Trust Companies Act 1994
TITLE 50 – TRUSTS
CHAPTER 2 - TRUST COMPANIES
sRepublic of the Marshall Islands
Jepilpilin Ke Ejukaan
TRUST COMPANIES ACT 1994
Arrangement of Sections
Section Page
PART I - PRELIMINARY 3
§201. Short title. .............................................................................................................................. 3
§202. Interpretation. ....................................................................................................................... 3
§203. Use of the words “trust”, “trustee”, “trust company”, “fiduciary”,
“treuhand”............................................................................................................................. 4
§204. Commissioner. ...................................................................................................................... 5
PART II- TRUST COMPANY LICENSES 5
§205. Requirement of a license. .................................................................................................... 5
§206. Application for license. ........................................................................................................ 5
§207. Grant or refusal of license. .................................................................................................. 7
§208. Trust company license. ........................................................................................................ 8
§209. License fee. ............................................................................................................................ 8
§210. Approval of the Commissioner for any change. .............................................................. 8
§211. Suspension, revocation or variation of license. ................................................................ 9
§212. Power to give directions. ................................................................................................... 10
§213. Cessation of business. ........................................................................................................ 11
§214. Transacting trust business without a license. ................................................................. 11
§215. Penalty. ................................................................................................................................ 12
§216. Exemption from trustee licensing requirement. ............................................................ 12
§217. Existing businesses. ............................................................................................................ 12
PART III - CAPITAL REQUIREMENTS AND TRANSFERABILITY OF
SHARES 12
§218. Capital requirements. ........................................................................................................ 12
§219. Transferability of shares. ................................................................................................... 13
PART IV - FINANCIAL STATEMENTS, AUDIT, INFORMATION AND
INSPECTION 13
§220. Financial statements. ......................................................................................................... 13
§221. Auditors. ............................................................................................................................. 13
§222. Forwarding of financial statement to the Commissioner. ............................................ 14
§223. Extension of time. ............................................................................................................... 14
§224. Information and inspection. ............................................................................................. 14
PART V - DIRECTORS AND OFFICERS 15
§225. Directors. ............................................................................................................................. 15
§226. Change of directors and officers. ..................................................................................... 15
§227. Officers. ............................................................................................................................... 16
PART VI- GENERAL 16
§228. Insurance. ............................................................................................................................ 16
§229. Changes in corporate structure. ....................................................................................... 17
§230. Secrecy. ................................................................................................................................ 17
§231. Immunity............................................................................................................................. 18
§232. Regulations. ........................................................................................................................ 18
§233. Liability of directors. ......................................................................................................... 18
§234. Failure to comply with the provisions of this Chapter. ................................................ 18
§235. Willfully making false entries. ......................................................................................... 19
§236. Declaration by the Commissioner. .................................................................................. 19
§237. Trust company disclosure of fees. ................................................................................... 19
PART VII- PENALTIES AND EXCEPTIONS 20
§238. Offenses relating to this Chapter. .................................................................................... 20
§239. Exceptions. .......................................................................................................................... 20
TITLE 50 – TRUSTS
CHAPTER 2 - TRUST COMPANIES
sRepublic of the Marshall Islands
Jepilpilin Ke Ejukaan
TRUST COMPANIES ACT 1994
AN ACT to govern the establishment, operation and licensing of trust companies in
the Republic of the Marshall Islands.
Commencement: October 10, 1994
Source: P.L. 1994-110
PART I - PRELIMINARY
§201. Short title.
This Chapter may be cited as the “Trust Companies Act 1994". [P.L 1994-110, §1.]
§202. Interpretation.
In this Chapter:
(a) “Commissioner” means the Commissioner of Trust
Companies appointed under the provisions of this Chapter;
(b) “corporation” means a corporation incorporated or registered
under the provisions of the Associations Law of 1990, and
regulations made thereunder;
(c) “foreign trust company” means a trust company established
or incorporated outside the Republic;
(d) “license” means a license issued to conduct trust business in
the Republic;
(e) “licensed trust company” means a trust company licensed
under the provisions of this Chapter;
(f) “nonresident” means an individual, corporation, or other
juridical person;
(g) “person” means an individual, company, corporation,
partnership or any body incorporate or unincorporate and
includes every director, manager, agent or secretary of such
person;
(h) “place of business” means any branch or office of a licensed
trust company in the Republic including a mobile office;
(i) “qualified auditor” means a Certified Public Accountant, or
firm of Accountants being a member of an institute approved
or recognized by law possessing a certificate to practice as an
Accountant issued by the council of such institute;
(j) “resident” means:
(i) a citizen of the Republic residing in the Marshall
Islands, or an individual domiciled therein;
(ii) a corporation incorporated in the Republic, a body
corporate established under any written law of the
Republic, or any firm, partnership or other organization
formed in the Republic;
(iii) a branch, subsidiary, affiliate, extension, office, or any
other unit of a corporation or other juridical person
established under the laws of any foreign country,
operating in the Republic;
(k) “trust company” means a trust company established or
incorporated in the Republic;
(l) “trust business” means the business of acting for the benefit of
another in a fiduciary capacity whether as trustee, executor,
administrator or any similar capacity. [P.L. 1994-110, §2.][paragraphsnumbered to conform to the format of the Code (Rev.2003)]
§203. Use of the words “trust”, “trustee”, “trust company”, “fiduciary”,
“treuhand”.
(1) No corporation other than a licensed trust company shall use as part
of its name or its description any of the words “trust”, “trustee”,
“trust company”, “fiduciary”, “treuhand”, or any of the derivatives
or their equivalent in another language, and no licensed trust
company shall carry on the business of trusts in the Republic unless it
uses as part of its name at least one of such words.
(2) No person, firm, individual or group of individuals shall for the
purpose of carrying on any business, use as part of its or his name or
description any of the words “trust”, “trustee”, “trust company”,
“fiduciary”, “treuhand”, or any of the derivatives or their equivalent
in another language. [P.L. 1994-110, §3.]
§204. Commissioner.
(1) The Commissioner of Banking, appointed by the President with the
concurrence of the Cabinet, shall also serve as Commissioner of Trust
Companies and be in charge of the administration, the enforcement
of the provisions of this Chapter and the regulations made
thereunder.
(2) The registrar of non-resident domestic corporations shall also
administer the registrar of trust companies. [P.L. 1994-110, §4.]
PART II- TRUST COMPANY LICENSES
§205. Requirement of a license.
No trust business shall be transacted in the Republic except by a corporation
which is in possession of a valid license issued by the Commissioner of
Trust Companies, with the approval of the Cabinet, authorizing the
transaction of trust business in or from within the Republic. [P.L. 1994-110, §5.]
§206. Application for license.
An application for the grant of a license shall be made in writing to the
Commissioner and shall in addition to the information that may be required
under the regulations, contain the following particulars:
(1) domestic trust company. In the case of an application for a license by
a domestic trust company:
(a) the name and the address of the registered office of the
corporation and the principal office of business in
the Republic;
(b) two certified copies of the articles of incorporation and the by-
laws of the corporation;
(c) the amounts of authorized capital and paid-up capital, and the
number and class of shares held by the shareholders
or subscribers;
(d) the full names, addresses, nationalities and occupations of the
shareholders or subscribers holding more than ten percent
(10%) of the issued capital;
(e) details (as are required by the Commissioner) of shareholders
holding more than ten percent (10%) of the issued stock,
directors and the principal officer;
(f) the full name, address, nationality, occupation and financial
standing of each director, and including any trust
administration experience;
(g) a balance sheet audited by an independent qualified auditor
showing that the capital has been provided pursuant to Parts
III and IV of this Chapter as applicable;
(h) the name, address and the professional qualification of
the auditor;
(i) the date the financial year ends;
(j) the full names, addresses, nationalities and trust
administration experience of the principal officer and his
deputy;
(k) the name of each subsidiary corporation of the applicant,
address of its registered office and principal place of business,
and the type of business engaged in;
(l) the specific type of trust business to be conducted by the trust
company, and the place in which the trust company intends to
do business;
(m) a letter or document from an approved body under Section 228
of this Chapter, indicating the current insurance covering
assets held;
(n) an initial non-refundable application fee of $_______
(o) such other particulars or information as may be required
under this Chapter or regulations made thereunder:
(2) foreign trust company. In the case of an application for a license by a
foreign trust company:
(a) particulars required in Paragraphs (a), (b), (c), (q), (j), (I), (m),
(o) and (p) of Subsection (1) of this Section;
(b) the full names, addresses, occupations and nationalities of
shareholders each owning more than thirty percent (30%) of
the issued stock of the trust company, certified by the trust
company’s secretary;
(c) a list of the names of directors and chief executive officer
certified by the secretary;
(d) the full names and trust company experience of the manager
of the branch in the Republic, and his deputy;
(e) the latest annual report and audited financial statements of the
trust company, which financial statements shall provide two
(2) year’s figures and show that the trust company’s capital
complies with the requirements of either Section 218 or 221 of
this Chapter as applicable;
(f) a copy of the certificate of corporate registration in the
Republic;
(g) evidence of insurance by an approved body under Section 228
of this Chapter, relating to assets held in the Republic;
however, the Commissioner may, with the approval of the
Cabinet, waive the requirement of such insurance, in the case
of any trust company of international repute, if there is no
such requirement under the law of the country where such
trust company is incorporated. [P.L. 1994-110,§6.][paragraphs undersubsection (1) re-numbered to conform to sequence (Rev.2003)[
§207. Grant or refusal of license.
On receipt of the application, the Commissioner, with the approval of the
Cabinet, shall grant, or without assigning any reason therefor, refuse to
grant a license. [P.L. 1994-110,§7.]
§208. Trust company license.
(1) In granting a license to a trust company (which license shall be in
writing) the Commissioner, with the approval of the cabinet may
specify any terms and conditions which shall be complied with by the
trust company.
(2) No person may be granted a license in a name which, in the opinion
of the Commissioner, is likely to mislead or confuse the persons for
which it is intended to provide any or all of its services
(3) No license shall be issued or renewed except upon the payment of the
license fee referred to in Section 209 of this Chapter.
(4) A licensed trust company shall not engage in any trust business other
than the business specified in the license.
(5) The initial license granted shall be valid from the date of issue to the
end of December of the same year and the license shall thereafter be
issued for a period of twelve (12) months beginning the first day of
January of each succeeding year.
(6) The application for renewal shall be made prior to the expiration of
the current license along with the license fee and providing such
information as may be required by the Commissioner under this
Chapter or the regulations made thereunder.
(7) A copy of the license granted to the trust company under this
Chapter shall be kept displayed conspicuously in all places of
business of the trust company in the Republic. [P.L. 1994-110, §8.]
§209. License fee.
Every trust company shall pay to the Registrar of Trusts an annual license
fee in the amount of US$_____ [P.L. 1994-110, §9.]
§210. Approval of the Commissioner for any change.
The prior approval in writing of the Commissioner shall be required:
(a) for a change of location of any existing place of business
within the Republic;
(b) for a licensed domestic trust company to open a branch,
agency, or office in any place outside of the Republic;
(c) for trust company to open a representative office or such type
of office of business in the Republic;
(d) for a licensed domestic trust company to acquire the business
of another trust company or of any branch of another trust
company;
(e) for a person, group of persons, partnership, company or
corporation to acquire a substantial interest in a licensed trust
company incorporated in the Republic by or under any written
law. [P.L. 1994-110, §10.]
§211. Suspension, revocation or variation of license.
(1) In the case of a licensed trust company:
(a) which has failed to commence operations within six (6)
months following the granting of the license;
(b) where the Commissioner is satisfied that the licensed trust
company has failed to comply with any of the terms and
conditions of its license issued under Section 208 of this
Chapter;
(c) where the trust company has failed to pay its debts generally
as they become due;
(d) where any custodian or receiver has been appointed under any
bankruptcy or similar laws for the relief of or relating
to deposits;
(e) where a licensed trust company has ceased to do
trust business;
(f) which violates any of the provisions of this Chapter or the
regulations made thereunder;
(g) which fails to comply with any direction issued by the
Commissioner as specified under this Chapter or the
regulations made thereunder;
(h) which fails to pay the license fee when due;
(i) that knowingly gives any information to the Commissioner
which is untrue or misleading;
(j) which fails to comply with the corporate law of the Republic;
(k) which is, in the opinion of the Commissioner, carrying on
business in or from within the Republic in a manner
detrimental to the public interest or to the interest of the
settlers, beneficiaries, protectors, trustees, and other clients of
the trust company; or
(1) which is a branch of a financial or trust institution incorporated
outside the Republic whose license to carry on business in that
country has been suspended or withdrawn by the appropriate
authority outside the Republic, the Commissioner may, with the
approval of the Cabinet, by notice given in writing, suspend the
license and require the trust company to show cause why the license
fee should not be revoked or varied.
(2) A licensed trust company may, within sixty (60) days after receipt of
notice of suspension of the license under Subsection (1) above, submit
to the Commissioner reasons why the license should not be revoked
or varied.
(3) The Commissioner shall, with the approval of the Cabinet, within
thirty (30) days from the receipt of the reasons referred to in
Subsection (2) above;
(a) either revoke or vary the license; or
(b) withdraw the suspension unconditionally. [P.L. 1994-110, §11.]
§212. Power to give directions.
(1) Where the Commissioner has given notice of suspension under
Section 211 of this Chapter, he may give directions to the
trust company:
(a) prohibiting it from dealing with or disposing of its assets in
any manner specified in the direction;
(b) prohibiting it from entering into any transaction or class of
transaction so specified;
(c) prohibiting it from soliciting the administration of trusts; or
(d) requiring it to take certain steps or pursue a particular course
of action.
(2) Where a licensed trust company has failed to comply with the
directions issued under Subsection (1) of this Section, the
Commissioner may make an application in court directing such trust
company to forthwith cease business in or within the Republic and
may upon such order take charge, or authorize an officer in writing
to take charge on his behalf, of all its books, records and all other
material.
(3) In the case where the Commissioner withdraws the suspensions
unconditionally, under Section 211 of this Chapter, he shall deliver or
direct the officer authorized to deliver to such trust company
forthwith, the books, records, and all other material taken into his
custody.
(4) Notwithstanding anything contrary to any other law, no action or
proceeding may be instituted in any court against the Commissioner,
an authorized officer, or the Government of the Marshall Islands,
with respect to any loss or damage incurred, likely to be incurred, or
alleged to be incurred by reason of any action done in good faith
under Section 211 and 2 12(1), (2) or (3) of this Chapter. [P.L. 1994-110, §12.]
§213. Cessation of business.
(1) Where a license has been revoked under Section 21l(3)(a) of this
Chapter, the Commissioner shall direct the trust company forthwith
to cease business in and from within the Republic, and he or an
officer authorized by him in writing, may take charge of all of its
books, records and other material and take such measures as may be
necessary to prevent the continuance of the business of such trust
company under the supervision of the Commissioner or an
authorized officer within a period of three (3) months.
(2) Where revocation has been made with respect to a foreign trust
company the Commissioner shall forthwith inform the parent office
of the trust company to honor the obligations and liabilities incurred
in the conduct of the business of the branch office in the Republic.[P.L. 1994-110, §13.]
§214. Transacting trust business without a license.
If the Commissioner has reasonable ground to believe that any person is
transacting trust business without a license he may examine, or authorize an
officer in writing to examine, the books, accounts and records of such person
for the purpose of ascertaining whether such person has contravened or is
contravening any of the provisions of this Chapter. Any refusal by such
person to submit such books, accounts or records to the Commissioner or
authorized officer shall be prima facie evidence that such person is
transacting trust business without a license. [P.L. 1994-110, §14.]
§215. Penalty.
(1) If any person referred to in Section 214 of this Chapter is transacting
trust business without a license he shall be guilty of an offense and
shall upon conviction be liable to a fine not exceeding $____
(2) Any applicant who knowingly or recklessly furnishes any
information which is false or misleading in a material particular in
connection with an application under this Chapter, shall be guilty of
an offense and shall upon conviction be liable to a fine not exceeding
$___ or to a term of imprisonment not exceeding six (6) months, or
both. [P.L. 1994-110, §15.]
§216. Exemption from trustee licensing requirement.
A person who is licensed under this Chapter is not required to be licensed
under the Regulation of Professions and Occupations Act (as Amended) to
conduct trust business. [P.L. 1994-110, §16.]
§217. Existing businesses.
A person who at the commencement of this Chapter is carrying on trust
business has a period of 3 months to comply with the provisions of this
Chapter. [P.L. 1994-110, §17.]
PART III - CAPITAL REQUIREMENTS AND TRANSFERABILITY
OF SHARES
§218. Capital requirements.
(1) Every trust company licensed to do local trust business shall at all
times maintain unimpaired issued capital stock in an amount not less
than____dollars ($____), originally paid up in cash; provided,
however, that the Commissioner shall, with the approval of the
Cabinet, set forth the required minimum amount of capital from time
to time.
(2) A licensed trust company shall not reduce its paid-up capital without
the prior written approval of the Commissioner.
(3) Where the capital of a licensed trust company has become deficient in
terms of the provisions of the preceding Subsections, the
Commissioner may grant a reasonable period of time for making
good such deficiency. [P.L. 1994-110, §18.]
§219. Transferability of shares.
No shares or other interests, whether legal or equitable, in a trust company
shall be issued, transferred or otherwise disposed of without the prior
written approval of the Commissioner, except that the Commissioner may
exempt any trust company from the provisions of this section, subject to the
terms and conditions as the Commissioner considers necessary.[P.L. 1994-110, §19.]
PART IV - FINANCIAL STATEMENTS, AUDIT, INFORMATION
AND INSPECTION
§220. Financial statements.
At the expiration of each financial year every licensed trust company
incorporated in the Republic, with respect to all business transacted by it,
shall prepare, with reference to that year, a balance sheet as of the last
working day of each financial year and a profit and loss account with
respect to that year. [P.L. 1994-110, §20.]
§221. Auditors.
(1) Every licensed trust company shall appoint annually an independent
financial auditor, whose duties shall be to audit financial statements
of the trust company.
(2) The audit of the financial statements shall be completed within three
(3) months of the end of the financial year, and the auditor shall state
that his examination was made in accordance with generally accepted
auditing standards and in his opinion the financial statements
present fairly the financial position of the trust company at the date
of the audit in conformity with the generally accepted accounting
principles.
(3) If a licensed trust company fails to appoint an auditor as required, the
Commissioner shall have the power to appoint the auditor.
(4) The remuneration of the auditor, whether appointed by the licensed
trust company or by the Commissioner, shall be paid by the licensed
trust company and, in the case of an auditor appointed by the
Commissioner in terms of Subsection (3) of this Section, it shall be
determined by the Commissioner.
(5) No person who is a director, officer, employee or agent of such
licensed trust company shall be eligible for appointment as auditor
for the trust company. Any person appointed as auditor who may,
after such appointment, become a director, officer, employee, or
agent of such licensed trust company, shall forthwith cease to be such
auditor. [P.L. 1994-110, §21.]
§222. Forwarding of financial statement to the Commissioner.
Every licensed trust company shall transmit to the Commissioner within
four months after the close of the financial year its audited financial
statements. The Commissioner shall be provided with information he may
reasonably require concerning a trust company’s financial statements.[P.L. 1994-110, §22.]
§223. Extension of time.
Where a licensed trust company has, in circumstances beyond its control,
failed to comply with the provisions of Section 220 and 221 of this Chapter
the Commissioner may, on an application made by such licensed trust
company, in his sole discretion, grant a reasonable period of time for
compliance with the provisions of the Sections herein mentioned.[P.L. 1994-110, §23.]
§224. Information and inspection.
(1) The commissioner may, from time to time, cause an examination to
be made by any of his duly authorized officers, of each licensed trust
company or any of its affiliates in the Republic, where in his
judgment such examination is reasonably necessary or expedient in
order to determine that such licensed trust company is in a sound
financial condition and that the requirements of law have been
complied with in the conduct of its business.
(2) Each licensed trust company referred to in Subsection (1) of this
Section shall provide for the inspection by an officer appointed by the
Commissioner, at such time as the officer specifies, all books,
minutes, accounts, cash, securities, documents and vouchers relating
to its business and shall supply all information concerning its
business as requested by such officer.
(3) If any books, minutes. accounts, cash. securities, documents, and
vouchers are not produced or information is not supplied, or if any
item produced is false in any material particular, the defaulting trust
company or affiliate or both, shall be guilty of an offense and shall
upon conviction be liable to a fine not exceeding $ ____ [P.L. 1994-110, §24.]
PART V - DIRECTORS AND OFFICERS
§225. Directors.
(1) No person shall be appointed or elected as a director of a licensed
domestic trust company if:
(a) he is a member of the Nitijela;
(b) he has been bankrupt, has suspended payment, or has
compounded with his creditors; or
(c) he has been convicted of any offense involving dishonesty
or fraud.
(2) A director of a licensed trust company shall cease to be a director if:
(a) he becomes subject to any disqualifications mentioned in
Subsection (1) of this Section;
(b) he becomes permanently incapable of performing his
duties, or
(c) he has been convicted of any act or thing which is of a
fraudulent or illegal character, or which is manifestly opposed
to the objectives and interests of the licensed trust company.[P.L. 1994-110, §25.]
§226. Change of directors and officers.
Except with the prior approval of the Commissioner no domestic trust
company shall change its directors or principal officers. An application for
such change shall be made in writing along with the information required in
Section 206(l)(e) and (k) of this Chapter. [P.L. 1994-110, §26.]
§227. Officers.
(1) Notwithstanding anything contained in any other written law, a
person shall be disqualified for employment or appointment as the
manager or other official in a licensed trust company, and such
manager or other official shall cease to be so employed if:
(a) he becomes bankrupt, suspends payment, or compounds with
his creditors; or
(b) if he is convicted of any offense involving dishonesty or fraud.
(2) No person who has been a director or a chief executive officer of a
trust company which has been wound up by the Court shall, without
the express authority of the Commissioner, act or continue to act as a
director or the chief executive officer of a licensed domestic trust
company. [P.L. 1994-110, §27.]
PART VI- GENERAL
§228. Insurance.
(1) The Commissioner may require a licensee to effect a policy of
insurance with a reputable insurance company against:
(a) losses arising out of claims of negligence or breach of duty by
the licensee or any employee;
(b) the dishonesty of employees or of the licensee;
(c) loss of documents;
(d) such other risk as the Commissioner may from time to time
stipulate; in such amount and of such a nature as the
Commissioner may determine to be fit and proper, having due
regard to the nature and the type of business carried on by the
licensee.
(2) In the event that the insurance is withdrawn, canceled or not
renewed, the licensee shall immediately notify the Commissioner and
shall cease to carry on its business until the insurance has been
reinstated or replaced. [P.L. 1994-110, §28.]
§229. Changes in corporate structure.
(1) Within two (2) months of a trust company making changes in its
articles of incorporation or by-laws, such changes shall be furnished
to the Commissioner in the form of a copy of the resolution
authorizing the change, certified by a director and secretary of the
trust company.
(2) In the case where any licensed domestic trust company intends to
change its name or the authorized capital, such trust company shall
obtain the prior approval of the Commissioner for such change.[P.L. 1994-110,§29.]
§230. Secrecy.
(1) Except in the performance of his duties under this Chapter, every
officer and employee of every licensed trust company shall preserve
and aid in preserving secrecy with regard to all matters relating to the
affairs of the trust company and of any clients of such trust company
that may come to his knowledge in the performance of his duties, and
he shall, before entering upon his duties, sign a declaration pledging
himself to observe strict secrecy with respect to such matters and not
to reveal such matters except when required to do so:
(a) by a settlor, beneficiary, protector or other trustee to whom
such matters relate or by his personal representative;
(b) by a Court of law in the Republic;
(c) in circumstances where in the interest of such trust company it
is necessary to reveal such matters; or
(d) in order to comply with the provisions of this Chapter and the
provisions of any other written law.
(2) Except in the performance of his duties under this Chapter the
Commissioner, and every officer or employee working under the
Commissioner, shall preserve and aid in preserving secrecy with
regard to all matters relating to the affairs of any licensed trust
company, or of any of its clients that may come to his knowledge in
the course of his business.
(3) Every person who contravenes the provisions of Subsection (1) or (2)
above shall be guilty of an offense and shall upon conviction be liable
to a fine not exceeding $_____. [P.L. 1994-110, §30.]
§231. Immunity.
Neither the Cabinet nor the Commissioner nor any of the officers or
employees working under the Commissioner shall be subject to any action,
claim or demand by or liability to any person with respect to anything done
or omitted to be done in good faith in pursuance of, conferred upon the
Cabinet or the Commissioner, or an officer or employee under the
Commissioner by this Chapter. [P.L. 1994-110, §31.]
§232. Regulations.
Notwithstanding the provisions of the Administrative Procedure Act 1979, the
Commissioner may, with the approval of the Cabinet, make regulations
with respect to any matter affecting, or connect with, or incidental to, the
proper carrying out of the provisions of this Chapter; provided, however,
the Commissioner shall, before the regulations are made, give adequate
opportunity to the licensed trust companies to make representations on the
intended regulations. [P.L. 1994-110, §32.]
§233. Liability of directors.
Where the person convicted of an offense under this Chapter is a body
corporate, every person who at the time of the commission of the offense
was a director or an officer of the body corporate shall be deemed to be
guilty of that offense unless he proves that the offense was committed
without his knowledge, or that he exercised all due diligence to avoid the
commission of such offense. [P.L. 1994-110, §33.]
§234. Failure to comply with the provisions of this Chapter.
Any person who, being a director or manager of a licensed trust
company who:
(a) fails to take reasonable steps to secure compliance by the trust
company with the requirements of this Chapter; or
(b) fails to take all reasonable steps to ensure the correctness of
any statement submitted under the provisions of this Chapter,
shall be guilty of an offense. [P.L. 1994-110, §34.]
§235. Willfully making false entries.
Any director, manager, trustee, auditor, employee or agent of any licensed
trust company who:
(a) willfully makes or causes to be made a false entry in any book
or record or in any report, slip, document, or statement of the
business, affairs, transactions, conditions, assets or liabilities or
accounts of such trust company;
(b) willfully omits to make an entry in any book or record or in
any report, slip. document or statement of the business, affairs,
transactions, condition, assets or liabilities or accounts of such
trust company or willfully causes any such entry to be
omitted; or
(c) willfully alters, abstracts, conceals or destroys an entry in any
book or record or in any report, slip, document or statement of
the business, affairs, transactions, condition, assets or liabilities
or accounts of such trust company or willfully causes such
entry to be altered, abstracted, concealed or destroyed, shall be
guilty of an offense and shall upon conviction be liable to a
fine not exceeding $ 8 or a term of imprisonment not
exceeding one year, or both. [P.L. 1994-110, §35.]
§236. Declaration by the Commissioner.
Notwithstanding anything to the contrary in any other Section of this
Chapter, the Commissioner may, by order, from time to time:
(a) declare any person to be a trust company for the purpose of
this Chapter, in which case the relevant provisions of this
Chapter shall apply to such person; or
(b) make a declaration as under Paragraph (a) of this Section with
respect to any agency of a licensed trust company for the
purposes of this Chapter. [P.L. 1994-110, §36.]
§237. Trust company disclosure of fees.
Each trust company holding a domestic license shall maintain a list of fees
and charges for services provided, such list to be available for inspection by
settlers, beneficiaries, protectors and trustees upon request. [P.L. 1994-110, §37.]
PART VII- PENALTIES AND EXCEPTIONS
§238. Offenses relating to this Chapter.
(1) Every person who contravenes or fails to comply with any of the
provisions of this Chapter or any rule, regulation, order, direction or
requirement made or given under this Chapter shall be guilty of an
offense and shall upon conviction be liable to a fine not exceeding
$____.
(2) Every person who is guilty of an offense for which no punishment is
prescribed in the preceding provisions, shall upon conviction be
liable to a fine not exceeding $____.
(3) Any person who attempts to commit, or does any act preparatory to
the commission of any offense under this Chapter, shall be deemed to
be guilty of such offense. [P.L. 1994-110, §38.]
§239. Exceptions.
The provisions of the Business Licenses Act 1983 shall not apply to trust
companies licensed under this Chapter. [P.L. 1994-110, §39.]