Originating Trustees

PURPOSE: Section 362.116, RSMo permits a state-chartered bank, with the approval of the commissioner of finance, to become an originating trustee which can originate trust accounts to be administered by a bank or trust company with full fiduciary powers, known as the contracting trustee. This rule sets out the information which the commissioner will require of an applicant and declares the criteria the commissioner will use in considering the application. (1) Application. Applications to act as an originating trustee are to be in a form prescribed by the commissioner and shall be accompanied by a certified copy of the contracting trustee’s authorization to act as a trustee, a copy of the contract between the originating trustee and the contracting trustee and a copy of the board resolution calling for the establishment of the contract. (2) Criteria. In considering an application to become an originating trustee, the commissioner will consider the following: (A) Whether the contracting trustee is supervised by either a AND INSURANCE state or federal bank regulatory agency; and (B) Whether termination provisions in the contract will protect the customer which, for purposes of this rule, shall mean the grantor, known beneficiaries, or any other interested party. These provisions shall include prohibiting termination unless—1) a successor trustee has accepted appointment as trustee, 2) the customer has rescinded the trust, 3) a court has appointed a successor trustee, or 4) any other provision providing comparable protections. AUTHORITY: sections 361.105 and 362.116, RSMo 2016.* This rule originally filed as 4 CSR 140-2.090. Original rule filed Aug. 15, 1983, effective Nov. 11, 1983. Moved to 20 CSR 1140-2.090, effective Aug. 28, 2006. Amended: Filed March 30, 2021, effective Sept. 30, 2021. *Original authority: 361.105, RSMo 1967, amended 1993, 1994, 1995, 2011 and 362.116, RSMo 1983, amended 1984, 2000.