Section 362.1015

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 362

Effective - 28 Aug 2024, 3 histories   

  362.1015.  Definitions. — For purposes of sections 362.1010 to 362.1117, the following terms mean:

  (1)  "Authorized representative", if a family trust company is organized as a corporation, then an officer or director of the family trust company or, if a family trust company is organized as a limited liability company, then a manager, officer, or member of the family trust company;

  (2)  "Collateral kinship", a relationship that is not lineal but stems from a common ancestor;

  (3)  "Controlling stockholder or member", an individual who owns or has the ability or power to directly or indirectly vote ten percent or more of the outstanding shares, membership interest, or membership units of the family trust company;

  (4)  "Designated relative", a common ancestor of a family, either living or deceased, who is so designated in a family trust company's initial registration application and any annual registration report;

  (5)  "Director", the director of the Missouri division of finance;

  (6)  "Director's designee", an attorney-at-law or a certified public accountant designated by the director under subsection 1 of section 362.1085;

  (7)  "Engage in trust company business with the general public", any sales, solicitations, arrangements, agreements, or transactions to provide trust or other business services, whether for a fee, commission, or any other type of remuneration, with any person who is not a family member or any sole proprietorship, partnership, limited liability company, joint venture, association, corporation, trust, estate, business trust, or other company that is not one hundred percent owned by one or more family members;

  (8)  "Family affiliate", a company or other entity wholly and exclusively owned by, directly or indirectly, and operated for the sole benefit of:

  (a)  One or more family members; or

  (b)  Charitable foundations, charitable trusts, or other charitable entities if such foundation, trust, or entity is funded exclusively by one or more family members;

  (9)  "Family member":

  (a)  A designated relative;

  (b)  Any person within the tenth degree of lineal kinship of a designated relative;

  (c)  Any person within the ninth degree of collateral kinship to a designated relative;

  (d)  The spouse of any person who qualifies under paragraphs (a) through (c) of this subdivision;

  (e)  Any former spouse of any person who qualifies under paragraphs (a) through (c) of this subdivision;

  (f)  The probate estate of any person who qualified as a family member under paragraphs (a) through (e) of this subdivision;

  (g)  A family affiliate;

  (h)  An irrevocable trust funded exclusively by one or more family members of which all permissible distributees, as defined under subdivision (16) of section 456.1-103, qualify under paragraphs (a) through (g) of this subdivision or are charitable foundations, charitable trusts, or other charitable entities;

  (i)  An irrevocable trust of which one or more family members are the only permissible distributees; or

  (j)  A revocable trust of which one or more family members are the sole settlors.

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For purposes of this subdivision, a legally adopted person shall be treated as a natural child of the adoptive parents; a stepchild shall be treated as a natural child of the family member who is or was the stepparent of that child; and a foster child or an individual who was a minor when a family member became his or her legal guardian shall be treated as a natural child of the family member appointed as foster parent or guardian.  Degrees of kinship are calculated by adding the number of steps from the designated relative through each person to the family member either directly in case of lineal kinship or through the common ancestor in the case of collateral kinship;

  (10)  "Family trust company", a corporation or limited liability company organized or qualified to do business in this state that is wholly owned and exclusively controlled by, directly or indirectly, one or more family members, excluding any former spouse of a family member; that operates for the exclusive benefit of a family member regardless of whether compensation is received or anticipated; and that does not engage in trust company business with the general public or otherwise hold itself out as a trustee for hire by advertisement, solicitation, or other means.  The term "family trust company" shall include foreign family trust companies unless context indicates otherwise;

  (11)  "Family trust company affiliated party":

  (a)  A director, officer, manager, employee, or controlling stockholder or member of a family trust company; or

  (b)  A stockholder, member, or any other person as determined by the director who participates in the affairs of a family trust company;

  (12)  "Foreign family trust company", a family trust company that:

  (a)  Is licensed by the District of Columbia or a state in the United States other than this state;

  (b)  Has its principal place of business in the District of Columbia or a state in the United States other than this state;

  (c)  Is operated in accordance with family or private trust company laws of the District of Columbia or of the state in which it is licensed;

  (d)  Is subject to statutory or regulatory mandated oversight by the District of Columbia or state in which the principal place of business is located; and

  (e)  Is not owned by or a subsidiary of a corporation, limited liability company, or other business entity that is organized in or licensed by any foreign country;

  (13)  "Lineal kinship", a relationship in the direct line of ascent or descent from a designated relative;

  (14)  "Officer", an individual, regardless of whether the individual has an official title or receives a salary or other compensation, who may participate in the major policy-making functions of a family trust company other than as a director.  The term shall not include an individual who may have an official title and exercises discretion in the performance of duties and functions but who does not participate in determining the major policies of the family trust company and whose decisions are limited by policy standards established by other officers, regardless of whether the policy standards have been adopted by the board of directors.  The chair of the board of directors, the president, the chief executive officer, the chief financial officer, the senior trust officer, all executive vice presidents of a family trust company, and all managers if organized as a limited liability company are presumed to be officers unless such officer is excluded, other than in the capacity of a director, by resolution of the board of directors or members or by the bylaws or operating agreement of the family trust company from participating in major policy-making functions of the family trust company, and such excluded officer does not actually participate therein;

  (15)  "Organizational instrument", the articles of incorporation for a corporation or the articles of organization for a limited liability company, as they may be amended or supplemented from time to time;

  (16)  "Principal place of business", the physical location where officers of a family trust company direct, control, and coordinate the trust company's activities;

  (17)  "Principal place of operations", the physical location in this state where a foreign family trust company stores and maintains its books and records pertaining to operations in this state;

  (18)  "Qualified beneficiary", the same meaning as defined under subdivision (21) of section 456.1-103;

  (19)  "Registered agent", a business or individual designated by a family trust company to receive service of process on behalf of the family trust company;

  (20)  "Reports of examinations, operations, or conditions", records submitted to the director or prepared by the director as part of the director's duties performed under sections 362.1010 to 362.1117;

  (21)  "Working papers", the records of the procedures followed, tests performed, information obtained, and conclusions reached in an investigation under sections 362.1010 to 362.1117.  The term shall also include books and records.

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(L. 2017 H.B. 292, A.L. 2020 S.B. 599, A.L. 2024 S.B. 1359)