Section 362.1105

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 362

Effective - 28 Aug 2017   

  362.1105.  Books and records of company, confidentiality — inspection, when — violation, penalty. — 1.  The books and records of a family trust company are confidential and shall be made available for inspection and examination only:

  (1)  To the secretary or the secretary's authorized representative;

  (2)  To any person authorized to act for the family trust company;

  (3)  As compelled by a court, pursuant to a subpoena issued in accordance with state or federal law.  Before the production of the books and records, the party seeking production shall agree to reimburse the company for the reasonable costs and fees incurred in compliance with the production.  If the parties disagree on the amount of reimbursement, the party seeking the records may request the court that issued the subpoena to set the amount of reimbursement;

  (4)  Pursuant to a subpoena held by any federal or state law enforcement or prosecutorial instrumentality authorized to investigate suspected criminal activity;

  (5)  As authorized by, if a corporation, the board of directors or, if a limited liability company, the managers; or

  (6)  As provided under subsection 2 of this section.

  2.  (1)  If a corporation, each customer and stockholder, or if a limited liability company, each member has the right to inspect the books and records of a family trust company as they pertain to such person's accounts or the determination of such person's voting rights.

  (2)  The books and records pertaining to customers, members, and stockholders of a family trust company shall be kept confidential by the company and its directors, managers, officers, and employees.  The books and records of customers, members, and stockholders shall not be released except upon the express authorization of the customer as to his or her own accounts or a stockholder or member regarding his or her voting rights.  However, information may be released without the authorization of a customer, member, or shareholder in a manner prescribed by the board of directors of a corporation or managers of a limited liability company for the purposes of verifying or corroborating the existence or amount of a customer's account if such information is reasonably provided to meet the needs of commerce and to ensure accurate credit information.  Notwithstanding this subdivision, this subsection shall not prohibit a family trust company from disclosing financial information as permitted under 15 U.S.C. Section 6802, as amended.

  (3)  The willful unlawful disclosure of confidential information in violation of this section shall be a class E felony.

  (4)  This subsection shall not apply to a foreign family trust company.  The laws of the jurisdiction in which a foreign family trust company was incorporated or organized govern the rights of its customers, members, and stockholders to inspect its books and records.

  3.  For purposes of this section, the term "books and records" shall include, but is not limited to, the initial registration documents of a family trust company under section 362.1030 and the annual registration report made by a family trust company under section 362.1055.

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(L. 2017 H.B. 292)