6-05.1-05. Transfer of fiduciary relationships from affiliated banks to subsidiary trust
companies.
1. Any subsidiary trust company which has been duly authorized to commence the
business for which it is organized, and which has made any deposit of securities
required by law, may at any time file its verified application in the district court of the
county in which its main office is located requesting that it be substituted, except as
may be expressly excluded in the application, in every fiduciary capacity for each of its
affiliated banks specified in the application, and each such specified affiliated bank
shall join in the application. Any such application must indicate the county wherein the
main office of each affiliated bank joining in the application is located and must
designate each fiduciary account existing at the date thereof with respect to which the
applicant requests substitution, but fiduciary capacities in other cases need not be
listed. Any such application must additionally set forth, with regard to each existing
fiduciary account with respect to which the applicant requests substitution, the name
and address last known to the applicant of each person entitled to mailed notice of
hearing thereon, who are as follows:
a. In the case of an existing fiduciary account which may be revoked, terminated, or
amended, each person who, alone or together with others, is empowered to
revoke, terminate, or amend the same.
b. In the case of an existing fiduciary account with respect to which any person
other than a court has the power to remove the corporate fiduciary, each person
who, alone or together with others, is empowered to remove the corporate
fiduciary.
c. In the case of an existing fiduciary account which is an estate of a deceased
person or which is a guardianship or conservatorship, the clerk of the court in
which such estate, guardianship, or conservatorship matter is pending.
d. In the case of an existing fiduciary account not described in any of the foregoing
subdivisions, each income beneficiary of such account and each beneficiary who,
were such account terminated at the date of the application respecting such
account, would be entitled to share in distributions of income or principal thereof.
e. In the case of an existing fiduciary account wherein an affiliated bank specified in
the application is acting with a cofiduciary, to each such cofiduciary.
2. When any such application has been filed with the district court, the court shall make
an order fixing a date and time for hearing thereon and directing that notice thereof be
given as hereinafter provided. The applicant shall cause a copy of such notice to be
published at least once a week for three successive weeks preceding the hearing
date, the last such publication to be at least ten days preceding the hearing date. Such
publication must be made in a newspaper of general circulation published in each
county in which the main office of an affiliated bank specified in the application is
located. In addition, at least fourteen days preceding the hearing date, the applicant
shall cause a copy of such notice to be mailed by first-class mail to each person
identified in the application as being entitled to mailed notice under the provisions of
this section, at that person's address last known to the applicant as set forth in the
application. Proof of the giving of such notice must be made on or before the hearing
date and filed in the proceeding.
3. The notice to be published and mailed with respect to each such application shall state
the time and place of the hearing thereon, the name of the subsidiary trust company
which has filed the application, the name of each affiliated bank which has joined in the
application, that the application requests that the subsidiary trust company be
substituted in every fiduciary capacity for each of its affiliated banks specified in the
application, and that any person entitled to receive mailed notice pursuant to this
section with respect to any existing fiduciary account may appear on or before the date
of hearing and file written objection to such substitution as to such account, and such
notice must refer to such application for further particulars.
4. On or before the date and time of hearing any such application, any person entitled to
receive mailed notice pursuant to this section with respect to any existing fiduciary
account may appear and file objection to substitution of the applicant in such account
and is then entitled to be heard with respect to such objection. The court may not apply
the provisions of this section to substitute a subsidiary trust company as fiduciary of
any existing fiduciary account with respect to which a person entitled to receive mailed
notice pursuant to this section has filed objection to substitution and has appeared and
been heard in support thereof.
5. On such date of hearing, upon finding that due notice has been given as required by
this section and upon finding that the applicant subsidiary trust company has been
duly authorized to commence the business for which it is organized by the state
banking board, or by the comptroller of the currency if the applicant is a national
banking association, and that the applicant has made such deposit of securities as
may be required by law, the district court shall enter an order substituting the applicant
in every fiduciary capacity for each of its specified affiliated banks, excepting as may
be otherwise specified in the application, and excepting fiduciary capacities in any
account with respect to which a person entitled to receive mailed notice pursuant to
this section has filed objection to substitution and has appeared and been heard in
support thereof. Upon entry of such order, or at such later date as may be specified in
such order, the applicant subsidiary trust company must, without further act, be
substituted in every such fiduciary capacity. The substitution may be made a matter of
record in any county of this state by filing a certified copy of the order of substitution in
the office of the clerk of any district court in this state or by filing a certified copy of
such order in the office of the recorder of any county of this state to be recorded and
indexed in like manner and with like effect as other orders and decrees of court are
recorded and indexed.
6. Each designation, in a will or other instrument heretofore or hereafter executed, of a
bank as fiduciary is deemed a designation of the subsidiary trust company substituted
for such bank pursuant to this section except when such will or other instrument is
executed after such substitution and expressly negates the application of this section.
Any grant in any such will or other instrument of any discretionary power is deemed
conferred upon the subsidiary trust company deemed designated as the fiduciary
pursuant to this section.
7. A bank shall account jointly with the subsidiary trust company which has been
substituted as fiduciary for such bank pursuant to this section for the accounting period
during which the subsidiary trust company is initially so substituted. Upon substitution
pursuant to this section, the bank shall deliver to the subsidiary trust company all
assets held by the bank as fiduciary, except assets held for fiduciary accounts with
respect to which there has been no substitution pursuant to this section, and upon
such substitution all such assets become the property of the subsidiary trust company
without the necessity of any instrument of transfer or conveyance.
