§ 13-5-510 — Powers of public trust companies; limitations; prohibitions; conflicts of interest; exemptions

Wyoming § 13-5-510

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

Text

(a) Public trust companies may exercise the powers
permitted by subsection (b) of this section and the powers and
rights granted to other corporations and limited liability
companies under general law except as provided by this chapter.
(b) Each public trust company may:
(i) Act or be appointed by any court to act in like
manner as an individual or as a fiduciary for any purpose
permitted by law;
(ii) Act as transfer agent or registrar of corporate
stocks and bonds;
(iii) Purchase, invest in and sell stocks, bonds,
mutual funds, mortgages and other securities for the account of
trusts;
(iv) Accept and execute any trust company business
permitted by any law of this or any other state or of the United
States to be taken, accepted or executed by an individual;
(v) Take oaths and execute affidavits by the oath or
affidavit of its directors, managers, managing members,
officers, agents or employees;
(vi) Make any lawful fiduciary investment as
permitted by W.S. 2-3-301;
(vii) Do and perform all acts necessary to exercise
the powers enumerated in this chapter.
(c) A public trust company shall not engage in any banking
business by accepting general deposits or issuing demand
instruments.
(d) A public trust company may invest its capital and
surplus in stocks, bonds, mortgages, mutual funds and other
securities. A public trust company may invest in, purchase,
hold, convey and lease real estate in accordance with W.S. 13-3-
201(a)(i).
(e) A public trust company shall consider the following
when undertaking a transaction or other action authorized under
subsection (b) of this section:
(i) The interests of the beneficiaries of the trust
for which the public trust company is acting as fiduciary, if
applicable;
(ii) Whether the transaction or action complies with
the terms of the governing instrument establishing the fiduciary
relationship, any applicable judgments, judicial decrees or
court orders and any applicable consent agreements or releases.
(f) Except as provided in this chapter, no person shall
act as a public trust company or engage in trust company
business without first obtaining a charter from the commissioner
under this chapter.
(g) A bank or savings and loan authorized under the laws
of the United States or this state to engage in trust company
business in this state, may engage in such business as a bank or
savings and loan association without obtaining a charter under
this chapter, but shall be subject to the provisions of this
chapter relating to the administration of its trust accounts.
(h) Insurance companies licensed to write life insurance
policies and annuity or endowment contracts in this state and
subject to the regulation and control of the state insurance
commissioner shall not be subject to the provisions of this
chapter.
(j) Except as otherwise provided in subsection (e) of this
section, nothing in this section prohibits a public trust
company from transacting business with or investing in any asset
of:
(i) A trust, estate, guardianship or conservatorship
for which the public trust company is a fiduciary;
(ii) Any other company, agent, entity or person for
which a conflict of interest may exist.
(k) If a potential conflict of interest exists as to a
particular transaction or action between the public trust
company in its capacity as a fiduciary and the public trust
company in its individual capacity, the transaction or action is
not voidable if it complies with this section or occurred before
the public trust company entered into the fiduciary
relationship.
(m) A transaction by or action of a public trust company
is not voidable if:
(i) The transaction or action was authorized by the
terms of the organizational instrument;
(ii) The transaction or action was approved by a
court pursuant to a judgment, judicial decree or court order;
(iii) The transaction or action was authorized by a
valid consent agreement or release signed by all interested
persons to the transaction or action;
(iv) No interested person commenced a legal action
relating to the transaction in accordance with subsection (n) of
this section; or
(v) The transaction or action occurred before the
public trust company entered into the fiduciary relationship.
(n) A legal action by an interested person alleging that a
transaction or action by a public trust company is voidable
because of the existence of a conflict of interest must be
commenced within one (1) year of the date on which the
interested person discovered, or by the exercise of reasonable
diligence should have discovered, the facts in support of his
claim.
(o) Notwithstanding any other provision of this chapter, a
public trust company is not required to obtain court approval
for any transaction that otherwise complies with the provisions
of this section.