C.R.S. Section 11-105-111
Trust account

  • limited documentation required
  • certificate of trust

(1)

For any transaction with any bank transacting business in this state by one or more persons expressly acting as a trustee or trustees for one or more other named person or persons pursuant to or purporting to be pursuant to a written trust agreement, a trustee may provide the bank with a certificate of trust to evidence the trust relationship. The certificate of trust must be a duly acknowledged affidavit or other written statement expressly made under penalty of perjury executed by any trustee and must include the following:

(a)

A statement that the trust exists and the date the trust instrument was executed;

(b)

The identity of the settlor;

(c)

The identity and address of the current acting trustee;

(d)

The powers of the trustee in the pending transaction;

(e)

A statement whether the trust is revocable and the identity of any person holding the power to revoke the trust;

(f)

The authority of cotrustees to sign or otherwise authenticate and whether all or fewer than all cotrustees are required in order to exercise the powers of the trustee;

(g)

The name in which title to trust property may be taken; and

(h)

Any other information that may be required by the bank, including an indemnification that is acceptable to the bank.

(2)

If a bank decides to accept a certificate of trust pursuant to this section:

(a)

For a transaction that consists of opening a deposit account, the bank may administer the account in accordance with the certificate of trust without requiring receipt of a copy of the written trust agreement; and

(b)

For a transaction that consists of obtaining, guaranteeing, or encumbering trust property to secure a loan, or entering into any agreement with a bank, the trustee or trustees shall be conclusively presumed to have had the authority specified in the trust certificate for purposes of determining whether the trustees were acting within their authority in entering into, or causing the trust to enter into, a transaction, even if the certificate of trust is contrary to the terms of the written trust agreement, unless the bank has actual knowledge that the terms of the written trust agreement are contrary to the terms of the certificate of trust.

(3)

If a bank decides to accept a certificate of trust in opening a deposit account pursuant to this section, upon the death, resignation, or adjudication of incompetence of all named trustees and successor trustees noted on the certificate of trust, the bank may withhold disposition of any funds on deposit in the account until receipt of one of the following:

(a)

An order by a court of competent jurisdiction directing the disposition of funds;

(b)

A newly executed certificate of trust created pursuant to this section from a person acting or purporting to act as a newly appointed successor trustee under the same trust; or

(c)

Other documentation that establishes to the satisfaction of the bank the manner in which the funds are to be administered or distributed.

(4)

If a bank decides to accept a certificate of trust in opening a deposit account pursuant to this section, the bank shall not be liable for administering the account as provided by the certificate of trust, even if the certificate of trust is contrary to the terms of the written trust agreement, unless the bank has actual knowledge that the terms of the written trust agreement are contrary to the terms of the certificate of trust.

(5)

Nothing in this section obligates a bank to enter into a transaction with a trustee who refuses to furnish the bank with a copy of a written trust agreement. In addition, nothing in this section shall be construed to prohibit a bank from requesting additional information in order to enter into a transaction with a trustee, including a request that the certificate of trust be executed by all trustees.

(6)

Knowledge of the terms of a written trust agreement may not be inferred solely from the fact that a copy of all or part of a written trust agreement is held by the person relying upon the certification or affidavit.

Source: Section 11-105-111 — Trust account - limited documentation required - certificate of trust, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-11.­pdf (accessed Oct. 20, 2023).

11‑105‑101
Branch banks and practices prohibited 11‑105‑102
Accounts and interest 11‑105‑103
Saturday closing - notice - effect 11‑105‑104
Minor or institutional deposits 11‑105‑105
Joint deposits - right of survivor 11‑105‑106
Final adjustment - statement of account 11‑105‑107
Adverse claim deposits 11‑105‑108
Transmitting money - foreign exchange 11‑105‑109
Temporary closing of banks - when 11‑105‑110
Disclosure of information pursuant to legal process 11‑105‑111
Trust account - limited documentation required - certificate of trust 11‑105‑112
Entity account - certificate of existence and authority - definitions 11‑105‑208
Consumer protection 11‑105‑301
Reserves against deposits 11‑105‑302
Loans, acceptances, investments, and letters of credit 11‑105‑303
Corporate powers - interest and charges 11‑105‑304
Bank investments - customers’ orders 11‑105‑305
Acceptances - letters of credit 11‑105‑401
Acquisition of property to satisfy indebtedness 11‑105‑402
Banking property - acquisition 11‑105‑403
Sale of assets 11‑105‑404
Pledge of assets 11‑105‑405
Signature guaranty 11‑105‑501
Safe deposit boxes - leasing and subsidiary company 11‑105‑502
Access by fiduciaries 11‑105‑503
Lease to minor 11‑105‑504
Death of lessee - procedure 11‑105‑505
Adverse claims to safe deposit box 11‑105‑506
Annual fees 11‑105‑601
Legislative declaration 11‑105‑602
Financial branches allowed - conversion of financial institutions to branches - acquisitions 11‑105‑603
Financial institutions - common powers and limitations 11‑105‑604
Subsidiary depository institutions as agent 11‑105‑605
Rule-making by banking board and financial services board 11‑105‑606
Notice of branch closing
Green check means up to date. Up to date

Current through Fall 2024

§ 11-105-111’s source at colorado​.gov