2019 Regular Session ENROLLED
SENATE BILL NO. 49
BY SENATOR FANNIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
1 AN ACT
2 To amend and reenact R.S. 6:626(A) and R.S. 9:1783(A), relative to trusts; to provide
3 relative to Louisiana and out-of-state trust companies; to provide relative to offices
4 and activities that may be conducted; to provide relative to entities qualifying as
5 trustees; to provide certain terms and conditions; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 6:626(A) is hereby amended and reenacted to read as follows:
8 §626. Out-of-state trust companies
9 A. An out-of-state trust company may act as a fiduciary in this state or
10 engage in a trust business at an office in this state only to the extent that the state by
11 which it is chartered allows a Louisiana institution to perform such trust activities
12 therein. An out-of-state trust company may establish a representative trust office in
13 Louisiana at which the out-of-state trust company may perform trust-related
14 business, except that the company may not enter into any trust agreements pursuant
15 to the laws of this state.
16 A.(1) An out-of-state trust company may act as a fiduciary from a trust
17 office only if both of the following conditions are met:
18 (a) The out-of-state trust company maintains a trust office in the state of
19 Louisiana.
20 (b) In the state where the out-of-state trust company has its principal
21 location, similar institutions chartered under Louisiana law may establish
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1 offices and engage in substantially similar activities authorized under this
2 Chapter.
3 (2) Subject to the requirements of Paragraph (A)(1) of this Section, an
4 out-of-state trust company that maintains one or more trust offices in the state
5 may at each office conduct any activity authorized to be conducted by a
6 Louisiana trust company under this Chapter.
7 (3) An out-of-state trust company may establish a trust representative
8 office in Louisiana at which the out-of-state trust company may perform trust-
9 related business, except that the company may not enter into any trust
10 agreements pursuant to the laws of this state.
11 * * *
12 Section 2. R.S. 9:1783(A) is hereby amended and reenacted to read as follows:
13 §1783. Who may be trustee
14 A. Only the following persons or entities may serve as a trustee of a trust
15 established pursuant to this Code:
16 (1) A natural person enjoying full capacity to contract who is a citizen or
17 resident alien of the United States, who may be the settlor, the beneficiary, or both.
18 (2) A federally insured depository institution organized under the laws of
19 Louisiana, another state, or of the United States, or a financial institution or trust
20 company authorized to exercise trust or fiduciary powers under the laws of Louisiana
21 or of the United States.
22 (3) A financial institution or trust company organized under the laws of
23 Louisiana or the United States, authorized to exercise trust or fiduciary powers
24 under the laws of Louisiana or of the United States, or trust company organized
25 under the laws of another state and operating in Louisiana pursuant to R.S.
26 6:626.
27 * * *
28 Section 3. This Act shall become effective upon signature by the governor or, if not
29 signed by the governor, upon expiration of the time for bills to become law without signature
30 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
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1 vetoed by the governor and subsequently approved by the legislature, this Act shall become
2 effective on the day following such approval.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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