HB 176

Enrolled Copy  H.B. 176
1Trust Business Modifications
  2026 GENERAL SESSION
  STATE OF UTAH
  Chief Sponsor: Anthony E. Loubet
  Senate Sponsor: Todd Weiler
2
3  LONG TITLE
4  General Description:
5     This bill amends provisions relating to trust business.
6  Highlighted Provisions:
7     This bill:
8     ▸ defines terms;
9     ▸ reorganizes and renumbers the sections of Title 7, Chapter 5, Trust Business;
10     ▸ exempts certain persons from the definition of trust business; and
11     ▸ makes technical changes.
12  Money Appropriated in this Bill:
13     None
14  Other Special Clauses:
15     None
16  Utah Code Sections Affected:
17  AMENDS:
18     7-1-401, as last amended by Laws of Utah 2022, Chapter 449
19     7-1-701, as last amended by Laws of Utah 2014, Chapter 97
20     7-5-11, as last amended by Laws of Utah 2025, Chapter 310
21     7-18a-302, as enacted by Laws of Utah 1996, Chapter 63
22     7-22-101, as last amended by Laws of Utah 2020, Chapter 365
23     16-15-102, as enacted by Laws of Utah 1995, Chapter 310
24     31A-23a-406, as last amended by Laws of Utah 2024, Chapter 120
25     31A-23a-409, as last amended by Laws of Utah 2023, Chapters 111, 194
26     59-10-202, as last amended by Laws of Utah 2025, First Special Session, Chapter 9
27     75B-1-101, as last amended by Laws of Utah 2025, Chapters 310, 338
     H.B. 176  Enrolled Copy
2875B-3-107, as renumbered and amended by Laws of Utah 2025, Chapter 310
29   ENACTS:
307-5-102, Utah Code Annotated 1953
31   RENUMBERS AND AMENDS:
327-5-101, (Renumbered from 7-5-1, as last amended by Laws of Utah 2025, Chapters
33310, 338 and 533)
347-5-103, (Renumbered from 7-5-2, as last amended by Laws of Utah 2014, Chapter 189)
357-5-104, (Renumbered from 7-5-3, as last amended by Laws of Utah 2025, Chapter 302)
367-5-105, (Renumbered from 7-5-4, as last amended by Laws of Utah 2010, Chapter 378)
377-5-106, (Renumbered from 7-5-5, as last amended by Laws of Utah 2001, Chapter 9)
387-5-107, (Renumbered from 7-5-6, as last amended by Laws of Utah 2025, Chapter 310)
397-5-108, (Renumbered from 7-5-7, as last amended by Laws of Utah 2025, Chapter 310)
407-5-109, (Renumbered from 7-5-8, as last amended by Laws of Utah 2014, Chapter 189)
417-5-110, (Renumbered from 7-5-9, as last amended by Laws of Utah 2010, Chapter 93)
427-5-111, (Renumbered from 7-5-10, as last amended by Laws of Utah 2025, Chapter
43310)
447-5-112, (Renumbered from 7-5-11, as last amended by Laws of Utah 2025, Chapter
45310)
467-5-113, (Renumbered from 7-5-12, as last amended by Laws of Utah 2025, Chapter
47302)
487-5-114, (Renumbered from 7-5-13, as last amended by Laws of Utah 2023, Chapter
49401)
507-5-115, (Renumbered from 7-5-14, as last amended by Laws of Utah 2007, Chapter
51277)
527-5-116, (Renumbered from 7-5-15, as last amended by Laws of Utah 2014, Chapter
53189)
54
55   Be it enacted by the Legislature of the state of Utah:
56Section 1. Section 7-1-401 is amended to read:
577-1-401 . Fees payable to commissioner.
58   (1) Except for an out-of-state depository institution with a branch in Utah, a depository
59institution under the jurisdiction of the department shall pay an annual fee:
60(a) computed by averaging the total assets of the depository institution shown on each
61quarterly report of condition for the depository institution for the calendar year
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62immediately preceding the date on which the annual fee is due under Section 7-1-402;
63and
64      (b) at the following rates:
65(i) on the first $5,000,000 of these assets, the greater of:
66(A) 65 cents per $1,000; or
67(B) $500;
68(ii) on the next $10,000,000 of these assets, 35 cents per $1,000;
69(iii) on the next $35,000,000 of these assets, 15 cents per $1,000;
70(iv) on the next $50,000,000 of these assets, 12 cents per $1,000;
71(v) on the next $200,000,000 of these assets, 10 cents per $1,000;
72(vi) on the next $300,000,000 of these assets, 6 cents per $1,000; and
73(vii) on all amounts over $600,000,000 of these assets, 2 cents per $1,000.
74  (2) A financial institution with a trust department shall pay a fee determined in accordance
75      with Subsection (7) for each examination of the trust department by a state examiner.
76  (3) Notwithstanding Subsection (1), a credit union in [its] the credit union's first year of
77      operation shall pay a basic fee of $25 instead of the fee required under Subsection (1).
78  (4) A trust company that is not a depository institution or a subsidiary of a depository
79      institution holding company shall pay:
80      (a) an annual fee of $500; and
81      (b) an additional fee determined in accordance with Subsection (7) for each examination
82by a state examiner.
83  (5) Any person or institution under the jurisdiction of the department that does not pay a fee
84      under Subsections (1) through (4) shall pay:
85      (a) an annual fee of $200; and
86      (b) an additional fee determined in accordance with Subsection (7) for each examination
87by a state examiner.
88  (6) A person filing an application or request under Section 7-1-503, 7-1-702, 7-1-703,
89      7-1-704, 7-1-713, [7-5-3] 7-5-104, or 7-18a-202 shall pay:
90      (a)(i) a filing fee of $500 if on the day on which the application or request is filed the
91person:
92(A) is a person with authority to transact business as a depository institution, a
93trust company, or any other person described in Section 7-1-501 as being
94subject to the jurisdiction of the department; and
95(B) has total assets in an amount less than $5,000,000; or
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96(ii) a filing fee of $2,500 for any person not described in Subsection (6)(a)(i); and
97(b) all reasonable expenses incurred in processing the application.
98   (7)(a) Per diem assessments for an examination shall be calculated at the rate of $55 per
99hour:
100(i) for each examiner; and
101(ii) per hour worked.
102(b) For an examination of a branch or office of a financial institution located outside of
103this state, in addition to the per diem assessment under this Subsection (7), the
104institution shall pay all reasonable travel, lodging, and other expenses incurred by
105each examiner while conducting the examination.
106   (8) In addition to a fee under Subsection (5), a person registering under Section 7-23-201,
1077-24-201, or 7-27-201 shall pay an original registration fee of $300.
108   (9) In addition to a fee under Subsection (5), a person applying for licensure under Chapter
10925, Money Transmitter Act, shall pay an original license fee of $300.
110Section 2. Section 7-1-701 is amended to read:
1117-1-701 . Representing and transacting business as financial institution restricted
112   -- Restricted names -- Penalty.
113   (1) As used in this section, "transact business" includes:
114(a) advertising;
115(b) representing oneself in any manner as being engaged in transacting business;
116(c) registering an assumed name under which to transact business; or
117(d) using an assumed business name, sign, letterhead, business card, promotion, or other
118indication that one is transacting business.
119   (2) Unless authorized by the department or an agency of the federal government to do so, it
120is unlawful for a person to:
121(a) transact business as a:
122(i) bank;
123(ii) savings and loan association;
124(iii) savings bank;
125(iv) industrial bank;
126(v) credit union;
127(vi) trust company; or
128(vii) other financial or depository institution; or
129(b) engage in any other activity subject to the jurisdiction of the department.
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130  (3)(a) Except as provided in Subsections (3)(b) through (d), only the following may
131      transact business in this state under a name that includes "bank," "banker," "banking,"
132      "banque," "banc," "banco," "bancorp," "bancorporation," a derivative of these words,
133      or another word or combination of words reasonably identifying the business of a
134      bank:
135(i) a national bank;
136(ii) a bank authorized to do business under Chapter 3, Banks;
137(iii) a bank holding company; or
138(iv) an industrial bank.
139      (b) A person authorized to operate in this state as a credit card bank, as described in
140Section 7-3-3:
141(i) may transact business under the name "credit card bank"; and
142(ii) may not transact business under the name of "bank" unless it is immediately
143preceded by "credit card."
144      (c) A nonbank subsidiary of a bank holding company may transact business under a
145name restricted in Subsection (3)(a) if the name:
146(i) is also part of the name of its parent holding company; or
147(ii) is used for a group of subsidiaries of the parent holding company.
148      (d) A bona fide trade association of authorized banks recognized by the commissioner
149may transact its affairs in this state under a name restricted under Subsection (3)(a) if
150it does not operate and does not hold itself out to the public as operating a depository
151or financial institution.
152  (4)(a) Except as provided in Subsection (4)(b), only the following may transact business
153      in this state under a name that includes "savings association," "savings and loan
154      association," "building and loan association," "building association," a derivative of
155      these words, or another word or combination of words reasonably identifying the
156      business of a savings and loan association:
157(i) a federal savings and loan association; or
158(ii) a federal savings bank.
159      (b) A national bank may transact business under a name restricted in Subsection (4)(a) if
160the restricted words are part of the bank's corporate name.
161  (5) Only the following may transact business under the name "savings bank":
162      (a) a depository institution listed in Subsection (3)(a);
163      (b) a depository institution listed in Subsection (4)(a); or
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164(c) a depository institution authorized under the law of another state to operate in this
165state as a savings bank.
166   (6)(a) Only an industrial loan company authorized to do business under Chapter 8,
167Industrial Banks, to the extent permitted by Section 7-8-21, may transact business in
168this state under a name that includes "industrial loan company," "ILC," or another
169word, combination of words, or abbreviation reasonably identifying the business of
170an industrial loan company.
171(b) Only an industrial bank authorized to do business under Chapter 8, Industrial Banks,
172may transact business in this state under a name that includes "industrial bank,"
173"thrift," or another word, combination of words, or abbreviation reasonably
174identifying the business of an industrial bank.
175   (7)(a) Except as provided in Subsection (7)(b), only a credit union authorized to do
176business under the laws of the United States or Chapter 9, Utah Credit Union Act,
177may transact business in this state under a name that includes "credit union" or
178another word or combination of words reasonably identifying the business of a credit
179union.
180(b) The restriction in Subsection (7)(a) does not apply to a bona fide trade association of
181authorized credit unions recognized by the commissioner, a credit union chapter, or
182another association affiliated with a bona fide trade association of authorized credit
183unions recognized by the commissioner that restricts its services primarily to credit
184unions.
185   (8)(a) Except as provided in Subsection (8)(b), only a person granted trust powers under
186Chapter 5, Trust Business, may transact business in this state under a name that
187includes "trust," "trustee," "trust company," or another word or combination of words
188reasonably identifying the business of a trust company.
189(b) A business entity organized as a business trust, as defined in Section [7-5-1] 7-5-101,
190may use "business trust" in its name if it does not hold itself out as being a trust
191company.
192   (9) The restrictions of Subsections (3) through (8) do not apply to:
193(a) the name under which an out-of-state depository institution operates a loan
194production office in this state, if the commissioner approves the name as not being
195reasonably likely to mislead the public;
196(b) the name under which a service organization of a financial institution transacts
197business, if the commissioner approves the name as not being reasonably likely to
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198mislead the public;
199      (c) the name under which a subsidiary of a depository or financial institution transacts
200business, if the commissioner approves the name as not being reasonably likely to
201mislead the public; or
202      (d) a trade association or other nonprofit organization composed of members of a
203particular class of financial institutions using words applicable to that class.
204  (10)(a) Upon written request, the commissioner may grant an exemption to this section
205      if the commissioner finds that the use of an otherwise restricted name or word is not
206      reasonably likely to cause confusion or lead the public to believe that the person
207      requesting the exemption is a depository or financial institution or is conducting a
208      business subject to the jurisdiction of the department.
209      (b) In granting an exemption under Subsection (10)(a), the commissioner may restrict or
210condition the use of the name or word or the activities of the person or business as the
211commissioner considers necessary to protect the public.
212  (11)(a) A person and a principal and officer of a business entity violating this section is
213      guilty of a class A misdemeanor. Each day of violation constitutes a separate offense.
214      (b) In addition to a criminal penalty imposed under Subsection (11)(a), the
215commissioner may issue a cease and desist order against a person violating this
216section. The commissioner may impose a civil penalty of up to $500 for each day the
217person fails to comply with the cease and desist order.
218Section 3. Section 7-5-11 is amended to read:
2197-5-11 . Self-dealing with trust property -- Own stock as trust property -- Policies
220  for dealing with trust securities.
221  (1) Except as provided in Section [7-5-7] 7-5-109, in Title 75B, Trusts, or as authorized
222      under the instrument creating the relationship, a trust company may not invest funds
223      held as an agent or fiduciary in stock or obligations of, or with such funds acquire
224      property from, the trust company or any of its directors, officers or employees, nor shall
225      a trust company sell property held as an agent or fiduciary to the company or to any of
226      its directors, officers, or employees.
227  (2) A trust company may retain and vote stock of the trust company or of any of its
228      affiliates received by it as assets of any trust account or in any other fiduciary
229      relationship of which it is appointed agent or fiduciary, unless the instrument creating
230      the relationship otherwise provides.
231  (3)(a) Every trust company shall adopt written policies and procedures regarding
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232decisions or recommendations to purchase or sell any security to facilitate
233compliance with federal and state securities laws.
234(b) [ ]These policies and procedures, in particular, shall prohibit the trust company from
235using material inside information in connection with any decision or recommendation
236to purchase or sell any security.
237Section 4. Section 7-5-101, which is renumbered from Section 7-5-1 is renumbered
238   and amended to read:
239Part 1. General Provisions
240[7-5-1] 7-5-101 . Definitions.
241   [(1)] As used in this chapter:
242[(a)] (1) "Business trust" means an entity engaged in a trade or business that is created by a
243declaration of trust that transfers property to trustees, [to be held and managed by them]
244that the trustees hold and manage for the benefit of [persons] one or more persons
245holding certificates representing the beneficial interest in the trust estate and assets.
246(2) "Interested person" means the same as that term is defined in Section 75-1-201.
247(3) "Personal representative" means the same as that term is defined in Section 75-1-201.
248(4) "Power of direction" means the same as that term is defined in Section 75B-3-102.
249[(b)] (5) "Trust" means the same as that term is defined in Section 75B-1-101.
250[(c)] (6)(a) "Trust business" means[, except as provided in Subsection (1)(d),] a business
251in which [one] a person acts in [any] an agency or a fiduciary capacity, including [that
252of] as a personal representative, an executor, an administrator, a conservator, a
253guardian, an assignee, a receiver, a depositary, or a trustee under appointment as
254trustee for [any] a purpose permitted by law.
255[(d)] (b) "Trust business" does not include the following means of holding money, assets,
256or other property:
257(i) money [held] that an attorney authorized to practice law in this state holds in a
258client trust account[ by an attorney authorized to practice law in this state];
259(ii) money [held] that a person licensed as a principal broker in accordance with Title
26061, Chapter 2f, Real Estate Licensing and Practices Act, holds in connection with
261the purchase or sale of real estate[ by a person licensed as a principal broker in
262accordance with Title 61, Chapter 2f, Real Estate Licensing and Practices Act];
263(iii) money or other assets [held] that a person the department, in accordance with
264Chapter 22, Regulation of Independent Escrow Agents, authorizes to act as an
265escrow agent or that the Insurance Department authorizes to act as an escrow
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266agent holds in escrow[ by a person authorized by the department in accordance
267with Chapter 22, Regulation of Independent Escrow Agents, or by the Insurance
268Department to act as an escrow agent in this state];
269(iv) money [held by a] that a homeowners' association or similar organization holds to
270pay maintenance and other related costs for commonly owned property;
271(v) money [held] that a person, acting solely as the agent or representative or
272otherwise at the sole direction of the person to which the debt or payment is owed,
273holds in connection with the collection of debts or payments on loans[ by a person
274acting solely as the agent or representative or otherwise at the sole direction of the
275person to which the debt or payment is owed], including money [held by ]an
276escrow agent holds for payment of taxes or insurance;
277(vi) money [and] or other assets [held] that an individual holds in trust on an
278occasional or isolated basis[ by a person who does not represent that the person is
279engaged in the trust business in Utah] if the individual does not represent that the
280individual engages in the trust business in this state;
281(vii) money or other assets [found by a court to be held] that a court finds that a
282person holds in an implied, resulting, or constructive trust;
283(viii) money or other assets [held by a court appointed conservator, guardian,
284receiver, trustee, or other fiduciary] that a court-appointed conservator, guardian,
285receiver, trustee, or other fiduciary holds if the court-appointed conservator,
286guardian, receiver, trustee, or other fiduciary:
287(A)(I) [the conservator, receiver, guardian, trustee, or other fiduciary ]is
288responsible to the court in the same or similar manner as a personal
289representative under Title 75, Chapter 3, Part 5, Supervised Administration,
290or as a receiver under Rule 66, Utah Rules of Civil Procedure; and
291[(B)] (II) [the conservator, trustee, or other fiduciary ]is a certified public
292accountant,[ or has qualified for and received a designation as] a certified
293financial planner, chartered financial consultant, or certified financial
  analyst[,] ;
294or
295(B) [ similar designation suitable to the court, that evidences the conservator's,
296trustee's, or other fiduciary's professional competence to manage financial
297matters] demonstrates to the satisfaction of the court a level of competence
298necessary to carry out, manage, and oversee the financial and fiduciary duties
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299that will reasonably be required of the court-appointed conservator, guardian,
300receiver, trustee, or other fiduciary;
301(ix) money or other assets that a court-appointed trustee or personal representative
302holds, if the court-appointed trustee or personal representative:
303(A) has the consent and approval of the majority of the current permissible
304distributees of trust income and principal at the time of appointment or the
305interested persons in the estate at the time of appointment; or
306(B) otherwise demonstrates to the satisfaction of the court a level of competence
307necessary to carry out, manage, or oversee the financial and fiduciary duties
308that are reasonably required of the trustee or personal representative;
309[(ix)] (x) money or other assets [held by] that a credit services organization operating
310in compliance with Title 13, Chapter 21, Credit Services Organizations Act, holds;
311[(x)] (xi) money, securities, or other assets [held in] that a customer account in
312connection with the purchase or sale of securities by a regulated securities broker,
313dealer, or transfer agent holds;[ or]
314[(xi)] (xii) money, assets, and other property [held] that a person holds in a business
315trust for the benefit of holders of certificates of beneficial interest if the fiduciary
316activities of the business trust are merely incidental to conducting business in the
317business trust form[.] ;
318(xiii) a person exercising a fiduciary or non-fiduciary power, including power of
319direction, while acting as a trust director, trust protector, trust advisor, or a similar
320capacity;
321(xiv) a person acting as a surrogate under Title 75A, Chapter 9, Uniform Health Care
322Decisions Act, or in a similar capacity; or
323(xv) services as a guardian, if:
324(A) the guardian's ward is a protected person with an appointed conservator that
325serves with the guardian; or
326(B) the responsibilities, powers, and authorities of the guardian are limited and
327non-financial in nature.
328      [(e)] (7) "Trust company" means [an institution] a person authorized to engage in [the ]trust
329business under this chapter.[ Only the following may be a trust company:]
330[(i) a Utah depository institution or its wholly owned subsidiary;]
331[(ii) an out-of-state depository institution authorized to engage in business as a
332depository institution in Utah or its wholly owned subsidiary;]
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333[(iii) a corporation, including a credit union service organization, owned entirely by
334one or more federally insured depository institutions as defined in Subsection
3357-1-103(8);]
336[(iv) a direct or indirect subsidiary of a depository institution holding company that
337also has a direct or indirect subsidiary authorized to engage in business as a
338depository institution in Utah; and]
339[(v) any other corporation continuously and lawfully engaged in the trust business in
340this state since before July 1, 1981.]
341      (8) "Trust director" means the same as that term is defined in Section 75B-3-102.
342  [(2) Only a trust company may engage in the trust business in this state.]
343  [(3) The requirements of this chapter do not apply to:]
344      [(a) an institution authorized to engage in a trust business in another state that is engaged
345in trust activities in this state solely to fulfill its duties as a trustee of a trust created
346and administered in another state;]
347      [(b) a national bank, federal savings bank, federal savings and loan association, or
348federal credit union authorized to engage in business as a depository institution in
349Utah, or any wholly owned subsidiary of any of these, to the extent the institution is
350authorized by its primary federal regulator to engage in the trust business in this state;
351or]
352      [(c) a state agency that is otherwise authorized by statute to act as a conservator,
353receiver, guardian, trustee, or in any other fiduciary capacity.]
354Section 5. Section 7-5-102 is enacted to read:
3557-5-102 . Allowable trust companies -- Exceptions.
356  (1) Only the following may be a trust company:
357      (a) a Utah depository institution or the Utah depository institution's wholly owned
358subsidiary;
359      (b) an out-of-state depository institution authorized to engage in business as a depository
360institution in this state or the out-of-state depository institution's wholly owned
361subsidiary;
362      (c) a corporation, including a credit union service organization, owned entirely by one or
363more federally insured depository institutions as defined in Subsection 7-1-103(8);
364      (d) a direct or indirect subsidiary of a depository institution holding company that also
365has a direct or indirect subsidiary authorized to engage in business as a depository
366institution in this state; and
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367(e) any other corporation continuously and lawfully engaged in the trust business in this
368state since before July 1, 1981.
369   (2) Only a trust company may engage in the trust business in this state.
370   (3) The requirements of this chapter do not apply to:
371(a) an institution authorized to engage in trust business in another state that engages in
372trust activities in this state solely to fulfill the institution's duties as a trustee of a trust
373created and administered in another state;
374(b) a national bank, federal savings bank, federal savings and loan association, or federal
375credit union authorized to engage in business as a depository institution in this state,
376or a wholly owned subsidiary of a national bank, federal savings bank, federal
377savings and loan association, or federal credit union authorized to engage in business
378as a depository institution in this state, to the extent the institution is authorized by
379the institution's primary federal regulator to engage in trust business in this state; or
380(c) a state agency that is otherwise authorized by statute to act as a conservator, receiver,
381guardian, trustee, or in any other fiduciary capacity.
382Section 6. Section 7-5-103, which is renumbered from Section 7-5-2 is renumbered
383   and amended to read:
384[7-5-2] 7-5-103 . Permit required to engage in trust business -- Exceptions.
385   (1)(a) [No ] Unless a trust company [shall] obtains from the commissioner a permit to
386engage in trust business in this state, the trust company may not accept [any] an
387appointment to act in [any] an agency or a fiduciary capacity by order or judgment of
388a court or by authority of any law of this state, including [that of ] as a:
389(i) personal representative[, ] ;
390(ii) executor[, ] ;
391(iii) administrator[, ] ;
392(iv) conservator[, ] ;
393(v) guardian[, ] ;
394(vi) assignee[, ] ;
395(vii) receiver[, ] ;
396(viii) depositary[, ] ; or[ ]
397(ix) trustee[ under order or judgment of any court or by authority of any law of this
398state or as trustee for any purpose permitted by law or otherwise engage in the
399trust business in this state, unless and until it has obtained from the commissioner
400a permit to act under this chapter. ] .
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401      (b) This [provision] Subsection (1) does not apply to [any] a bank or other corporation
402authorized to engage and lawfully engaged in the trust business in this state before
403July 1, 1981.
404  (2) Nothing in this chapter prohibits:
405      (a) [any ] a corporation, organized under Title 16, Chapter 6a, Utah Revised Nonprofit
406Corporation Act, or Title 16, Chapter 10a, Utah Revised Business Corporation Act,
407from acting as trustee of [any] an employee benefit trust established for the employees
408of the corporation or the employees of one or more other corporations affiliated with
409the corporation;
410      (b) [any ] a corporation, organized under Title 16, Chapter 6a, Utah Revised Nonprofit
411Corporation Act,[ and owned or controlled by] and that a charitable, benevolent,
412eleemosynary, or religious organization owns or controls, from acting as a trustee for
413that organization or members of that organization but not offering trust services to the
414general public;
415      (c) [any ] a corporation, organized under Title 16, Chapter 6a, Utah Revised Nonprofit
416Corporation Act, or Title 16, Chapter 10a, Utah Revised Business Corporation Act,
417from holding in a fiduciary capacity the controlling shares of another corporation but
418not offering trust services to the general public; or
419      (d) [any ] a depository institution from holding in an agency or fiduciary capacity
420individual retirement accounts or Keogh plan accounts established under [Section
421401(a) or 408(a) of Title 26 of the United States Code] 26 U.S.C. Sec. 401(a) or 26
422U.S.C. Sec. 408(a).
423Section 7. Section 7-5-104, which is renumbered from Section 7-5-3 is renumbered
424  and amended to read:
425[7-5-3] 7-5-104 . Application for authorization to engage in trust business --
426  Criteria for granting -- Authority of trust company.
427  (1) A person seeking authorization to become a trust company and engage in [the ]trust
428      business in this state shall[ ] :
429      (a) file an application with the commissioner in the manner provided in Section 7-1-704[,] ;
430and[ shall ]
431      (b) pay the fee [prescribed] described in Section 7-1-401.
432  (2) [The commissioner shall, in ] When deciding whether [or not ]to approve [the
433      application, take into account] an application described in Subsection (1), the
434      commissioner shall consider:
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435(a) the character and condition of the applicant's assets;
436(b) the adequacy of [its] the applicant's capital;
437(c) [its ] the applicant's earnings record;
438(d) the quality of [its] the applicant's management;
439(e) the qualifications of [any person proposed] an individual the applicant proposes to be
440an officer in charge of the trust operations;
441(f) the needs of the community for fiduciary services;
442(g) the volume of business that the applicant will probably do; and
443(h) any other relevant facts and circumstances, including the availability of legal counsel
444to advise and pass upon matters relating to the trust business.
445   (3) The commissioner may not apply criteria [making it] that makes the process to obtain
446approval to engage in trust business in this state more difficult for a state chartered
447depository institution [to obtain approval to engage in the trust business ]than for a
448federally chartered depository institution of the same class.
449   (4) [The ] Notwithstanding Subsection (3), the commissioner may impose [such conditions]
450criteria the commissioner considers appropriate to protect the public interest when
451authorizing a person to engage in [the ]trust business[ as the commissioner considers
452appropriate to protect the public interest].
453   (5) Upon receiving authorization from the commissioner to become a trust company and
454engage in [the ]trust business, the trust company [is qualified to] may act as fiduciary in
455any capacity without bond.
456Section 8. Section 7-5-105, which is renumbered from Section 7-5-4 is renumbered
457   and amended to read:
458[7-5-4] 7-5-105 . Withdrawal from trust business.
459   (1) [     Any] A trust company [which] that desires to withdraw from and discontinue doing [
460a ]trust business shall furnish to the commissioner satisfactory evidence of [its] the trust
461company's release and discharge from all the obligations and trusts [undertaken by it,
462and ] the trust company undertakes.
463   (2) [after the company has furnished that evidence ] After the trust company provides the
464evidence required by Subsection (1) to the commissioner, the commissioner shall revoke [
465his certificate of authority ] the trust company's permit to [do a] engage in trust business [
466previously issued to that trust company, and ] in this state.
467   (3) [thereafter that ] After the commissioner revokes a trust company's permit in accordance
468with Subsection (2), the trust company may not[ ] :
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469      (a) [be permitted to use and may not ]use the word "trust" in [its] the trust company's
470corporate name or in connection with [its] the trust company's business[, nor ] ; or
471      (b) undertake the administration of any trust business.
472Section 9. Section 7-5-106, which is renumbered from Section 7-5-5 is renumbered
473  and amended to read:
474[7-5-5] 7-5-106 . Revocation of trust authority -- Procedure -- Violations.
475  (1)(a) The commissioner may issue and serve upon a trust company a notice of intent to
476      revoke the authority of the trust company to exercise the powers granted by this
477      chapter, if, in the commissioner's opinion, the trust company:
478(i) is unlawfully or unsoundly exercising the powers granted under this chapter;
479(ii) has unlawfully or unsoundly exercised the powers granted under this chapter;
480(iii) has failed, for a period of five consecutive years, to exercise the powers granted
481by this chapter;
482(iv) fails or has failed to comply with requirements upon which [its] the trust
483company's permit is conditioned; or
484(v) fails or has failed to comply with any rule of the commissioner.
485      (b) The notice shall:
486(i) contain a statement of the facts constituting the alleged unlawful or unsound
487exercise of powers, or failure to exercise powers, or failure to comply; and
488(ii) fix the time and place at which the commissioner shall hold a hearing [will be
489held ]to determine whether the commissioner should issue an order revoking
490authority to execute [those] the powers [should issue against the trust company]
491described in the notice.
492  (2)(a) If the trust company or [its] the trust company's representative does not appear at
493      the hearing, the commissioner may consider the trust company to be in default, and
494      may issue a revocation order.
495      (b) If default has occurred, or if upon the record made at any hearing the commissioner
496finds that any allegation specified in the notice of charges has been established, the
497commissioner shall issue and serve upon the trust company [an] a revocation order:
498(i) prohibiting [it] the trust company from accepting any new or additional trust
499accounts; and
500(ii) revoking [its] the trust company's authority to exercise any powers granted under
501this chapter.
502      (c) Any order issued under this section permits the trust company to continue to service
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503all previously accepted trust accounts pending [their] the trust accounts' expeditious
504divestiture or termination.
505   (3) A revocation order [shall become] becomes effective 30 days after [service of the order
506upon] the day on which the commissioner serves the revocation order to the trust
507company and [shall remain] remains effective and enforceable, unless [it is stayed,
508modified, terminated, or set aside by action of the commissioner or by judicial review as
509provided for in Section 7-1-714.] the commissioner or a court, in accordance with
510Section 7-1-714, stays, modifies, terminates, or sets aside the revocation order.
511   (4) If an attorney described in Subsection 7-5-101(4)(b)(iii) violates Title 75B, Trusts, the
512attorney:
513(a) is not subject to enforcement by the commissioner or the department; and
514(b) may be subject to disciplinary action generally applicable to an attorney licensed to
515practice in this state.
516   (5) If a certified public accountant described in Subsection 7-5-101(4)(b)(iv) violates Title
51775B, Trusts, the certified public accountant:
518(a) is not subject to enforcement by the commissioner or the department; and
519(b) may be subject to disciplinary action under Title 58, Chapter 26a, Certified Public
520Accountant Licensing Act.
521   (6) If the commissioner or the department receives a complaint that an attorney described in
522Subsection 7-5-101(4)(b)(iii) or a certified public accountant described in Subsection
5237-5-101(4)(b)(iv) violates Title 75B, Trusts, the commissioner or the department shall
524forward the complaint to:
525(a) if the complaint involves an attorney, the Utah State Bar; or
526(b) if the complaint involves a certified public accountant, the Division of Professional
527Licensing.
528Section 10. Section 7-5-107, which is renumbered from Section 7-5-6 is renumbered
529   and amended to read:
530[7-5-6] 7-5-107 . Confidentiality of communications and writings concerning
531   trust -- Actions to protect property or authorized under probate laws not precluded.
532   (1) [     Any] A trust company exercising the powers and performing the duties described in
533this chapter shall keep [inviolate all communications and writings made to or by that]
534confidential each communication and writing the trust company makes or receives
535relating to the existence, condition, management or administration of [any] an agency or
536fiduciary account confided to [it and ] the trust company.
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537  (2) [no ] A creditor or stockholder of [any such] a trust company [shall be] is not entitled to
538      disclosure or knowledge of [any such] a communication or writing described in
539      Subsection (1), [except that the ] unless the creditor or stockholder is:
540      (a) [directors,] a director of the trust company;
541      (b) a president[, ] of the trust company;
542      (c) a vice president[, ] of the trust company;
543      (d) a manager[, ] employed by the trust company;
544      (e) a treasurer[, and ] employed by the trust company;
545      (f) a trust [officers, and any ] officer of the trust company;
546      (g) [employees] an employee of the trust company assigned to work on the trust business[, ] ;
547      (h) [and the] an attorney employed by the trust company; or[ ]
548      (i) an auditor employed by [it shall be entitled to knowledge of any such communication
549or writing and except ] the trust company.
550  (3) [that in any suit or ] In a proceeding relating to the existence, condition, management or
551      administration of [the] an account described in Subsection (1), [the court in which the
552      suit is pending may] a court may require disclosure of [any such] the communication or
553      writing.
554  (4) [ A] Nothing in this section precludes a trust company [is not, however, precluded ]from
555      filing an action in court to protect trust account property or as authorized under Title
556      75B, Trusts.
557Section 11. Section 7-5-108, which is renumbered from Section 7-5-7 is renumbered
558  and amended to read:
559[7-5-7] 7-5-108 . Management and investment of trust money.
560  (1) [Money received or held by a trust company as agent or fiduciary, whether for
561      investment or distribution, shall be invested or distributed as soon as practicable] A trust
562      company shall invest or distribute money the trust company receives or holds as an
563      agent or a fiduciary, whether for investment or distribution, as soon as practicable as
564      authorized under the instrument creating the account[ and ] .
565  (2) A trust company may not [be held uninvested] hold the money described in Subsection
566      (1) without investing the money for any longer than is reasonably necessary.
567  [(2)] (3) If the instrument creating an agency or fiduciary account [contains provisions
568      authorizing] authorizes the trust company, [its] the trust company's officers, or [its] the
569      trust company's directors to exercise[ their] discretion [in the matter of] over investments,
570      the trust company, the trust company's officers, or the trust company's directors may
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571invest money [held] the trust company holds in the trust account under that instrument [
572may be invested ]only in [those classes] a class of securities [which are approved by the
573directors of the trust company or a committee of directors appointed for that purpose]
574that the directors of the trust company, or a committee of directors that the directors
575appoint, approve.[ ]
576   (4) If a trust company acts in [any] an agency or a fiduciary capacity under appointment by a
577court with jurisdiction, [it] the trust company shall make and account for the investments
578according to Title 75B, Trusts, unless the underlying instrument provides otherwise.
579   [(3)] (5)(a) [Money received or held] A trust company that is also a depository institution
580may deposit into the trust company's commercial department or savings department
581money that the trust company holds or receives as an agent or a fiduciary [by any
582trust company which is also a depository institution, ]whether for investment or
583distribution, [may be deposited in the commercial department or savings department
584of that trust company ]to the credit of [its] the trust company's trust department.[ ]
585(b) [Whenever the money so deposited in] When the money that a trust company
586deposits, in accordance with Subsection (5)(a), into a fiduciary or managing agency
587account [exceed] exceeds the amount of federal deposit insurance applicable to that
588fiduciary or managing agency account, the trust company shall deliver to the trust
589department or put under [its] the trust department's control collateral security as [
590outlined] described in [Regulation 9.10 of the Comptroller of the Currency] 12 C.F.R.
591Sec. 9.10.
592(c) [ However, if] If the instrument [creating such] that creates a fiduciary or managing
593agency account described in Subsection (5)(b) expressly provides that a trust
594company may deposit money [may be deposited to] into the commercial or savings
595department of the trust company[, then ] :
596(i) the trust company may deposit the money [may be so deposited ]without setting
597aside collateral securities as required under this section; and[ ]
598(ii) [the deposits ]in the event of insolvency, a deposit of [any such] the trust company
599shall be treated as other general deposits are treated.
600(d) [ ]A trust company that deposits trust funds [in its] into the trust company's
601commercial or savings department [shall be] is liable for interest on the deposits only
602at the rates, if any, [paid by the trust company] the trust company pays on deposits of
603like kind not made to the credit of [its] the trust company's trust department.
604   [(b)] (6)(a) [Money received or held] A trust company may deposit in an affiliated
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605      depository institution money that a trust company receives or holds as agent or
606      fiduciary[ by a trust company], whether for investment or distribution[, may be
607      deposited in an affiliated depository institution].
608      (b) [ Whenever the money so deposited in] If money that a trust company deposits, in
609accordance with Subsection (6)(a), into a fiduciary or managing agency account [
610exceed] exceeds the amount of federal deposit insurance applicable to that account,
611the depository institution shall deliver to the trust company or put under [its] the trust
612company's control collateral security as [outlined in Regulation 9.10 of the
613Comptroller of the Currency] described in 12 C.F.R. Sec. 9.10.
614      (c) [ However, if] If the instrument [creating] that creates the fiduciary or managing
615agency account described in Subsection (6)(b) expressly permits the trust company to
616deposit money [to be deposited in] into the affiliated depository institution[, ] :
617(i) the trust company may deposit money [may be so deposited ]without setting aside
618collateral securities [as required under] in accordance with this section; and[ ]
619(ii) [deposits ]in the event of insolvency of the depository institution, deposits the
620trust company makes shall be treated as other general deposits are treated.
621      (d) [ ]A trust company that deposits trust money [in] into an affiliated depository
622institution is liable for interest on the deposits only at the rates, if any, [paid by ]the
623depository institution pays on deposits of like kind.
624  [(4)] (7) In carrying out all aspects of [its] the trust company's trust business, a trust company [
625      shall have] has all the powers, privileges, and duties as set forth in Sections 75B-2-813
626      and 75B-2-814 with respect to trustees, whether [or not ]the trust company [is acting] acts
627      as a trustee as defined in Section 75B-1-101.
628  [(5)] (8) Nothing in this section may alter, amend, or limit the powers of a trust company
629      acting in a fiduciary capacity as specified in the particular instrument or order creating
630      the fiduciary relationship.
631Section 12. Section 7-5-109, which is renumbered from Section 7-5-8 is renumbered
632  and amended to read:
633[7-5-8] 7-5-109 . Segregation of trust assets -- Books and records required --
634  Examination -- Trust property not subject to claims or debts against trust company.
635  (1) A trust company exercising the powers to act as an agent or fiduciary under this
636      chapter shall[ ] :
637      (a) segregate all assets [held] the trust company holds in any agency or fiduciary capacity
638from the general assets of the trust company; and[ shall ]
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639(b) keep a separate set of books and records showing in proper detail [all transactions
640engaged in under authority of] each transaction in which the trust company engages in
641accordance with this chapter.
642   (2) [ These books and records shall be open to inspection by the commissioner and shall be
643examined by him or by examiners appointed by him as provided in Chapter 1, General
644Provisions, or examined by other appropriate regulating agencies or both] The trust
645company shall allow the commissioner, an examiner the commissioner appoints in
646accordance with Chapter 1, General Provisions, and an appropriate regulating agency to
647inspect books and records described in Subsection (1).
648   (3) [ ]Property [held] the trust company holds in an agency or fiduciary capacity [by a trust
649company ]is not subject to claims or debts against the trust company.
650Section 13. Section 7-5-110, which is renumbered from Section 7-5-9 is renumbered
651   and amended to read:
652[7-5-9] 7-5-110 . Registration of investment in name of nominee -- Records --
653   Possession of investment.
654   (1) As used in this section, "security" means the same as that term is defined in Section
65575-1-201.
656   [(1)] (2) A trust company may [cause any ] require that a person register and hold a security[,
657as defined in Section 75-1-201, held in its] that the trust company holds in the trust
658company's agency or fiduciary capacity [to be registered and held ]in the name of a
659nominee or nominees of the trust company.
660   (3) [ ]The trust company [shall be] is liable for the acts of [any such] a nominee described in
661Subsection (2) with respect to any investment [so registered] registered in accordance
662with Subsection (2).[ ]
663   (4) [Investments ] An investment other than [securities] a security held in the name of a
664nominee on June 30, 1981, may continue to be held in that manner.
665   [(2)] (5) [The records of the] For an investment described in Subsection (4), the trust
666company shall:
667(a) [ ]at all times maintain records that show the trust company's ownership of [any such]
668an investment[,] ;
669(b) [ which investment shall be in the] maintain possession or control [of the trust
670company] over the investment; and
671(c) [ be kept ] keep the investment separate and apart from the assets of the trust
672company.
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673Section 14. Section 7-5-111, which is renumbered from Section 7-5-10 is renumbered
674  and amended to read:
675[7-5-10] 7-5-111 . Lending trust funds to trust company, officer, director, or
676  employee a felony.
677  (1) Except as provided in Subsection (2), a trust company may not lend funds that the trust
678      company holds in a trust account in accordance with this chapter to:
679      (a) the trust company;
680      (b) an officer of the trust company;
681      (c) a director of the trust company; or
682      (d) an employee of the trust company.
683  (2) [Unless ] A trust company may lend funds to a person described in Subsection (1) if:
684      (a) [expressly permitted in ]the instrument creating a trust account authorizes the trust
685company to lend funds to the person;
686      (b) [or by ]a person authorized to [give that permission] grant authorization to the trust
687company to lend funds to the person grants authorization; or
688      (c) [by a court order as permitted in] a court issues an order in accordance with Section
68975B-2-802[, a trust company may not lend to itself or to any officer or director or
690employee of the trust company any funds held in any trust account under the powers
691conferred in this chapter].
692  [(2)] (3) [Any ] An officer, a director, or an employee [making such a loan] is guilty of a third
693      degree felony if the officer, director, or employee:
694      (a) [,] makes a loan in violation of Subsection (1); or[ ]
695      (b) [to whom such a loan is made, is guilty of a third degree felony] receives a loan that
696violates Subsection (1).
697Section 15. Section 7-5-112, which is renumbered from Section 7-5-11 is renumbered
698  and amended to read:
699[7-5-11] 7-5-112 . Self-dealing with trust property -- Own stock as trust property
700  -- Policies for dealing with trust securities.
701  (1) Except as provided in Section [7-5-7] 7-5-109, [in ]Title 75B, Trusts, or as authorized
702      under the instrument creating the relationship, a trust company may not[ ] :
703      (a) invest funds [held] the trust company holds as an agent or fiduciary in stock or
704obligations of[, or with such funds acquire property from,] the trust company or any
705of [its] the trust company's directors, officers or employees[, nor shall] ;
706      (b) use funds the trust company holds as an agent or fiduciary to acquire property from
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707the trust company or any of the trust company's directors, officers, or employees; or
708(c) [ a trust company ]sell property [held] the trust company holds as an agent or
709fiduciary to the [company] trust company or to any of [its] trust company's directors,
710officers, or employees.
711   (2) A trust company may retain and vote stock of the trust company or of any of [its] the
712trust company's affiliates [received by it] the trust company receives as assets of any trust
713account or in any other fiduciary relationship [of] for which [it] the trust company is
714appointed agent or fiduciary, unless the instrument creating the relationship otherwise
715provides.
716   (3)(a) [Every ] A trust company shall adopt written policies and procedures regarding
717decisions or recommendations to purchase or sell [any] a security [to facilitate
718compliance] in accordance with federal and state securities laws.[ ]
719(b) [These policies and procedures, in particular, ] The policies and procedures described
720in Subsection (3)(a) shall prohibit the trust company from using material inside
721information in connection with any decision or recommendation to purchase or sell
722any security.
723Section 16. Section 7-5-113, which is renumbered from Section 7-5-12 is renumbered
724   and amended to read:
725[7-5-12] 7-5-113 . Directors' audit of trust business -- Report available to
726   commissioner or examiners -- Examinations in lieu of audit.
727   (1) A committee of the board of directors, [exclusive of] excluding any active officers
728of the trust department, of every trust company [authorized to engage in the trust
729business in this state ]shall, at least once during a 15-month period[, ] :
730(a)(i) [make a suitable ] conduct an audit of the trust business operations of the [
731institution] trust company; or
732(ii) [ ]cause that auditors responsible only to the board of directors conduct a suitable
733audit[ to be made by auditors responsible only to the board of directors] ; and[ ]
734(b) [shall ] using the findings from the audit, ascertain whether the trust company
735conducts the trust business operations of the [institution have been administered ] trust
736business in accordance with law and sound fiduciary principles.
737   (2) [ A ] Upon request, the committee of the board of directors shall make available a report
738of the audit described in Subsection (1), [together with the action taken thereon]
739including any action the committee of the board of directors takes as a result of the audit, [
740shall be made available ]to the commissioner, the commissioner's examiners, or the
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741      examiners of other trust company regulating agencies[ upon request].
742  (3) [ An examination by the state or other trust company regulating agencies or both made
743      during the same period may be substituted for this audit.] The requirements of
744      Subsection (1) do not apply if the state or other agency that regulates trust companies
745      conducts an examination of the trust company during the same 15-month period.
746Section 17. Section 7-5-114, which is renumbered from Section 7-5-13 is renumbered
747  and amended to read:
748[7-5-13] 7-5-114 . Collective investment funds.
749  (1) A [person authorized to engage in the trust business in this state] trust company may:
750      (a) establish collective investment funds that authorize participation by fiduciary or trust
751accounts of the trust company, [its] the trust company's affiliates, or both; and
752      (b) participate in collective investment funds established by an affiliate of the trust
753company, if:
754(i) the affiliate is authorized under the laws of [its] the trust company's chartering
755authority to establish a collective investment fund in which [its] the trust company's
756affiliates may participate; and
757(ii) the plan establishing the collective investment fund specifically authorized the
758participation.
759  (2) [Funds held by a trust company may be invested] A person may invest funds that a trust
760      company holds collectively in a collective investment fund in accordance with the rules
761      prescribed by the appropriate governmental regulatory agency or agencies, if [this ] the
762      instrument, judgment, decree, or order creating the regulatory relationship does not
763      specifically prohibit the investment[ is not specifically prohibited under the instrument,
764      judgment, decree, or order creating the regulatory relationship].
765  (3)(a) Unless ordered to do so by a court, a trust company operating collective
766      investment funds is not required to render a court accounting [with regard to those
767      funds] for the collective investment funds.
768      (b) [but the ] A trust company may petition a court with jurisdiction under Title 78A,
769Judiciary and Judicial Administration, to secure approval of [such an] a court
770accounting on [such conditions as the court may establish] conditions the court
771establishes.
772  (4) This section applies to all relationships in existence on or after May 1, 1989.
773Section 18. Section 7-5-115, which is renumbered from Section 7-5-14 is renumbered
774  and amended to read:
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775[7-5-14] 7-5-115 . Mergers, consolidations, acquisitions, transfers, or
776   reorganizations involving entities engaged in trust business -- Succession of rights and
777   duties -- Petition for appointment of another trust company.
778   (1) As used in this section:
779(a) "Eligible trust company" means any of the following that is authorized under this
780chapter or the laws of the United States to engage in the trust business in this state:
781(i) a trust company;
782(ii) a depository institution; or
783(iii) a corporation.
784(b) "Reorganization" [includes] means:
785(i) the creation by a trust company of a subsidiary corporation that is:
786(A) wholly owned by that trust company; and
787(B) organized solely for the purpose of conducting all or any portion of the trust
788business of that trust company; or
789(ii) [any ] a merger or other combination between a trust company and:
790(A) a wholly owned trust company subsidiary of that trust company; or
791(B) a wholly owned trust company subsidiary of the depository institution holding
792company [which] that owns or controls that trust company.
793   (2) Notwithstanding any provision of law to the contrary, an eligible trust company may,
794subject to Sections 7-1-702, 7-1-704, and 7-1-705:
795(a)(i) merge or consolidate with another eligible trust company;
796(ii) acquire control of another eligible trust company;
797(iii) acquire all or a portion of the assets and trust business of another eligible trust
798company;
799(iv) assume all or any portion of the liabilities of another eligible trust company;
800(v) transfer control to another eligible trust company;
801(vi) transfer all or a portion of [its] the trust company's assets and trust business to
802another eligible trust company; or
803(vii) transfer all or a portion of [its] the trust company's liabilities to another eligible
804trust company; or
805(b) [reorganize] conduct a reorganization.
806   (3)(a) Subject to Subsection (3)(b), upon final approval by the commissioner of [any] a
807merger, a consolidation, an acquisition of control, an acquisition of assets, an
808assumption of liabilities, or a reorganization, and upon written notice of [this] the final
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809      approval to [all persons] each person entitled to and then receiving trust accountings
810      from the transferring or reorganizing trust company, the resulting or acquiring trust
811      company shall, without court proceedings or a court order, succeed to[ ] :
812(i) [all ] the transferring or reorganizing trust company's rights, privileges, duties,
813obligations, and undertakings under all trust instruments, agency and fiduciary
814relationships and arrangements[,] ; and[ ]
815(ii) all other trust business the transferring or reorganizing trust company transferred
816and acquired in [the manner authorized by] accordance with this section.
817      (b)(i) Except as provided otherwise in the relevant trust instrument, [any] an
818interested person may, not more than 30 days after [receipt of ] the day on which
819the interested person receives written notice of the merger, consolidation,
820acquisition, transfer, or reorganization, petition [any] a court [of competent] with
821jurisdiction to appoint another or succeeding trust company with respect to [any] an
822agency or fiduciary relationship affecting that interested person[, ] .
823(ii) [and until ] Until the court appoints another or succeeding trust company[ is so
824appointed] in accordance with Subsection (3)(b)(i), the acquiring or resulting trust
825company [is entitled to] may act as agent or fiduciary with respect to the agency or
826fiduciary relationship.
827Section 19. Section 7-5-116, which is renumbered from Section 7-5-15 is renumbered
828  and amended to read:
829[7-5-15] 7-5-116 . Assets of trust company in possession of the commissioner.
830     With respect to the assets of a trust company in the possession of the commissioner
831  under Chapter 2, Possession of Depository Institution by Commissioner, notwithstanding any
832  law to the contrary, the assets [held by] that the trust company holds in a fiduciary capacity as a
833  part of [its] the trust company's trust business[, as defined in Section 7-5-1,] are not subject to
834  the claims of [any] a secured or unsecured creditor of the trust company.
835Section 20. Section 7-18a-302 is amended to read:
8367-18a-302 . Trust business.
837     A foreign depository institution may not engage in the trust business, as that term is
838  defined in Section [7-5-1] 7-5-101, in this state.
839Section 21. Section 7-22-101 is amended to read:
8407-22-101 . Definitions -- Exemptions.
841  (1) As used in this chapter:
842      (a) "Escrow" means an agreement, express or implied, that provides for one or more
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843parties to deliver or entrust money, a certificate of deposit, a security, a negotiable
844instrument, a deed, or other property or asset to another person to be held, paid, or
845delivered in accordance with terms and conditions prescribed in the agreement.
846(b) "Escrow agent" means a person that provides or offers to provide escrow services to
847the public.
848(c) "Nationwide database" means the Nationwide Mortgage Licensing System and
849Registry, authorized under 12 U.S.C. Sec. 5101 for federal licensing of mortgage
850loan originators.
851   (2) This chapter does not apply to:
852(a) a trust company authorized to engage in the trust business in Utah in accordance with
853Chapter 5, Trust Business;
854(b) a person other than an escrow agent regulated under this chapter that is exempted
855from the definition of trust business in [Subsection 7-5-1(1)] Section 7-5-101;
856(c) a depository institution chartered by a state or the federal government that is engaged
857in business as a depository institution in Utah;
858(d) the Utah Board of Higher Education, the Utah Higher Education Assistance
859Authority, or the [State Treasurer] state treasurer; and
860(e) a person licensed under Title 31A, Insurance Code.
861Section 22. Section 16-15-102 is amended to read:
86216-15-102 . Definition of business trust.
863      As used in this chapter:
864   (1) "Beneficiary" means a person holding a certificate representing a beneficial interest in
865the trust estate and assets.
866   (2) "Business trust" [has the same meaning as] means the same as that term is defined in
867Section [7-5-1] 7-5-101.
868   (3) "Division" means the Division of Corporations and Commercial Code.
869   (4) "Person" means an individual, general partnership, limited liability partnership, limited
870partnership, limited liability company, limited association, domestic or foreign trust,
871estate, association, or corporation.
872Section 23. Section 31A-23a-406 is amended to read:
87331A-23a-406 . Title insurance producer's business.
874   (1) As used in this section:
875(a) "Automated clearing house network" or "ACH network" means a national electronic
876funds transfer system regulated by the Federal Reserve and the Office of the
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877Comptroller of the Currency.
878      (b) "Depository institution" means the same as that term is defined in Section 7-1-103.
879      (c) "Funds transfer system" means the same as that term is defined in Section
88070A-4a-105.
881  (2) An individual title insurance producer or agency title insurance producer may do escrow
882      involving real property transactions if all of the following exist:
883      (a) the individual title insurance producer or agency title insurance producer is licensed
884with:
885(i) the title line of authority; and
886(ii) the escrow subline of authority;
887      (b) the individual title insurance producer or agency title insurance producer is appointed
888by a title insurer authorized to do business in the state;
889      (c) except as provided in Subsection (4), the individual title insurance producer or
890agency title insurance producer issues one or more of the following as part of the
891transaction:
892(i) an owner's policy offering title insurance;
893(ii) a lender's policy offering title insurance; or
894(iii) if the transaction does not involve a transfer of ownership, an endorsement to an
895owner's or a lender's policy offering title insurance;
896      (d) money deposited with the individual title insurance producer or agency title
897insurance producer in connection with any escrow is deposited:
898(i) in a federally insured depository institution, as defined in Section 7-1-103, that:
899(A) has a branch in this state, if the individual title insurance producer or agency
900title insurance producer depositing the money is a resident licensee; and
901(B) is authorized by the depository institution's primary regulator to engage in
902trust business, as defined in Section [7-5-1] 7-5-101, in this state; and
903(ii) in a trust account that is separate from all other trust account money that is not
904related to real estate transactions;
905      (e) money deposited with the individual title insurance producer or agency title
906insurance producer in connection with any escrow is the property of the one or more
907persons entitled to the money under the provisions of the escrow;
908      (f) money deposited with the individual title insurance producer or agency title insurance
909producer in connection with an escrow is segregated escrow by escrow in the records
910of the individual title insurance producer or agency title insurance producer;
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911(g) earnings on money held in escrow may be paid out of the trust account to any person
912in accordance with the conditions of the escrow;
913(h) the escrow does not require the individual title insurance producer or agency title
914insurance producer to hold:
915(i) construction money; or
916(ii) money held for exchange under Section 1031, Internal Revenue Code; and
917(i) the individual title insurance producer or agency title insurance producer shall
918maintain a physical office in Utah staffed by a person with an escrow subline of
919authority who processes the escrow.
920   (3) Notwithstanding Subsection (2), an individual title insurance producer or agency title
921insurance producer may engage in the escrow business if:
922(a) the escrow involves:
923(i) a mobile home;
924(ii) a grazing right;
925(iii) a water right; or
926(iv) other personal property authorized by the commissioner; and
927(b) the individual title insurance producer or agency title insurance producer complies
928with this section except for Subsection (2)(c).
929   (4)(a) Subsection (2)(c) does not apply if the transaction is for the transfer of real
930property from the School and Institutional Trust Lands Administration.
931(b) This subsection does not prohibit an individual title insurance producer or agency
932title insurance producer from issuing a policy described in Subsection (2)(c) as part
933of a transaction described in Subsection (4)(a).
934   (5) Money held in escrow:
935(a) is not subject to any debts of the individual title insurance producer or agency title
936insurance producer;
937(b) may only be used to fulfill the terms of the individual escrow under which the money
938is accepted; and
939(c) may not be used until the conditions of the escrow are met.
940   (6) Assets or property other than escrow money received by an individual title insurance
941producer or agency title insurance producer in accordance with an escrow shall be
942maintained in a manner that will:
943(a) reasonably preserve and protect the asset or property from loss, theft, or damages; and
944(b) otherwise comply with the general duties and responsibilities of a fiduciary or bailee.
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945  (7)(a) A check from the trust account described in Subsection (2)(d) may not be drawn,
946      executed, or dated, or money otherwise disbursed unless the segregated trust account
947      from which money is to be disbursed contains a sufficient credit balance consisting of
948      collected and cleared money at the time the check is drawn, executed, or dated, or
949      money is otherwise disbursed.
950      (b) As used in this Subsection (7), money is considered to be "collected and cleared,"
951and may be disbursed as follows:
952(i) cash may be disbursed on the same day the cash is deposited;
953(ii) a wire transfer may be disbursed on the same day the wire transfer is deposited;
954(iii) the proceeds of one or more of the following financial instruments may be
955disbursed on the same day the financial instruments are deposited if received from
956a single party to the real estate transaction and if the aggregate of the financial
957instruments for the real estate transaction is less than $10,000:
958(A) a cashier's check, certified check, or official check that is drawn on an existing
959account at a federally insured financial institution;
960(B) a check drawn on the trust account of a principal broker or associate broker
961licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices Act, if
962the individual title insurance producer or agency title insurance producer has
963reasonable and prudent grounds to believe sufficient money will be available
964from the trust account on which the check is drawn at the time of disbursement
965of proceeds from the individual title insurance producer or agency title
966insurance producer's trust account;
967(C) a personal check not to exceed $500 per closing; or
968(D) a check drawn on the trust account of another individual title insurance
969producer or agency title insurance producer, if the individual title insurance
970producer or agency title insurance producer in the escrow transaction has
971reasonable and prudent grounds to believe that sufficient money will be
972available for withdrawal from the account upon which the check is drawn at
973the time of disbursement of money from the trust account of the individual title
974insurance producer or agency title insurance producer in the escrow transaction;
975(iv) deposits made through the ACH network may be disbursed on the same day the
976deposit is made if:
977(A) the transferred funds remain uniquely designated and traceable throughout the
978entire ACH network transfer process;
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979(B) except as a function of the ACH network process, the transferred funds are not
980subject to comingling or third party access during the transfer process;
981(C) the transferred funds are deposited into the title insurance producer's trust
982account and are available for disbursement; and
983(D) either the ACH network payment type or the title insurance producer's
984systems prevent the transaction from being unilaterally canceled or reversed by
985the consumer once the transferred funds are deposited to the individual title
986insurance producer or agency title producer; or
987(v) deposits may be disbursed on the same day the deposit is made if the deposit is
988made via:
989(A) the Federal Reserve Bank through the Federal Reserve's Fedwire funds
990transfer system; or
991(B) a funds transfer system provided by an association of federally insured
992depository institutions.
993(c) A check or deposit not described in Subsection (7)(b) may be disbursed:
994(i) within the time limits provided under the Expedited Funds Availability Act, 12
995U.S.C. Sec. 4001 et seq., as amended, and related regulations of the Federal
996Reserve System; or
997(ii) upon notification from the financial institution to which the money has been
998deposited that final settlement has occurred on the deposited financial instrument.
999   (8) An individual title insurance producer or agency title insurance producer shall maintain
1000  a record of a receipt or disbursement of escrow money.
1001     (9) An individual title insurance producer or agency title insurance producer shall comply
1002  with:
1003  (a) Section 31A-23a-409;
1004  (b) Title 46, Chapter 1, Notaries Public Reform Act; and
1005  (c) any rules adopted by the Title and Escrow Commission, subject to Section 31A-2-404,
1006  that govern escrows.
1007     (10) If an individual title insurance producer or agency title insurance producer conducts a
1008  search for real estate located in the state, the individual title insurance producer or
1009  agency title insurance producer shall conduct a reasonable search of the public records.
1010  Section 24. Section 31A-23a-409 is amended to read:
1011  31A-23a-409 . Trust obligation for money collected.
1012     (1)(a) Subject to Subsection (7), a licensee is a trustee for money that is paid to, received
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1013        by, or collected by a licensee for forwarding to insurers or to insureds.
1014        (b)(i) Except as provided in Subsection (1)(b)(ii), a licensee may not commingle trust
1015  funds with:
1016  (A) the licensee's own money; or
1017  (B) money held in any other capacity.
1018  (ii) This Subsection (1)(b) does not apply to:
1019  (A) amounts necessary to pay bank charges; and
1020  (B) money paid by insureds and belonging in part to the licensee as a fee or
1021  commission.
1022        (c) Except as provided under Subsection (4), a licensee owes to insureds and insurers the
1023  fiduciary duties of a trustee with respect to money to be forwarded to insurers or
1024  insureds through the licensee.
1025        (d)(i) Unless money is sent to the appropriate payee by the close of the next business
1026  day after their receipt, the licensee shall deposit them in an account authorized
1027  under Subsection (2).
1028  (ii) Money deposited under this Subsection (1)(d) shall remain in an account
1029  authorized under Subsection (2) until sent to the appropriate payee.
1030    (2) Money required to be deposited under Subsection (1) shall be deposited:
1031        (a) into a federally insured trust account in a depository institution, as defined in Section
1032  7-1-103, which:
1033  (i) has a branch in this state, if the individual title insurance producer or agency title
1034  insurance producer depositing the money is a resident licensee;
1035  (ii) has federal deposit insurance; and
1036  (iii) is authorized by its primary regulator to engage in the trust business, as defined
1037  by Section [7-5-1] 7-5-101, in this state; or
1038        (b) into some other account, that:
1039  (i) the commissioner approves by rule or order; and
1040  (ii) provides safety comparable to an account described in Subsection (2)(a).
1041    (3) It is not a violation of Subsection (2)(a) if the amounts in the accounts exceed the
1042        amount of the federal insurance on the accounts.
1043    (4) A trust account into which money is deposited may be interest bearing. The interest
1044        accrued on the account may be paid to the licensee, so long as the licensee otherwise
1045        complies with this section and with the contract with the insurer.
1046    (5) A depository institution or other organization holding trust funds under this section may
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1047  not offset or impound trust account funds against debts and obligations incurred by the
1048  licensee.
1049     (6) A licensee who, not being lawfully entitled to do so, diverts or appropriates any portion
1050  of the money held under Subsection (1) to the licensee's own use, is guilty of theft under
1051  Title 76, Chapter 6, Part 4, Theft. Sanctions under Section 31A-2-308 also apply.
1052     (7) A nonresident licensee:
1053  (a) shall comply with Subsection (1)(a) by complying with the trust account
1054  requirements of the nonresident licensee's home state; and
1055  (b) is not required to comply with the other provisions of this section.
1056  Section 25. Section 59-10-202 is amended to read:
1057  59-10-202 . Additions to and subtractions from unadjusted income of a resident
1058     or nonresident estate or trust.
1059     (1) There shall be added to unadjusted income of a resident or nonresident estate or trust:
1060  (a) a lump sum distribution allowable as a deduction under Section 402(d)(3), Internal
1061  Revenue Code, to the extent deductible under Section 62(a)(8), Internal Revenue
1062  Code, in determining adjusted gross income;
1063  (b) except as provided in Subsection (3), for bonds, notes, and other evidences of
1064  indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and
1065  other evidences of indebtedness:
1066  (i) issued by one or more of the following entities:
1067  (A) a state other than this state;
1068  (B) the District of Columbia;
1069  (C) a political subdivision of a state other than this state; or
1070  (D) an agency or instrumentality of an entity described in Subsections (1)(b)(i)(A)
1071  through (C); and
1072  (ii) to the extent the interest is not included in federal taxable income on the
1073  taxpayer's federal income tax return for the taxable year;
1074  (c) any portion of federal taxable income for a taxable year if that federal taxable income
1075  is derived from stock:
1076  (i) in an S corporation; and
1077  (ii) that is held by an electing small business trust;
1078  (d) the amount withdrawn under Title 53H, Chapter 10, Utah Education Savings, from
1079  the account of a resident or nonresident estate or trust that is an account owner as
1080  defined in Section 53H-10-101, for the taxable year for which the amount is
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 Enrolled Copy  H.B. 176
1081  withdrawn, if that amount withdrawn from the account of the resident or nonresident
1082  estate or trust that is the account owner:
1083  (i) is not expended for:
1084  (A) higher education costs as defined in Section 53H-10-201; or
1085  (B) a payment or distribution that qualifies as an exception to the additional tax
1086  for distributions not used for educational expenses provided in Sections 529(c)
1087  and 530(d), Internal Revenue Code; and
1088  (ii) is:
1089  (A) subtracted by the resident or nonresident estate or trust:
1090  (I) that is the account owner; and
1091  (II) on the resident or nonresident estate's or trust's return filed under this
1092  chapter for a taxable year beginning on or before December 31, 2007; or
1093  (B) used as the basis for the resident or nonresident estate or trust that is the
1094  account owner to claim a tax credit under Section 59-10-1017; and
1095        (e) any fiduciary adjustments required by Section 59-10-210.
1096    (2) There shall be subtracted from unadjusted income of a resident or nonresident estate or
1097        trust:
1098        (a) the interest or a dividend on obligations or securities of the United States and its
1099  possessions or of any authority, commission, or instrumentality of the United States,
1100  to the extent that interest or dividend is included in gross income for federal income
1101  tax purposes for the taxable year but exempt from state income taxes under the laws
1102  of the United States, but the amount subtracted under this Subsection (2) shall be
1103  reduced by any interest on indebtedness incurred or continued to purchase or carry
1104  the obligations or securities described in this Subsection (2), and by any expenses
1105  incurred in the production of interest or dividend income described in this Subsection
1106  (2) to the extent that such expenses, including amortizable bond premiums, are
1107  deductible in determining federal taxable income;
1108        (b) income of an irrevocable resident trust if:
1109  (i) the income would not be treated as state taxable income derived from Utah
1110  sources under Section 59-10-204 if received by a nonresident trust;
1111  (ii) the trust first became a resident trust on or after January 1, 2004;
1112  (iii) no assets of the trust were held, at any time after January 1, 2003, in another
1113  resident irrevocable trust created by the same settlor or the spouse of the same
1114  settlor;
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 H.B. 176  Enrolled Copy
1115  (iv) the trustee of the trust is a trust company as that term is defined in [Subsection
1116  7-5-1(1)(d)] Section 7-5-101;
1117  (v) the amount subtracted under this Subsection (2)(b) is reduced to the extent the
1118  settlor or any other person is treated as an owner of any portion of the trust under
1119  Subtitle A, Subchapter J, Subpart E of the Internal Revenue Code; and
1120  (vi) the amount subtracted under this Subsection (2)(b) is reduced by any interest on
1121  indebtedness incurred or continued to purchase or carry the assets generating the
1122  income described in this Subsection (2)(b), and by any expenses incurred in the
1123  production of income described in this Subsection (2)(b), to the extent that those
1124  expenses, including amortizable bond premiums, are deductible in determining
1125  federal taxable income;
1126        (c) if the conditions of Subsection (4)(a) are met, the amount of income of a resident or
1127  nonresident estate or trust derived from a deceased Ute tribal member:
1128  (i) during a time period that the Ute tribal member resided on homesteaded land
1129  diminished from the Uintah and Ouray Reservation; and
1130  (ii) from a source within the Uintah and Ouray Reservation;
1131        (d) any amount:
1132  (i) received by a resident or nonresident estate or trust;
1133  (ii) that constitutes a refund of taxes imposed by:
1134  (A) a state; or
1135  (B) the District of Columbia; and
1136  (iii) to the extent that amount is included in total income on that resident or
1137  nonresident estate's or trust's federal tax return for estates and trusts for that
1138  taxable year;
1139        (e) the amount of a railroad retirement benefit:
1140  (i) paid:
1141  (A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231
1142  et seq.;
1143  (B) to a resident or nonresident estate or trust derived from a deceased resident or
1144  nonresident individual; and
1145  (C) for the taxable year; and
1146  (ii) to the extent that railroad retirement benefit is included in total income on that
1147  resident or nonresident estate's or trust's federal tax return for estates and trusts;
1148        (f) an amount:
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 Enrolled Copy  H.B. 176
1149  (i) received by a resident or nonresident estate or trust if that amount is derived from
1150  a deceased enrolled member of an American Indian tribe; and
1151  (ii) to the extent that the state is not authorized or permitted to impose a tax under this
1152  part on that amount in accordance with:
1153  (A) federal law;
1154  (B) a treaty; or
1155  (C) a final decision issued by a court of competent jurisdiction;
1156        (g) the amount that a qualified nongrantor charitable lead trust deducts under Section
1157  642(c), Internal Revenue Code, as a charitable contribution deduction, as allowed on
1158  the qualified nongrantor charitable lead trust's federal income tax return for estates
1159  and trusts for the taxable year;
1160        (h) any fiduciary adjustments required by Section 59-10-210;
1161        (i) an amount received:
1162  (i) for the interest on a bond, note, or other obligation issued by an entity for which
1163  state statute provides an exemption of interest on its bonds from state individual
1164  income tax;
1165  (ii) by a resident or nonresident estate or trust;
1166  (iii) for the taxable year; and
1167  (iv) to the extent the amount is included in federal taxable income on the taxpayer's
1168  federal income tax return for the taxable year;
1169        (j) for a taxable year beginning on or after January 1, 2019, but beginning on or before
1170  December 31, 2019, only:
1171  (i) the amount of any FDIC premium paid or incurred by the resident or nonresident
1172  estate or trust that is disallowed as a deduction for federal income tax purposes
1173  under Section 162(r), Internal Revenue Code, on the resident's or nonresident
1174  estate's or trust's 2018 federal income tax return; plus
1175  (ii) the amount of any FDIC premium paid or incurred by the resident or nonresident
1176  estate or trust that is disallowed as a deduction for federal income tax purposes
1177  under Section 162(r), Internal Revenue Code, for the taxable year; and
1178        (k) for a taxable year beginning on or after January 1, 2020, the amount of any FDIC
1179  premium paid or incurred by the resident or nonresident estate or trust that is
1180  disallowed as a deduction for federal income tax purposes under Section 162(r),
1181  Internal Revenue Code, for the taxable year.
1182    (3) Notwithstanding Subsection (1)(b), interest from bonds, notes, and other evidences of
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 H.B. 176  Enrolled Copy
1183  indebtedness issued by an entity described in Subsections (1)(b)(i)(A) through (D) may
1184  not be added to unadjusted income of a resident or nonresident estate or trust if, as
1185  annually determined by the commission:
1186  (a) for an entity described in Subsection (1)(b)(i)(A) or (B), the entity and all of the
1187  political subdivisions, agencies, or instrumentalities of the entity do not impose a tax
1188  based on income on any part of the bonds, notes, and other evidences of indebtedness
1189  of this state; or
1190  (b) for an entity described in Subsection (1)(b)(i)(C) or (D), the following do not impose
1191  a tax based on income on any part of the bonds, notes, and other evidences of
1192  indebtedness of this state:
1193  (i) the entity; or
1194  (ii)(A) the state in which the entity is located; or
1195  (B) the District of Columbia, if the entity is located within the District of
1196  Columbia.
1197     (4)(a) A subtraction for an amount described in Subsection (2)(c) is allowed only if:
1198  (i) the income is derived from a deceased Ute tribal member; and
1199  (ii) the governor and the Ute tribe execute and maintain an agreement meeting the
1200  requirements of this Subsection (4).
1201  (b) The agreement described in Subsection (4)(a):
1202  (i) may not:
1203  (A) authorize the state to impose a tax in addition to a tax imposed under this
1204  chapter;
1205  (B) provide a subtraction under this section greater than or different from the
1206  subtraction described in Subsection (2)(c); or
1207  (C) affect the power of the state to establish rates of taxation; and
1208  (ii) shall:
1209  (A) provide for the implementation of the subtraction described in Subsection
1210  (2)(c);
1211  (B) be in writing;
1212  (C) be signed by:
1213  (I) the governor; and
1214  (II) the chair of the Business Committee of the Ute tribe;
1215  (D) be conditioned on obtaining any approval required by federal law; and
1216  (E) state the effective date of the agreement.
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 Enrolled Copy  H.B. 176
1217        (c)(i) The governor shall report to the commission by no later than February 1 of each
1218  year regarding whether or not an agreement meeting the requirements of this
1219  Subsection (4) is in effect.
1220  (ii) If an agreement meeting the requirements of this Subsection (4) is terminated, the
1221  subtraction permitted under Subsection (2)(c) is not allowed for taxable years
1222  beginning on or after the January 1 following the termination of the agreement.
1223        (d) For purposes of Subsection (2)(c) and in accordance with Title 63G, Chapter 3, Utah
1224  Administrative Rulemaking Act, the commission may make rules:
1225  (i) for determining whether income is derived from a source within the Uintah and
1226  Ouray Reservation; and
1227  (ii) that are substantially similar to how adjusted gross income derived from Utah
1228  sources is determined under Section 59-10-117.
1229  Section 26. Section 75B-1-101 is amended to read:
1230  75B-1-101 . Definitions for title.
1231       As used in this title:
1232    (1) "Agent" means the same as that term is defined in Section 75-1-201.
1233    (2) "Beneficiary" means a person that:
1234        (a) has a present or future beneficial interest in a trust, vested or contingent; or
1235        (b) in a capacity other than that of trustee, holds a power of appointment over trust
1236  property.
1237    (3) "Charitable trust" means a trust, or portion of a trust, created for a charitable purpose
1238        described in Subsection 75B-2-405(1).
1239    (4) "Child" means, except as provided in Sections 75B-2-503 and 75B-2-504, the same as
1240        that term is defined in Section 75-1-201.
1241    (5) "Claims" means the same as that term is defined in Section 75-1-201.
1242    (6) "Conservator" means the same as that term is defined in Section 75-1-201.
1243    (7) "Court" means a court with jurisdiction under Title 78A, Judiciary and Judicial
1244        Administration.
1245    (8) "Descendant" means the same as that term is defined in Section 75-1-201.
1246    (9) "Devise" means the same as that term is defined in Section 75-1-201.
1247    (10) "Distributee" means the same as that term is defined in Section 75-1-201.
1248    (11) "Estate" means the same as that term is defined in Section 75-1-201.
1249    (12) "Fiduciary" means the same as that term is defined in Section 75-1-201.
1250    (13) "Governing instrument" means the same as that term is defined in Section 75-1-201.
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1251     (14) "Guardian" means the same as that term is defined in Section 75-1-201.
1252     (15) "Incapacitated" means the same as that term is defined in Section 75-1-201.
1253     (16) "Income" means the same as that term is defined in Section 75A-5-102.
1254     (17) "Interested person" means, except as provided in Section 75B-2-110, the same as that
1255  term is defined in Section 75-1-102.
1256     (18) "Lease" means the same as that term is defined in Section 75-1-201.
1257     (19) "Minor" means an individual who is younger than 18 years old.
1258     (20) "Mortgage" means the same as that term is defined in Section 75-1-201.
1259     (21) "Nongeneral power of appointment" means the same as that term is defined in Section
1260  75A-4-102.
1261     (22) "Organization" means the same as that term is defined in Section 75-1-201.
1262     (23) "Parent" means the same as that term is defined in Section 75-1-201.
1263     (24) "Person" means the same as that term is defined in Section 75-1-201.
1264     (25) "Personal representative" means the same as that term is defined in Section 75-1-201.
1265     (26) "Petition" means the same as that term is defined in Section 75-1-201.
1266     (27) "Power of appointment" means the same as that term is defined in Section 75A-4-102.
1267     (28) "Principal" means the same as that term is defined in Section 75A-5-102.
1268     (29) "Property" means the same as that term is defined in Section 75-1-201.
1269     (30) "Protected person" means the same as that term is defined in Section 75-1-201.
1270     (31) "Record" means the same as that term is defined in Section 75-1-201.
1271     (32) "Security" means the same as that term is defined in Section 75-1-201.
1272     (33)(a) "Settlor" means a person, including a testator, who creates, or contributes
1273  property to, a trust.
1274  (b) If more than one person creates or contributes property to a trust, each person is a
1275  settlor of the portion of the trust property attributable to that person's contribution
1276  except to the extent another person has the power to revoke or withdraw that portion.
1277     (34) "Sign" means the same as that term is defined in Section 75-1-201.
1278     (35) "State" means the same as that term is defined in Section 75-1-201.
1279     (36) "Successor" means a person, other than a creditor, that is entitled to property of a
1280  decedent under the decedent's will or Title 75, Utah Uniform Probate Code.
1281     (37) "Testator" means the same as that term is defined in Section 75-1-201.
1282     (38)(a) "Trust" means:
1283  (i) a health savings account, as defined in Section 223 of the Internal Revenue Code;
1284  (ii) an express trust, private or charitable, with additions thereto, wherever and
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1285  however created; or
1286  (iii) a trust created or determined by judgment or decree under which the trust is to be
1287  administered in the manner of an express trust.
1288        (b) "Trust" does not include:
1289  (i) a constructive trust;
1290  (ii) a resulting trust;
1291  (iii) a conservatorship;
1292  (iv) a personal representative;
1293  (v) a trust account as defined in Title 75, Chapter 6, Nonprobate Transfers;
1294  (vi) a custodial arrangement under Title 75A, Chapter 8, Uniform Transfers To
1295  Minors Act;
1296  (vii) a business trust providing for certificates to be issued to beneficiaries;
1297  (viii) a common trust fund;
1298  (ix) a voting trust;
1299  (x) a preneed funeral plan under Title 58, Chapter 9, Funeral Services Licensing Act;
1300  (xi) a security arrangement;
1301  (xii) a liquidation trust;
1302  (xiii) a trust for the primary purpose of paying debts, dividends, interest, salaries,
1303  wages, profits, pensions, or employee benefits of any kind; or
1304  (xiv) any arrangement under which a person is nominee or escrowee for another
1305  person.
1306    (39) "Trust company" means the same as that term is defined in Section [7-5-1] 7-5-101.
1307    (40) "Trustee" means an original, additional, and successor trustee, and cotrustee, whether
1308        or not appointed or confirmed by the court.
1309    (41) "Trust instrument" means an instrument executed by the settlor that contains terms of
1310        the trust, including any amendments thereto.
1311    (42) "Ward" means the same as that term is defined in Section 75-1-201.
1312    (43) "Will" means the same as that term is defined in Section 75-1-201.
1313  Section 27. Section 75B-3-107 is amended to read:
1314  75B-3-107 . Limitations on trust director.
1315    (1) A trust director is subject to the same rules as a trustee in a like position and under
1316        similar circumstances in the exercise or nonexercise of a power of direction or further
1317        power under Subsection 75B-3-106(2)(a) regarding:
1318        [(1)] (a) a payback provision in the terms of a trust necessary to comply with the
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 H.B. 176  Enrolled Copy
1319  Medicaid reimbursement requirements in Section 1917 of the Social Security Act, 42
1320  U.S.C. Sec. 1396p(d)(4)(A), as amended, and any related regulations; and
1321  [(2)] (b) a charitable interest in the trust, including notice regarding the interest to the
1322  attorney general.
1323     (2) A trust director may not engage in trust business, as that term is defined in Section
1324  7-5-101.
1325  Section 28. Effective Date.
1326     This bill takes effect on May 6, 2026.
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