§ 11-109-306 — Procedure for granting or denying charter

Colorado § 11-109-306

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Trust Companies

Text

(1) Within sixty days
following the filing of the completed application for charter, the commissioner shall
make or cause to be made a careful investigation to determine that the following
requirements have been met:

(a) That the applicant has proceeded in a lawful manner;

(b) That the name is not deceptively similar to that of another trust company
or otherwise misleading;

(c) That the persons who will serve as directors or officers, insofar as such
persons are known, are qualified by character and experience and that the
qualifications and financial status of the incorporators, directors, officers, and
persons in control of the trust company, as defined in section 11-109-401, are
consistent with their responsibilities and duties;

(d) That the proposed capital satisfies the standards and guidelines in the
rules promulgated by the banking board;

(e) That the proposed or amended articles of incorporation and bylaws are
appropriate or may be amended to be appropriate.

(2) Within ninety days after the filing of the application, the banking board
shall conduct a public hearing to consider the application. At least thirty days prior
to such hearing, the banking board shall give written notice thereof to all persons
doing a trust business in the community in which the proposed trust company is to
be located and to such other persons as it may designate. At such hearing, the
applicants shall have the burden of proving that:

(a) The public convenience and advantage will be promoted by the
establishment of the proposed trust company;

(b) Conditions in the locality in which the proposed trust company will
transact business afford reasonable promise of successful operation;

(c) The trust company is being formed for no other purpose than the
legitimate objects contemplated by this article;

(d) The applicants have complied with all of the applicable provisions of this
article;

(e) The books and records of the proposed trust company will be maintained
in Colorado and a substantial portion of the proposed trust company's operations
will be conducted in Colorado.

(3) Notwithstanding any other provision of this section, if the banking board
has given notice pursuant to subsection (2) of this section of a hearing on any
application for charter filed pursuant to this section and the banking board has
received no written protests against such charter application within ten days before
the hearing, the banking board may grant such charter without a hearing as
otherwise required in this section if the applicants for such charter are known to the
banking board.

(4) Within thirty days after the date of the conclusion of the hearing, the
banking board shall grant a charter to the applicants if the banking board
determines that the requirements of subsections (1) and (2) of this section have
been met.

(5) If the proposed trust company fails to open for business within six
months after the date of granting the charter, the privilege of transacting business
shall terminate. The banking board, for good cause and upon written application
filed prior to the expiration of such six-month period, may extend the time within
which the trust company may open for business.

(6) Unless otherwise provided by law to the contrary, articles of
incorporation, amended articles of incorporation, or amendments to articles of
incorporation shall be delivered to the secretary of state for filing in accordance
with the general corporate laws of this state.

Legislative History

Source: L. 2003: Entire article added with relocations, p. 1187, � 3, effective July 1.