7-1-317. Minimum amount of capital.

The department may require, based on safety and soundness, that a trust company maintain a minimum amount of capital, provided that such amount shall in no event be less than $3 million. The department may alter the amount of capital required to be maintained by a trust company from time to time as may be necessary for the safe and sound operation of such trust company.#

The department may consider the following in establishing the minimum amount of capital:#

1. (1)

   The nature and type of business to be conducted;#

2. (2)

   The nature and liquidity of assets to be held;#

3. (3)

   The amount of fiduciary assets to be under management of the trust company;#

4. (4)

   The type of fiduciary assets to be held and the depository for such assets;#

5. (5)

   The complexity of fiduciary duties and degree of discretion to be undertaken;#

6. (6)

   The competence and experience of management;#

7. (7)

   The extent and adequacy of internal controls;#

8. (8)

   The presence or absence of annual unqualified audits by an independent certified public accountant;#

9. (9)

   The reasonableness of business plans for retaining or acquiring additional equity capital;#

10. (10)

    The existence and adequacy of insurance to protect the clients, beneficiaries, and grantors of the trust company;#

11. (11)

    Any history of operating losses;#

12. (12)

    Any history of loss in relation to fiduciary or custodial accounts; and#

13. (13)

    The amount of support from the trust company’s parent or affiliate.#