C.R.S. Section 11-109-205
Transactions with affiliates

(1)

Unless otherwise prohibited by law, a trust company and its affiliates may engage in any of the transactions described in subsection (2) of this section if such transactions are either:

(a)

On terms and under circumstances, including credit standards, that are substantially the same, or at least as favorable to such trust company or its subsidiary, as those prevailing at the time for comparable transactions with or involving nonaffiliated companies; or

(b)

In the absence of comparable transactions, on terms and under circumstances, including credit standards, that in good faith would be offered to, or would apply to, nonaffiliated companies.

(2)

Transactions covered.
Subsection (1) of this section shall apply to the following:

(a)

A purchase of, or an investment in, securities issued by the affiliate;

(b)

A purchase of assets, including assets subject to an agreement to repurchase, from the affiliate;

(c)

The acceptance of securities issued by the affiliate as collateral security for a loan or extension of credit to any person or company;

(d)

The sale of securities or other assets to an affiliate, including assets subject to an agreement to repurchase;

(e)

The payment of money or the furnishing of services to an affiliate under contract, lease, or otherwise;

(f)

Any transaction in which an affiliate acts as an agent or broker or receives a fee for its services for the trust company or for any other person; and

(g)

Any transaction or series of transactions with a third party including those in which an affiliate has a financial interest in the third party or is a participant in such transaction or series of transactions.

(3)

Intentionally left blank —Ed.

(a)

A company or shareholder shall be deemed to have control over another company if such company or shareholder:

(I)

Directly or indirectly, or acting through one or more other persons, owns, controls, or has power to vote twenty-five percent or more of any class of voting securities of the other company; or

(II)

Controls in any manner the election of a majority of the directors or trustees of the other company.

(b)

Notwithstanding any other provision of this section, no company shall be deemed to own or control another company by virtue of its ownership or control of shares in a fiduciary capacity or if the company owning or controlling such shares is a business trust.

(4)

The banking board may promulgate rules to exempt transactions or relationships from the requirements of this section if the banking board finds such exemptions are in the public interest and consistent with the purposes of this section.

(5)

As used in this section, unless the context otherwise requires:

(a)

Intentionally left blank —Ed.

(I)

“Affiliate” with respect to a trust company means:

(A)

Any company that controls the trust company and any other company that is controlled by the company that controls the trust company;

(B)

Any company that is controlled, directly or indirectly, by a trust or otherwise, by or for the benefit of shareholders who beneficially or otherwise control, directly or indirectly, by trust or otherwise, the trust company or any company that controls the trust company;

(C)

Any company in which a majority of its directors or trustees constitute a majority of the persons holding any such office with the trust company or any company that controls the trust company;

(D)

Any company, including a real estate investment trust, that is sponsored and advised on a contractual basis by the trust company or any subsidiary or affiliate of the trust company; and

(E)

Any investment company with respect to which a trust company or any affiliate thereof is an investment advisor as defined in 15 U.S.C. sec. 80a-2 (a)(20).

(II)

“Affiliate” with respect to a trust company does not include:

(A)

Any company that is a subsidiary of a trust company; and

(B)

Any company engaged solely in holding the premises of the trust company.

(b)

“Company” means a corporation, partnership, business trust, association, or similar organization and, unless specifically excluded, the term “company” includes a “trust company” and a “bank”.

(c)

“Securities” shall have the same meaning as set forth in section 11-51-201 (17).

Source: Section 11-109-205 — Transactions with affiliates, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-11.­pdf (accessed Oct. 20, 2023).

11‑109‑101
Definitions 11‑109‑102
Use of words “trust” or “trust company” 11‑109‑103
Applicability of powers of banking board and bank commissioner to trust companies 11‑109‑104
Powers - banking board - commissioner 11‑109‑105
No private right of action 11‑109‑201
Powers of trust companies 11‑109‑202
Offices of trust companies 11‑109‑203
Activities not requiring a charter 11‑109‑204
Federal deposit insurance required 11‑109‑205
Transactions with affiliates 11‑109‑206
Trust company organized as a limited liability company 11‑109‑301
Incorporators 11‑109‑302
Application fee 11‑109‑303
Assessments 11‑109‑304
Capital 11‑109‑305
Application for charter 11‑109‑306
Procedure for granting or denying charter 11‑109‑401
Acquisition of majority control over an existing trust company - definitions 11‑109‑402
Reports to the banking board and to the commissioner 11‑109‑501
Directors’ meetings - duties 11‑109‑502
Director and officer insurance and fidelity bonds - legislative declaration 11‑109‑601
Penalty for noncompliance with the law 11‑109‑602
Assessment of civil money penalties by banking board 11‑109‑603
No indemnification or insurance against civil money penalties 11‑109‑604
Removal of director, officer, or other person 11‑109‑605
Suspension of director, officer, or other person 11‑109‑606
Informal enforcement authority 11‑109‑607
Receipt of deposits while insolvent 11‑109‑701
Discontinuance of trust business - voluntary liquidation and dissolution 11‑109‑702
Involuntary liquidation 11‑109‑703
Emergency grant of new charter 11‑109‑704
Liquidation by commissioner - procedure 11‑109‑801
Appeals procedure 11‑109‑802
Injunctions - appeals 11‑109‑901
Reserves against deposits 11‑109‑902
Investments 11‑109‑903
Substitution of trust companies 11‑109‑904
Laws governing individuals apply 11‑109‑905
Separation of fiduciary funds 11‑109‑906
Funds awaiting investment or distribution 11‑109‑907
Extensions of credit
Green check means up to date. Up to date

Current through Fall 2024

§ 11-109-205’s source at colorado​.gov