BANKS AND BANKING
TRUST INSTITUTIONS — GENERAL PROVISIONS
26-3203. Definitions. The following definitions shall be liberally construed to accomplish the purposes of this act. In this act, unless the context otherwise requires:
(1) "Account" means the client relationship established with a trust institution involving the transfer of funds or property to the trust institution, 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 institution acts solely in an advisory capacity.
(2) "Act as a fiduciary" or "acting as a fiduciary" means to:
(a) Accept or execute trusts, including to:
(i) Act as trustee under a written agreement;
(ii) Receive money or other property in its capacity as trustee for investment in real or personal property;
(iii) Act as trustee and perform the fiduciary duties committed or transferred to it by order of a 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;
(b) Administer in any other fiduciary capacity real or tangible personal property; or
(c) Act pursuant to order of 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 incapacitated person.
(3) "Authorized trust institution" means any state trust company, trust office or representative trust office.
(4) "Bank" has the meaning set forth in 12 U.S.C. 1813(h); provided that the term "bank" shall not include any "foreign bank" as defined in 12 U.S.C. 3101(7), except for any such 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.
(5) "Bank supervisory agency" means:
(a) Any agency of another state with primary responsibility for chartering and supervising a trust institution; and
(b) 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.
(6) "Branch" with respect to a depository institution has the meaning set forth in section 26-106, Idaho Code.
(7) "Charter" means the authority issued by the director or a bank supervisory agency authorizing a trust institution to act as a fiduciary in its home state.
(8) "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.
(9) "Company" includes a bank, trust company, corporation, limited liability company, partnership, association, business trust or another trust.
(10) "Department" means the Idaho department of finance.
(11) "Depository institution" means any company chartered to act as a fiduciary and included for any purpose within any of the definitions of "insured depository institution" as set forth in 12 U.S.C. 1813(c)(2) and (3).
(12) "Director" means the director of the department of finance.
(13) "Foreign bank" means a foreign bank, as defined in section 1(b)(7) of the international banking act of 1978, chartered to act as a fiduciary in a state other than this state.
(14) "Home state" means:
(a) With respect to a federally chartered trust institution and a foreign bank, the state in which such institution maintains its principal office; and
(b) With respect to any other trust institution, the state which chartered such institution.
(15) "Home state regulator" means the bank supervisory agency with primary responsibility for chartering and supervising an out-of-state trust institution.
(16) "Host state" means a state, other than the home state of a trust institution, or a foreign country in which the trust institution maintains or seeks to acquire or establish an office.
(17) "New trust office" means a trust office located in a host state which:
(a) Is originally established by the trust institution as a trust office; and
(b) 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 any such trust institution or trust office.
(18) "Office" with respect to a trust institution means the principal office, a trust office or a representative trust office, but not a branch.
(19) "Out-of-state bank" means a bank chartered to act as a fiduciary in any state or states other than this state.
(20) "Out-of-state trust company" means either a trust company that is not a state trust company or a savings association whose principal office is not located in this state.
(21) "Out-of-state trust institution" means a trust institution that is not a state trust institution.
(22) "Person" means an individual, a company or any other legal entity.
(23) "Principal office" with respect to:
(a) A state trust company, means a location registered with the director 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 (1) executive officer of the state trust company maintains an office.
(b) A trust institution other than a state trust company, means its principal place of business in the United States.
(24) "Representative trust office" means an office at which a trust institution has been authorized by the director to engage in a trust business other than acting as a fiduciary.
(25) "Savings association" means a depository institution that is neither a bank nor a foreign bank.
(26) "State" means any state of the United States, the District of Columbia, any 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.
(27) "State bank" means:
(a) A bank which has received a charter from the director authorizing it to operate a trust department; or
(b) A foreign bank as defined in section 1(b)(7) of the international banking act of 1978 chartered to act as a fiduciary in this state.
(28) "State trust company" means a corporation organized under this act and chartered to act as a fiduciary by the state, including a trust company organized under the laws of this state before the effective date of this act.
(29) "State trust institution" means a trust institution having its principal office in this state.
(30) "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 fiduciary in this or another state including, but not limited to:
(a) Acting as a fiduciary; or
(b) To the extent not acting as a fiduciary, any of the following:
(i) Receiving for safekeeping personal property of every description;
(ii) Acting as assignee, bailee, conservator, custodian, escrow agent, registrar, receiver or transfer agent; or
(iii) Acting as financial advisor, investment advisor or manager, agent or attorney-in-fact in any agreed upon capacity.
(31) "Trust company" means a state trust company or any other company chartered to act as a fiduciary that is neither a depository institution nor a foreign bank.
(32) "Trust institution" means a depository institution, foreign bank, state bank or trust company.
(33) "Trust office" means an office, other than the principal office, at which a trust institution is licensed by the director to act as a fiduciary.
(34) "Unauthorized trust activity" means:
(a) A person, other than one identified in section 26-3204(1), Idaho Code, acting as a fiduciary within this state;
(b) A person engaging in a trust business in this state at any office of such person 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 such person, unless the person has been authorized by the director, in his discretion, to engage in a trust business in this state in another manner and upon such conditions as he may require; or
(c) An out-of-state trust institution engaging in a trust business in this state at any time an order issued by the director pursuant to section 26-1115, Idaho Code, is in effect.
[26-3203, added 2000, ch. 288, sec. 8, p. 975; am. 2016, ch. 47, sec. 4, p. 102.]