SLS 19RS-231 ORIGINAL
2019 Regular Session
SENATE BILL NO. 49
BY SENATOR FANNIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TRUSTS. Provides relative to activities of out-of-state trust companies. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 6:626(A) and to enact R.S. 9:1783(A)(3), relative to trusts; to
3 provide relative to Louisiana and out-of-state trust companies; to provide relative to
4 offices and activities that may be conducted; to provide relative to entities qualifying
5 as trustees; to provide certain terms and conditions; and to provide for related
6 matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 6:626(A) is hereby amended and reenacted to read as follows:
9 §626. Out-of-state trust companies
10 A. An out-of-state trust company may act as a fiduciary in this state or
11 engage in a trust business at an office in this state only to the extent that the state by
12 which it is chartered allows a Louisiana institution to perform such trust activities
13 therein. An out-of-state trust company may establish a representative trust office in
14 Louisiana at which the out-of-state trust company may perform trust-related
15 business, except that the company may not enter into any trust agreements pursuant
16 to the laws of this state.
17 A.(1) An out-of-state trust company may act as a fiduciary from a trust
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 49
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1 office only if:
2 (a) The out-of-state trust company maintains a trust office in the state of
3 Louisiana; and
4 (b) In the state where the out-of-state trust company has its principal
5 location, similar institutions chartered under Louisiana law may establish
6 offices and engage in substantially similar activities authorized under this
7 Chapter.
8 (2) Subject to the requirements of Paragraph (A)(1) of this Section, an
9 out-of-state trust company that maintains one or more offices in the state may
10 at each office conduct any activity authorized to be conducted by a Louisiana
11 trust company under this Chapter.
12 (3) An out-of-state trust company may establish a trust representative
13 office in Louisiana at which the out-of-state trust company may perform trust-
14 related business, except that the company may not enter into any trust
15 agreements pursuant to the laws of this state.
16 * * *
17 Section 2. R.S. 9:1783(A)(3) is hereby enacted to read as follows:
18 §1783. Who may be trustee
19 A. Only the following persons or entities may serve as a trustee of a trust
20 established pursuant to this Code:
21 * * *
22 (3) A trust company chartered under the laws of another state that is
23 operating in this state with one or more physical trust offices through which it
24 is authorized to act as a fiduciary.
25 * * *
26 Section 3. This Act shall become effective upon signature by the governor or, if not
27 signed by the governor, upon expiration of the time for bills to become law without signature
28 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
29 vetoed by the governor and subsequently approved by the legislature, this Act shall become
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Coding: Words which are struck through are deletions from existing law;
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1 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Xavier I. Alexander.
DIGEST
SB 49 Original 2019 Regular Session Fannin
Present law, relative to trusts, provides for the creation and establishment of out-of-state trust
companies and their activities.
Proposed law provides that an out-of-state trust company may act as a fiduciary from a trust
office only if:
(1)It maintains a trust office or branch in the state; and
(2)The state where the out-of-state trust company has its principal location allows a
Louisiana institution to perform substantially similar business activities.
Proposed law provides that an out-of-state trust company may at each office engage in the
same activities as a Louisiana trust company.
Proposed law provides that an out-of-state trust company may establish a trust representative
office in this state. Further provides that the company may not enter into any trust
agreements.
Proposed law provides that a trust company chartered in another state and operating in this
state with one or more physical trust offices may serve as a trustee in the state of Louisiana.
Effective upon signature or lapse of time for gubernatorial action.
(Amends R.S. 6:626(A); adds R.S. 9:1783(A)(3))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.