§ 7-5-3. Application for authorization to engage in trust business -- Criteria for granting -- Authority of trust company.

(1) A person seeking authorization to become a trust company and engage in the trust business in this state shall file an application with the commissioner in the manner provided in Section 7-1-704, and shall pay the fee prescribed in Section 7-1-401.

(2) The commissioner shall, in deciding whether or not to approve the application, take into account:

(a) the character and condition of the applicant's assets;

(b) the adequacy of its capital;

(c) its earnings record;

(d) the quality of its management;

(e) the qualifications of any person proposed to be an officer in charge of the trust operations;

(f) the needs of the community for fiduciary services;

(g) the volume of business that the applicant will probably do; and

(h) any other relevant facts and circumstances, including the availability of legal counsel to advise and pass upon matters relating to the trust business.

(3) The commissioner may not apply criteria making it more difficult for a state chartered depository institution to obtain approval to engage in the trust business than for a federally chartered depository institution of the same class.

(4) The commissioner may impose such conditions when authorizing a person to engage in the trust business as he considers appropriate to protect the public interest.

(5) Upon receiving authorization from the commissioner to become a trust company and engage in the trust business, the trust company is qualified to act as fiduciary in any capacity without bond.

Amended by Chapter 200, 1994 General Session