Date Enacted: February 25, 2015
Date Effective: July 1, 2015
Revisions have been made to WY HB 60. The changes to this bill require trust companies to hold a commercial bond. Without a surety bond, these businesses will be forced to use their capital in the case of disbanding due to poor financial health.
These changes may present questions for some trust companies. Individuals who are unfamiliar with license bonds may now need to research how to get licensed.
What Wyoming’s Trust Bond Amendments Mean for Trust Companies
There are several changes to Wyoming’s HB 60. For trust companies, the revisions mean that they must now submit a license bond to the commissioner. The purpose of the commercial bond is to cover costs in case of a liquidation or receivership, should the trust company fall into a bad financial status.
The permit bond must have a market value of at least $100,000. Instead of furnishing a bond, the institution can submit capital which will be held in a state or national bank. The main branch location of the bank must be located in the state of Wyoming and the trust company will be responsible for any fees associated with the management of the capital.
Other Notable Changes
Trust Company Organization
The law allows trust companies to be organized as corporations and limited liability companies, and they are given the same rights afforded to these organizations including taking oaths and affidavits by managing members or corporate officers depending upon the type of organization the trust is.
Capital Stock Requirements
A trust company can’t be organized or incorporated unless it pays a capital stock of at least $500,000. In the case of a corporation, the capital stock will come from its members.
Conditions for Insolvency
There are several possible conditions for insolvency including:
- The trust’s liabilities are more than the market value of its cash assets.
- The trust company doesn’t pay liabilities in an accepted way and on time.
Check out the full revised Wyoming Trust Company License Bond Law for more details.
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