2023 Louisiana Laws › Revised Statutes › Title 45 - Public Utilities and Carriers › §45:1338. Trustee requirements; duties and powers; compensation; liability protection

RS 45:1338 - Trustee requirements; duties and powers; compensation; liability protection
A. The trustee of a trust shall not serve as a trustee under an indenture pertaining to the related bonds authorized by the financing order relating to that trust. Additionally, only the following entities shall serve as a trustee of a trust established pursuant to this Subpart:
(1) A federally insured depository institution organized under the laws of this state, another state, or the United States.
(2) A financial institution or trust company organized under the laws of this state or the United States, authorized to exercise trust or fiduciary powers under the laws of this state or the United States, or a trust company, organized under the laws of another state, and operating in this state pursuant to R.S. 6:626(A)(1) and (2).
B. An original trustee, an alternate trustee, or a successor trustee may be designated in the trust agreement or chosen by the use of a method provided in the trust agreement.
C. A trustee who accepts a trust established pursuant to this Subpart submits to the jurisdiction of the courts of this state.
D. A trust acting through its trustee may employ or retain such attorneys, accountants, and other professionals as it may consider necessary to carry out its duties under this Subpart and the trust agreement, and may determine their duties and compensation subject to regulation by the commission in its discretion. The compensation of a trustee and such professionals, and other costs to operate a trust, shall not be included within financing costs as defined in R.S. 45:1312. All such compensation and other costs shall first be paid from the related utility's share as beneficiary of the dividend income that the trust receives from the preferred interests. If the related utility's share of dividend income is insufficient to pay these expenses, then the expenses shall be paid from the related utility's share as beneficiary of redemption payments, in respect of the preferred interests.
E. A trust agreement may provide indemnity to a trustee for expenses properly incurred by the trustee in the administration of the trust property, but such amounts shall be paid only from the related utility's portion of the trust property, or directly from the related utility, if the related utility agrees to such direct payment.
F. A trustee shall administer a trust solely in the interest of the beneficiaries, and if applicable, a pledgee, in accordance with the trust agreement. A trust shall keep and render clear and accurate accounts of the administration of the trusts at least annually to the beneficiaries as specified in the trust agreement. Upon the request of the beneficiary, a trustee, within a reasonable time, shall provide a beneficiary complete and accurate information as to the nature and the amount of the trust property. The trustee shall permit the beneficiary or its agents to inspect the subject matter of the trust, the accounts, and any other documents relating to the trust.
G. A trustee shall administer the trust as a prudent person would administer it. A trustee shall invest trust property only in preferred interests as provided in this Subpart and the applicable trust agreement. A trustee shall have no liability whatsoever by reason of investing within the limitations of the foregoing requirement. The nature and extent of the duties and powers of a trustee shall be determined by the provisions of the trust agreement, except as otherwise expressly provided in this Subpart. A trust agreement may relieve the trustee from liability, except a liability relief provision in a trust agreement shall not be effective to relieve the trustee from liability for breach of the duty of loyalty to a beneficiary, or for breach of trust committed in bad faith.
H. Except for redemptions of preferred interests as authorized by the trust agreement, a trustee may not sell or encumber trust property.
Acts 2021, No. 293, §3, eff. June 14, 2021.