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Question about Trust Activity

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This topic contains 2 replies, has 0 voices, and was last updated by Avatar of jerrym jerrym 12 years, 7 months ago.

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  • #5501
    Avatar of jerrym
    jerrym
    Participant

    Hello all,

    How do I answer the following comment: ‘It appears that your activities include acting as a trustee and/or engaging in trust business. Therefore, it appears that your proposal could result in the conduct of unauthorized trust activity.’

    What I want to do is use the word “TRUST” in my company’s name, but I have to prove that we are not a trust company. And we don’t mislead the public into thinking that my company is a trust company.

    Any comments.

    Thanks

    #28661
    Avatar of jerrym
    jerrym
    Participant

    Unauthorized trust activity is defined as an act or practice within this state by a company without a charter, license, permit, registration, or other authority issued or granted by the banking commissioner or another appropriate regulatory authority for which such charter, license, permit, registration, or other authority is required to conduct trust business. Trust business is defined by to mean the business of a company holding itself out to the public as a fiduciary for hire or compensation to hold or administer accounts. Account is defined as meaning the client relationship established with a trust institution involving the transfer of funds or property to the trust institution, including a relationship in which the trust institution acts as trustee,??? Trust deposits includes client funds held by a trust institution and authorized to be deposited with itself pending payment of debts on behalf of the client, which is what it appears the trustee your letter references will be expected to do for the beneficiaries of the proposed land trusts.

    Basically, what should my response be to show that we don’t engage in the trust business?

    #28662
    Avatar of mtnwizard49
    mtnwizard49
    Member

    Are you serious?

    1) We don’t act as a trustee — ever.

    2) Why would you want “trust” in your company name?

    3) “Trust business is defined by to mean the business of a company holding itself out to the public as a fiduciary for hire or compensation to hold or administer accounts“. We at NARS don’t do this.

    4) We are principals in the transaction; Equity Holding Corporation is the company we hire to handle all trust activities.

    We have been doing business this way for over 20 years. Do you really think that nobody ever thought of this????

    #28663
    Avatar of bill
    bill
    Participant

    We learned early on that the word “trust” is not allowed in a company name if the company is not a bona fide trust company.

    And in answer to you questions, as Gary said, you never act in any capacity in and EHT as other than a beneficiary. The trustee we use and advocate is Equity Holding Corporation, which is a duly licensed, bonded and legitimate trustee in so much as they are a 501C corporation acting for the benefit of its members solely (the members are the beneficiaries of the thousands of trust relationships they serve).

    Bill Gatten

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