§ 92a. — Trust powers.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC92a]
TITLE 12--BANKS AND BANKING
CHAPTER 2--NATIONAL BANKS
SUBCHAPTER IV--REGULATION OF THE BANKING BUSINESS; POWERS AND DUTIES OF
NATIONAL BANKS
Sec. 92a. Trust powers
(a) Authority of Comptroller of the Currency
The Comptroller of the Currency shall be authorized and empowered to
grant by special permit to national banks applying therefor, when not in
contravention of State or local law, the right to act as trustee,
executor, administrator, registrar of stocks and bonds, guardian of
estates, assignee, receiver, committee of estates of lunatics, or in any
other fiduciary capacity in which State banks, trust companies, or other
corporations which come into competition with national banks are
permitted to act under the laws of the State in which the national bank
is located.
(b) Grant and exercise of powers deemed not in contravention of State or
local law
Whenever the laws of such State authorize or permit the exercise of
any or all of the foregoing powers by State banks, trust companies, or
other corporations which compete with national banks, the granting to
and the exercise of such powers by national banks shall not be deemed to
be in contravention of State or local law within the meaning of this
section.
(c) Segregation of fiduciary and general assets; separate books and
records; access of State banking authorities to reports of
examinations, books, records, and assets
National banks exercising any or all of the powers enumerating \1\
in this section shall segregate all assets held in any fiduciary
capacity from the general assets of the bank and shall keep a separate
set of books and records showing in proper detail all transactions
engaged in under authority of this section. The State banking
authorities may have access to reports of examination made by the
Comptroller of the Currency insofar as such reports relate to the trust
department of such bank, but nothing in this section shall be construed
as authorizing the State banking authorities to examine the books,
records, and assets of such bank.
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\1\ So in original. Probably should be ``enumerated''.
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(d) Prohibited operations; separate investment account; collateral for
certain funds used in conduct of business
No national bank shall receive in its trust department deposits of
current funds subject to check or the deposit of checks, drafts, bills
of exchange, or other items for collection or exchange purposes. Funds
deposited or held in trust by the bank awaiting investment shall be
carried in a separate account and shall not be used by the bank in the
conduct of its business unless it shall first set aside in the trust
department United States bonds or other securities approved by the
Comptroller of the Currency.
(e) Lien and claim upon bank failure
In the event of the failure of such bank the owners of the funds
held in trust for investment shall have a lien on the bonds or other
securities so set apart in addition to their claim against the estate of
the bank.
(f) Deposits of securities for protection of private or court trusts;
execution of and exemption from bond
Whenever the laws of a State require corporations acting in a
fiduciary capacity to deposit securities with the State authorities for
the protection of private or court trusts, national banks so acting
shall be required to make similar deposits and securities so deposited
shall be held for the protection of private or court trusts, as provided
by the State law. National banks in such cases shall not be required to
execute the bond usually required of individuals if State corporations
under similar circumstances are exempt from this requirement. National
banks shall have power to execute such bond when so required by the laws
of the State.
(g) Officials' oath or affidavit
In any case in which the laws of a State require that a corporation
acting as trustee, executor, administrator, or in any capacity specified
in this section, shall take an oath or make an affidavit, the president,
vice president, cashier, or trust officer of such national bank may take
the necessary oath or execute the necessary affidavit.
(h) Loans of trust funds to officers and employees prohibited; penalties
It shall be unlawful for any national banking association to lend
any officer, director, or employee any funds held in trust under the
powers conferred by this section. Any officer, director, or employee
making such loan, or to whom such loan is made, may be fined not more
than $5,000, or imprisoned not more than five years, or may be both
fined and imprisoned, in the discretion of the court.
(i) Considerations determinative of grant or denial of applications;
minimum capital and surplus for issuance of permit
In passing upon applications for permission to exercise the powers
enumerated in this section, the Comptroller of the Currency may take
into consideration the amount of capital and surplus of the applying
bank, whether or not such capital and surplus is sufficient under the
circumstances of the case, the needs of the community to be served, and
any other facts and circumstances that seem to him proper, and may grant
or refuse the application accordingly: Provided, That no permit shall be
issued to any national banking association having a capital and surplus
less than the capital and surplus required by State law of State banks,
trust companies, and corporations exercising such powers.
(j) Surrender of authorization; board resolution; Comptroller
certification; activities affected; regulations
Any national banking association desiring to surrender its right to
exercise the powers granted under this section, in order to relieve
itself of the necessity of complying with the requirements of this
section, or to have returned to it any securities which it may have
deposited with the State authorities for the protection of private or
court trusts, or for any other purpose, may file with the Comptroller of
the Currency a certified copy of a resolution of its board of directors
signifying such desire. Upon receipt of such resolution, the Comptroller
of the Currency, after satisfying himself that such bank has been
relieved in accordance with State law of all duties as trustee,
executory,\2\ administrator, registrar of stocks and bonds, guardian of
estates, assignee, receiver, committee of estates of lunatics or other
fiduciary, under court, private, or other appointments previously
accepted under authority of this section, may, in his discretion, issue
to such bank a certificate certifying that such bank is no longer
authorized to exercise the powers granted by this section. Upon the
issuance of such a certificate by the Comptroller of the Currency, such
bank (1) shall no longer be subject to the provisions of this section or
the regulations of the Comptroller of the Currency made pursuant
thereto, (2) shall be entitled to have returned to it any securities
which it may have deposited with the State authorities for the
protection of private or court trusts, and (3) shall not exercise
thereafter any of the powers granted by this section without first
applying for and obtaining a new permit to exercise such powers pursuant
to the provisions of this section. The Comptroller of the Currency is
authorized and empowered to promulgate such regulations as he may deem
necessary to enforce compliance with the provisions of this section and
the proper exercise of the powers granted therein.
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\2\ So in original. Probably should be ``executor,''.
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(k) Revocation; procedures applicable
(1) In addition to the authority conferred by other law, if, in the
opinion of the Comptroller of the Currency, a national banking
association is unlawfully or unsoundly exercising, or has unlawfully or
unsoundly exercised, or has failed for a period of five consecutive
years to exercise, the powers granted by this section or otherwise fails
or has failed to comply with the requirements of this section, the
Comptroller may issue and serve upon the association a notice of intent
to revoke the authority of the association to exercise the powers
granted by this section. The notice shall 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 shall fix a
time and place at which a hearing will be held to determine whether an
order revoking authority to exercise such powers should issue against
the association.
(2) Such hearing shall be conducted in accordance with the
provisions of section 1818(h) of this title, and subject to judicial
review as provided in such section, and shall be fixed for a date not
earlier than thirty days nor later than sixty days after service of such
notice unless an earlier or later date is set by the Comptroller at the
request of any association so served.
(3) Unless the association so served shall appear at the hearing by
a duly authorized representative, it shall be deemed to have consented
to the issuance of the revocation order. In the event of such consent,
or if upon the record made at any such hearing, the Comptroller shall
find that any allegation specified in the notice of charges has been
established, the Comptroller may issue and serve upon the association an
order prohibiting it from accepting any new or additional trust accounts
and revoking authority to exercise any and all powers granted by this
section, except that such order shall permit the association to continue
to service all previously accepted trust accounts pending their
expeditious divestiture or termination.
(4) A revocation order shall become effective not earlier than the
expiration of thirty days after service of such order upon the
association so served (except in the case of a revocation order issued
upon consent, which shall become effective at the time specified
therein), and shall remain effective and enforceable, except to such
extent as it is stayed, modified, terminated, or set aside by action of
the Comptroller or a reviewing court.
(Pub. L. 87-722, Sec. 1, Sept. 28, 1962, 76 Stat. 668; Pub. L. 96-221,
title VII, Sec. 704, Mar. 31, 1980, 94 Stat. 187.)
Amendments
1980--Subsec. (k). Pub. L. 96-221 added subsec. (k).
Savings Provision
Section 2 of Pub. L. 87-722 provided that: ``Nothing contained in
this Act [enacting this section, amending sections 581 and 584(a)(2) of
Title 26, and repealing section 248(k) of this title] shall be deemed to
affect or curtail the right of any national bank to act in fiduciary
capacities under a permit granted before the date of enactment of this
Act [Sept. 28, 1962] by the Board of Governors of the Federal Reserve
System, nor to affect the validity of any transactions entered into at
any time by any national bank pursuant to such permit. On and after the
date of enactment of this Act the exercise of fiduciary powers by
national banks shall be subject to the provisions of this Act and the
requirements of regulations issued by the Comptroller of the Currency
pursuant to the authority granted by this Act.''
Section Referred to in Other Sections
This section is referred to in section 93 of this title; title 15
sections 78c, 80a-2, 80b-2.
