reglab/statecodes huggingface dataset:
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 4 - STATE TRUST COMPANY (§§ 81-27-4.101 — 81-27-4.303) › Subarticle B - AMENDMENT OF ARTICLES; CHANGES IN CAPITAL AND SURPLUS (§§ 81-27-4.201 — 81-27-4.204) › Section 81-27-4.204 - Capital notes or debentures

(a)
With the prior written approval of the commissioner, any state trust company may, at any time, through action of its board, and without requiring action of its shareholders or participants, issue and sell its capital notes or debentures, which must be subordinate to the claims or depositories and may be subordinate to other claims, including the claims of other creditors or classes of creditors or the shareholders or participants.
(b)
Capital notes or debentures may be convertible into shares or participation shares of any class or series. The issuance and sale of convertible capital notes or debentures are subject to satisfaction of preemptive rights, if any, to the extent provided by law.
(c)
Without the prior written approval of the commissioner, interest due or principal repayable on outstanding capital notes or debentures may not be paid by a state trust company when the state trust company is in hazardous condition or insolvent, as determined by the commissioner, or to the extent that payment will cause the state trust company to be in hazardous condition or insolvent.
(d)
The amount of any outstanding capital notes or debentures that meet the requirements of this section and that are subordinated to unsecured creditors of the state trust company may be included in equity capital of the state trust company for purposes of determining hazardous condition or insolvency, and for such other purposes provided by rules or regulations adopted under this article.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 4 - STATE TRUST COMPANY (§§ 81-27-4.101 — 81-27-4.303) › Subarticle C - PRIVATE TRUST COMPANY (§§ 81-27-4.301 — 81-27-4.303) › Section 81-27-4.303 - Conversion to public trust company

(a)
A private trust company may terminate its status as a private trust company and commence transacting business with the general public. A private trust company desiring to commence transacting business with the general public shall file a notice on a form prescribed by the commissioner, which shall set forth the name of the private trust company and an acknowledgement that any exemption granted or otherwise applicable to the private trust company pursuant to Section
81-27-4.301
shall cease to apply on the effective date of such notice, furnish a copy of the resolution adopted by the board authorizing the private trust company to commence transacting business with the general public, and pay the filing fee, if any, prescribed by the commissioner.
(b)
The notificant may commence transacting business with the general public on the thirty-first day after the date the commissioner receives the notice, unless the commissioner specifies an earlier or later date.
(c)
The thirty-day period of review may be extended by the commissioner on determination that the written notice raises issues that require additional information or additional time for analysis. If the period for review is extended, the notificant may commence transacting business with the public only on prior written approval by the commissioner.
(d)
The commissioner may deny approval of the notice of the private trust company to commence transacting business with the general public if the commissioner finds that the notificant lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness or that the proposed transacting of business of the general public would be contrary to the public interest or if the commissioner determines that the notificant will not within a reasonable period be in compliance with any provision of this chapter from which the notificant had been previously exempted pursuant to Section
81-27-4.301
.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle A - ACQUISITION AND OWNERSHIP OF STATE TRUST COMPANY FACILITIES AND OTHER REAL ESTATE (§§ 81-27-5.001 — 81-27-5.002) › Section 81-27-5.002 - Other real estate

(a)
A state trust company may not acquire real estate except:
(1)
As permitted by Section
81-27-5.001
or as otherwise provided by this chapter, including rules or regulations adopted under this chapter;
(2)
If necessary to avoid or minimize a loss on a loan or investment previously made in good faith; or
(3)
With the prior written approval of the commissioner.
(b)
To the extent reasonably necessary to avoid or minimize loss on real estate acquired as permitted by subsection (a) of this section, a state trust company may exchange real estate for other real estate or personal property, invest additional funds in or improve real estate acquired under this subsection or subsection (a) of this section, or acquire additional real estate.
(c)
A state trust company shall dispose of any real estate subject to subsection (a)(1) and (2) of this section not later than:
(1)
The fifth anniversary of the date:
(A)
It was acquired, except as otherwise provided by rules or regulations adopted under this chapter; or
(B)
It ceases to be used as a state trust company facility; or
(2)
The third anniversary of the date it ceases to be a state trust company facility as provided by Section
81-27-5.001(c)
.
(d)
The commissioner on application may grant one or more extensions of time for disposing of real estate if the commissioner determines that:
(1)
The state trust company has made a good faith effort to dispose of the real estate; or
(2)
Disposal of the real estate would be detrimental to the state trust company.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle B - STATE TRUST COMPANY INVESTMENTS (§§ 81-27-5.101 — 81-27-5.105) › Section 81-27-5.102 - Transactions in state trust company shares or participation shares

(a)
A state trust company may acquire its own shares or participation shares if:
(1)
The amount of its undivided profits is sufficient to fully absorb the acquisition of the shares or participation shares under regulatory accounting principles; or
(2)
The state trust company obtains the prior written approval of the commissioner.
(b)
A state trust company may acquire a lien upon its own shares or participation shares if:
(1)
The aggregate amount of indebtedness so secured is less than the amount of the state trust company's undivided profits; or
(2)
The state trust company obtains the prior written approval of the commissioner.
(c)
Except with the prior written approval of the commissioner:
(1)
The state trust company may not hold its own shares or participation shares as treasury stock for more than two (2) years; and
(2)
A lien acquired under this section may not by its original terms extend for more than two (2) years.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle B - STATE TRUST COMPANY INVESTMENTS (§§ 81-27-5.101 — 81-27-5.105) › Section 81-27-5.103 - Subsidiaries

(a)
Except as otherwise provided by this article or rules or regulations adopted under this article, a state trust company may acquire or establish a subsidiary to conduct any activity that may lawfully be conducted through the form of organization chosen for the subsidiary.
(b)
A state trust company may not invest more than an amount equal to fifteen percent (15%) of its capital in a single subsidiary and may not invest an amount in excess of its restricted capital in all subsidiaries. The amount of a state trust company's investment in a subsidiary is the total amount of the state trust company's investment in equity or investment securities issued by its subsidiary and any loans and extensions of credit from the state trust company to its subsidiary. The commissioner may authorize investments in excess of these limitations on written application if the commissioner concludes that:
(1)
The excess investment is not prohibited by other applicable law; and
(2)
The safety and soundness of the requesting state trust company is not adversely affected.
(c)
A state trust company that intends to acquire, establish, or perform new activities through a subsidiary shall submit a letter to the commissioner describing in detail the proposed activities of the subsidiary.
(d)
The state trust company may acquire or establish a subsidiary or begin performing new activities in an existing subsidiary on the thirty-first day after the date the commissioner receives the state trust company's letter, unless the commissioner specifies an earlier or later date. The commissioner may extend the thirty-day period of review on a determination that the state trust company's letter raises issues that require additional information or additional time for analysis. If the period of review is extended, the state trust company may acquire or establish the subsidiary, or perform new activities in an existing subsidiary, only on prior written approval of the commissioner.
(e)
A subsidiary of a state trust company is subject to regulation by the commissioner to the extent provided by this article or rules or regulations adopted under this article. In the absence of limiting rules or regulations, the commissioner may regulate a subsidiary as if it were a state trust company.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle B - STATE TRUST COMPANY INVESTMENTS (§§ 81-27-5.101 — 81-27-5.105) › Section 81-27-5.104 - Mutual funds

(a)
A state trust company may invest for its own account in equity securities of an investment company registered under the Investment Company Act of 1940 (15 USCS Section 80a-1 et seq.) and the Securities Act of 1933 (15 USCS Section 77a et seq.) if the portfolio of the investment company consists wholly of investments in which the state trust company could invest directly for its own account.
(b)
If the portfolio of an investment company described in subsection (a) of this section consists wholly of investments in which the state trust company could invest directly without limitation under Section
81-27-5.101(d)
, the state trust company may invest in the investment company without limitation.
(c)
If the portfolio of an investment company described in subsection (a) of this section contains any investment that is subject to the limits of Section
81-27-5.101(c)
, the state trust company may invest in the investment company not more than an amount equal to fifteen percent (15%) of the state trust company's capital. This provision does not apply to a money market fund.
(d)
In evaluating investment limits under this article, a state trust company may not be required to combine:
(1)
The state trust company's pro rata share of the securities of an issuer in the portfolio of an investment company with the state trust company's pro rata share of the securities of that issuer held by another investment company in which the state trust company has invested; or
(2)
The state trust company's own direct investment in the securities of an issuer with the state trust company's pro rata share of the securities of that issuer held by each investment company in which the state trust company has invested under this section.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle B - STATE TRUST COMPANY INVESTMENTS (§§ 81-27-5.101 — 81-27-5.105) › Section 81-27-5.105 - Engaging in commerce prohibited

Except as otherwise provided by this chapter or rules adopted under this chapter, a state trust company may not invest its funds in trade or commerce by buying, selling, or otherwise dealing in goods or by owning or operating a business not part of the state trust business, except as necessary to fulfill a fiduciary obligation to a client.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle C - LOANS (§§ 81-27-5.201 — 81-27-5.202) › Section 81-27-5.201 - Lending limits

(a)
A state trust company's total outstanding loans and extensions of credit to a person other than an insider may not exceed an amount equal to fifteen percent (15%) of the state trust company's capital.
(b)
The aggregate loans and extensions of credit outstanding at any time to insiders of the state trust company may not exceed an amount equal to fifteen percent (15%) of the state trust company's capital. All covered transactions between an insider and a state trust company must be engaged in only on terms and under circumstances, including credit standards, that are substantially the same as those for comparable transactions with a noninsider.
(c)
The commissioner may adopt rules or regulations to administer and carry out this section, including rules to establish limits, requirements, or exemptions other than those specified by this section for particular classes or categories of loans or extensions of credit, and establish collective lending and investment limits.
(d)
The commissioner may determine whether a loan or extension of credit putatively made to a person will be attributed to another person for purposes of this section.
(e)
A state trust company may not lend trust deposits, except that a trustee may make a loan to a beneficiary of the trust if the loan is expressly authorized or directed by the instrument or transaction establishing the trust.
(f)
An officer, director, manager, managing participant, or employee of a state trust company who approves or participates in the approval of a loan with actual knowledge that the loan violates this section is jointly and severally liable to the state trust company for the lesser of the amount by which the loan exceeded applicable lending limits or the state trust company's actual loss and remains liable for that amount until the loan and all prior indebtedness of the borrower to the state trust company has been fully repaid. The state trust company may initiate a proceeding to collect an amount due under this subsection at any time before the date the borrower defaults on the subject loan or any prior indebtedness or before the fourth anniversary of that date. A person that is liable for and pays amounts to the state trust company under this subsection is entitled to an assignment of the state trust company's claim against the borrower to the extent of the payments. For purposes of this subsection, an officer, director, manager, managing participant, or employee of a state trust company is presumed to know the amount of the state trust company's lending limit under subsection (a) of this section and the amount of the borrower's aggregate outstanding indebtedness to the state trust company immediately before a new loan or extension of credit to that borrower.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle C - LOANS (§§ 81-27-5.201 — 81-27-5.202) › Section 81-27-5.202 - Lease financing transactions

(a)
Subject to rules or regulations adopted under this chapter, a state trust company may become the owner and lessor of tangible personal property for lease financing transactions on a net lease basis on the specific request and for the use of a client. Without the written approval of the commissioner to continue holding property acquired for leasing purposes under this subsection, the state trust company may not hold the property more than six (6) months after the date of expiration of the original or any extended or renewed lease period agreed to by the client for whom the property was acquired or by a subsequent lessee.
(b)
Rental payments received by the trust company in a lease financing transaction under this section are considered to be rent and not interest or compensation for the use, forbearance, or detention of money. However, a lease financing transaction is considered to be a loan or extension of credit for purposes of Section
81-27-5.201
.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle D - TRUST DEPOSITS (§§ 81-27-5.301 — 81-27-5.302) › Section 81-27-5.301 - Trust deposits

(a)
A state trust company may deposit trust funds with itself as an investment if authorized by the settlor or the beneficiary provided:
(1)
It maintains as security for the deposits a separate fund of securities, legal for trust investments, under control of a federal reserve bank or a clearing corporation, as defined by Section
75-8-102
, either in this state or elsewhere;
(2)
The total market value of the security is at all times at least equal to the amount of the deposit;
(3)
The separate fund is designated as such; and
(4)
The separate fund is maintained under the control of another trust institution, bank or government agency.
(b)
A state trust company may make periodic withdrawals from or additions to the securities fund required by subsection (a) of this section as long as the required value is maintained. Income from the securities in the fund belongs to the state trust company.
(c)
Security for a deposit under this section is not required for a deposit under subsection (a) of this section to the extent the deposit is insured by the Federal Deposit Insurance Corporation or its successor.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle D - TRUST DEPOSITS (§§ 81-27-5.301 — 81-27-5.302) › Section 81-27-5.302 - Common investment funds

(a)
A state trust company may establish common trust funds to provide investment to itself as a fiduciary.
(b)
The commissioner may adopt rules to administer and carry out this section, including but not limited to rules to establish investment and participation limitations, disclosure of fees, audit requirements, limit or expand investment authority for particular classes or categories of securities or other property, advertising, exemptions, and other requirements that may be necessary to carry out this section.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle E - LIABILITIES AND PLEDGE OF ASSETS (§§ 81-27-5.401 — 81-27-5.402) › Section 81-27-5.401 - Borrowing limit

Except with the prior written approval of the commissioner, a state trust company may not have liabilities outstanding exceeding an amount equal to five (5) times its capital.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 5 - INVESTMENTS, LOANS AND DEPOSITS (§§ 81-27-5.001 — 81-27-5.402) › Subarticle E - LIABILITIES AND PLEDGE OF ASSETS (§§ 81-27-5.401 — 81-27-5.402) › Section 81-27-5.402 - Pledge of asset

A state trust company may not pledge or create a lien on any of its assets except to secure the repayment of money borrowed or as specifically authorized or required by Section
81-27-5.301
, or by rules or regulations adopted under this article. An act, deed, conveyance, pledge, or contract in violation of this section is void.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle B - TRANSFER OF OWNERSHIP INTEREST IN STATE TRUST COMPANY (§§ 81-27-6.101 — 81-27-6.106) › Section 81-27-6.101 - Acquisition of control

(a)
Except as expressly otherwise permitted, a person may not without the prior written approval of the commissioner directly or indirectly acquire control of a state trust company through a change in a legal or beneficial interest in voting securities of a state trust company or a corporation or other entity owning voting securities of a state trust company.
(b)
This subarticle does not prohibit a person from negotiating to acquire, but not acquiring, control of a state trust company or a person that controls a state trust company.
(c)
This section does not apply to:
(1)
The acquisition of securities in connection with the exercise of a security interest or otherwise in full or partial satisfaction of a debt previously contracted for in good faith if the acquiring person files written notice of acquisition with the commissioner before the person votes the securities acquired;
(2)
The acquisition of voting securities in any class or series by a controlling person who has previously complied with and received approval under this subarticle or who was identified as a controlling person in a prior application filed with and approved by the commissioner;
(3)
An acquisition or transfer by operation of law, will, or intestate succession if the acquiring person files written notice of acquisition with the commissioner before the person votes the securities acquired;
(4)
A transaction exempted by the commissioner by rule, regulation or order because the transaction is not within the purposes of this subarticle or the regulation of which is not necessary or appropriate to achieve the objectives of this subarticle.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle B - TRANSFER OF OWNERSHIP INTEREST IN STATE TRUST COMPANY (§§ 81-27-6.101 — 81-27-6.106) › Section 81-27-6.102 - Application regarding acquisition of control

(a)
The proposed transferee seeking approval to acquire control of a state trust company or a person that controls a state trust company must file with the commissioner:
(1)
An application in the form prescribed by the commissioner;
(2)
The filing fee required by statute, rule or regulation;
(3)
All information required by rule or that the commissioner requires in a particular application as necessary to an informed decision to approve or reject the proposed acquisition.
(b)
If the proposed transferee includes any group of individuals or entities acting in concert, the information required by the commissioner may be required of each member of the group.
(c)
Information obtained by the commissioner under this section is confidential and may not be disclosed by the commissioner or any employee of the department except as provided by Subarticle B of Article 2 of this chapter.
(d)
If the proposed transferee is not a Mississippi resident, a Mississippi corporation, or an out-of-state corporation qualified to do business in this state, a written consent to service of process on a resident of this state in any action or suit arising out of or connected with the proposed acquisition.
(e)
The proposed transferee must publish notice of the application, its date of filing, and the identity of each participant, in the form specified by the commissioner, in a newspaper of general circulation in the county where the state trust company's home office is located, promptly after the commissioner accepts the application as complete. Publication of notice of an application filed in contemplation of a public tender offer subject to the requirements of 15 USCS Section 78n(d)(1) may be deferred for not more than thirty-four (34) days after the date the application is filed if:
(1)
The proposed transferee requests confidential treatment and represents that a public announcement of the tender offer and the filing of appropriate forms with the Securities and Exchange Commission or the appropriate federal banking agency, as applicable, will occur within the period of deferral; and
(2)
The commissioner determines that the public interest will not be harmed by the requested confidential treatment.
(f)
The commissioner may waive the requirement that a notice be published or permit delayed publication on a determination that waiver or delay is in the public interest.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle B - TRANSFER OF OWNERSHIP INTEREST IN STATE TRUST COMPANY (§§ 81-27-6.101 — 81-27-6.106) › Section 81-27-6.103 - Hearing and decision on acquisition of control

(a)
Not later than the sixtieth day after the date the notice is published, the commissioner shall approve the application or set the application for hearing. If the commissioner sets a hearing, the commissioner shall conduct a hearing and one or more prehearing conferences and opportunities for discovery as the commissioner considers advisable and consistent with governing statutes and rules. A hearing held under this section is confidential and closed to the public.
(b)
Based on the record, the commissioner may issue an order denying an application if:
(1)
The acquisition would substantially lessen competition, be in restraint of trade, result in a monopoly, or be in furtherance of a combination or conspiracy to monopolize or attempt to monopolize the trust industry in any part of this state, unless:
(A)
The anticompetitive effects of the proposed acquisition are clearly outweighed in the public interest by the probable effect of acquisition in meeting the convenience and needs of the community to be served; and
(B)
The proposed acquisition is not in violation of law of this state or the United States;
(2)
The financial condition of the proposed transferee, or any member of a group composing the proposed transferee, might jeopardize the financial stability of the state trust company being acquired;
(3)
Plans or proposals to operate, liquidate, or sell the state trust company or its assets are not in the best interests of the state trust company;
(4)
The experience, ability, standing, competence, trustworthiness, and integrity of the proposed transferee, or any member of a group comprising the proposed transferee, are insufficient to justify a belief that the state trust company will be free from improper or unlawful influence or interference with respect to the state trust company's operation in compliance with law;
(5)
The state trust company will not be solvent, have adequate capitalization, or be in compliance with the laws of this state after the acquisition;
(6)
The proposed transferee has failed to furnish all information pertinent to the application reasonably required by the commissioner; or
(7)
The proposed transferee is not acting in good faith.
(c)
If an application filed under this section is approved by the commissioner, the transaction may be consummated. Any written commitment from the proposed transferee offered to and accepted by the commissioner as a condition that the application will be approved is enforceable against the state trust company and the transferee and is considered for all purposes an agreement under this chapter.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle B - TRANSFER OF OWNERSHIP INTEREST IN STATE TRUST COMPANY (§§ 81-27-6.101 — 81-27-6.106) › Section 81-27-6.104 - Appeal from adverse decision

(a)
If a hearing has been held, the commissioner has entered an order denying the application, and the order has become final, the proposed transferee may appeal the final order to the Chancery Court of the First Judicial District of Hinds County, Mississippi.
(b)
The filing of an appeal under this section does not stay the order of the commissioner.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle B - TRANSFER OF OWNERSHIP INTEREST IN STATE TRUST COMPANY (§§ 81-27-6.101 — 81-27-6.106) › Section 81-27-6.105 - Objection to other transfer

This subarticle may not be construed to prevent the commissioner from investigating, commenting on, or seeking to enjoin or set aside a transfer of voting securities that evidence a direct or indirect interest in a state trust company, regardless of whether the transfer is included within this subarticle, if the commissioner considers the transfer to be against the public interest.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle B - TRANSFER OF OWNERSHIP INTEREST IN STATE TRUST COMPANY (§§ 81-27-6.101 — 81-27-6.106) › Section 81-27-6.106 - Civil enforcement; criminal penalties

(a)
The commissioner may bring any appropriate civil action against any person who the commissioner believes has committed or is about to commit a violation of this subarticle or a rule, regulation or order of the commissioner pertaining to this subarticle.
(b)
A person who knowingly fails or refuses to file the application required by Section
81-27-6.102
is guilty of a misdemeanor and, upon conviction hereof, shall be fined not more than One Thousand Dollars ($1,000.00).
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle C - BOARD AND OFFICERS (§§ 81-27-6.201 — 81-27-6.211) › Section 81-27-6.201 - Voting securities held by state trust company

(a)
Voting securities of a state trust company held by the state trust company in a fiduciary capacity under a will or trust, whether registered in its own name or in the name of its nominee, may not be voted in the election of directors or managers or on a matter affecting the compensation of directors, managers, officers, or employees of the state trust company in that capacity, unless:
(1)
Under the terms of the will or trust, the manner in which the voting securities are to be voted may be determined by a donor or beneficiary of the will or trust and the donor or beneficiary actually makes the determination in the matter at issue;
(2)
The terms of the will or trust expressly direct the manner in which the securities must be voted to the extent that no discretion is vested in the state trust company as fiduciary; or
(3)
The securities are voted solely by a cofiduciary that is not an affiliate of the state trust company, as if the cofiduciary were the sole fiduciary.
(b)
Voting securities of a state trust company that cannot be voted under this section are considered to be authorized but unissued for purposes of determining the procedures for and results of the affected vote.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle C - BOARD AND OFFICERS (§§ 81-27-6.201 — 81-27-6.211) › Section 81-27-6.202 - Bylaws

(a)
Each state trust company shall adopt bylaws and may amend its bylaws from time to time for the purposes and in accordance with the procedures set forth in the Mississippi Business Corporation Act.
(b)
A limited liability trust company in which management is retained by the participants is not required to adopt bylaws if provisions required by law to be contained in the bylaws are contained in the articles of association or the participation agreement. If a limited liability trust company has adopted bylaws which designate each full liability participant, the limited liability trust company shall file with the commissioner a copy of the bylaws. Solely that portion of the bylaws designating each full liability participant shall be a public record.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle C - BOARD AND OFFICERS (§§ 81-27-6.201 — 81-27-6.211) › Section 81-27-6.204 - Required board meetings

The board of a state trust company shall hold at least one (1) regular meeting each quarter. At each regular meeting the board shall review and approve the minutes of the prior meeting and review the operations, activities, and financial condition of the state trust company. The board may designate committees from among its members to perform these duties and approve or disapprove the committees' reports at each regular meeting. All actions of the board must be recorded in its minutes.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle C - BOARD AND OFFICERS (§§ 81-27-6.201 — 81-27-6.211) › Section 81-27-6.205 - Officers

(a)
The board shall annually appoint the officers of the state trust company, who serve at the pleasure of the board. The state trust company must have a principal executive officer primarily responsible for the execution of board policies and operation of the state trust company and an officer responsible for the maintenance and storage of all corporate books and records of the state trust company and for required attestation of signatures. These positions may not be held by the same person. The board may appoint other officers of the state trust company as the board considers necessary.
(b)
Unless expressly authorized by a resolution of the board recorded in its minutes, an officer or employee may not create or dispose of a state trust company asset or create or incur a liability on behalf of the state trust company.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle C - BOARD AND OFFICERS (§§ 81-27-6.201 — 81-27-6.211) › Section 81-27-6.206 - Certain criminal offenses

(a)
An officer, director, manager, managing participant, employee, shareholder, or participant of a state trust company commits an offense if the person knowingly:
(1)
Conceals information or a fact, or removes, destroys, or conceals a book or record of the state trust company for the purpose of concealing information or a fact from the commissioner or an agent of the commissioner; or
(2)
For the purpose of concealing, removes or destroys any book or record of the state trust company that is material to a pending or anticipated legal or administrative proceeding.
(b)
An officer, director, manager, managing participant, or employee of a state trust company commits an offense if the person knowingly makes a false entry in the books or records or in any report or statement of the state trust company.
(c)
Any person committing an offense under this section is guilty of a felony and, upon conviction thereof, shall be fined not more than Ten Thousand Dollars ($10,000.00), or imprisoned in the State Penitentiary for not more than one (1) year, or both.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle C - BOARD AND OFFICERS (§§ 81-27-6.201 — 81-27-6.211) › Section 81-27-6.208 - Fiduciary responsibility

The board of a state trust company is responsible for the proper exercise of fiduciary powers by the state trust company and each matter pertinent to the exercise of fiduciary powers, including:
(1)
The determination of policies;
(2)
The investment and disposition of property held in a fiduciary capacity; and
(3)
The direction and review of the actions of each officer, employee, and committee used by the state trust company in the exercise of its fiduciary powers.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle C - BOARD AND OFFICERS (§§ 81-27-6.201 — 81-27-6.211) › Section 81-27-6.209 - Record keeping

A state trust company shall keep its fiduciary records separate and distinct from other records of the state trust company. The fiduciary records must contain all material information relative to each account as appropriate under the circumstances.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle C - BOARD AND OFFICERS (§§ 81-27-6.201 — 81-27-6.211) › Section 81-27-6.210 - Bonding requirements

(a)
The board of a state trust company shall require protection and indemnity for clients in reasonable amounts established by rules or regulations adopted under this article, against dishonesty, fraud, defalcation, forgery, theft, and other similar insurable losses, with corporate insurance or surety companies:
(1)
Authorized to do business in this state; or
(2)
Acceptable to the commissioner and otherwise lawfully permitted to issue the coverage against those losses in this state.
(b)
Except as otherwise provided by rule or regulation, coverage required under subsection (a) of this section must include each director, manager, managing participant, officer, and employee of the state trust company without regard to whether the person receives salary or other compensation.
(c)
A state trust company may apply to the commissioner for permission to eliminate the bonding requirement of this section for a particular individual. The commissioner shall approve the application if the commissioner finds that the bonding requirement is unnecessary or burdensome. Unless the application presents novel or unusual questions, the commissioner shall approve the application or set the application for hearing not later than the sixty-first day after the date the commissioner considers the application complete and accepted for filing.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle C - BOARD AND OFFICERS (§§ 81-27-6.201 — 81-27-6.211) › Section 81-27-6.211 - Reports of apparent crime

A trust company that is the victim of a robbery, has a shortage of corporate or fiduciary funds in excess of Five Thousand Dollars ($5,000.00), or is the victim of an apparent or suspected misapplication of its corporate or fiduciary funds or property in any amount by a director, manager, managing participant, officer, or employee shall report such robbery, shortages or apparent or suspected misapplication to the commissioner within forty-eight (48) hours after the time it is discovered. The initial report may be oral if the report is promptly confirmed in writing. The trust company or a director, manager, managing participant, officer, employee, or agent is not subject to liability for defamation or another charge resulting from information supplied in the report.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle D - SPECIAL PROVISIONS FOR LIMITED LIABILITY TRUST COMPANIES (§§ 81-27-6.301 — 81-27-6.310) › Section 81-27-6.301 - Filing of notice of full liability

(a)
A limited liability trust company shall file with the commissioner a copy of any participation agreement by which a participant of the limited liability trust company agrees to become a full liability participant and the name and address of each full liability participant. Solely that portion of the filed copy containing the designation of each full liability participant shall be a public record.
(b)
The commissioner may require a complete copy of the participation agreement to be filed with the department, regardless of whether the state trust company has a full liability participant, except that the provisions of the participation agreement other than those by which a participant of the limited liability trust company agrees to become a full liability participant are confidential and subject to release only as provided by Subarticle B of Article 2 of this chapter.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle D - SPECIAL PROVISIONS FOR LIMITED LIABILITY TRUST COMPANIES (§§ 81-27-6.301 — 81-27-6.310) › Section 81-27-6.302 - Liability of participants and managers

(a)
Except as provided by subsection (b) of this section, the participants, participant-transferees, and managers of a limited liability trust company may not be held liable for a debt, obligation, or liability of the limited liability trust company, including a debt, obligation, or liability under a judgment, decree, or order of court. A participant, other than a full liability participant, or a manager of a limited liability trust company is not a proper party to proceedings by or against a limited liability trust company, unless the object of the proceeding is to enforce a participant's or manager's right against or liability to a limited liability trust company.
(b)
A full liability participant of a limited liability trust company is liable under a judgment, decree, or order of court for a debt, obligation, or liability of the limited liability trust company that accrued during the participation of the full liability participant in the limited liability trust company and before the full liability participant or a successor in interest files a notice of withdrawal as a full liability participant from the limited liability trust company with the commissioner. The filed notice of withdrawal is a public record.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.
Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 27 - MULTISTATE, STATE AND LIMITED LIABILITY TRUST INSTITUTIONS (§§ 81-27-1.001 — 81-27-8.131) › Article 6 - ADDITIONAL DEFINITIONS; OWNERSHIP; GOVERNANCE; MERGERS (§§ 81-27-6.001 — 81-27-6.408) › Subarticle D - SPECIAL PROVISIONS FOR LIMITED LIABILITY TRUST COMPANIES (§§ 81-27-6.301 — 81-27-6.310) › Section 81-27-6.303 - Contracting debts and obligations

Except as provided by this section or the articles of association of the limited liability trust company, debts, liabilities, and other obligations may be contracted for or incurred on behalf of a limited liability trust company by:
(1)
A majority of the managers, if management of the limited liability trust company has been vested in a board of managers;
(2)
A majority of the managing participants; or
(3)
An officer or other agent vested with actual or apparent authority to contract for or incur the debt, liability, or other obligation.
Laws, 1998, ch. 437, § 1, eff. 7/1/1998.