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H0670...........................................................by BUSINESS
TRUSTS - Adds to existing law to provide for a trustee's presentation of a
certification of trust in lieu of the trust instrument to establish the
existence or terms of the trust.
02/12 House intro - 1st rdg - to printing
02/13 Rpt prt - to Bus
02/24 Rpt out - rec d/p - to 2nd rdg
02/25 2nd rdg - to 3rd rdg
02/26 3rd rdg - PASSED - 61-0-9
AYES -- Alltus, Barraclough, Barrett, Bieter, Bivens, Black(15),
Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crow,
Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Geddes, Hadley,
Hansen, Henbest, Hornbeck, Jaquet, Jones(22), Jones(20), Judd,
Kellogg, Kempton, Kendell, Kunz, Lake, Loertscher, Mader, Marley,
McKague, Meyer, Miller, Mortensen, Pischner, Pomeroy, Reynolds,
Richman, Ridinger, Robison, Sali, Schaefer, Stevenson, Stoicheff,
Stone, Stubbs, Taylor, Tilman, Tippets, Trail, Watson, Wheeler,
Zimmermann, Mr Speaker
NAYS -- None
Absent and Excused -- Bell, Crane, Gagner, Gould, Jones(9),
Kjellander, Linford, Newcomb, Wood
Floor Sponsor - Black(15)
Title apvd - to Senate
02/27 Senate intro - 1st rdg - to Com/HuRes
03/11 Rpt out - rec d/p - to 2nd rdg
03/12 2nd rdg - to 3rd rdg
03/18 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
Sweeney, Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Hansen
Floor Sponsor - Andreason
Title apvd - to House
03/19 To enrol - rpt enrol - Sp signed
Pres signed - to Governor
03/24 Governor signed
Session Law Chapter 302
Effective: 07/01/98
H0670|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 670 BY BUSINESS COMMITTEE 1 AN ACT 2 RELATING TO TRUSTS; AMENDING CHAPTER 1, TITLE 68, IDAHO CODE, BY THE ADDITION 3 OF A NEW SECTION 68-114, IDAHO CODE, TO PROVIDE FOR A TRUSTEE'S PRESENTA- 4 TION OF A CERTIFICATION OF TRUST IN LIEU OF THE TRUST INSTRUMENT TO ESTAB- 5 LISH THE EXISTENCE OR TERMS OF THE TRUST AND TO PROVIDE FOR THE EFFECT AND 6 FORM OF THE CERTIFICATION; AMENDING CHAPTER 1, TITLE 68, IDAHO CODE, BY 7 THE ADDITION OF A NEW SECTION 68-115, IDAHO CODE, TO PROVIDE THE CONTENTS 8 OF A CERTIFICATION OF TRUST; AMENDING CHAPTER 1, TITLE 68, IDAHO CODE, BY 9 THE ADDITION OF A NEW SECTION 68-116, IDAHO CODE, TO PROVIDE THE RIGHTS OF 10 A PERSON TO WHOM THE CERTIFICATION IS PRESENTED TO REQUIRE EXCERPTS FROM 11 THE TRUST INSTRUMENT; AMENDING CHAPTER 1, TITLE 68, IDAHO CODE, BY THE 12 ADDITION OF A NEW SECTION 68-117, IDAHO CODE, TO PROVIDE FOR THE VALIDITY 13 AND ENFORCEABILITY OF TRANSACTIONS ENTERED INTO IN RELIANCE ON A CERTIFI- 14 CATION; AMENDING CHAPTER 1, TITLE 68, IDAHO CODE, BY THE ADDITION OF A NEW 15 SECTION 68-118, IDAHO CODE, TO PROVIDE THE EFFECT OF A FAILURE TO DEMAND 16 OR A REFUSAL TO ACCEPT AND RELY UPON A CERTIFICATION OF TRUST; AND AMEND- 17 ING CHAPTER 1, TITLE 68, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 18 68-119, IDAHO CODE, TO PROVIDE FOR THE APPLICABILITY OF CERTIFICATIONS OF 19 TRUST TO TRUSTS CREATED UNDER THE LAWS OF ALL JURISDICTIONS. 20 Be It Enacted by the Legislature of the State of Idaho: 21 SECTION 1. That Chapter 1, Title 68, Idaho Code, be, and the same is 22 hereby amended by the addition thereto of a NEW SECTION , to be 23 known and designated as Section 68-114, Idaho Code, and to read as follows: 24 68-114. PRESENTATION OF A CERTIFICATION OF TRUST IN LIEU OF THE TRUST 25 INSTRUMENT -- EFFECT -- FORM. (1) A trustee may present a certification of 26 trust to any person in lieu of a copy of any trust instrument to establish the 27 existence or terms of the trust. The trustee may present the certification 28 voluntarily or at the request of the person with whom he is dealing. Notwith- 29 standing any provision of this chapter to the contrary, no person is required 30 to accept and rely solely on a certification of trust in lieu of a copy of, or 31 excerpts from, the trust instrument itself. 32 (2) Such a certification must be in the form of an affidavit signed and 33 acknowledged by all of the currently acting trustees of the trust. 34 SECTION 2. That Chapter 1, Title 68, Idaho Code, be, and the same is 35 hereby amended by the addition thereto of a NEW SECTION , to be 36 known and designated as Section 68-115, Idaho Code, and to read as follows: 37 68-115. CONTENTS OF CERTIFICATION OF TRUST. (1) A certification of trust 38 may confirm the following facts or contain the following information: 39 (a) The existence of the trust and date of execution of any trust instru- 40 ment; 41 (b) The identity of the settlor and each currently acting trustee; 2 1 (c) The powers of the trustee and any restrictions imposed upon him in 2 dealing with assets of the trust; 3 (d) The revocability or irrevocability of the trust and the identity of 4 any person holding a power to revoke it; 5 (e) If there is more than one (1) trustee, whether all of the currently 6 acting trustees must, or less than all may, act to exercise identified 7 powers of the trustee; 8 (f) The identifying number of the trust and whether it is a social secu- 9 rity number or an employer identification number; 10 (g) The state or other jurisdiction under the laws of which the trust was 11 established; and 12 (h) The form in which title to assets of the trust is to be taken. 13 (2) The certification must contain a statement that the trust has not 14 been revoked or amended to make any representations contained in the certifi- 15 cation incorrect, and that the signatures are those of all the currently act- 16 ing trustees. 17 SECTION 3. That Chapter 1, Title 68, Idaho Code, be, and the same is 18 hereby amended by the addition thereto of a NEW SECTION , to be 19 known and designated as Section 68-116, Idaho Code, and to read as follows: 20 68-116. DISPOSITIVE PROVISIONS NOT REQUIRED -- PERSON PRESENTED WITH CER- 21 TIFICATION MAY REQUEST EXCERPTS FROM TRUST INSTRUMENT DESIGNATING TRUSTEE. A 22 certification of trust need not contain the dispositive provisions of the 23 trust, but the person to whom the certification is presented may require cop- 24 ies of excerpts from any trust instrument which designate the trustee or con- 25 fer upon him the power to act in the pending transaction. 26 SECTION 4. That Chapter 1, Title 68, Idaho Code, be, and the same is 27 hereby amended by the addition thereto of a NEW SECTION , to be 28 known and designated as Section 68-117, Idaho Code, and to read as follows: 29 68-117. RELIANCE ON FACTS CONTAINED IN CERTIFICATION -- ENFORCEABILITY. 30 (1) A person who acts in reliance upon a certification of trust without knowl- 31 edge that the representations contained therein are incorrect is not liable to 32 any person for so acting. A person who does not know that the facts contained 33 in the certification are incorrect may assume without inquiry the existence of 34 the facts contained in the certification. Knowledge may not be inferred solely 35 from the fact that a copy of all or part of a trust instrument is held by the 36 person relying upon the certification. 37 (2) A transaction, and any lien created thereby, entered into by a 38 trustee and a person acting in reliance upon a certification of trust is fully 39 enforceable against the assets of the trust unless the person knows that the 40 trustee is acting outside the scope of the trust. 41 SECTION 5. That Chapter 1, Title 68, Idaho Code, be, and the same is 42 hereby amended by the addition thereto of a NEW SECTION , to be 43 known and designated as Section 68-118, Idaho Code, and to read as follows: 44 68-118. FAILURE TO DEMAND CERTIFICATION OR REFUSAL TO ACCEPT AND RELY ON 45 CERTIFICATION NOT IMPROPER ACT -- LIABILITY. A person's failure to demand a 46 certification of trust, or his refusal to accept and rely solely on a certifi- 47 cation of trust, may not be considered to be an improper act by him and no 48 inference as to whether he has acted in good faith may be drawn from the fail- 49 ure to demand, or the refusal to accept and rely upon, a certification of 3 1 trust. This section creates no implication that a person is liable for acting 2 in reliance upon a certification of trust under circumstances where the 3 requirements of sections 68-114 through 68-119, Idaho Code, are not satisfied. 4 SECTION 6. That Chapter 1, Title 68, Idaho Code, be, and the same is 5 hereby amended by the addition thereto of a NEW SECTION , to be 6 known and designated as Section 68-119, Idaho Code, and to read as follows: 7 68-119. APPLICABILITY. The provisions of sections 68-114 through 68-119, 8 Idaho Code, shall apply to all trusts, whether established pursuant to Idaho 9 law or established pursuant to the law of another state or jurisdiction.
STATEMENT OF PURPOSE
RS 07822
This bill establishes a procedure whereby persons dealing with
trusts may obtain and rely on a certificate from the trustee of the
trust, rather than having to obtain a complete copy of the trust
instrument itself. This bill should make it easier for trusts to do
business in Idaho, as it provides a "safe harbor" for third parties
who rely on the contents of the certification of trust. Third
parties who are uncomfortable relying on the certification of trust
may still request a copy of the underlying trust instrument. In
other words, the certification of trust can be used and relied upon
if both parties to the transaction agree to do so, but neither party
can be required to provide, or rely upon, a certification of trust
against his or her wishes.
This legislation is patterned after similar law in Nevada.
FISCAL NOTE
The bill will have no impact on the General Fund
Contact: Patrick V. Collins
Idaho Bankers Association
STATEMENT OF PURPOSE/FISCAL NOTE
(208)344-6000
H 670