Wis. Admin. Code Department of Financial Institutions DFI-SB 17.04 - Administration of trust powers

(1) GENERAL PROVISIONS.

(a) Responsibility of the board of directors. The board of directors of a savings bank is responsible for the proper exercise of fiduciary powers by the savings bank. All matters pertinent to the exercise of fiduciary powers, including the determination of policies, the investment and disposition of property held in a fiduciary capacity, and the direction and review of the actions of all officers, employees, and committees utilized by the savings bank in the exercise of its fiduciary powers, are the responsibility of the board. The board of directors may assign, by action entered in the minutes, the administration of any of the savings bank's trust powers to a director, officer, employee, or committee.

(b) Administration of accounts. No fiduciary account may be accepted without the prior approval of the board of directors, or of the director, officer, employee or committee to whom the board may have assigned the performance of that responsibility. A written record shall be made of acceptances and of the relinquishment or closing out of all fiduciary accounts. Upon the acceptance of an account for which the savings bank has investment responsibilities, the savings bank shall make a prompt review of the assets. The board shall also ensure that at least once during every calendar year thereafter, and within 15 months of the last review, all the assets held in or held for each fiduciary account for which the savings bank has investment responsibilities are reviewed to determine the advisability of retaining or disposing of the assets. The board shall act to ensure that all investments have been made in accordance with the terms and purposes of the governing instrument.

(2) USE OF OTHER SAVINGS BANK PERSONNEL. The trust department may utilize personnel and facilities of other departments of the savings bank, and other departments of the savings bank may utilize personnel and facilities of the trust department unless prohibited by law.

(3) COMPLIANCE WITH FEDERAL SECURITIES LAWS. Every savings bank exercising trust powers shall adopt written policies and procedures to ensure that federal securities laws are complied with in connection with any decision or recommendation to purchase or sell any security. The policies and procedures shall ensure that the savings bank's trust department shall not use material inside information in connection with any decision or recommendation to purchase or sell any security.

(4) LEGAL COUNSEL. Every savings bank exercising fiduciary powers shall designate, employ or retain legal counsel who shall be readily available to pass upon fiduciary matters and to advise the savings bank and its trust department.

(5) BONDING. Directors, officers and employees of a savings bank engaged in the operation of a trust department shall acquire bond coverage as the division may require.

(6) OATH OR AFFIDAVIT. If the laws of a state require that a corporation acting as trustee, executor, administrator, personal representative or in any capacity specified in this chapter shall take an oath or make an affidavit, the president, vice president, cashier or trust officer of the savings bank may take the necessary oath or execute the necessary affidavit.

Notes

Wis. Admin. Code Department of Financial Institutions DFI-SB 17.04

CR Register, February, 1994, No. 458, eff. 3-1-94.

This section parallels 12 CFR 550.5 and 12 USC 1464(n) (7) and s. DFI- 17.04.