Trust Business Modifications

32
7-1-401
7-1-701
7-5-11
7-5-1
7-5-102
7-5-2
7-5-3
7-5-4
7-5-5
7-5-6
7-5-7
7-5-8
7-5-9
7-5-10
7-5-11
7-5-12
7-5-13
7-5-14
7-5-15
7-18a-302
7-22-101
16-15-102
31A-23a-406
31A-23a-409
59-10-202
75B-1-101
75B-3-107
0
Trust Business Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Anthony E. Loubet
Senate Sponsor: Todd Weiler
LONG TITLE
General Description:
This bill amends provisions relating to trust business.
Highlighted Provisions:
This bill:
defines terms;
reorganizes and renumbers the sections of Title 7, Chapter 5, Trust Business;
exempts certain persons from the definition of trust business; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
7-1-401
, as last amended by Laws of Utah 2022, Chapter 449
7-1-701
, as last amended by Laws of Utah 2014, Chapter 97
7-5-11
, as last amended by Laws of Utah 2025, Chapter 310
7-18a-302
, as enacted by Laws of Utah 1996, Chapter 63
7-22-101
, as last amended by Laws of Utah 2020, Chapter 365
16-15-102
, as enacted by Laws of Utah 1995, Chapter 310
31A-23a-406
, as last amended by Laws of Utah 2024, Chapter 120
31A-23a-409
, as last amended by Laws of Utah 2023, Chapters 111, 194
59-10-202
, as last amended by Laws of Utah 2025, First Special Session, Chapter 9
75B-1-101
, as last amended by Laws of Utah 2025, Chapters 310, 338
75B-3-107
, as renumbered and amended by Laws of Utah 2025, Chapter 310
ENACTS:
7-5-102
, Utah Code Annotated 1953
RENUMBERS AND AMENDS:
7-5-101
, (Renumbered from 7-5-1, as last amended by Laws of Utah 2025, Chapters
310, 338 and 533)
7-5-103
, (Renumbered from 7-5-2, as last amended by Laws of Utah 2014, Chapter 189)
7-5-104
, (Renumbered from 7-5-3, as last amended by Laws of Utah 2025, Chapter 302)
7-5-105
, (Renumbered from 7-5-4, as last amended by Laws of Utah 2010, Chapter 378)
7-5-106
, (Renumbered from 7-5-5, as last amended by Laws of Utah 2001, Chapter 9)
7-5-107
, (Renumbered from 7-5-6, as last amended by Laws of Utah 2025, Chapter 310)
7-5-108
, (Renumbered from 7-5-7, as last amended by Laws of Utah 2025, Chapter 310)
7-5-109
, (Renumbered from 7-5-8, as last amended by Laws of Utah 2014, Chapter 189)
7-5-110
, (Renumbered from 7-5-9, as last amended by Laws of Utah 2010, Chapter 93)
7-5-111
, (Renumbered from 7-5-10, as last amended by Laws of Utah 2025, Chapter
310)
7-5-112
, (Renumbered from 7-5-11, as last amended by Laws of Utah 2025, Chapter
310)
7-5-113
, (Renumbered from 7-5-12, as last amended by Laws of Utah 2025, Chapter
302)
7-5-114
, (Renumbered from 7-5-13, as last amended by Laws of Utah 2023, Chapter
401)
7-5-115
, (Renumbered from 7-5-14, as last amended by Laws of Utah 2007, Chapter
277)
7-5-116
, (Renumbered from 7-5-15, as last amended by Laws of Utah 2014, Chapter
189)
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
7-1-401
is amended to read:
7-1-401
. Fees payable to commissioner.
(1)
Except for an out-of-state depository institution with a branch in Utah, a depository
institution under the jurisdiction of the department shall pay an annual fee:
(a)
computed by averaging the total assets of the depository institution shown on each
quarterly report of condition for the depository institution for the calendar year
immediately preceding the date on which the annual fee is due under Section
7-1-402
;
and
(b)
at the following rates:
(i)
on the first $5,000,000 of these assets, the greater of:
(A)
65 cents per $1,000; or
(B)
$500;
(ii)
on the next $10,000,000 of these assets, 35 cents per $1,000;
(iii)
on the next $35,000,000 of these assets, 15 cents per $1,000;
(iv)
on the next $50,000,000 of these assets, 12 cents per $1,000;
(v)
on the next $200,000,000 of these assets, 10 cents per $1,000;
(vi)
on the next $300,000,000 of these assets, 6 cents per $1,000; and
(vii)
on all amounts over $600,000,000 of these assets, 2 cents per $1,000.
(2)
A financial institution with a trust department shall pay a fee determined in accordance
with Subsection
(7)
for each examination of the trust department by a state examiner.
(3)
Notwithstanding Subsection
(1)
, a credit union in
its
the credit union's
first year of
operation shall pay a basic fee of $25 instead of the fee required under Subsection
(1)
.
(4)
A trust company that is not a depository institution or a subsidiary of a depository
institution holding company shall pay:
(a)
an annual fee of $500; and
(b)
an additional fee determined in accordance with Subsection
(7)
for each examination
by a state examiner.
(5)
Any person or institution under the jurisdiction of the department that does not pay a fee
under Subsections
(1)
through
(4)
shall pay:
(a)
an annual fee of $200; and
(b)
an additional fee determined in accordance with Subsection
(7)
for each examination
by a state examiner.
(6)
A person filing an application or request under Section
7-1-503
,
7-1-702
,
7-1-703
,
7-1-704
,
7-1-713
,
7-5-3
7-5-104
, or
7-18a-202
shall pay:
(a)
(i)
a filing fee of $500 if on the day on which the application or request is filed the
person:
(A)
is a person with authority to transact business as a depository institution, a
trust company, or any other person described in Section
7-1-501
as being
subject to the jurisdiction of the department; and
(B)
has total assets in an amount less than $5,000,000; or
(ii)
a filing fee of $2,500 for any person not described in Subsection
(6)(a)(i)
; and
(b)
all reasonable expenses incurred in processing the application.
(7)
(a)
Per diem assessments for an examination shall be calculated at the rate of $55 per
hour:
(i)
for each examiner; and
(ii)
per hour worked.
(b)
For an examination of a branch or office of a financial institution located outside of
this state, in addition to the per diem assessment under this Subsection
(7)
, the
institution shall pay all reasonable travel, lodging, and other expenses incurred by
each examiner while conducting the examination.
(8)
In addition to a fee under Subsection
(5)
, a person registering under Section
7-23-201
,
7-24-201
, or
7-27-201
shall pay an original registration fee of $300.
(9)
In addition to a fee under Subsection
(5)
, a person applying for licensure under
Chapter
25, Money Transmitter Act
, shall pay an original license fee of $300.
Section 2. Section
7-1-701
is amended to read:
7-1-701
. Representing and transacting business as financial institution restricted
-- Restricted names -- Penalty.
(1)
As used in this section, "transact business" includes:
(a)
advertising;
(b)
representing oneself in any manner as being engaged in transacting business;
(c)
registering an assumed name under which to transact business; or
(d)
using an assumed business name, sign, letterhead, business card, promotion, or other
indication that one is transacting business.
(2)
Unless authorized by the department or an agency of the federal government to do so, it
is unlawful for a person to:
(a)
transact business as a:
(i)
bank;
(ii)
savings and loan association;
(iii)
savings bank;
(iv)
industrial bank;
(v)
credit union;
(vi)
trust company; or
(vii)
other financial or depository institution; or
(b)
engage in any other activity subject to the jurisdiction of the department.
(3)
(a)
Except as provided in Subsections
(3)(b)
through
(d)
, only the following may
transact business in this state under a name that includes "bank," "banker," "banking,"
"banque," "banc," "banco," "bancorp," "bancorporation," a derivative of these words,
or another word or combination of words reasonably identifying the business of a
bank:
(i)
a national bank;
(ii)
a bank authorized to do business under
Chapter 3, Banks
;
(iii)
a bank holding company; or
(iv)
an industrial bank.
(b)
A person authorized to operate in this state as a credit card bank, as described in
Section
7-3-3
:
(i)
may transact business under the name "credit card bank"; and
(ii)
may not transact business under the name of "bank" unless it is immediately
preceded by "credit card."
(c)
A nonbank subsidiary of a bank holding company may transact business under a
name restricted in Subsection
(3)(a)
if the name:
(i)
is also part of the name of its parent holding company; or
(ii)
is used for a group of subsidiaries of the parent holding company.
(d)
A bona fide trade association of authorized banks recognized by the commissioner
may transact its affairs in this state under a name restricted under Subsection
(3)(a)
if
it does not operate and does not hold itself out to the public as operating a depository
or financial institution.
(4)
(a)
Except as provided in Subsection
(4)(b)
, only the following may transact business
in this state under a name that includes "savings association," "savings and loan
association," "building and loan association," "building association," a derivative of
these words, or another word or combination of words reasonably identifying the
business of a savings and loan association:
(i)
a federal savings and loan association; or
(ii)
a federal savings bank.
(b)
A national bank may transact business under a name restricted in Subsection
(4)(a)
if
the restricted words are part of the bank's corporate name.
(5)
Only the following may transact business under the name "savings bank":
(a)
a depository institution listed in Subsection
(3)(a)
;
(b)
a depository institution listed in Subsection
(4)(a)
; or
(c)
a depository institution authorized under the law of another state to operate in this
state as a savings bank.
(6)
(a)
Only an industrial loan company authorized to do business under
Chapter 8,
Industrial Banks
, to the extent permitted by Section
7-8-21
, may transact business in
this state under a name that includes "industrial loan company," "ILC," or another
word, combination of words, or abbreviation reasonably identifying the business of
an industrial loan company.
(b)
Only an industrial bank authorized to do business under
Chapter 8, Industrial Banks
,
may transact business in this state under a name that includes "industrial bank,"
"thrift," or another word, combination of words, or abbreviation reasonably
identifying the business of an industrial bank.
(7)
(a)
Except as provided in Subsection
(7)(b)
, only a credit union authorized to do
business under the laws of the United States or
Chapter 9, Utah Credit Union Act
,
may transact business in this state under a name that includes "credit union" or
another word or combination of words reasonably identifying the business of a credit
union.
(b)
The restriction in Subsection
(7)(a)
does not apply to a bona fide trade association of
authorized credit unions recognized by the commissioner, a credit union chapter, or
another association affiliated with a bona fide trade association of authorized credit
unions recognized by the commissioner that restricts its services primarily to credit
unions.
(8)
(a)
Except as provided in Subsection
(8)(b)
, only a person granted trust powers under
Chapter 5, Trust Business
, may transact business in this state under a name that
includes "trust," "trustee," "trust company," or another word or combination of words
reasonably identifying the business of a trust company.
(b)
A business entity organized as a business trust, as defined in Section
7-5-1
7-5-101
,
may use "business trust" in its name if it does not hold itself out as being a trust
company.
(9)
The restrictions of Subsections
(3)
through
(8)
do not apply to:
(a)
the name under which an out-of-state depository institution operates a loan
production office in this state, if the commissioner approves the name as not being
reasonably likely to mislead the public;
(b)
the name under which a service organization of a financial institution transacts
business, if the commissioner approves the name as not being reasonably likely to
mislead the public;
(c)
the name under which a subsidiary of a depository or financial institution transacts
business, if the commissioner approves the name as not being reasonably likely to
mislead the public; or
(d)
a trade association or other nonprofit organization composed of members of a
particular class of financial institutions using words applicable to that class.
(10)
(a)
Upon written request, the commissioner may grant an exemption to this section
if the commissioner finds that the use of an otherwise restricted name or word is not
reasonably likely to cause confusion or lead the public to believe that the person
requesting the exemption is a depository or financial institution or is conducting a
business subject to the jurisdiction of the department.
(b)
In granting an exemption under Subsection
(10)(a)
, the commissioner may restrict or
condition the use of the name or word or the activities of the person or business as the
commissioner considers necessary to protect the public.
(11)
(a)
A person and a principal and officer of a business entity violating this section is
guilty of a class A misdemeanor. Each day of violation constitutes a separate offense.
(b)
In addition to a criminal penalty imposed under Subsection
(11)(a)
, the
commissioner may issue a cease and desist order against a person violating this
section. The commissioner may impose a civil penalty of up to $500 for each day the
person fails to comply with the cease and desist order.
Section 3. Section
7-5-11
is amended to read:
7-5-11
. Self-dealing with trust property -- Own stock as trust property -- Policies
for dealing with trust securities.
(1)
Except as provided in Section
7-5-7
7-5-109
, in Title 75B, Trusts, or as authorized
under the instrument creating the relationship, a trust company may not invest funds
held as an agent or fiduciary in stock or obligations of, or with such funds acquire
property from, the trust company or any of its directors, officers or employees, nor shall
a trust company sell property held as an agent or fiduciary to the company or to any of
its directors, officers, or employees.
(2)
A trust company may retain and vote stock of the trust company or of any of its
affiliates received by it as assets of any trust account or in any other fiduciary
relationship of which it is appointed agent or fiduciary, unless the instrument creating
the relationship otherwise provides.
(3)
(a)
Every trust company shall adopt written policies and procedures regarding
decisions or recommendations to purchase or sell any security to facilitate
compliance with federal and state securities laws.
(b)

These policies and procedures, in particular, shall prohibit the trust company from
using material inside information in connection with any decision or recommendation
to purchase or sell any security.
Section 4. Section
7-5-101
, which is renumbered from Section 7-5-1 is renumbered
and amended to read:
1. General Provisions
7-5-1
7-5-101
. Definitions.
(1)
As used in this chapter:
(a)
(1)
"Business trust" means an entity engaged in a trade or business that is created by a
declaration of trust that transfers property to trustees,
to be held and managed by them
that the trustees hold and manage
for the benefit of
persons
one or more persons

holding certificates representing the beneficial interest in the trust estate and assets.
(2)
"Interested person" means the same as that term is defined in Section
75-1-201
.
(3)
"Personal representative" means the same as that term is defined in Section
75-1-201
.
(4)
"Power of direction" means the same as that term is defined in Section
75B-3-102
.
(b)
(5)
"Trust" means the same as that term is defined in Section
75B-1-101
.
(c)
(6)
(a)
"Trust business" means
, except as provided in Subsection (1)(d),
a business
in which
one
a person
acts in
any
an
agency or
a
fiduciary capacity, including
that
of
as a
personal representative,
an
executor,
an
administrator,
a
conservator,
a
guardian,
an
assignee,
a
receiver,
a
depositary, or
a
trustee under appointment as
trustee for
any
a
purpose permitted by law.
(d)
(b)
"Trust business" does not include the following means of holding money, assets,
or other property:
(i)
money
held
that an attorney authorized to practice law in this state holds
in a
client trust account
by an attorney authorized to practice law in this state
;
(ii)
money
held
that a person licensed as a principal broker in accordance with Title
61, Chapter 2f, Real Estate Licensing and Practices Act, holds
in connection with
the purchase or sale of real estate
by a person licensed as a principal broker in
accordance with
Title 61, Chapter 2f, Real Estate Licensing and Practices Act
;
(iii)
money or other assets
held
that a person the department, in accordance with
Chapter 22, Regulation of Independent Escrow Agents, authorizes to act as an
escrow agent or that the Insurance Department authorizes to act as an escrow
agent holds
in escrow
by a person authorized by the department in accordance
with
Chapter 22, Regulation of Independent Escrow Agents
, or by the Insurance
Department to act as an escrow agent in this state
;
(iv)
money
held by a
that a
homeowners' association or similar organization
holds
to
pay maintenance and other related costs for commonly owned property;
(v)
money
held
that a person, acting solely as the agent or representative or
otherwise at the sole direction of the person to which the debt or payment is owed,
holds
in connection with the collection of debts or payments on loans
by a person
acting solely as the agent or representative or otherwise at the sole direction of the
person to which the debt or payment is owed
, including money
held by
an
escrow agent
holds
for payment of taxes or insurance;
(vi)
money
and
or
other assets
held
that an individual holds
in trust on an
occasional or isolated basis
by a person who does not represent that the person is
engaged in the trust business in Utah
if the individual does not represent that the
individual engages in the trust business in this state
;
(vii)
money or other assets
found by a court to be held
that a court finds that a
person holds
in an implied, resulting, or constructive trust;
(viii)
money or other assets
held by a court appointed conservator, guardian,
receiver, trustee, or other fiduciary
that a court-appointed conservator, guardian,
receiver, trustee, or other fiduciary holds
if
the court-appointed conservator,
guardian, receiver, trustee, or other fiduciary
:
(A)
(I)
the conservator, receiver, guardian, trustee, or other fiduciary
is
responsible to the court in the same
or similar
manner as a personal
representative under
Title 75, Chapter 3, Part 5, Supervised Administration
,
or as a receiver under Rule 66, Utah Rules of Civil Procedure; and
(B)
(II)
the conservator, trustee, or other fiduciary
is a certified public
accountant
,
or has qualified for and received a designation as
a certified
financial planner, chartered financial consultant,
or
certified financial analyst
,
;

or
(B)
similar designation suitable to the court, that evidences the conservator's,
trustee's, or other fiduciary's professional competence to manage financial
matters
demonstrates to the satisfaction of the court a level of competence
necessary to carry out, manage, and oversee the financial and fiduciary duties
that will reasonably be required of the court-appointed conservator, guardian,
receiver, trustee, or other fiduciary
;
(ix)
money or other assets that a court-appointed trustee or personal representative
holds, if the court-appointed trustee or personal representative:
(A)
has the consent and approval of the majority of the current permissible
distributees of trust income and principal at the time of appointment or the
interested persons in the estate at the time of appointment; or
(B)
otherwise demonstrates to the satisfaction of the court a level of competence
necessary to carry out, manage, or oversee the financial and fiduciary duties
that are reasonably required of the trustee or personal representative;
(ix)
(x)
money or other assets
held by
that
a credit services organization operating
in compliance with
Title 13, Chapter 21, Credit Services Organizations Act
, holds
;
(x)
(xi)
money, securities, or other assets
held in
that
a customer account in
connection with the purchase or sale of securities by a regulated securities broker,
dealer, or transfer agent
holds
;
or
(xi)
(xii)
money, assets, and other property
held
that a person holds
in a business
trust for the benefit of holders of certificates of beneficial interest if the fiduciary
activities of the business trust are merely incidental to conducting business in the
business trust form
.
;
(xiii)
a person exercising a fiduciary or non-fiduciary power, including power of
direction, while acting as a trust director, trust protector, trust advisor, or a similar
capacity;
(xiv)
a person acting as a surrogate under Title 75A, Chapter 9, Uniform Health Care
Decisions Act, or in a similar capacity; or
(xv)
services as a guardian, if:
(A)
the guardian's ward is a protected person with an appointed conservator that
serves with the guardian; or
(B)
the responsibilities, powers, and authorities of the guardian are limited and
non-financial in nature.
(e)
(7)
"Trust company" means
an institution
a person
authorized to engage in
the
trust
business under this chapter.
Only the following may be a trust company:
(i)
a Utah depository institution or its wholly owned subsidiary;
(ii)
an out-of-state depository institution authorized to engage in business as a
depository institution in Utah or its wholly owned subsidiary;
(iii)
a corporation, including a credit union service organization, owned entirely by
one or more federally insured depository institutions as defined in Subsection
7-1-103(8)
;
(iv)
a direct or indirect subsidiary of a depository institution holding company that
also has a direct or indirect subsidiary authorized to engage in business as a
depository institution in Utah; and
(v)
any other corporation continuously and lawfully engaged in the trust business in
this state since before July 1, 1981.
(8)
"Trust director" means the same as that term is defined in Section
75B-3-102
.
(2)
Only a trust company may engage in the trust business in this state.
(3)
The requirements of this chapter do not apply to:
(a)
an institution authorized to engage in a trust business in another state that is engaged
in trust activities in this state solely to fulfill its duties as a trustee of a trust created
and administered in another state;
(b)
a national bank, federal savings bank, federal savings and loan association, or
federal credit union authorized to engage in business as a depository institution in
Utah, or any wholly owned subsidiary of any of these, to the extent the institution is
authorized by its primary federal regulator to engage in the trust business in this state;
or
(c)
a state agency that is otherwise authorized by statute to act as a conservator,
receiver, guardian, trustee, or in any other fiduciary capacity.
Section 5. Section
7-5-102
is enacted to read:
7-5-102
. Allowable trust companies -- Exceptions.
(1)
Only the following may be a trust company:
(a)
a Utah depository institution or the Utah depository institution's wholly owned
subsidiary;
(b)
an out-of-state depository institution authorized to engage in business as a depository
institution in this state or the out-of-state depository institution's wholly owned
subsidiary;
(c)
a corporation, including a credit union service organization, owned entirely by one or
more federally insured depository institutions as defined in Subsection
7-1-103(8)
;
(d)
a direct or indirect subsidiary of a depository institution holding company that also
has a direct or indirect subsidiary authorized to engage in business as a depository
institution in this state; and
(e)
any other corporation continuously and lawfully engaged in the trust business in this
state since before July 1, 1981.
(2)
Only a trust company may engage in the trust business in this state.
(3)
The requirements of this chapter do not apply to:
(a)
an institution authorized to engage in trust business in another state that engages in
trust activities in this state solely to fulfill the institution's duties as a trustee of a trust
created and administered in another state;
(b)
a national bank, federal savings bank, federal savings and loan association, or federal
credit union authorized to engage in business as a depository institution in this state,
or a wholly owned subsidiary of a national bank, federal savings bank, federal
savings and loan association, or federal credit union authorized to engage in business
as a depository institution in this state, to the extent the institution is authorized by
the institution's primary federal regulator to engage in trust business in this state; or
(c)
a state agency that is otherwise authorized by statute to act as a conservator, receiver,
guardian, trustee, or in any other fiduciary capacity.
Section 6. Section
7-5-103
, which is renumbered from Section 7-5-2 is renumbered
and amended to read:
7-5-2
7-5-103
. Permit required to engage in trust business -- Exceptions.
(1)
(a)
No
Unless a
trust company
shall
obtains from the commissioner a permit to
engage in trust business in this state, the trust company may not
accept
any
an

appointment to act in
any
an
agency or
a
fiduciary capacity
by order or judgment of
a court or by authority of any law of this state
, including
that of
as a:
(i)
personal representative
,
;
(ii)
executor
,
;
(iii)
administrator
,
;
(iv)
conservator
,
;
(v)
guardian
,
;
(vi)
assignee
,
;
(vii)
receiver
,
;
(viii)
depositary
,
;
or

(ix)
trustee
under order or judgment of any court or by authority of any law of this
state or as trustee for any purpose permitted by law or otherwise engage in the
trust business in this state, unless and until it has obtained from the commissioner
a permit to act under this chapter.
.
(b)
This
provision
Subsection
(1)
does not apply to
any
a
bank or other corporation
authorized to engage and lawfully engaged in the trust business in this state before
July 1, 1981.
(2)
Nothing in this chapter prohibits:
(a)
any
a
corporation
,
organized under
Title 16, Chapter 6a, Utah Revised Nonprofit
Corporation Act
, or
Title 16,
Chapter 10a, Utah Revised Business Corporation Act
,
from acting as trustee of
any
an
employee benefit trust established for the employees
of the corporation or the employees of one or more other corporations affiliated with
the corporation;
(b)
any
a
corporation
,
organized under
Title 16, Chapter 6a, Utah Revised Nonprofit
Corporation Act
,
and owned or controlled by
and that
a charitable, benevolent,
eleemosynary, or religious organization
owns or controls,
from acting as a trustee for
that organization or members of that organization but not offering trust services to the
general public;
(c)
any
a
corporation
,
organized under
Title 16, Chapter 6a, Utah Revised Nonprofit
Corporation Act
, or
Title 16,
Chapter 10a, Utah Revised Business Corporation Act
,
from holding in a fiduciary capacity the controlling shares of another corporation but
not offering trust services to the general public; or
(d)
any
a
depository institution from holding in an agency or fiduciary capacity
individual retirement accounts or Keogh plan accounts established under
Section
401(a) or 408(a) of Title 26 of the United States Code
26 U.S.C. Sec. 401(a) or 26
U.S.C. Sec. 408(a)
.
Section 7. Section
7-5-104
, which is renumbered from Section 7-5-3 is renumbered
and amended to read:
7-5-3
7-5-104
. 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

:
(a)
file an application with the commissioner in the manner provided in Section
7-1-704
,
;

and
shall
(b)
pay the fee
prescribed
described
in Section
7-1-401
.
(2)
The commissioner shall, in
When
deciding whether
or not
to approve
the
application, take into account
an application described in Subsection
(1)
, the
commissioner shall consider
:
(a)
the character and condition of the applicant's assets;
(b)
the adequacy of
its
the applicant's
capital;
(c)
its
the applicant's
earnings record;
(d)
the quality of
its
the applicant's
management;
(e)
the qualifications of
any person proposed
an individual the applicant proposes
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
that makes the process to obtain
approval to engage in trust business in this state
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
Notwithstanding Subsection
(3)
, the
commissioner may impose
such conditions
criteria the commissioner considers appropriate to protect the public interest
when
authorizing a person to engage in
the
trust business
as the commissioner 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
may
act as fiduciary in
any capacity without bond.
Section 8. Section
7-5-105
, which is renumbered from Section 7-5-4 is renumbered
and amended to read:
7-5-4
7-5-105
. Withdrawal from trust business.
(1)
Any
A
trust company
which
that
desires to withdraw from and discontinue doing
a
trust business shall furnish to the commissioner satisfactory evidence of
its
the trust
company's
release and discharge from all the obligations and trusts
undertaken by it,
and
the trust company undertakes.
(2)
after the company has furnished that evidence
After the trust company provides the
evidence required by Subsection
(1)
to
the commissioner
, the commissioner
shall revoke
his certificate of authority
the trust company's permit
to
do a
engage in
trust business
previously issued to that trust company, and
in this state.
(3)
thereafter that
After the commissioner revokes a trust company's permit in accordance
with Subsection
(2)
, the
trust company may not

:
(a)
be permitted to use and may not
use the word "trust" in
its
the trust company's

corporate name or in connection with
its
the trust company's
business
, nor
; or
(b)
undertake the administration of any trust business.
Section 9. Section
7-5-106
, which is renumbered from Section 7-5-5 is renumbered
and amended to read:
7-5-5
7-5-106
. Revocation of trust authority -- Procedure -- Violations.
(1)
(a)
The commissioner may issue and serve upon a trust company a notice of intent to
revoke the authority of the trust company to exercise the powers granted by this
chapter, if, in the commissioner's opinion, the trust company:
(i)
is unlawfully or unsoundly exercising the powers granted under this chapter;
(ii)
has unlawfully or unsoundly exercised the powers granted under this chapter;
(iii)
has failed, for a period of five consecutive years, to exercise the powers granted
by this chapter;
(iv)
fails or has failed to comply with requirements upon which
its
the trust
company's
permit is conditioned; or
(v)
fails or has failed to comply with any rule of the commissioner.
(b)
The notice shall:
(i)
contain a statement of the facts constituting the alleged unlawful or unsound
exercise of powers, or failure to exercise powers, or failure to comply; and
(ii)
fix the time and place at which
the commissioner shall hold
a hearing
will be
held
to determine whether
the commissioner should issue
an order revoking
authority to execute
those
the
powers
should issue against the trust company
described in the notice
.
(2)
(a)
If the trust company or
its
the trust company's
representative does not appear at
the hearing, the commissioner may consider the trust company to be in default, and
may issue a revocation order.
(b)
If default has occurred, or if upon the record made at any hearing the commissioner
finds that any allegation specified in the notice of charges has been established, the
commissioner shall issue and serve upon the trust company
an
a revocation
order:
(i)
prohibiting
it
the trust company
from accepting any new or additional trust
accounts; and
(ii)
revoking
its
the trust company's
authority to exercise any powers granted under
this chapter.
(c)
Any order issued under this section permits the trust company to continue to service
all previously accepted trust accounts pending
their
the trust accounts'
expeditious
divestiture or termination.
(3)
A revocation order
shall become
becomes
effective 30 days after
service of the order
upon
the day on which the commissioner serves the revocation order to
the trust
company and
shall remain
remains
effective and enforceable, unless
it is stayed,
modified, terminated, or set aside by action of the commissioner or by judicial review as
provided for in Section
7-1-714
.
the commissioner or a court, in accordance with
Section
7-1-714
, stays, modifies, terminates, or sets aside the revocation order.
(4)
If an attorney described in Subsection
7-5-101(4)(b)(iii)
violates Title 75B, Trusts, the
attorney:
(a)
is not subject to enforcement by the commissioner or the department; and
(b)
may be subject to disciplinary action generally applicable to an attorney licensed to
practice in this state.
(5)
If a certified public accountant described in Subsection
7-5-101(4)(b)(iv)
violates Title
75B, Trusts, the certified public accountant:
(a)
is not subject to enforcement by the commissioner or the department; and
(b)
may be subject to disciplinary action under Title 58, Chapter 26a, Certified Public
Accountant Licensing Act.
(6)
If the commissioner or the department receives a complaint that an attorney described in
Subsection
7-5-101(4)(b)(iii)
or a certified public accountant described in Subsection
7-5-101(4)(b)(iv)
violates Title 75B, Trusts, the commissioner or the department shall
forward the complaint to:
(a)
if the complaint involves an attorney, the Utah State Bar; or
(b)
if the complaint involves a certified public accountant, the Division of Professional
Licensing.
Section 10. Section
7-5-107
, which is renumbered from Section 7-5-6 is renumbered
and amended to read:
7-5-6
7-5-107
. Confidentiality of communications and writings concerning
trust -- Actions to protect property or authorized under probate laws not precluded.
(1)
Any
A
trust company exercising the powers and performing the duties described in
this chapter shall keep
inviolate all communications and writings made to or by that
confidential each communication and writing the
trust company
makes or receives
relating to the existence, condition, management or administration of
any
an
agency or
fiduciary account confided to
it and
the trust company.
(2)
no
A
creditor or stockholder of
any such
a
trust company
shall be
is not
entitled to
disclosure or knowledge of
any such
a
communication or writing
described in
Subsection
(1)
,
except that the
unless the creditor or stockholder is:
(a)
directors,
a director of the trust company;

(b)
a
president
,
of the trust company;
(c)
a
vice president
,
of the trust company;
(d)
a
manager
,
employed by the trust company;
(e)
a
treasurer
, and
employed by the trust company;
(f)
a
trust
officers, and any
officer of the trust company;
(g)
employees
an employee

of the trust company
assigned to work on the trust business
,
;
(h)
and the
an
attorney
employed by the trust company;
or

(i)
an
auditor employed by
it shall be entitled to knowledge of any such communication
or writing and except
the trust company.
(3)
that in any suit or
In a
proceeding relating to the existence, condition, management or
administration of
the
an
account
described in Subsection
(1)
,
the court in which the
suit is pending may
a court may
require disclosure of
any such
the
communication or
writing.
(4)
A
Nothing in this section precludes a
trust company
is not, however, precluded
from
filing an action in court to protect trust account property or as authorized under Title
75B, Trusts
.
Section 11. Section
7-5-108
, which is renumbered from Section 7-5-7 is renumbered
and amended to read:
7-5-7
7-5-108
. Management and investment of trust money.
(1)
Money received or held by a trust company as agent or fiduciary, whether for
investment or distribution, shall be invested or distributed as soon as practicable
A trust
company shall invest or distribute money the trust company receives or holds as an
agent or a fiduciary, whether for investment or distribution, as soon as practicable
as
authorized under the instrument creating the account
and
.
(2)
A trust company
may not
be held uninvested
hold the money described in Subsection
(1)
without investing the money for
any longer than is reasonably necessary.
(2)
(3)
If the instrument creating an agency or fiduciary account
contains provisions
authorizing
authorizes
the trust company,
its
the trust company's
officers, or
its
the
trust company's
directors to exercise
their
discretion
in the matter of
over
investments,
the trust company, the trust company's officers, or the trust company's directors may
invest
money
held
the trust company holds
in the trust account under that instrument
may be invested
only in
those classes
a class
of securities
which are approved by the
directors of the trust company or a committee of directors appointed for that purpose
that the directors of the trust company, or a committee of directors that the directors
appoint, approve
.

(4)
If a trust company acts in
any
an
agency or
a
fiduciary capacity under appointment by a
court with jurisdiction,
it
the trust company
shall make and account for the investments
according to Title 75B, Trusts, unless the underlying instrument provides otherwise.
(3)
(5)
(a)
Money received or held
A trust company that is also a depository institution
may deposit into the trust company's commercial department or savings department

money that the trust company holds or receives
as
an
agent or
a
fiduciary
by any
trust company which is also a depository institution,
whether for investment or
distribution,
may be deposited in the commercial department or savings department
of that trust company
to the credit of
its
the trust company's
trust department.

(b)
Whenever the money so deposited in
When the money that a trust company
deposits, in accordance with Subsection
(5)(a)
, into
a fiduciary or managing agency
account
exceed
exceeds
the amount of federal deposit insurance applicable to that
fiduciary or managing agency
account, the trust company shall deliver to the trust
department or put under
its
the trust department's
control collateral security as
outlined
described
in
Regulation 9.10 of the Comptroller of the Currency
12 C.F.R.
Sec. 9.10
.
(c)
However, if
If
the instrument
creating such
that creates
a fiduciary or managing
agency account
described in Subsection
(5)(b)

expressly provides that
a trust
company may deposit
money
may be deposited to
into
the commercial or savings
department of the trust company
, then
:
(i)
the
trust company may deposit the
money
may be so deposited
without setting
aside collateral securities as required under this section
;
and

(ii)
the deposits
in the event of insolvency
, a deposit
of
any such
the
trust company
shall be treated as other general deposits are treated.
(d)

A trust company that deposits trust funds
in its
into the trust company's

commercial or savings department
shall be
is
liable for interest on the deposits only
at the rates, if any,
paid by the trust company
the trust company pays
on deposits of
like kind not made to the credit of
its
the trust company's
trust department.
(b)
(6)
(a)
Money received or held
A trust company may deposit in an affiliated
depository institution money that a trust company receives or holds
as agent or
fiduciary
by a trust company
, whether for investment or distribution
, may be
deposited in an affiliated depository institution
.
(b)
Whenever the money so deposited in
If money that a trust company deposits, in
accordance with Subsection
(6)(a)
, into
a fiduciary or managing agency account
exceed
exceeds
the amount of federal deposit insurance applicable to that account,
the depository institution shall deliver to the trust company or put under
its
the trust
company's
control collateral security as
outlined in Regulation 9.10 of the
Comptroller of the Currency
described in 12 C.F.R. Sec. 9.10
.
(c)
However, if
If
the instrument
creating
that creates
the fiduciary or managing
agency account
described in Subsection
(6)(b)

expressly permits
the trust company to
deposit
money
to be deposited in
into
the affiliated depository institution
,
:
(i)
the
trust company may deposit
money
may be so deposited
without setting aside
collateral securities
as required under
in accordance with
this section
;
and

(ii)
deposits
in the event of insolvency of the depository institution
, deposits the
trust company makes
shall be treated as other general deposits are treated.
(d)

A trust company that deposits trust money
in
into
an affiliated depository
institution is liable for interest on the deposits only at the rates, if any,
paid by
the
depository institution
pays
on deposits of like kind.
(4)
(7)
In carrying out all aspects of
its
the trust company's
trust business, a trust company
shall have
has
all the powers, privileges, and duties as set forth in Sections
75B-2-813

and
75B-2-814
with respect to trustees, whether
or not
the trust company
is acting
acts

as a trustee as defined in Section
75B-1-101
.
(5)
(8)
Nothing in this section may alter, amend, or limit the powers of a trust company
acting in a fiduciary capacity as specified in the particular instrument or order creating
the fiduciary relationship.
Section 12. Section
7-5-109
, which is renumbered from Section 7-5-8 is renumbered
and amended to read:
7-5-8
7-5-109
. Segregation of trust assets -- Books and records required --
Examination -- Trust property not subject to claims or debts against trust company.
(1)
A trust company exercising the powers to act as an agent or fiduciary under this
chapter shall

:
(a)
segregate all assets
held
the trust company holds
in any agency or fiduciary capacity
from the general assets of the
trust
company
;
and
shall
(b)
keep a separate set of books and records showing in proper detail
all transactions
engaged in under authority of
each transaction in which the trust company engages in
accordance with
this chapter.
(2)
These books and records shall be open to inspection by the commissioner and shall be
examined by him or by examiners appointed by him as provided in
Chapter 1, General
Provisions
, or examined by other appropriate regulating agencies or both
The trust
company shall allow the commissioner, an examiner the commissioner appoints in
accordance with Chapter 1, General Provisions, and an appropriate regulating agency to
inspect books and records described in Subsection
(1)
.
(3)

Property
held
the trust company holds
in an agency or fiduciary capacity
by a trust
company
is not subject to claims or debts against the trust company.
Section 13. Section
7-5-110
, which is renumbered from Section 7-5-9 is renumbered
and amended to read:
7-5-9
7-5-110
. Registration of investment in name of nominee -- Records --
Possession of investment.
(1)
As used in this section, "security" means the same as that term is defined in Section
75-1-201
.
(1)
(2)
A trust company may
cause any
require that a person register and hold a
security
,
as defined in Section
75-1-201
, held in its
that the trust company holds in the trust
company's
agency or fiduciary capacity
to be registered and held
in the name of a
nominee or nominees of the trust company.
(3)

The trust company
shall be
is
liable for the acts of
any such
a
nominee
described in
Subsection
(2)
with respect to any investment
so registered
registered in accordance
with Subsection
(2)
.

(4)
Investments
An investment
other than
securities
a security
held in the name of a
nominee on June 30, 1981, may continue to be held in that manner.
(2)
(5)
The records of the
For an investment described in Subsection
(4)
, the
trust
company shall
:
(a)

at all times
maintain records that
show the
trust company's
ownership of
any such
an
investment
,
;
(b)
which investment shall be in the
maintain
possession or control
of the trust
company
over the investment;
and
(c)
be kept
keep the investment
separate and apart from the assets of the trust
company.
Section 14. Section
7-5-111
, which is renumbered from Section 7-5-10 is renumbered
and amended to read:
7-5-10
7-5-111
. Lending trust funds to trust company, officer, director, or
employee a felony.
(1)
Except as provided in Subsection
(2)
, a trust company may not lend funds that the trust
company holds in a trust account in accordance with this chapter to:
(a)
the trust company;
(b)
an officer of the trust company;
(c)
a director of the trust company; or
(d)
an employee of the trust company.
(2)
Unless
A trust company may lend funds to a person described in Subsection
(1)
if:
(a)
expressly permitted in
the instrument creating a trust account
authorizes the trust
company to lend funds to the person;
(b)
or by
a person authorized to
give that permission
grant authorization to the trust
company to lend funds to the person grants authorization;
or
(c)

by a court order as permitted in
a court issues an order in accordance with
Section
75B-2-802
, a trust company may not lend to itself or to any officer or director or
employee of the trust company any funds held in any trust account under the powers
conferred in this chapter
.
(2)
(3)
Any
An
officer,
a
director
,
or
an
employee
making such a loan
is guilty of a third
degree felony if the officer, director, or employee:
(a)
,
makes a loan in violation of Subsection
(1)
;
or

(b)
to whom such a loan is made, is guilty of a third degree felony
receives a loan that
violates Subsection
(1)
.
Section 15. Section
7-5-112
, which is renumbered from Section 7-5-11 is renumbered
and amended to read:
7-5-11
7-5-112
. Self-dealing with trust property -- Own stock as trust property
-- Policies for dealing with trust securities.
(1)
Except as provided in Section
7-5-7
7-5-109
,
in
Title 75B, Trusts, or as authorized
under the instrument creating the relationship, a trust company may not

:
(a)
invest funds
held
the trust company holds
as an agent or fiduciary in stock or
obligations of
, or with such funds acquire property from,
the trust company or any
of
its
the trust company's
directors, officers or employees
, nor shall
;
(b)
use funds the trust company holds as an agent or fiduciary to acquire property from
the trust company or any of the trust company's directors, officers, or employees; or
(c)
a trust company
sell property
held
the trust company holds
as an agent or
fiduciary to the
company
trust company
or to any of
its
trust company's
directors,
officers, or employees.
(2)
A trust company may retain and vote stock of the trust company or of any of
its
the
trust company's
affiliates
received by it
the trust company receives
as assets of any trust
account or in any other fiduciary relationship
of
for
which
it
the trust company
is
appointed agent or fiduciary, unless the instrument creating the relationship otherwise
provides.
(3)
(a)
Every
A
trust company shall adopt written policies and procedures regarding
decisions or recommendations to purchase or sell
any
a
security
to facilitate
compliance
in accordance
with federal and state securities laws.

(b)
These policies and procedures, in particular,
The policies and procedures described
in Subsection
(3)(a)

shall prohibit the trust company from using material inside
information in connection with any decision or recommendation to purchase or sell
any security.
Section 16. Section
7-5-113
, which is renumbered from Section 7-5-12 is renumbered
and amended to read:
7-5-12
7-5-113
. Directors' audit of trust business -- Report available to
commissioner or examiners -- Examinations in lieu of audit.
(1)
A committee of the board of directors,
exclusive of
excluding
any active officers
of the trust department, of every trust company
authorized to engage in the trust
business in this state
shall, at least once during a 15-month period
,
:
(a)
(i)
make a suitable
conduct an
audit of the trust business operations of the
institution
trust company;
or
(ii)

cause
that auditors responsible only to the board of directors conduct
a suitable
audit
to be made by auditors responsible only to the board of directors
;
and

(b)
shall
using the findings from the audit,
ascertain whether the
trust company
conducts the
trust business operations of the
institution have been administered
trust
business
in accordance with law and sound fiduciary principles.
(2)
A
Upon request, the committee of the board of directors shall make available a
report
of the audit
described in Subsection
(1)
,
together with the action taken thereon
including any action the committee of the board of directors takes as a result of the audit
,
shall be made available
to the commissioner, the commissioner's examiners, or the
examiners of other trust company regulating agencies
upon request
.
(3)

An examination by the state or other trust company regulating agencies or both made
during the same period may be substituted for this audit.
The requirements of
Subsection
(1)
do not apply if the state or other agency that regulates trust companies
conducts an examination of the trust company during the same 15-month period.
Section 17. Section
7-5-114
, which is renumbered from Section 7-5-13 is renumbered
and amended to read:
7-5-13
7-5-114
. Collective investment funds.
(1)
A
person authorized to engage in the trust business in this state
trust company
may:
(a)
establish collective investment funds that authorize participation by fiduciary or trust
accounts of the trust company,
its
the trust company's
affiliates, or both; and
(b)
participate in collective investment funds established by an affiliate of the trust
company, if:
(i)
the affiliate is authorized under the laws of
its
the trust company's
chartering
authority to establish a collective investment fund in which
its
the trust company's

affiliates may participate; and
(ii)
the plan establishing the collective investment fund specifically authorized the
participation.
(2)
Funds held by a trust company may be invested
A person may invest funds that a trust
company holds
collectively in a collective investment fund in accordance with the rules
prescribed by the appropriate governmental regulatory agency or agencies, if
this
the
instrument, judgment, decree, or order creating the regulatory relationship does not
specifically prohibit the
investment
is not specifically prohibited under the instrument,
judgment, decree, or order creating the regulatory relationship
.
(3)
(a)
Unless ordered to do so by a court, a trust company operating collective
investment funds is not required to render a court accounting
with regard to those
funds
for the collective investment funds.

(b)
but the
A
trust company may petition a court with jurisdiction under
Title 78A,
Judiciary and Judicial Administration
, to secure approval of
such an
a court

accounting on
such conditions as the court may establish
conditions the court
establishes
.
(4)
This section applies to all relationships in existence on or after May 1, 1989.
Section 18. Section
7-5-115
, which is renumbered from Section 7-5-14 is renumbered
and amended to read:
7-5-14
7-5-115
. Mergers, consolidations, acquisitions, transfers, or
reorganizations involving entities engaged in trust business -- Succession of rights and
duties -- Petition for appointment of another trust company.
(1)
As used in this section:
(a)
"Eligible trust company" means any of the following that is authorized under this
chapter or the laws of the United States to engage in the trust business in this state:
(i)
a trust company;
(ii)
a depository institution; or
(iii)
a corporation.
(b)
"Reorganization"
includes
means
:
(i)
the creation by a trust company of a subsidiary corporation that is:
(A)
wholly owned by that trust company; and
(B)
organized solely for the purpose of conducting all or any portion of the trust
business of that trust company; or
(ii)
any
a
merger or other combination between a trust company and:
(A)
a wholly owned trust company subsidiary of that trust company; or
(B)
a wholly owned trust company subsidiary of the depository institution holding
company
which
that
owns or controls that trust company.
(2)
Notwithstanding any provision of law to the contrary, an eligible trust company may,
subject to Sections
7-1-702
,
7-1-704
, and
7-1-705
:
(a)
(i)
merge or consolidate with another eligible trust company;
(ii)
acquire control of another eligible trust company;
(iii)
acquire all or a portion of the assets and trust business of another eligible trust
company;
(iv)
assume all or any portion of the liabilities of another eligible trust company;
(v)
transfer control to another eligible trust company;
(vi)
transfer all or a portion of
its
the trust company's
assets and trust business to
another eligible trust company; or
(vii)
transfer all or a portion of
its
the trust company's
liabilities to another eligible
trust company; or
(b)
reorganize
conduct a reorganization
.
(3)
(a)
Subject to Subsection
(3)(b)
, upon final approval by the commissioner of
any
a

merger,
a
consolidation,
an
acquisition of control,
an
acquisition of assets,
an
assumption of liabilities, or
a
reorganization, and upon written notice of
this
the final

approval to
all persons
each person
entitled to and then receiving trust accountings
from the transferring or reorganizing trust company, the resulting or acquiring trust
company shall, without court proceedings or a court order, succeed to

:
(i)
all
the transferring or reorganizing trust company's
rights, privileges, duties,
obligations, and undertakings under all trust instruments, agency and fiduciary
relationships and arrangements
,
;
and

(ii)
all
other trust business
the transferring or reorganizing trust company
transferred
and acquired in
the manner authorized by
accordance with
this section.
(b)
(i)
Except as provided otherwise in the relevant trust instrument,
any
an

interested person may, not more than 30 days after
receipt of
the day on which
the interested person receives
written notice of the merger, consolidation,
acquisition, transfer, or reorganization, petition
any
a
court
of competent
with

jurisdiction to appoint another or succeeding trust company with respect to
any
an

agency or fiduciary relationship affecting that interested person
,
.
(ii)
and until
Until the court appoints
another or succeeding trust company
is so
appointed
in accordance with Subsection
(3)(b)(i)
, the acquiring or resulting trust
company
is entitled to
may
act as agent or fiduciary with respect to the agency or
fiduciary relationship.
Section 19. Section
7-5-116
, which is renumbered from Section 7-5-15 is renumbered
and amended to read:
7-5-15
7-5-116
. Assets of trust company in possession of the commissioner.
With respect to
the assets of
a trust company in the possession of the commissioner
under
Chapter 2, Possession of Depository Institution by Commissioner
, notwithstanding any
law to the contrary, the assets
held by
that
the trust company
holds
in a fiduciary capacity as a
part of
its
the trust company's
trust business
, as defined in Section
7-5-1
,
are not subject to
the claims of
any
a
secured or unsecured creditor of the trust company.
Section 20. Section
7-18a-302
is amended to read:
7-18a-302
. Trust business.
A foreign depository institution may not engage in the trust business, as
that term is
defined in Section
7-5-1
7-5-101
, in this state.
Section 21. Section
7-22-101
is amended to read:
7-22-101
. Definitions -- Exemptions.
(1)
As used in this chapter:
(a)
"Escrow" means an agreement, express or implied, that provides for one or more
parties to deliver or entrust money, a certificate of deposit, a security, a negotiable
instrument, a deed, or other property or asset to another person to be held, paid, or
delivered in accordance with terms and conditions prescribed in the agreement.
(b)
"Escrow agent" means a person that provides or offers to provide escrow services to
the public.
(c)
"Nationwide database" means the Nationwide Mortgage Licensing System and
Registry, authorized under 12 U.S.C. Sec. 5101 for federal licensing of mortgage
loan originators.
(2)
This chapter does not apply to:
(a)
a trust company authorized to engage in the trust business in Utah in accordance with
Chapter 5, Trust Business
;
(b)
a person other than an escrow agent regulated under this chapter that is exempted
from the definition of trust business in
Subsection
7-5-1(1)
Section
7-5-101
;
(c)
a depository institution chartered by a state or the federal government that is engaged
in business as a depository institution in Utah;
(d)
the Utah Board of Higher Education, the Utah Higher Education Assistance
Authority, or the
State Treasurer
state treasurer
; and
(e)
a person licensed under
Title 31A, Insurance Code
.
Section 22. Section
16-15-102
is amended to read:
16-15-102
. Definition of business trust.
As used in this chapter:
(1)
"Beneficiary" means a person holding a certificate representing a beneficial interest in
the trust estate and assets.
(2)
"Business trust"
has the same meaning as
means the same as that term is defined
in
Section
7-5-1
7-5-101
.
(3)
"Division" means the Division of Corporations and Commercial Code.
(4)
"Person" means an individual, general partnership, limited liability partnership, limited
partnership, limited liability company, limited association, domestic or foreign trust,
estate, association, or corporation.
Section 23. Section
31A-23a-406
is amended to read:
31A-23a-406
. Title insurance producer's business.
(1)
As used in this section:
(a)
"Automated clearing house network" or "ACH network" means a national electronic
funds transfer system regulated by the Federal Reserve and the Office of the
Comptroller of the Currency.
(b)
"Depository institution" means the same as that term is defined in Section
7-1-103
.
(c)
"Funds transfer system" means the same as that term is defined in Section
70A-4a-105
.
(2)
An individual title insurance producer or agency title insurance producer may do escrow
involving real property transactions if all of the following exist:
(a)
the individual title insurance producer or agency title insurance producer is licensed
with:
(i)
the title line of authority; and
(ii)
the escrow subline of authority;
(b)
the individual title insurance producer or agency title insurance producer is appointed
by a title insurer authorized to do business in the state;
(c)
except as provided in Subsection
(4)
, the individual title insurance producer or
agency title insurance producer issues one or more of the following as part of the
transaction:
(i)
an owner's policy offering title insurance;
(ii)
a lender's policy offering title insurance; or
(iii)
if the transaction does not involve a transfer of ownership, an endorsement to an
owner's or a lender's policy offering title insurance;
(d)
money deposited with the individual title insurance producer or agency title
insurance producer in connection with any escrow is deposited:
(i)
in a federally insured depository institution, as defined in Section
7-1-103
, that:
(A)
has a branch in this state, if the individual title insurance producer or agency
title insurance producer depositing the money is a resident licensee; and
(B)
is authorized by the depository institution's primary regulator to engage in
trust business, as defined in Section
7-5-1
7-5-101
, in this state; and
(ii)
in a trust account that is separate from all other trust account money that is not
related to real estate transactions;
(e)
money deposited with the individual title insurance producer or agency title
insurance producer in connection with any escrow is the property of the one or more
persons entitled to the money under the provisions of the escrow;
(f)
money deposited with the individual title insurance producer or agency title insurance
producer in connection with an escrow is segregated escrow by escrow in the records
of the individual title insurance producer or agency title insurance producer;
(g)
earnings on money held in escrow may be paid out of the trust account to any person
in accordance with the conditions of the escrow;
(h)
the escrow does not require the individual title insurance producer or agency title
insurance producer to hold:
(i)
construction money; or
(ii)
money held for exchange under Section 1031, Internal Revenue Code; and
(i)
the individual title insurance producer or agency title insurance producer shall
maintain a physical office in Utah staffed by a person with an escrow subline of
authority who processes the escrow.
(3)
Notwithstanding Subsection
(2)
, an individual title insurance producer or agency title
insurance producer may engage in the escrow business if:
(a)
the escrow involves:
(i)
a mobile home;
(ii)
a grazing right;
(iii)
a water right; or
(iv)
other personal property authorized by the commissioner; and
(b)
the individual title insurance producer or agency title insurance producer complies
with this section except for Subsection
(2)(c)
.
(4)
(a)
Subsection
(2)(c)
does not apply if the transaction is for the transfer of real
property from the School and Institutional Trust Lands Administration.
(b)
This subsection does not prohibit an individual title insurance producer or agency
title insurance producer from issuing a policy described in Subsection
(2)(c)
as part
of a transaction described in Subsection
(4)(a)
.
(5)
Money held in escrow:
(a)
is not subject to any debts of the individual title insurance producer or agency title
insurance producer;
(b)
may only be used to fulfill the terms of the individual escrow under which the money
is accepted; and
(c)
may not be used until the conditions of the escrow are met.
(6)
Assets or property other than escrow money received by an individual title insurance
producer or agency title insurance producer in accordance with an escrow shall be
maintained in a manner that will:
(a)
reasonably preserve and protect the asset or property from loss, theft, or damages; and
(b)
otherwise comply with the general duties and responsibilities of a fiduciary or bailee.
(7)
(a)
A check from the trust account described in Subsection
(2)(d)
may not be drawn,
executed, or dated, or money otherwise disbursed unless the segregated trust account
from which money is to be disbursed contains a sufficient credit balance consisting of
collected and cleared money at the time the check is drawn, executed, or dated, or
money is otherwise disbursed.
(b)
As used in this Subsection
(7)
, money is considered to be "collected and cleared,"
and may be disbursed as follows:
(i)
cash may be disbursed on the same day the cash is deposited;
(ii)
a wire transfer may be disbursed on the same day the wire transfer is deposited;
(iii)
the proceeds of one or more of the following financial instruments may be
disbursed on the same day the financial instruments are deposited if received from
a single party to the real estate transaction and if the aggregate of the financial
instruments for the real estate transaction is less than $10,000:
(A)
a cashier's check, certified check, or official check that is drawn on an existing
account at a federally insured financial institution;
(B)
a check drawn on the trust account of a principal broker or associate broker
licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices Act, if
the individual title insurance producer or agency title insurance producer has
reasonable and prudent grounds to believe sufficient money will be available
from the trust account on which the check is drawn at the time of disbursement
of proceeds from the individual title insurance producer or agency title
insurance producer's trust account;
(C)
a personal check not to exceed $500 per closing; or
(D)
a check drawn on the trust account of another individual title insurance
producer or agency title insurance producer, if the individual title insurance
producer or agency title insurance producer in the escrow transaction has
reasonable and prudent grounds to believe that sufficient money will be
available for withdrawal from the account upon which the check is drawn at
the time of disbursement of money from the trust account of the individual title
insurance producer or agency title insurance producer in the escrow transaction;
(iv)
deposits made through the ACH network may be disbursed on the same day the
deposit is made if:
(A)
the transferred funds remain uniquely designated and traceable throughout the
entire ACH network transfer process;
(B)
except as a function of the ACH network process, the transferred funds are not
subject to comingling or third party access during the transfer process;
(C)
the transferred funds are deposited into the title insurance producer's trust
account and are available for disbursement; and
(D)
either the ACH network payment type or the title insurance producer's
systems prevent the transaction from being unilaterally canceled or reversed by
the consumer once the transferred funds are deposited to the individual title
insurance producer or agency title producer; or
(v)
deposits may be disbursed on the same day the deposit is made if the deposit is
made via:
(A)
the Federal Reserve Bank through the Federal Reserve's Fedwire funds
transfer system; or
(B)
a funds transfer system provided by an association of federally insured
depository institutions.
(c)
A check or deposit not described in Subsection
(7)(b)
may be disbursed:
(i)
within the time limits provided under the Expedited Funds Availability Act, 12
U.S.C. Sec. 4001 et seq., as amended, and related regulations of the Federal
Reserve System; or
(ii)
upon notification from the financial institution to which the money has been
deposited that final settlement has occurred on the deposited financial instrument.
(8)
An individual title insurance producer or agency title insurance producer shall maintain
a record of a receipt or disbursement of escrow money.
(9)
An individual title insurance producer or agency title insurance producer shall comply
with:
(a)
Section
31A-23a-409
;
(b)
Title 46, Chapter 1, Notaries Public Reform Act; and
(c)
any rules adopted by the Title and Escrow Commission, subject to Section
31A-2-404
,
that govern escrows.
(10)
If an individual title insurance producer or agency title insurance producer conducts a
search for real estate located in the state, the individual title insurance producer or
agency title insurance producer shall conduct a reasonable search of the public records.
Section 24. Section
31A-23a-409
is amended to read:
31A-23a-409
. Trust obligation for money collected.
(1)
(a)
Subject to Subsection
(7)
, a licensee is a trustee for money that is paid to, received
by, or collected by a licensee for forwarding to insurers or to insureds.
(b)
(i)
Except as provided in Subsection
(1)(b)(ii)
, a licensee may not commingle trust
funds with:
(A)
the licensee's own money; or
(B)
money held in any other capacity.
(ii)
This Subsection
(1)(b)
does not apply to:
(A)
amounts necessary to pay bank charges; and
(B)
money paid by insureds and belonging in part to the licensee as a fee or
commission.
(c)
Except as provided under Subsection
(4)
, a licensee owes to insureds and insurers the
fiduciary duties of a trustee with respect to money to be forwarded to insurers or
insureds through the licensee.
(d)
(i)
Unless money is sent to the appropriate payee by the close of the next business
day after their receipt, the licensee shall deposit them in an account authorized
under Subsection
(2)
.
(ii)
Money deposited under this Subsection
(1)(d)
shall remain in an account
authorized under Subsection
(2)
until sent to the appropriate payee.
(2)
Money required to be deposited under Subsection
(1)
shall be deposited:
(a)
into a federally insured trust account in a depository institution, as defined in Section
7-1-103
, which:
(i)
has a branch in this state, if the individual title insurance producer or agency title
insurance producer depositing the money is a resident licensee;
(ii)
has federal deposit insurance; and
(iii)
is authorized by its primary regulator to engage in the trust business, as defined
by Section
7-5-1
7-5-101
, in this state; or
(b)
into some other account, that:
(i)
the commissioner approves by rule or order; and
(ii)
provides safety comparable to an account described in Subsection
(2)(a)
.
(3)
It is not a violation of Subsection
(2)(a)
if the amounts in the accounts exceed the
amount of the federal insurance on the accounts.
(4)
A trust account into which money is deposited may be interest bearing. The interest
accrued on the account may be paid to the licensee, so long as the licensee otherwise
complies with this section and with the contract with the insurer.
(5)
A depository institution or other organization holding trust funds under this section may
not offset or impound trust account funds against debts and obligations incurred by the
licensee.
(6)
A licensee who, not being lawfully entitled to do so, diverts or appropriates any portion
of the money held under Subsection
(1)
to the licensee's own use, is guilty of theft under
Title 76, Chapter 6, Part 4, Theft
. Sanctions under Section
31A-2-308
also apply.
(7)
A nonresident licensee:
(a)
shall comply with Subsection
(1)(a)
by complying with the trust account
requirements of the nonresident licensee's home state; and
(b)
is not required to comply with the other provisions of this section.
Section 25. Section
59-10-202
is amended to read:
59-10-202
. Additions to and subtractions from unadjusted income of a resident
or nonresident estate or trust.
(1)
There shall be added to unadjusted income of a resident or nonresident estate or trust:
(a)
a lump sum distribution allowable as a deduction under Section 402(d)(3), Internal
Revenue Code, to the extent deductible under Section 62(a)(8), Internal Revenue
Code, in determining adjusted gross income;
(b)
except as provided in Subsection
(3)
, for bonds, notes, and other evidences of
indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and
other evidences of indebtedness:
(i)
issued by one or more of the following entities:
(A)
a state other than this state;
(B)
the District of Columbia;
(C)
a political subdivision of a state other than this state; or
(D)
an agency or instrumentality of an entity described in Subsections
(1)(b)(i)(A)

through
(C)
; and
(ii)
to the extent the interest is not included in federal taxable income on the
taxpayer's federal income tax return for the taxable year;
(c)
any portion of federal taxable income for a taxable year if that federal taxable income
is derived from stock:
(i)
in an S corporation; and
(ii)
that is held by an electing small business trust;
(d)
the amount withdrawn under Title
53H, Chapter 10
, Utah Education Savings, from
the account of a resident or nonresident estate or trust that is an account owner as
defined in Section
53H-10-101
, for the taxable year for which the amount is
withdrawn, if that amount withdrawn from the account of the resident or nonresident
estate or trust that is the account owner:
(i)
is not expended for:
(A)
higher education costs as defined in Section
53H-10-201
; or
(B)
a payment or distribution that qualifies as an exception to the additional tax
for distributions not used for educational expenses provided in Sections 529(c)
and 530(d), Internal Revenue Code; and
(ii)
is:
(A)
subtracted by the resident or nonresident estate or trust:
(I)
that is the account owner; and
(II)
on the resident or nonresident estate's or trust's return filed under this
chapter for a taxable year beginning on or before December 31, 2007; or
(B)
used as the basis for the resident or nonresident estate or trust that is the
account owner to claim a tax credit under Section
59-10-1017
; and
(e)
any fiduciary adjustments required by Section
59-10-210
.
(2)
There shall be subtracted from unadjusted income of a resident or nonresident estate or
trust:
(a)
the interest or a dividend on obligations or securities of the United States and its
possessions or of any authority, commission, or instrumentality of the United States,
to the extent that interest or dividend is included in gross income for federal income
tax purposes for the taxable year but exempt from state income taxes under the laws
of the United States, but the amount subtracted under this Subsection
(2)
shall be
reduced by any interest on indebtedness incurred or continued to purchase or carry
the obligations or securities described in this Subsection
(2)
, and by any expenses
incurred in the production of interest or dividend income described in this Subsection
(2)
to the extent that such expenses, including amortizable bond premiums, are
deductible in determining federal taxable income;
(b)
income of an irrevocable resident trust if:
(i)
the income would not be treated as state taxable income derived from Utah
sources under Section
59-10-204
if received by a nonresident trust;
(ii)
the trust first became a resident trust on or after January 1, 2004;
(iii)
no assets of the trust were held, at any time after January 1, 2003, in another
resident irrevocable trust created by the same settlor or the spouse of the same
settlor;
(iv)
the trustee of the trust is a trust company as
that term is
defined in
Subsection
7-5-1(1)(d)
Section
7-5-101
;
(v)
the amount subtracted under this Subsection
(2)(b)
is reduced to the extent the
settlor or any other person is treated as an owner of any portion of the trust under
Subtitle A, Subchapter J, Subpart E of the Internal Revenue Code; and
(vi)
the amount subtracted under this Subsection
(2)(b)
is reduced by any interest on
indebtedness incurred or continued to purchase or carry the assets generating the
income described in this Subsection
(2)(b)
, and by any expenses incurred in the
production of income described in this Subsection
(2)(b)
, to the extent that those
expenses, including amortizable bond premiums, are deductible in determining
federal taxable income;
(c)
if the conditions of Subsection
(4)(a)
are met, the amount of income of a resident or
nonresident estate or trust derived from a deceased Ute tribal member:
(i)
during a time period that the Ute tribal member resided on homesteaded land
diminished from the Uintah and Ouray Reservation; and
(ii)
from a source within the Uintah and Ouray Reservation;
(d)
any amount:
(i)
received by a resident or nonresident estate or trust;
(ii)
that constitutes a refund of taxes imposed by:
(A)
a state; or
(B)
the District of Columbia; and
(iii)
to the extent that amount is included in total income on that resident or
nonresident estate's or trust's federal tax return for estates and trusts for that
taxable year;
(e)
the amount of a railroad retirement benefit:
(i)
paid:
(A)
in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231
et seq.;
(B)
to a resident or nonresident estate or trust derived from a deceased resident or
nonresident individual; and
(C)
for the taxable year; and
(ii)
to the extent that railroad retirement benefit is included in total income on that
resident or nonresident estate's or trust's federal tax return for estates and trusts;
(f)
an amount:
(i)
received by a resident or nonresident estate or trust if that amount is derived from
a deceased enrolled member of an American Indian tribe; and
(ii)
to the extent that the state is not authorized or permitted to impose a tax under this
part on that amount in accordance with:
(A)
federal law;
(B)
a treaty; or
(C)
a final decision issued by a court of competent jurisdiction;
(g)
the amount that a qualified nongrantor charitable lead trust deducts under Section
642(c), Internal Revenue Code, as a charitable contribution deduction, as allowed on
the qualified nongrantor charitable lead trust's federal income tax return for estates
and trusts for the taxable year;
(h)
any fiduciary adjustments required by Section
59-10-210
;
(i)
an amount received:
(i)
for the interest on a bond, note, or other obligation issued by an entity for which
state statute provides an exemption of interest on its bonds from state individual
income tax;
(ii)
by a resident or nonresident estate or trust;
(iii)
for the taxable year; and
(iv)
to the extent the amount is included in federal taxable income on the taxpayer's
federal income tax return for the taxable year;
(j)
for a taxable year beginning on or after January 1, 2019, but beginning on or before
December 31, 2019, only:
(i)
the amount of any FDIC premium paid or incurred by the resident or nonresident
estate or trust that is disallowed as a deduction for federal income tax purposes
under Section 162(r), Internal Revenue Code, on the resident's or nonresident
estate's or trust's 2018 federal income tax return; plus
(ii)
the amount of any FDIC premium paid or incurred by the resident or nonresident
estate or trust that is disallowed as a deduction for federal income tax purposes
under Section 162(r), Internal Revenue Code, for the taxable year; and
(k)
for a taxable year beginning on or after January 1, 2020, the amount of any FDIC
premium paid or incurred by the resident or nonresident estate or trust that is
disallowed as a deduction for federal income tax purposes under Section 162(r),
Internal Revenue Code, for the taxable year.
(3)
Notwithstanding Subsection
(1)(b)
, interest from bonds, notes, and other evidences of
indebtedness issued by an entity described in Subsections
(1)(b)(i)(A)
through
(D)
may
not be added to unadjusted income of a resident or nonresident estate or trust if, as
annually determined by the commission:
(a)
for an entity described in Subsection
(1)(b)(i)(A)
or
(B)
, the entity and all of the
political subdivisions, agencies, or instrumentalities of the entity do not impose a tax
based on income on any part of the bonds, notes, and other evidences of indebtedness
of this state; or
(b)
for an entity described in Subsection
(1)(b)(i)(C)
or
(D)
, the following do not impose
a tax based on income on any part of the bonds, notes, and other evidences of
indebtedness of this state:
(i)
the entity; or
(ii)
(A)
the state in which the entity is located; or
(B)
the District of Columbia, if the entity is located within the District of
Columbia.
(4)
(a)
A subtraction for an amount described in Subsection
(2)(c)
is allowed only if:
(i)
the income is derived from a deceased Ute tribal member; and
(ii)
the governor and the Ute tribe execute and maintain an agreement meeting the
requirements of this Subsection
(4)
.
(b)
The agreement described in Subsection
(4)(a)
:
(i)
may not:
(A)
authorize the state to impose a tax in addition to a tax imposed under this
chapter;
(B)
provide a subtraction under this section greater than or different from the
subtraction described in Subsection
(2)(c)
; or
(C)
affect the power of the state to establish rates of taxation; and
(ii)
shall:
(A)
provide for the implementation of the subtraction described in Subsection
(2)(c)
;
(B)
be in writing;
(C)
be signed by:
(I)
the governor; and
(II)
the chair of the Business Committee of the Ute tribe;
(D)
be conditioned on obtaining any approval required by federal law; and
(E)
state the effective date of the agreement.
(c)
(i)
The governor shall report to the commission by no later than February 1 of each
year regarding whether or not an agreement meeting the requirements of this
Subsection
(4)
is in effect.
(ii)
If an agreement meeting the requirements of this Subsection
(4)
is terminated, the
subtraction permitted under Subsection
(2)(c)
is not allowed for taxable years
beginning on or after the January 1 following the termination of the agreement.
(d)
For purposes of Subsection
(2)(c)
and in accordance with
Title 63G, Chapter 3, Utah
Administrative Rulemaking Act
, the commission may make rules:
(i)
for determining whether income is derived from a source within the Uintah and
Ouray Reservation; and
(ii)
that are substantially similar to how adjusted gross income derived from Utah
sources is determined under Section
59-10-117
.
Section 26. Section
75B-1-101
is amended to read:
75B-1-101
. Definitions for title.
As used in this title:
(1)
"Agent" means the same as that term is defined in Section
75-1-201
.
(2)
"Beneficiary" means a person that:
(a)
has a present or future beneficial interest in a trust, vested or contingent; or
(b)
in a capacity other than that of trustee, holds a power of appointment over trust
property.
(3)
"Charitable trust" means a trust, or portion of a trust, created for a charitable purpose
described in Subsection
75B-2-405(1)
.
(4)
"Child" means, except as provided in Sections
75B-2-503
and
75B-2-504
, the same as
that term is defined in Section
75-1-201
.
(5)
"Claims" means the same as that term is defined in Section
75-1-201
.
(6)
"Conservator" means the same as that term is defined in Section
75-1-201
.
(7)
"Court" means a court with jurisdiction under Title 78A, Judiciary and Judicial
Administration.
(8)
"Descendant" means the same as that term is defined in Section
75-1-201
.
(9)
"Devise" means the same as that term is defined in Section
75-1-201
.
(10)
"Distributee" means the same as that term is defined in Section
75-1-201
.
(11)
"Estate" means the same as that term is defined in Section
75-1-201
.
(12)
"Fiduciary" means the same as that term is defined in Section
75-1-201
.
(13)
"Governing instrument" means the same as that term is defined in Section
75-1-201
.
(14)
"Guardian" means the same as that term is defined in Section
75-1-201
.
(15)
"Incapacitated" means the same as that term is defined in Section
75-1-201
.
(16)
"Income" means the same as that term is defined in Section
75A-5-102
.
(17)
"Interested person" means, except as provided in Section
75B-2-110
, the same as that
term is defined in Section
75-1-102
.
(18)
"Lease" means the same as that term is defined in Section
75-1-201
.
(19)
"Minor" means an individual who is younger than 18 years old.
(20)
"Mortgage" means the same as that term is defined in Section
75-1-201
.
(21)
"Nongeneral power of appointment" means the same as that term is defined in Section
75A-4-102
.
(22)
"Organization" means the same as that term is defined in Section
75-1-201
.
(23)
"Parent" means the same as that term is defined in Section
75-1-201
.
(24)
"Person" means the same as that term is defined in Section
75-1-201
.
(25)
"Personal representative" means the same as that term is defined in Section
75-1-201
.
(26)
"Petition" means the same as that term is defined in Section
75-1-201
.
(27)
"Power of appointment" means the same as that term is defined in Section
75A-4-102
.
(28)
"Principal" means the same as that term is defined in Section
75A-5-102
.
(29)
"Property" means the same as that term is defined in Section
75-1-201
.
(30)
"Protected person" means the same as that term is defined in Section
75-1-201
.
(31)
"Record" means the same as that term is defined in Section
75-1-201
.
(32)
"Security" means the same as that term is defined in Section
75-1-201
.
(33)
(a)
"Settlor" means a person, including a testator, who creates, or contributes
property to, a trust.
(b)
If more than one person creates or contributes property to a trust, each person is a
settlor of the portion of the trust property attributable to that person's contribution
except to the extent another person has the power to revoke or withdraw that portion.
(34)
"Sign" means the same as that term is defined in Section
75-1-201
.
(35)
"State" means the same as that term is defined in Section
75-1-201
.
(36)
"Successor" means a person, other than a creditor, that is entitled to property of a
decedent under the decedent's will or Title 75, Utah Uniform Probate Code.
(37)
"Testator" means the same as that term is defined in Section
75-1-201
.
(38)
(a)
"Trust" means:
(i)
a health savings account, as defined in Section 223 of the Internal Revenue Code;
(ii)
an express trust, private or charitable, with additions thereto, wherever and
however created; or
(iii)
a trust created or determined by judgment or decree under which the trust is to be
administered in the manner of an express trust.
(b)
"Trust" does not include:
(i)
a constructive trust;
(ii)
a resulting trust;
(iii)
a conservatorship;
(iv)
a personal representative;
(v)
a trust account as defined in Title 75, Chapter 6, Nonprobate Transfers;
(vi)
a custodial arrangement under Title 75A, Chapter 8, Uniform Transfers To
Minors Act;
(vii)
a business trust providing for certificates to be issued to beneficiaries;
(viii)
a common trust fund;
(ix)
a voting trust;
(x)
a preneed funeral plan under Title 58, Chapter 9, Funeral Services Licensing Act;
(xi)
a security arrangement;
(xii)
a liquidation trust;
(xiii)
a trust for the primary purpose of paying debts, dividends, interest, salaries,
wages, profits, pensions, or employee benefits of any kind; or
(xiv)
any arrangement under which a person is nominee or escrowee for another
person.
(39)
"Trust company" means the same as that term is defined in Section
7-5-1
7-5-101
.
(40)
"Trustee" means an original, additional, and successor trustee, and cotrustee, whether
or not appointed or confirmed by the court.
(41)
"Trust instrument" means an instrument executed by the settlor that contains terms of
the trust, including any amendments thereto.
(42)
"Ward" means the same as that term is defined in Section
75-1-201
.
(43)
"Will" means the same as that term is defined in Section
75-1-201
.
Section 27. Section
75B-3-107
is amended to read:
75B-3-107
. Limitations on trust director.
(1)
A trust director is subject to the same rules as a trustee in a like position and under
similar circumstances in the exercise or nonexercise of a power of direction or further
power under Subsection
75B-3-106(2)(a)
regarding:
(1)
(a)
a payback provision in the terms of a trust necessary to comply with the
Medicaid reimbursement requirements in Section 1917 of the Social Security Act, 42
U.S.C. Sec. 1396p(d)(4)(A), as amended, and any related regulations; and
(2)
(b)
a charitable interest in the trust, including notice regarding the interest to the
attorney general.
(2)
A trust director may not engage in trust business, as that term is defined in Section
7-5-101
.
Section 28.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-11-26 10:43 AM