Washington Code 30B.10.190 – Order of prohibition against third-party service providers — Grounds — Notice
Current as of: 2023 | Check for updates
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(1) The director may issue and serve a state trust institution, or its affiliate, with written notice of intent to prohibit it from permitting a third-party service provider of such state trust institution or affiliate from participating in the conduct of the affairs of the state trust institution, whenever:
Terms Used In Washington Code 30B.10.190
- Affiliate: means the same as defined in RCW 30B. See Washington Code 30B.10.003
- Director: means the director of the Washington state department of financial institutions. See Washington Code 30B.04.005
- Fiduciary: A trustee, executor, or administrator.
- Respondent: means a person against whom the director has issued a notice and statement of charges pursuant to this chapter. See Washington Code 30B.10.003
- State: means a state of the United States, the District of Columbia, a territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands. See Washington Code 30B.04.005
- Third-party service provider: means the same as in RCW 30B. See Washington Code 30B.10.003
- Trust institution: means a depository institution or foreign bank engaged in trust business, or a trust company. See Washington Code 30B.04.005
(a) The third-party service provider commits an unsafe or unsound practice, or a violation or practice involving a breach of fiduciary duty, personal dishonesty, recklessness, or incompetence; and
(b)(i) The state trust institution or its affiliate has suffered or is likely to suffer substantial financial loss or other damage; or
(ii) The interests of the state trust institution, or its affiliate, or their beneficiaries, trustors, shareholders, or the general public in Washington state could be seriously prejudiced by reason of the violation or practice of the third-party service provider.
(2) The director shall also serve any affected third-party service provider with the notice described in subsection (1) of this section, and such third-party service provider shall be deemed a real party in interest with the same right to notice and right to intervene in the administrative action and defend against it as if the third-party service provider were the respondent.
[ 2019 c 389 § 26.]