Section R20-4-808. Administration of Fiduciary Powers

A.      The board of directors and the officers share responsibility for the exercise of fiduciary powers by a trust department or trust company. The board of directors is responsible for determin- ing policy; investing and disposing of trust assets; and direct- ing and reviewing the actions of all directors, officers, and committees of the board that exercise fiduciary powers. The board of directors may delegate the necessary power and authority to perform the trust department’s or trust company’s duties as a fiduciary to selected directors, officers, employees, or committees of the board if the delegation is consistent with the corporate charter. The minutes of the board’s meetings shall duly reflect all those delegations.

B.       A trust department or trust company shall not accept a new account without first obtaining the board’s approval, or that of the directors, officers, or committees that the board may have authorized to approve new accounts. The trust department or trust company shall keep a written record of each new account approval and of the closing of each account. The trust depart- ment or trust company shall conduct an asset review within 60 days after it accepts each new account if it has investment responsibility for that account. The trust department’s or trust company’s board shall ensure that an annual review of account assets is conducted for any account in which the trust depart- ment or trust company has investment responsibility, to deter- mine whether to retain or dispose of the assets.

C.      A trust department or trust company exercising fiduciary pow- ers shall use independent legal counsel admitted to practice in Arizona to advise and inform the trust department or trust company on fiduciary matters and all other legal issues pre- sented to the trust department or trust company by the conduct of its trust business.

Historical Note

Adopted effective June 30, 1977 (Supp. 77-3). R20-4- 808 recodified from R4-4-808 (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).