Title 30B, Title 30B WASHINGTON TRUST INSTITUTIONS ACT

This title may be known and cited as the Washington trust institutions act.[ 2014 c 37 s 301.]

Unless the context clearly requires otherwise, the definitions in this section apply throughout this title.The definitions in this section shall be liberally construed to accomplish the purposes of this title. Additional definitions, as applicable, are contained elsewhere in this…

(1) A state trust company or out-of-state trust institution may register any name with the department in connection with establishing an office or otherwise engaged in trust business in Washington state pursuant to this title, except that the director may determine that a name pr…

(1) The director has the power to adopt rules, as he or she determines necessary and appropriate, to implement the purposes and provisions of this title in accordance with the administrative procedure act, chapter 34.05 RCW.(2) The director has the power, and broad administrative…

Subject to the conditions, restrictions, limitations, and requirements of this title, the following persons are authorized trust institutions in Washington state:(1) A state trust company with a certificate of authority from the director to exercise the powers of a state trust co…

A person is exempt from the requirement of a certificate of authority or approval under this title if the person is:(1) An individual, sole proprietor, or general partnership or joint venture composed of individuals;(2) Engaging in business in Washington state (a) as a national b…

(1) A person may not engage in unauthorized trust activity in this state. (2) As a condition of engaging in trust business in this state, an out-of-state trust institution is required to obtain approval from the director and is subject to all other requirements of chapter 30B.38 …

This title does not limit the privileges, immunities, and requirements of RCW 42.56.400(6), 30A.04.075, 32.04.220, and 33.04.110 in relation to trust companies, state banks, and state savings associations.[ 2014 c 37 s 308.]

(1) A state trust company may not make loans or extensions of credit, nor extend leases, to any person except in relation to nonfiduciary corporate funds and only as set forth in this section.(2) Unless authorized by subsection (4) of this section, a state trust company may make …

(1) A state trust company may acquire its own shares if:(a) The amount of its capital is sufficient to fully absorb the acquisition of the shares under regulatory accounting principles; or(b) The state trust company obtains the prior written approval of the director.(2) A state t…

A state trust company may invest its nonfiduciary corporate funds in investments other than real estate, including securities, that are permissible for state banks under Title 30A RCW, and as may be made applicable for state trust companies by rule of the director.[ 2014 c 37 s 3…

Except as otherwise provided by this chapter or rules adopted under this chapter, a state trust company may invest in corporations, limited liability companies, and other entities, and may acquire or establish a *subsidiary to conduct any activity that may lawfully be conducted t…

A state trust company may not pledge or create a lien on any of its assets except to secure the repayment of money borrowed or as specifically authorized by RCW 30B.20.010, or by rule, or by a finding of the director that such conduct does not violate any other applicable law and…

A state trust company may purchase, hold, and convey real estate, including facilities, for the purposes permissible for state banks under RCW 30A.04.210.[ 2014 c 37 s 314.]

(1) A state trust company shall keep its fiduciary records separate and distinct from other records of the state trust company.(2) The fiduciary records must contain all material information relative to each account as appropriate under the circumstances.(3) A state trust company…

RCW 30A.04.260 applies to this title.[ 2014 c 37 s 316.]

When there is a choice of law clause contained in a governing instrument in which a state trust company is a party, the choice of law of any state agreed to by the parties to such instrument shall control the interpretation and enforcement of the trust or custodial agreement comp…

Except as set forth in RCW 30B.04.160, choice of law is governed by RCW 11.98.005.[ 2014 c 37 s 319.]

(1) Notwithstanding any provisions of this title, wherever notice by publication is required by a trust institution, such notice may be undertaken by internet publication upon terms and conditions that the director may prescribe by rule.(2) Notice to shareholders required under t…

Subject to the other provisions of this chapter, one or more persons may organize a state trust company.[ 2014 c 37 s 321.]

Except as set forth in this chapter or as may be prescribed by rule of the director, RCW 30A.08.020, 30A.08.040, 30A.08.050, 30A.08.055, 30A.08.060, 30A.08.070, 30A.08.081, 30A.08.082, 30A.08.083, 30A.08.084, 30A.08.086, 30A.08.087, 30A.08.088, 30A.08.090, 30A.08.092, and * 30A.0…

(1) If the conditions of this section are met, an applicant to become a state trust company may organize as a limited liability trust company pursuant to this chapter. An applicant to become a state trust company, which is already organized as a limited liability company pursuant…

(1) An application for a certificate of authority to become a state trust company must be made under oath and in the form required by the director and must be supported by information, data, records, and opinions of counsel that the director requires including, without limitation…

(1) The director shall notify the organizers when the application is complete and accepted for filing and all required fees and deposits have been paid.(2) At the expense of the organizers, the director shall investigate the application and inquire into the identity and character…

(1) The director shall at time of application, to organize a state trust company, determine the minimum required initial capitalization of a proposed state trust company in the manner provided for in *RCW 30B.08.030(3)(b)(ii) and as further provided in this section.(2) The direct…

(1) With the prior written approval of the director, any state trust company may at any time, through action of its board of directors, issue and sell its capital notes or debentures, which shall be subordinate to the claims of depositors and other creditors.(2) Unless otherwise …

(1) A state trust company shall be deemed a distinct type of corporation or limited liability trust company whose certificate of authority may be granted, conditioned, canceled, or revoked only by the department.(2) Title 23B RCW applies to a state trust company in corporation fo…

(1) Upon the issuance of a certificate of authority to a state trust company as prescribed in this chapter and its commencement of business pursuant to such certificate of authority, it shall be a corporation or limited liability company for the purpose of engaging in trust busin…

(1) Notwithstanding any restrictions, limitations, and requirements of law, in addition to all powers, express or implied, that a state trust company has under the laws of Washington state, a state trust company has the powers and authorities conferred as of July 28, 2019, upon a…

Notwithstanding the definition of "trust business" as set forth in RCW 30B.04.005, the director has the authority to regulate the exercise of all powers and authorities of a state trust company which are enumerated in RCW 30B.08.080 and which may be conferred by way of parity und…

(1) A person engaged in trust business in this state by use of the internet is subject to regulation by the department under this title, unless it is:(a) An out-of-state trust institution approved under chapter 30B.38 RCW or acting under authority of RCW 30B.72.010; or(b) An exem…

As used in this chapter, unless the context clearly appears otherwise, the terms in this section mean:(1) "Affiliate" means the same as defined in RCW 30B.04.005.(2) "Agent" means the same as defined in RCW 30B.04.005.(3) "Cause of action" means any of the acts or omissions givin…

(1) The director shall exercise supervision authority over state trust companies and also over out-of-state trust institutions as set forth in this chapter or to the extent provided for in cooperative agreements made by the director with the home states of out-of-state trust inst…

Examination and investigation fees, together with semiannual assessments of state trust companies and all other miscellaneous fees for trust institutions, are governed by RCW 30A.04.070 of the Washington commercial bank act and by rules adopted by the director.[ 2014 c 37 s 334.]

All the powers, duties, and functions granted to or imposed upon the director under this title shall be exercised under the direction and supervision of the department's division of banks, subject to the delegation, oversight, and supervision of the director. Wherever provision i…

Unless otherwise provided for by rule of the director or other applicable rule or regulation, a state trust company shall conform to generally accepted accounting principles and applicable rules of the financial accounting standards board.[ 2014 c 37 s 336.]

(1) The director is authorized to adopt rules governing the examination standards for a state trust company, trust department, third-party service provider, and other persons subject to investigation and examination under this title, including the application by rule of examinati…

(1) The director shall visit each state trust company at least once every twenty-four months, and more often as determined by the director, for the purpose of making a full investigation into the condition of such state trust company.(2) The director may make such other full or p…

(1) Each person subject to the requirement of a certificate of authority or approval from the director pursuant to RCW 30B.04.050, and any director, officer, manager, employee, or agent of such person, shall not engage in any unauthorized trust activity and shall comply with:(a) …

The powers and duties of the director and required practices and procedures of the department with respect to all enforcement authority conferred by this title shall be subject to the Washington administrative procedure act, chapter 34.05 RCW, consistent with the administrative p…

In addition to any other powers conferred by this title, the director shall have the power, consistent with the requirements of this chapter, to order:(1) Any person, its affiliate, or any director, officer, manager, employee, or agent of such person or its affiliate, subject to …

(1) In addition to the remedies set forth in RCW 30B.10.070, the director may, as applicable, issue and serve a current or former director, officer, manager, or employee of a state trust company or its affiliate with written notice of intent to remove such person from office or e…

The director shall have the power to subpoena witnesses, compel their attendance, require the production of evidence, administer oaths, and examine any person under oath in connection with any subject related to a duty imposed or a power vested in the director.[ 2014 c 37 s 342.]

A present or former director, officer, manager, employee, or agent of a state trust institution or affiliate, or any other person against whom there is outstanding an effective final order under authority of this chapter which has been duly served is guilty of a gross misdemeanor…

(1) Notwithstanding any other provision of this title, the director may by rule or order prohibit any person from engaging in a trust business in Washington state contrary to the requirements of this title if the conduct of the trust business in Washington state by such person ha…

(1) The director or authorized assistants may apply for and obtain a superior court order approving and authorizing a subpoena in advance of its issuance. The application may be made in the county where the subpoenaed person resides or is found, or the county where the subpoenaed…

(1) This chapter sets forth the authority of the department to supervise and examine state trust institutions and to seek adjudicative enforcement remedies against persons, and their affiliates, officers, directors, managers, employees, and agents, engaged in authorized or nonaut…

(1) A hearing pursuant to a notice of charges under this chapter must be conducted in accordance with chapter 34.05 RCW, except to the extent otherwise provided in this chapter.(2) Such hearing may be held at a place designated by the director and, at the option of the director, …

(1) The director may issue and serve a notice of charges upon:(a) A state trust institution;(b) An affiliate of a state trust institution;(c) A director, officer, manager, employee, or agent of a state trust institution or its affiliate; or(d) Any other person subject to the juri…

(1) The hearing shall be held not earlier than ten days or later than thirty days after service of the notice set forth in RCW 30B.10.150, unless a later date is set by the director for good cause as requested by the respondent.(2) Unless the respondent appears at the hearing set…