| Notice Filed with SOS |
08/30/2024 |
| Rule |
ProposedRuleAttach2024-00431.docx
|
| Additional Information |
AddInfoAttach2024-00431.pdf
|
| Statutory Authority |
11-101-102. Declaration of policy.
11-102-104. Powers and duties of the banking board.
11-109-103. Applicability of powers of banking board and bank commissioner to trust companies.
11-109-701. Discontinuance of trust business - voluntary liquidation and dissolution. |
| Description of Subjects/Issues |
The purpose of this rulemaking is to promulgate Rule 3 CCR 701-6 TC28 to establish requirements for canceling a trust charter, establish the timeframe in which an inactive trust company must surrender its charter, and establish guidelines for a trust company, who at the time of cancelation was in good standing, to reapply for a trust charter.
The Colorado Division of Banking (Division) finds that the proposed promulgation of this rule is necessary as follows:
A trust company, upon furnishing to the Banking Board satisfactory evidence of its release and discharge from all trust obligations, will have its charter canceled by the Division and will not be permitted to use the word “trust” in its name or connection with its business.
A trust company that has not operated in Colorado or conducted any trust business and has been released from any trust or other trust obligations for 24 months or more, must surrender its charter for cancellation and remove the word “trust” from its name.
A trust company in good standing when it surrenders its charter, may reapply for a trust charter as outlined in Section 11-109-301, C.R.S., and it must submit an updated business plan and supporting documentation as required in an initial chartering application. The company may also submit a pre-filing of an application for review and feedback from the Commissioner. |
| Purpose/Objective of Rule |
The purpose of this rulemaking is to promulgate Rule 3 CCR 701-6 TC28 to establish requirements for canceling a trust charter, establish the timeframe in which an inactive trust company must surrender its charter, and establish guidelines for a trust company, who at the time of cancelation was in good standing, to reapply for a trust charter. |
| Basis And Purpose |
BasisAndPurposeAttachment2024-00431.pdf
|
| Comments |
The Division of Banking finds that the proposed promulgation of this rule is necessary:
A trust company, upon furnishing to the Banking Board satisfactory evidence of its release and discharge from all trust obligations, will have its charter canceled by the Division and will not be permitted to use the word “trust” in its name or connection with its business.
A trust company that has not operated in Colorado or conducted any trust business and has been released from any trust or other trust obligations for 24 months or more, must surrender its charter for cancellation and remove the word “trust” from its name.
A trust company in good standing when it surrenders its charter, may reapply for a trust charter as outlined in Section 11-109-301, C.R.S., and it must submit an updated business plan and supporting documentation as required in an initial chartering application. The company may also submit a pre-filing of an application for review and feedback from the Commissioner. |
| Submitted in response to issues raised by COLS/OLLS? |
No
|
| Is this rule adopted in response to recent legislation? |
No
|
| Hearing Date |
10/17/2024 |
| Hearing Time |
10:00 AM |
| Hearing Location |
1560 Broadway, Suite 100D, Denver, Colorado |
| Contact Name |
Charles Siler |
| Contact Title |
Banking Board Administrator |
| Contact Telephone |
3038947584 |
| Contact email |
charles.siler@state.co.us |