§ 13-5-413 — Surety bond; pledged investments; investment income; bond or pledge increases; hearings

Wyoming § 13-5-413

• Jurisdiction: Wyoming
• Title 13: Banks, Banking and Finance
• Ch. 5: TRUST COMPANIES
• Art. 4: SUPERVISED TRUST COMPANIES

Text

(a) Any supervised trust company shall, before transacting
any business, pledge or furnish a surety bond to the
commissioner to cover costs likely to be incurred by the
commissioner in a receivership or liquidation of the supervised
trust company should it become unsafe or unsound pursuant to
W.S. 13-5-417. The amount of the pledge or the surety bond shall
be determined by the commissioner in an amount sufficient to
defray the costs of a receivership or liquidation, but shall
have a market value of not less than one million dollars
($1,000,000.00). In lieu of a bond, the supervised trust company
may irrevocably pledge its capital account to the commissioner.
Any investments pledged to the commissioner shall be held in a
state or nationally chartered bank or savings and loan
association having a principal or branch office in this state
and all costs associated with pledging and holding such
investments are the responsibility of the supervised trust
company.
(b) Investments pledged to the commissioner shall be of
the same nature and quality as those required for state
financial institutions in W.S. 9-4-805.
(c) Surety bonds shall run to the state of Wyoming, and
shall be approved under the terms and conditions required by
W.S. 9-4-804(b) and (c).
(d) The commissioner may promulgate rules pursuant to W.S.
13-1-603 to establish additional investment guidelines or
investment options for purposes of the pledge or surety bond
required by this section.
(e) In the event of a receivership of a supervised trust
company as provided in W.S. 13-5-417, the commissioner may,
without regard to priorities, preferences or adverse claims,
reduce the pledged investments to cash as soon as practicable
with court approval, and utilize the cash to defray the costs
associated with the receivership.
(f) Income from investments pledged under this section
shall be paid to the supervised trust company unless the court
places the supervised trust company in receivership.
(g) Upon evidence that the current bond or investment
pledge is insufficient, the commissioner may require any
supervised trust company to increase its investment pledge or
surety by providing no less than thirty (30) days written notice
to the supervised trust company. The supervised trust company to
which notice is given may request a hearing in writing no more
than thirty (30) days after receiving notice of the proposed
increase. Any hearing before the commissioner shall be held
pursuant to the Wyoming Administrative Procedure Act.