HB 17-1157

House Bill 17-1157, which has been signed into law, updates how banks and credit unions handle trust accounts. It requires trustees to include more information in a certificate of trust when opening or managing these accounts. This means that financial institutions can rely on the accuracy of this document for transactions unless they have specific knowledge that contradicts what's stated in it. The bill applies to both banks and credit unions, making their processes more consistent regarding trust account management.

Official Summary

Currently, a bank may rely on a certificate of trust when trustees open a trust deposit account. The bill requires trustees to provide additional information in a certificate of trust. The bill also permits a bank to rely on a certificate of trust for any transaction between the bank and the trustees unless the bank has knowledge that the certificate of trust is contrary to the trust agreement. Knowledge will not be inferred solely because the bank has a copy of the trust agreement. The bill allows credit unions to rely on a certificate of trust in the same manner as a bank. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Votes