Washington Code 30B.46.003 – Definitions
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The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
Terms Used In Washington Code 30B.46.003
- Capital: has the meaning ascribed to that term by generally accepted accounting principles and applicable rules of the financial accounting standards board, and includes surplus and undivided profits. See Washington Code 30B.04.005
- Company: includes a bank, trust company, corporation, limited liability company, partnership, association, business trust, or another trust. See Washington Code 30B.04.005
- Director: means the director of the Washington state department of financial institutions. See Washington Code 30B.04.005
- 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
- State trust company: means a corporation or a limited liability company organized or reorganized under this title, including a trust company organized under the laws of Washington state before January 5, 2015. See Washington Code 30B.04.005
- Trust company: means a state trust company or any other company chartered to act as a fiduciary that is neither a depository institution nor a foreign bank. See Washington Code 30B.04.005
- Unauthorized trust activity: means to engage in trust business in Washington state without authority or exemption under this title. See Washington Code 30B.04.005
(1) “Corrective action measures” refers collectively to supervisory agreements, memoranda of understanding, supervisory directives, corrective action orders, and orders of conservatorship.
(2) “Corrective action order” means a cease and desist order, consent order, order compelling action, or order of conservatorship, as prescribed by this chapter.
(3) “Exceeded its powers” includes, without limitation, the following circumstances:
(a) If a state trust company has engaged in unauthorized trust activity;
(b) If a state trust company has refused to permit examination of its books, papers, accounts, records, or affairs by the director, assistant director, or examiners; or
(c) If a state trust company has neglected or refused to observe an order of the director including, without limitation, an order to make good, within the time prescribed, any capital deficiency.
(4) “Order of conservatorship” means an order specifically authorized under this chapter for the appointment for a conservatory of a state trust company.
(5) “Supervisory agreement” or “memorandum of understanding” means a supervisory directive in which a state trust company has given its prior consent.
(6) “Supervisory directive” means a supervisory directive in which the state trust company has not given its prior consent.
(7) “Unsafe condition” shall mean and include, but not be limited to, any one or more of the following circumstances:
(a) If a state trust company is less than adequately capitalized as determined by the director;
(b) If a state trust company violates the applicable provisions of this title or any other law or regulation applicable to a state trust company in a manner that results or is likely to result in a significant increase in the state trust company’s legal or operational risk;
(c) If a state trust company conducts a fraudulent or questionable practice in the conduct of its business that endangers its reputation, beneficiaries, shareholders, or trustors, or threatens its solvency;
(d) If a state trust company conducts its business in an unsafe or unsound manner;
(e) If a state trust company engages in unauthorized trust activity;
(f) If a state trust company violates any conditions of its certificate of authority or any agreement entered with the director; or
(g) If a state trust company willfully fails to carry out any authorized instruction or direction of the director.
[ 2019 c 389 § 80.]