Subdivision 1. Terms.
For purposes of sections
, the following words
and phrases have the meanings given them.
Subd. 2. Account.
"Account" means the client relationship established with a trust company
involving the transfer of funds or property to the trust company, including a relationship in which
the trust company acts as trustee, executor, administrator, guardian, custodian, conservator, bailee,
receiver, registrar, or agent, but excluding a relationship in which the trust company acts solely in
an advisory capacity.
Subd. 3. Administer.
"Administer" with respect to real or tangible personal property means,
as an agent or in another representative capacity, to possess, purchase, sell, lease or insure,
safekeep, or otherwise manage the property.
Subd. 4. Affiliate.
"Affiliate" means a company that directly or indirectly controls, is
controlled by, or is under common control with a trust institution or other company.
Subd. 5. Bank.
"Bank" has the meaning given the term in United States Code, title 12,
section 1813(h). The term "bank" does not include a "foreign bank" as defined in United States
Code, title 12, section 3101(7), except for a foreign bank organized under the laws of a territory of
the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, the deposits of
which are insured by the Federal Deposit Insurance Corporation.
Subd. 6. Bank supervisory agency.
"Bank supervisory agency" means:
(1) an agency of another state with primary responsibility for chartering and supervising a
trust institution; and
(2) the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation,
the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, and any
successor to these agencies.
Subd. 7. Branch.
"Branch," with respect to a trust company or depository institution, has the
meaning given in section
and in sections
49.411, subdivision 2
, paragraph (d).
Subd. 8. Charter.
"Charter" means a charter, license, or other authority issued by the
commissioner or a bank supervisory agency authorizing a trust institution to act as a fiduciary in
its home state.
Subd. 9. Client.
"Client" means a person to whom a trust institution owes a duty or obligation
under a trust or other account administered by the trust institution or as an advisor or agent,
regardless of whether the trust institution owes a fiduciary duty to the person. The term includes
the noncontingent beneficiaries of an account.
Subd. 10. Commissioner.
"Commissioner" means the commissioner of commerce and,
where appropriate, all of the commissioner's successors and predecessors in office.
Subd. 11. Company.
"Company" includes a bank, trust company, corporation, limited
liability company, partnership, association, business trust, or another trust.
Subd. 12. Department.
"Department" means the Minnesota Commerce Department.
Subd. 13. Fiduciary record.
"Fiduciary record" means a matter written, transcribed,
recorded, received, or otherwise in the possession or control of a trust company, whether
in physical, electromagnetic, or optical disk form, that is necessary to preserve information
concerning an act or event relevant to an account or a client of a trust company.
Subd. 14. Home state.
"Home state" means:
(1) with respect to a federally chartered trust institution, the state in which the institution
maintains its principal office; and
(2) with respect to any other trust institution, the state that chartered the institution.
Subd. 15. Home state regulator.
"Home state regulator" means the bank supervisory agency
with primary responsibility for chartering and supervising an out-of-state trust institution.
Subd. 16. Host state.
"Host state" means a state, other than the home state of a trust
institution, in which the trust institution maintains or seeks to acquire or establish an office.
Subd. 17. New trust office.
"New trust office" means a trust office located in a host state that:
(1) is originally established by the trust institution as a trust office; and
(2) does not become a trust office of the trust institution as a result of:
(i) the acquisition of another trust institution or trust office of another trust institution; or
(ii) a merger, consolidation, or conversion involving the trust institution or trust office.
Subd. 18. Office.
"Office," with respect to a trust institution, means the principal office, a
trust office, or a representative trust office, but not a detached facility.
Subd. 19. Out-of-state bank.
"Out-of-state bank" means a bank chartered to act as a
fiduciary in a state or states other than this state.
Subd. 20. Out-of-state trust company.
"Out-of-state trust company" means a trust company
that is not a state trust company whose principal office is not located in this state.
Subd. 21. Out-of-state trust institution.
"Out-of-state trust institution" means a trust
institution that is not a state trust institution.
Subd. 22. Principal office.
"Principal office" with respect to:
(1) a state trust company, means a location registered with the commissioner as the state
trust company's home office at which:
(i) the state trust company does business;
(ii) the state trust company keeps its corporate books and a set of its material records,
including material fiduciary records; and
(iii) at least one executive officer of the state trust company maintains an office; or
(2) a trust institution other than a state trust company, means its principal place of business
in the United States.
Subd. 23. Registration.
"Registration" means the process by which a trust institution has
been authorized by the commissioner to acquire, establish, or maintain a representative trust
office in this state.
Subd. 24. Representative trust office.
"Representative trust office" means an office at which
a trust institution has been authorized by the commissioner to engage in a trust business other than:
(1) accepting or executing trusts, including to:
(i) act as trustee under a written agreement;
(ii) receive money or other property in its capacity as a trustee for investment in real or
(iii) act as trustee and perform the fiduciary duties committed or transferred to it by order
of court of competent jurisdiction;
(iv) act as trustee of the estate of a deceased person; or
(v) act as trustee for a minor or incapacitated person;
(2) administering in any other fiduciary capacity real or personal property; or
(3) acting according to an order of a court of competent jurisdiction as executor or
administrator of the estate of a deceased person or as a guardian or conservator for a minor or
Subd. 25. State.
"State" means a state of the United States, the District of Columbia, a
territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the
Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
Subd. 26. State bank and trust.
"State bank and trust" means a bank chartered by this
state with the additional authority to exercise fiduciary powers and privileges set out in sections
Subd. 27. State trust company.
"State trust company" means a corporation or a limited
liability trust company organized or reorganized under this chapter, including a trust company
organized under the laws of this state before August 1, 1998.
Subd. 28. State trust institution.
"State trust institution" means a trust institution chartered
by the state.
Subd. 29. Trust business.
"Trust business" means the holding out by a person to the public
by advertising, solicitation, or other means that the person is available to perform any service
of a trust institution.
Subd. 30. Trust company.
"Trust company" means a state trust company or other company
chartered to act as a fiduciary that is not a depository institution or a foreign bank.
Subd. 31. Trust institution.
"Trust institution" means a bank and trust, or trust company.
Subd. 32. Trust office.
"Trust office" means an office, other than the principal office,
at which a trust institution is authorized by the commissioner to conduct any trust business
incidental to the trust business that it is permitted to conduct at its principal office or branch. It
may not accept deposits except as incidental to the trust business.
Subd. 33. Unauthorized activity.
"Unauthorized activity" means:
(1) a company, other than one identified in section
, acting as a
fiduciary within this state;
(2) a company engaging in a trust business in this state at an office of the company that is not
its principal office, if it is a state trust institution, or that is not a trust office or a representative
trust office of the company; or
(3) an out-of-state trust institution engaging in a trust business in this state at any time an
order issued by the commissioner under section
is in effect.
History: 1998 c 331 s 25; 1999 c 86 art 1 s 13