RS 6:574

329 words·~1 min read·/la/title-6/6-672

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RS 6:574

§574. Capital

A. The commissioner shall not issue a charter to a trust company having required capital of less than two million dollars. Any trust company chartered pursuant to this Chapter shall maintain a minimum of two million dollars in capital at all times.

B. The commissioner may require additional capital for a proposed or existing trust company if he finds the condition and operations of an existing trust company or the proposed scope or type of operations of a proposed trust company requires additional capital. The safety and soundness factors to be considered by the commissioner in the exercise of such discretion include but are not limited to the following:

(1)The nature and type of business conducted.

(2)The nature and degree of liquidity in assets held in a corporate capacity.

(3)The amount of fiduciary assets under management.

(4)The type of fiduciary assets held and the depository of such assets.

(5)The complexity of fiduciary duties and degree of discretion undertaken.

(6)The competence and experience of management.

(7)The extent and adequacy of internal controls.

(8)The presence or absence of annual unqualified audits by an independent certified public accountant.

(9)The reasonableness of business plans for retaining or acquiring additional capital.

(10)The existence and adequacy of insurance obtained or held by the trust company for the purpose of protecting its clients, beneficiaries, and grantors.

C. The proposed effective date of an order requiring an existing trust company to increase its capital must be stated in the order. Unless the trust company requests a hearing before the commissioner in writing before the effective date of the proposed order, the order becomes effective and is final and nonappealable.

D. Any institution that fails to maintain capital in accordance with this Section may be subject to enforcement action. The course of action taken shall be determined by the commissioner and governed by this Title.

Acts 2003, No. 573, §1, eff. June 27, 2003.