless expressly authorized by a resolution of the board recorded in the minutes of the board, an officer or employee may not create or dispose of a trust company asset or create or incur a liability on behalf of the trust company.

(a) The board may appoint a trust committee to act for the company in matters dealing with the initial and annual reviews of accounts, account acceptance, and investment strategies. A trust committee shall consist solely of directors, officers, or employees of the trust company, …

(a) A director, an officer, an employee, or a shareholder of a trust company may not (1) conceal information or a fact, or remove, destroy, or conceal a book or record of the trust company, for the purpose of concealing information or a fact from the department or an agent of the…

(a) Without the prior approval of a disinterested majority of the board recorded in the minutes, or, if a disinterested majority cannot be obtained, the prior written approval of the department, a trust company may not directly or indirectly (1) sell or lease an asset of the trus…

(a) Except as provided in this chapter, or as authorized under the instrument creating the relationship, a trust company may not invest trust assets in the stock or obligations of, or use trust assets to acquire property from, the trust company or any of the trust company's offic…

A trust company shall adopt written policies and procedures regarding decisions or recommendations to purchase or sell a security that is a trust asset to facilitate compliance with federal and state securities laws. These policies and procedures must include the prohibition in A…

The board of a trust company is responsible for the proper exercise of fiduciary powers by the trust company and for each matter that is related to the exercise of fiduciary powers, including (1) the determination of policies; (2) the investment and disposition of trust assets; a…

A trust company shall keep its trust assets records separate and distinct from other records of the trust company in the manner required by state and federal law. The trust assets records must contain all material information relating to each trust assets account, as appropriate …

(a) The trust company records relating to customers are confidential and may not be made public unless (1) disclosure is compelled by a court or administrative order; (2) disclosure is required by federal or state law; (3) disclosure is authorized in writing by the customer; (4) …

(a) The board of directors of a trust company shall maintain bonding and other insurance for the trust company against dishonesty, fraud, defalcation, forgery, theft, embezzlement, burglary, robbery, and other similar insurable losses and hazards as required by the department by …

Article 9. Organic Change. (a) A trust company that is the victim of a robbery, that has a shortage of money or other assets in excess of $5,000, or that is the victim of an apparent or suspected misapplication of its money or other assets in any amount by a director, an officer,…

(a) A national bank whose main office is located in the state or a state bank whose main office is located in the state may convert to a trust company or merge or consolidate with a trust company, and a trust company may merge or consolidate with another trust company, if the con…

(a) To merge or consolidate under AS 06.26.650, the merging persons shall file with the department the original articles of merger or consolidation, a number of copies of the articles of merger or consolidation equal to the number of trust companies involved in the merger or cons…

In addition to the dissenter's rights under AS 10.06 for a merger or consolidation, if a shareholder of a trust company objects to a conversion of the trust company, the dissenting shareholder's rights shall be exercised under and governed by AS 10.06.574 — 10.06.582 as if the co…

(a) A trust company with the prior written approval of the department may purchase all or substantially all of the assets of another trust company, including the right to control accounts established with the trust accounts. Except as otherwise expressly provided by another statu…

A purchasing trust company may hold the purchase price and any additional money or other assets delivered to it by the selling trust company in trust for the selling trust company and may act as an agent of the selling trust company in disbursing the money or other assets by payi…

If a selling trust company is at any time after the sale of assets voluntarily or involuntarily closed for liquidation by a state or federal regulatory agency, the purchasing trust company shall pay to the receiver of the selling trust company the balance of the money or other as…

A purchasing trust company may pay a creditor of the selling trust company the amount to be paid the creditor under the terms of the contract of agency entered into under AS 06.26.690 by opening an agency account in the name of the creditor, crediting the account with the amount …

Article 10. Dissolution and Liquidation. (a) The board of a trust company, with the department's approval, may cause a trust company to sell all or substantially all of its assets, including the right to control accounts established with the trust company for trust assets, withou…

(a) Without department approval, a trust company may not cease acting as a fiduciary in this state and voluntarily surrender its certificate of authority and as a consequence be relieved of the necessity to comply with the requirements of this chapter. (b) A trust company proposi…

(a) If the department determines that any of the following factors exist, the department may revoke, consistent with AS 06.01.030 and regulations adopted by the department under AS 06.01.030 and this chapter, a trust company's certificate of authority: (1) the existence of the tr…

If the department revokes a trust company's certificate of authority under AS 06.26.740(a), the department may take possession of the trust company's fiduciary operations in this state and may appoint a receiver for the liquidation of the trust company's fiduciary operations in t…

(a) When the department has taken possession of a trust company, it is vested with the full and exclusive power of management and control, including the power to act as a trustee for trust assets, to continue or discontinue the operation of the trust company, to stop or limit the…

(a) If the department decides to reorganize a trust company, the department, after providing an opportunity for a hearing to all interested parties, shall enter an order proposing a reorganization plan. The department shall send a copy of the plan to each depositor and other cust…

(a) When liquidating a trust company, the department may exercise any power incidental to liquidating a trust company, but it may not, without the approval of the superior court, (1) sell trust company assets having an appraised value in excess of $100,000; (2) compromise or rele…

(a) As soon as practical after beginning the liquidation of a trust company, the department shall (1) mail a notice of the liquidation proceedings to the last known post office address of each depositor, creditor, lessee of a safe deposit box, bailor of property, and trustor and …

Article 11. Interstate State Trust Company, Interstate National Trust Company, and International Trust Company Offices. The department may appoint the Federal Deposit Insurance Corporation or its successor as receiver for a trust company that the department has taken possession o…

(a) An interstate state trust company, interstate national trust company, or international trust company may not act as a fiduciary in this state unless the trust company maintains a trust office in this state as permitted under AS 06.26.810 — 06.26.895. (b) If an interstate stat…

If an interstate state trust company, interstate national trust company, or international trust company that does not operate a trust office in this state meets the requirements of AS 06.26.810 — 06.26.895, the trust company may establish a new trust office in this state or acqui…

To establish a new trust office or acquire a trust office that is in existence at the time of acquisition in this state under AS 06.26.810 — 06.26.895, an interstate state trust company, interstate national trust company, or international trust company shall provide, or cause its…

(a) An interstate state trust company or international trust company may not establish or acquire a trust office in this state under AS 06.26.810 — 06.26.895 unless (1) the trust company confirms in writing to the department that, while the trust company maintains a trust office …

(a) An interstate state trust company, interstate national trust company, or international trust company may not provide fiduciary services, but may otherwise engage in trust business, at a representative office as permitted by AS 06.26.810 — 06.26.895. (b) Subject to the require…

If an interstate state trust company or international trust company maintains a trust office in this state under AS 06.26.810 — 06.26.895, the trust company may establish or acquire additional trust offices or representative offices in this state to the same extent and in the sam…

(a) When the department considers it necessary to protect the public interest, the department or a competent person designated by the department may examine an interstate state trust company or international trust company that has a trust office or a representative office in the …

(a) Consistent with AS 06.01.030 and regulations adopted by the department under AS 06.01.030 or this chapter, the department may determine that (1) an office maintained by an interstate state trust company or international trust company is being operated in violation of a provis…

If an interstate state trust company, interstate national trust company, or international trust company maintains a trust office or a representative office in this state under this chapter, the trust company shall give at least 60 days' prior written notice, or, in the case of an…

Article 12. Miscellaneous Provisions. In AS 06.26.810 — 06.26.895, (1) “international trust company” means an international trust company whose home office is not located in this state; (2) “interstate national trust company” means an interstate national trust company whose home …

The department may (1) exercise general supervision over trust companies, interstate trust companies, and international trust companies, and the subsidiaries and affiliated corporations of trust companies, interstate state trust companies, and international trust companies; (2) i…

(a) The department may enter into cooperative, coordinating, or information-sharing agreements with other governmental regulators or with an organization affiliated with or representing governmental regulators to handle the periodic examination or other supervision of a trust off…

(a) A person may appeal to the department (1) a denial of an application under AS 06.26.090(e); (2) an order under AS 06.26.120 to increase or adjust capital; (3) a denial under AS 06.26.150 of a change of the location of a home office under AS 06.26.150; (4) a denial under AS 06…

The department may bring any appropriate civil court action against a person who the department determines has committed or is about to commit a violation of this chapter.

(a) A trust company shall make at least four reports of its condition each year to the department as required by and on forms prescribed by the department. Each report shall be signed by a duly authorized officer of the trust company verified by at least one independent director,…

In addition to any other remedies available under law to the person, a person who suffers damages as a result of a violation of this chapter by a person subject to this chapter may bring an action in court against the person violating this chapter to recover the damages. In this …

Article 13. General Provisions. This chapter does not allow a trust company to engage in banking.

(a) Unless expressly authorized by this chapter, a trust company may not take an action that is authorized by AS 10.06 regarding its corporate status, capital structure, or a matter of corporate governance and for which AS 10.06 requires a filing with the department unless the tr…

(a) In this chapter, unless the context otherwise requires, (1) “banking” has the meaning given in AS 06.05.990; (2) “board” means board of directors; (3) “certificate of authority” means the certificate of authority issued to a corporation under AS 06.26.110; (4) “chapter” inclu…