TRUST COMPANY BANKS and other fiduciaries
TRUST COMPANY BANKS
Trust company banks, capital.
Indemnity fund deposit; errors and omissions insurance.
Uniform common trust fund act.
Multi-institutional common trust funds.
Taxation of common trust funds.
Loans to officers.
Trust service offices.
Name of corporation; penalty.
Assessment of stock.
OTHER ORGANIZATIONS ACTING AS FIDUCIARIES
Organizations as fiduciaries.
Regulation of organizations acting as fiduciaries.
Foreign trust company as executor or trustee in this state.
TRUST COMPANY BANK CONSOLIDATION AND
Reorganization of a trust company bank.
Consolidation of trust company banks.
Ch. 223 Cross-reference
See definitions in s. 220.01
TRUST COMPANY BANKS
Trust company banks, capital.
Trust company banks may be organized pursuant to ch. 221
and shall be subject to all the provisions, requirements, and liabilities of chs. 220
, so far as applicable, except that trust company banks may not accept deposits other than trust deposits and except as otherwise hereinafter provided. The division may, with the approval of the banking review board, establish minimum capital requirements for a trust company bank.
History: 1987 a. 252
; 1995 a. 336
Indemnity fund deposit; errors and omissions insurance.
Before any trust company bank may commence business in this state, the trust company bank shall do one of the following:
(1) Indemnity fund deposit.
Deposit at least $100,000 with the state treasurer or the state treasurer's agent in accordance with the following provisions:
The deposit may be securities eligible for trust investments under ch. 881
and approved by the division or be cash. The trust company bank may from time to time withdraw securities or cash, if the value of the balance of the deposit remains at least $100,000.
The state treasurer or the state treasurer's agent shall pay over to the bank trust company the interest, dividends or other income on deposit or may authorize the bank trust company to collect the interest, dividends or other income. The state treasurer shall issue a certificate stating that a deposit has been made with the state treasurer or the state treasurer's agent in the manner provided in this section.
The state treasurer or the state treasurer's agent shall hold the deposit as security for the faithful execution of any trust which may be lawfully imposed upon and accepted by the trust company bank. The cash or securities shall remain in the possession of the state treasurer or the state treasurer's agent until otherwise ordered by a court of competent jurisdiction, unless released pursuant to par. (d)
The securities and cash deposited by a trust company bank may be released by the state treasurer or the state treasurer's agent and returned to the bank, if the division certifies to the state treasurer that the bank no longer exercises trust powers and that the division is satisfied that there are no outstanding trust liabilities.
The state treasurer may designate a banking corporation, having an authorized capital of $1,000,000 or more, to act as an agent to hold the cash or securities in safekeeping. The agent shall furnish to the state treasurer a safekeeping receipt for all cash and securities received by it. The agent shall pay the cash and securities to the state treasurer on demand without conditions.
(2) Errors and omissions insurance policy.
Obtain and maintain adequate insurance against loss, expense and liability resulting from errors, omissions or neglect in the performance of any trust which may be lawfully imposed upon and accepted by the trust company bank. The trust company bank shall file a copy of the policy with the division.
Any such corporation shall have the following powers:
To make all contracts necessary and proper to effect its purpose and conduct its business.
To sue and be sued, to appear and defend in all actions and proceedings under its corporate name to the same extent as a natural person.
To have a common seal and alter the same at pleasure.
To elect or appoint all necessary officers, agents, and servants, to define their duties and obligations, fix their compensations, dismiss them, fill vacancies, and require bonds.
To make, amend, and repeal bylaws and regulations not inconsistent with law or its articles of organization, for its own government, for the orderly conduct of its affairs and the management of its property, for determining the manner of calling and conducting its meetings, the tenure of office of its several officers; and such others as shall be necessary or convenient for the accomplishment of its purpose.
To act as trustee, executor, administrator, registrar of stocks and bonds, custodian, agent, guardian of estates, assignee, receiver, and in any other fiduciary capacity authorized by the division.
And any such corporation may act generally as agent or attorney for the transaction of business, the management of estates, the collection of rents, interests, dividends, mortgages, bonds, bills, notes, and other securities, or moneys, and also as agent for the purpose of issuing, negotiating, registering, transferring, or countersigning certificates of stock, bonds, or other obligations of any corporation, association, or municipality, and manage any sinking fund or debt service fund therefor, on such terms as may be agreed upon; and may also accept and execute the offices of executor, administrator, trustee, receiver, assignee, or guardian of any minor or insane or incompetent person or any person subject to guardianship; and in all cases in which application shall be made to any court for the appointment of any person in any such capacity, it shall be lawful to appoint such corporation, with its consent, to hold such office or offices.
In case of such appointment, or in case such corporation shall be named as an executor in any will or as assignee in any assignment for the benefit of creditors, it shall not be required to make and file any oath or give any bond or security, except in the discretion of the court making such appointment, or having jurisdiction of such will or assignment.
The accounts of said corporation as such trustee, receiver, assignee, executor, administrator, or guardian shall be regularly settled and adjusted by the proper officers or tribunals; and all proper, legal, usual, and customary charges, costs and expenses shall be allowed to such corporation for the care and management of the estate so committed to it.
It shall be lawful for any such corporation to lease, purchase, hold and convey such land as may be necessary to carry on its business, and execute any trust committed to it, as well as such real or personal estate as it may deem necessary to acquire in the enforcement or settlement of any claims or demands arising out of its business transactions, and to execute and issue in the transaction of its business all necessary receipts, certificates and contracts, which shall be signed by such person or persons as may be designated by its bylaws.
To establish and maintain a branch trust company bank to the same extent and in the same manner that a state bank may establish and maintain a branch bank under s. 221.0302
Accounts, how kept.
Every such corporation shall keep its trust accounts in books separate from its own general books of account. All funds and property held by it in a trust capacity shall, at all times, be kept separate from the funds and property of the corporation, and all deposits by it of such funds in any banking institution shall be deposited as trust funds to its credit as trustee and not otherwise. Trust funds may be deposited with funds belonging to other trusts in one account in any banking institution to the credit of such corporation as trustee. Every security in which trust funds or property are invested shall at once, upon the receipt thereof, be transferred to it, as trustee, executor, administrator, guardian, receiver, assignee or other trustee as the case may be for each particular trust or fund by name and immediately entered in the proper books as belonging to the particular trust whose funds have been invested therein. Any change in such investment shall be fully specified in and under the account of the particular trust to which it belongs, so that all trust funds and property shall be readily identified at any time by any person.
(2) Registration of securities held in name of nominee.
Any trust company bank, or any state bank or national banking association authorized to exercise trust powers in this state, acting as executor, administrator, guardian, testamentary trustee or trustee of any inter vivos trust unless prohibited by the terms of the trust instrument, whether alone or jointly with an individual or individuals, may with the consent of the individual fiduciary or fiduciaries, if any (who are hereby authorized to give such consent) cause any stock or other securities held in any such capacity to be registered and held in the name of a nominee or nominees of such trust company bank or bank exercising trust powers; and provided further, that any bank, individual or individuals acting as executor, administrator, guardian, testamentary trustee or trustee of any inter vivos trust unless prohibited by the terms of the trust instrument, is and are authorized respectively to request any bank or trust company bank incorporated under the laws of the state of Wisconsin or any national bank located in this state to cause any stock or other securities deposited with such bank or trust company bank by such individual or individuals as fiduciary or fiduciaries to be registered and held in the name of a nominee or nominees of such bank or trust company bank. Such bank or trust company bank shall not redeliver such stock or other securities to such individual fiduciary or fiduciaries causing any stock or other securities to be so registered in the name of the nominee of such bank or trust company bank without first causing such stock or other securities to be registered in the name of such individual fiduciary or fiduciaries as such. But any sale or transfer of such stock or other securities made by such bank or trust company bank at the direction of such individual fiduciary or fiduciaries shall not be construed to be redelivery; and any such bank or trust company bank or any nominee or nominees in whose name such securities shall be registered shall be deemed to have fully discharged the responsibilities of that bank, trust company bank, nominee or nominees if any such securities are sold or transferred in accordance with the direction of individual fiduciary or fiduciaries making such deposit, and the proceeds of such sale or transfer are accounted for and delivered to such individual fiduciary or fiduciaries. Such bank or trust company bank may make any disposition of such stock or other securities authorized or directed in an order or decree of any court having jurisdiction. Any such bank or trust company bank shall be absolutely liable for any loss occasioned by the acts of any nominee of such bank or trust company bank with respect to such stock or other securities so registered. The records of such bank or trust company bank shall at all times show the ownership of any such stock or other securities. Such stock or other securities shall at all times be kept separate and apart from the assets of such bank or trust company bank.
History: 1991 a. 316
Uniform common trust fund act. 223.055(1)
Establishment of common trust funds.
Any bank or trust company qualified to act as fiduciary in this state may establish common trust funds for the purpose of furnishing investments to itself as fiduciary, or to itself and others, as cofiduciaries; and may, as such fiduciary or cofiduciary, invest funds which it lawfully holds for investment in interests in such common trust funds, if such investment is not prohibited by the instrument, judgment, decree or order creating such fiduciary relationship, and if, in the case of cofiduciaries, the bank or trust company procures the consent of its cofiduciaries to such investment; and the provisions of this section shall apply to trusts now in existence or hereafter created.
(2) Court accountings.
Unless ordered by a court of competent jurisdiction the bank or trust company operating such common trust funds is not required to render a court accounting with regard to such funds; but it may, by application to the circuit court of the county in which it has its principal office, secure approval of such an accounting on such conditions as the court may establish. When an accounting of a common trust fund is presented to a court for approval, the court shall assign a time and place for hearing and order notice thereof by: