CHAPTER 223
TRUST COMPANY BANKS AND OTHER FIDUCIARIES
SUBCHAPTER I
TRUST COMPANY BANKS
223.01 Trust company banks, capital. 223.02 Indemnity fund deposit; errors and omissions insurance. 223.055 Uniform common trust fund act. 223.056 Multi-institutional common trust funds. 223.057 Taxation of common trust funds. 223.06 Loans to officers. 223.07 Trust service offices. 223.08 Name of corporation; penalty. 223.09 Assessment of stock. SUBCHAPTER II
OTHER ORGANIZATIONS ACTING AS FIDUCIARIES
223.10 Organizations as fiduciaries. 223.105 Regulation of organizations acting as fiduciaries. 223.12 Foreign trust company as personal representative or trustee in this state. SUBCHAPTER III
TRUST COMPANY BANK CONSOLIDATION AND
REORGANIZATION
223.20 Reorganization of a trust company bank. 223.21 Consolidation of trust company banks. Ch. 223 Cross-referenceCross-reference: See definitions in s. 220.01. TRUST COMPANY BANKS
223.01223.01 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 and 221, 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 institutions review board, establish minimum capital requirements for a trust company bank. 223.02223.02 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: 223.02(1)(1) Indemnity fund deposit. Deposit at least $100,000 with the secretary of administration or the secretary’s agent in accordance with the following provisions: 223.02(1)(a)(a) 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. 223.02(1)(b)(b) The secretary of administration or the secretary’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 secretary of administration shall issue a certificate stating that a deposit has been made with the secretary of administration or the secretary’s agent in the manner provided in this section. 223.02(1)(c)(c) The secretary of administration or the secretary’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 secretary of administration or the secretary’s agent until otherwise ordered by a court of competent jurisdiction, unless released pursuant to par. (d). 223.02(1)(d)(d) The securities and cash deposited by a trust company bank may be released by the secretary of administration or the secretary’s agent and returned to the bank, if the division certifies to the secretary of administration that the bank no longer exercises trust powers and that the division is satisfied that there are no outstanding trust liabilities. 223.02(1)(e)(e) The secretary of administration 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 secretary of administration a safekeeping receipt for all cash and securities received by it. The agent shall pay the cash and securities to the secretary of administration on demand without conditions. 223.02(2)(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. 223.03223.03 Corporate powers. A trust company bank shall have the following powers: 223.03(1)(1) To make all contracts necessary and proper to effect its purpose and conduct its business. 223.03(2)(2) 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. 223.03(3)(3) To have a common seal and alter the same at pleasure. 223.03(4)(4) 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. 223.03(5)(5) 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. 223.03(6)(6) To act as trustee, personal representative, registrar of stocks and bonds, custodian, agent, guardian of the estate or guardian of the person of any individual subject to guardianship, assignee, receiver, and in any other fiduciary capacity authorized by the division, subject to all of the following conditions: 223.03(6)(a)(a) A trust company bank appointed by a court to act in a capacity described in this subsection shall not be required to make and file any oath or give any bond or security, except in the discretion of the court making the appointment or having jurisdiction over the matter. 223.03(6)(b)(b) The accounts of a trust company bank appointed by a court to act in a capacity described in this subsection shall be regularly settled and adjusted by the proper officers or tribunals, and all legal and customary charges, costs, and expenses shall be allowed to the trust company bank for the care and management of the estate committed to it. 223.03(6)(c)(c) In all cases in which application is made to a court for the appointment of a person to act in a capacity described in this subsection, it shall be lawful to appoint a trust company bank, with its consent, to hold the office or offices. 223.03(7)(7) To 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, to act as agent also for the purpose of issuing, negotiating, registering, transferring, or countersigning certificates of stock, bonds, or other obligations of any corporation, association, or municipality, and to manage any sinking fund or debt service fund therefor, on such terms as may be agreed upon. 223.03(13)(13) To lease, purchase, hold, and convey any land that may be necessary to carry on its business, and to execute any trust committed to it, as well as any real or personal estate that the trust company bank may consider necessary to acquire in the enforcement or settlement of any claims or demands arising out of its business transactions. 223.03(13m)(13m) To execute and issue in the transaction of its business all necessary receipts, certificates, and contracts, which shall be signed by the person designated by its bylaws. 223.03(14)(14) 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. 223.05(1)(a)(a) Every trust company bank shall keep its trust accounts in books separate from its own general books of account. All funds and property held by a trust company bank in a trust capacity shall, at all times, be kept separate from the funds and property of the trust company bank, and all deposits by it of funds held in a trust capacity in any banking institution shall be deposited as trust funds to its credit as trustee. Trust funds may be deposited with funds belonging to other trusts in one account in any banking institution to the credit of the trust company bank as trustee. 223.05(1)(b)(b) Every security in which trust funds or property are invested shall immediately upon the receipt of the security by the bank, be transferred to the bank in its fiduciary capacity for the particular trust or fund by name and entered in the proper records as belonging to the particular trust whose funds have been invested in the security. Any change in the investment of trust funds or property shall be fully specified in 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. 223.05(2)(2) Registration of securities held in name of nominee.
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Chs. 178-226, Partnerships and Corporations; Transportation; Utilities; Banks; Savings Associations
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