Section R20-4-806. Records

A.      A trust company may use a computer recordkeeping system if the trust company gives the Superintendent advanced written notice that it intends to do so. Except for records required by subsections (B)(1)(a) and (B)(1)(b), the Department shall not require a trust company to keep a written copy of its records if the trust company can generate all information required by this Section in a timely manner for examination or other pur- poses. A trust company may add, delete, modify, or customize a computer recordkeeping system’s hardware or software components. When  requested, or in response to a  written notice of an examination, a trust company shall report to the Superintendent any alteration in the computer recordkeeping system’s fundamental character, medium, or function if the

alteration changes the computer system to a paper-based sys- tem.

B.       A trust department or trust company shall keep books, accounts, and records adequate to provide clear and readily understandable evidence of all business conducted by the trust department or trust company, including the following:

1.        A file for each account that includes:

a.         The original of the governing instrument,

b.        The originals of all contracts and other legal docu- ments,

c.         Copies of all correspondence,

d.        Accounting  records  disclosing  all  the   financial transactions, and

e.         A listing of all the account’s assets and liabilities.

2.        An investment file for each account that includes:

a.         All original documentary evidence of the account’s assets; or

b.        Copies of the original documentary evidence of the account’s assets, together with written evidence of custody or receipt of the originals by an authorized holder; and

c.         A  record  of  the  initial  and  annual  investment reviews for the account.

3.        The corporate general ledger kept current on a daily basis. This record shall identify and segregate all finan- cial transactions conducted by the trust department or trust company for itself, distinguishing them from those relating to the trust department’s or trust company’s trust business;

4.        Unaudited financial statements. A trust department or trust company shall produce these statements quarterly or more frequently when directed by the Superintendent. The financial statements shall include at least:

a.         A balance sheet; and

b.        A statement of income, expenses, and retained earn- ings.

5.        Adequate records of all pending litigation that names the trust department or trust company as a party.

C.      A trust department shall keep its fiduciary records separate and distinct from the trust department’s corporate records.

D.      A trust department or trust company shall keep records described in subsections (B)(1) and (B)(2) for at least three years after closing an account. If litigation occurs concerning a particular account, the trust department or trust company shall keep that account’s records, described in subsections (B)(1) and (B)(2), for three years after the litigation is resolved.

Historical Note

Adopted effective September 1, 1977 (Supp. 77-3). R20- 4-806 recodified from R4-4-806 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8

A.A.R. 2718, effective June 6, 2002 (Supp. 02-2).