Title 6 — Banks and Financial Institutions

Nothing in this chapter shall limit any statutory or common law right of any person to bring an action in any court having jurisdiction for any act involved in the transaction of the escrow business or the right of the state to punish any person for any violation of any law based…

No escrow agent may pay or give a commission or any part of its fees or charges, including fees for escrow services or other consideration, as an inducement or as compensation for any escrow business.

A. Any escrow agent shall produce for inspection any escrow records concerning the assets, existence, condition, management and administration and the names of the parties, including any or all beneficiaries, of any escrow of which the person is the escrow agent to any peace offi…

A licensee that desires to surrender its license shall file with the deputy director a certified copy of the resolution of its board of directors or a verified statement of intent signifying this desire, and thereafter shall not accept additional escrow business. On receipt of th…

If the license of an escrow agent is surrendered, suspended or revoked, the agent nevertheless continues to be subject to the provisions of this chapter and to the duties previously undertaken for so long as it acts as a fiduciary with respect to any escrow business previously un…

A. An escrow agent shall not accept any escrow in which a participant in the escrow is an affiliate of the escrow agent unless: 1. The affiliation is disclosed to all nonaffiliated participants in writing by the escrow agent. 2. Use of the affiliated escrow agent is not required …

A. An escrow agent shall adopt a systematic internal control structure to ensure that persons employed by or associated with the escrow agent's business do not make significant errors or perpetuate significant irregularities or fraud without timely detection. B. For purposes of t…

A. An escrow agent is the trustee of all monies received or collected and held in escrow. An agent shall not knowingly or negligently commingle trust monies with the escrow agent's own monies or with monies held in any other capacity. Every escrow agent and every officer, directo…

A. A real property escrow agent that is a title insurance agent shall disclose to the buyer and seller of a residential dwelling that the title insurer shall offer on request a closing protection letter that provides protection for the loss of escrow monies due to fraud or dishon…

When an escrow is established and not later than three business days after an escrow agent receives any escrow monies, the escrow agent shall provide a complete and accurate disclosure to each buyer and seller of a residential dwelling as defined in section 6-841.02 that monies d…

A. Except as provided by subsection B of this section, an escrow agent may only disburse money out of an escrow account if deposits are previously made that are at least equal to the disbursements and the deposits relate directly to the transaction for which the money is being di…

A. Every escrow agent who is also a title insurer or title insurance agent licensed under title 20 shall make escrow rates that are not excessive or inadequate for the safety and soundness of the escrow agent, that do not unfairly discriminate between risks in this state which in…

A. Every escrow agent who is required to make escrow rates under section 6-846 shall file with the deputy director the escrow agent's schedules of fees, every manual of classifications, the rules and plans pertaining to the manual and every modification of any of the foregoing. T…

A. An escrow agent shall accompany a rate filing with a statement setting forth the basis on which the rate was fixed and the manner in which the fees are to be computed. A filing may be justified by: 1. The experience or judgment of the escrow agent making the filing. 2. The esc…

A. Before issuing an order of disapproval and not less than twenty days after written notice, the deputy director shall hold a hearing on an escrow rate filing. The notice shall specify in reasonable detail the matters to be considered at the hearing and shall be sent to every es…

A. An escrow agent may not deviate from his escrow rates that are in effect pursuant to section 6-846.01. B. If the deputy director finds that an escrow rate has been charged that deviates from the escrow rate in effect pursuant to section 6-846.01, the escrow agent may be subjec…

A. In this chapter, unless the context otherwise requires: 1. "Trust business" means the holding out by a person to the public at large by advertising, solicitation or other means that the person is available to act as a fiduciary in this state and accepting and undertaking to pe…

A. For the purposes of this article, a person does not engage in the trust business by: 1. Rendering services as an attorney-at-law in the performance of the person's duties as such. 2. Acting as trustee under a deed of trust made only as security for the payment of money or for …

A. A person shall not engage in the trust business without first obtaining a certificate from the deputy director except as provided by subsection B or C of this section, or by section 6-852, subsection C. B. A bank, if a member of the federal deposit insurance corporation and ot…

A. An application for a certificate shall be in writing, in such form as the deputy director shall prescribe, verified under oath and supported by such information, data and records as the deputy director may require. B. An application for a certificate shall include the applican…

A. Notwithstanding title 10, chapter 2, the articles of incorporation shall include: 1. The name of the proposed trust company. 2. A description of the general nature of the business to be transacted and a statement authorizing the company to engage in any activity or business al…

A. A trust company shall have at least three directors. The shareholders of the company shall elect all of the directors. B. Unless the articles of incorporation provide otherwise, the board of directors may adopt or amend the bylaws as long as the bylaws adopted or amended by th…

A. Each application to establish a trust company or branch or to renew the license of a trust company or branch shall be accompanied by the fee prescribed in section 6-126. B. The annual renewal fee is payable on or before January 1 of each year the certificate is outstanding. A …

A. In order to obtain a certificate, a trust company shall have not less than $500,000 of liquid capital. The trust company shall have additional capital in the following amounts: 1. For each $750,000,000 of nondiscretionary assets, an additional $250,000 of capital. 2. For each …

A. On the filing of an application for a certificate, the deputy director shall make or cause to be made an investigation and examination of the facts concerning the truth of the statements and the background of the management, controlling shareholder or shareholders, directors a…

A. A bank, savings and loan association or trust company shall keep and use in its business any books, accounts and records which will enable the deputy director to determine whether the bank, savings and loan association or trust company is complying with this article and the ru…

A. Any trustee, escrow officer or agent shall produce for inspection any trust or escrow records concerning the assets, existence, condition, management and administration and the names of the parties, including any or all beneficiaries, of any trust or escrow of which the person…

A. The deputy director may require reports of financial condition and relevant information concerning the business operations of each trust company, shall fix and extend the time for the filing of such reports and shall assess a penalty of $50 for each day the trust company is de…

All monies received by a trust company as fiduciary on trust business within this state shall be deposited in a bank or savings and loan association in this state in a specially designated account or accounts, shall not be commingled with any funds of the trust company and shall …

A. The deputy director may suspend or revoke the certificate of a trust company pursuant to title 41, chapter 6, article 10 if the deputy director determines that: 1. The trust company has failed or refused to comply with any order issued pursuant to section 6-137. 2. The applica…

If the certificate of a trust company is surrendered, suspended or revoked, the company shall nevertheless continue to be subject to the provisions of this chapter for so long as it acts as a fiduciary with respect to any trust business previously undertaken.

If the deficiency in capital has not been made good or the trust company is in an unsafe or unsound condition that is not remedied within the time prescribed under an order of the deputy director issued pursuant to section 6-137, the deputy director may apply to the superior cour…

This article does not limit any statutory or common law right of a person to bring an action in a court for any act involved in the transaction of the trust business or the right of the state to bring an action against any person for a violation of law based on such act.

A. It is unlawful for a person to make use of the words "trust" or "trust company" or any other words in a manner reasonably calculated to convey the impression that the person is engaged in the trust business unless the act is done by or on behalf of a person having authority un…

A. A trust company doing business under this chapter shall obtain and maintain a fidelity bond, naming the trust company as obligee, in the following amounts: Trust Assets Fidelity (market value) Bond Amounts less than $3,000,000 $500,000 $3,000,000 to $4,999,999 $525,000 $5,000,…

A. The board of directors of a trust company shall meet at least once every three months. The deputy director or any director may call a special meeting. A majority of the board constitutes a quorum. The board shall keep minutes of each meeting, including a record of attendance a…

A. The board of directors may appoint a trust committee. The trust committee shall be comprised solely of directors, officers, employees or any combination thereof. The committee may be authorized to act for the company in matters dealing with the initial and annual reviews of ac…

A. Instead of an examination prescribed by section 6-122, the deputy director may accept the examination report of a federal or state agency that has regulatory or supervisory authority over the trust company. The deputy director's acceptance of the examination report does not co…

A. A trust company shall not allow a person, other than a director, officer, agent or employee of the trust company or the legal or beneficial owner of the trust funds or the authorized representative of the owner, to access, examine or inspect the fiduciary records of the trust …

A. Any bank, savings and loan association or trust company qualified to act as a fiduciary in this state may establish and administer common trust funds composed of property permitted by law for the investment of trust funds for the purpose of furnishing investments to any one or…

A. Unless ordered by a court of competent jurisdiction, a bank, savings and loan association or trust company operating a common trust fund pursuant to section 6-871 is not required to render a court accounting with regard to such funds. It may, by application to the superior cou…

This article shall be so construed as to make uniform the law of those states which enact it.

This article may be cited as the uniform common trust fund act.

In this article, unless the context otherwise requires: 1. "Savings account" means monies received or held by the trust company in the usual course of business and for which the trust company is obligated to give conditional or unconditional credit. 2. "Time deposit" means a depo…

A. If authorized by the articles of incorporation and bylaws and if approved by the deputy director, a trust company may receive monies for the purpose of maintaining savings accounts and time deposits. The trust company may pay interest on the savings accounts and time deposits …

In this article, unless the context otherwise requires: 1. "Affiliate" means an entity which directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the entity specified. 2. "Commercial mortgage broker" means a person…

A. This article does not apply to: 1. A person who does business under any other law of this state, or law of any other state while regulated by a state agency of such other state or the United States, relating to banks, savings banks, trust companies, savings and loan associatio…

1. Is a natural person. 2. Meets all of the requirements pursuant to this article. 3. Receives notification from the parent company that the parent company was granted a certificate of exemption by the director. B. The parent company must apply on behalf of the entity and submit …

A. A person shall not act as a mortgage broker if the person is not licensed under this article. A person who brokers only commercial mortgage loans shall obtain either a mortgage broker license or a commercial mortgage broker license. A person who brokers residential mortgage lo…

A. The deputy director, on determining that the applicant is qualified and has paid the fees, shall issue a mortgage broker's license or a commercial mortgage broker's license to the applicant which is evidenced by a continuous certificate. The deputy director shall grant or deny…