1 General Provisions

TITLE XXXV
BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS

Chapter 383-D
FAMILY TRUST COMPANY ACT

ARTICLE 1
General Provisions

Section 383-D:1-101

    383-D:1-101 Short Title. – This chapter shall be known and may be cited as the "Family Trust Company Act."

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:1-102

    383-D:1-102 Scope. – This chapter applies to family trust companies. A family trust company is a state bank and also is a trust company. Except as otherwise provided in this chapter, RSA 383-A and RSA 383-C apply to family trust companies.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:1-103

    383-D:1-103 Reservation of Power to Amend or Repeal. – The general court has power to amend or repeal all or part of this chapter at any time, and all persons subject to this chapter are governed by the amendment or repeal.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:1-104

    383-D:1-104 Commissioner. – The commissioner shall have the powers necessary or incidental to performing all of the commissioner's duties under this chapter, including the power to adopt rules as provided in this chapter in accordance with RSA 541-A. All rules previously adopted by the commissioner relating to the subject matter of this chapter shall be subject to RSA 541-A:17.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:1-105

    383-D:1-105 Confidential Information. –
(a) Except to the extent that disclosure of confidential information is permissible under RSA 383:10-b, RSA 383-A:3-305(f), or RSA 383-A:5-511(c), family trust company information is confidential, is not subject to subpoena, and is not subject to public disclosure.
(b) For purposes of this section, "family trust company information" includes the following information:
(1) Any of its information that is confidential under RSA 383:10-b or RSA 383-A:5-511(c);
(2) The name, date of birth, and any other identifying information of the designated relative;
(3) The names, addresses, and equity interests of the family trust company's equity owners;
(4) Capital contributions to the family trust company;
(5) The family trust company's directors and officers;
(6) The addresses of the family trust company's offices;
(7) The names and addresses of the family trust company's affiliates;
(8) The family trust company's business affiliations;
(9) Any information that the family trust company provides to the commissioner (whether in an application, in a report, in the course of an examination, or otherwise);
(10) Any information that the commissioner obtains in the course of an examination;
(11) An examination report;
(12) Any person's nonpublic personal financial information as defined in 15 U.S.C. section 6809(4);
(13) Any information relating to any conversion, combination, reorganization, domestication, or dissolution of a family trust company; and
(14) Any information relating to any transfer of an equity interest in a family trust company.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:2-201

    383-D:2-201 Definitions. –
(a) Except as provided in subsection (b), each term defined under RSA 383-A and RSA 383-C shall have the same meaning for purposes of this chapter.
(b) For purposes of this chapter, the following definitions shall apply:
(1) "Affiliate" means an entity that controls, is controlled by, or is under common control with another entity.
(2) "Designated relative" means the individual who is designated as the designated relative in the application under RSA 383-D:5-502 or the application for change of designated relative under RSA 383-D:10-1002.
(3) "Eligible trust" means:
(A) A trust of which each settlor is a family member;
(B) A trust of which a settlor is a person other than a family member if noncharitable beneficiaries who are family members represent a majority of interest in the trust;
(C) A trust of which a settlor is a person other than a family member if a majority of the trust's noncharitable qualified beneficiaries are family members;
(D) A trust in which one or more eligible trusts or other family clients are the only persons who currently are distributees or permissible distributees of trust income or principal; or
(E) A trust of which the settlor is one or more of (i) a key employee, (ii) a former key employee, or (iii) a spouse of a key employee or former key employee.
(4) "Family charitable organization" means a nonprofit corporation, charitable trust, or other nonprofit or charitable entity if (i) it was created by a family client or (ii) one or more family clients contributed all or substantially all of the money or other property that the entity has received as contributions. For purposes of this subsection, a nonprofit corporation includes any voluntary corporation incorporated under RSA 292. For purposes of this subsection, a charitable entity includes an entity organized for any charitable, educational, or religious purpose or any exempt purpose under Section 501(c)(3) of the Internal Revenue Code of 1986.
(5) "Family client" means any of the following persons:
(A) A family member;
(B) A former family member;
(C) A key employee;
(D) A former key employee;
(E) An estate of any incompetent or deceased family member, former family member, key employee, or former key employee;
(F) An eligible trust;
(G) A family charitable organization;
(H) A family entity;
(I) A person designated as a family client under RSA 383-D:4-401(a); or
(J) A person who qualifies as a family client under RSA 383-D:4-401(b).
(6) "Family entity" means an entity controlled by one or more family clients other than key employees and former key employees.
(7) "Family member" is defined in RSA 383-D:4-402.
(8) "Former family member" means (i) a spouse or stepchild who was a family member but ceased to qualify as a family member as the result of a divorce, death, or any other reason or (ii) an individual who was a family member but ceased to qualify as a family member as the result of his or her adoption by an individual who is not a family member.
(9) "Former key employee" means any of the following individuals:
(A) An individual who, under subsection (b)(10)(A) or (b)(10)(B), was a key employee but ceased to qualify as a key employee as the result of a change of duties, termination of employment, or any other reason; or
(B) The spouse of an individual described in subsection (b)(9)(A).
(10) "Key employee" means any of the following individuals:
(A) An individual who is a director or executive officer, or employee of a family trust company or its affiliate and, in connection with his or her regular functions or duties, participates in trust services or the entity's management;
(B) An individual who is a director, officer, or employee of an eligible trust, a family entity, or family charitable organization and, in connection with his or her regular functions or duties, participates in the entity's management;
(C) An individual designated as a key employee under RSA 383-D:4-403(b); or
(D) The spouse of an individual described in subsection (b)(10)(A), (b)(10)(B), or (b)(10)(C).
(11) "Qualified beneficiary" means qualified beneficiary as defined in RSA 564-B:1-103(12).
(12) "Required capital" means the amount of capital that a family trust company is required to maintain under RSA 383-D:6-602.
(13) "Settlor" means settlor as defined in RSA 564-B:1-103(15).
(14) "Terms of a trust" means terms of a trust as defined in RSA 564-B:1-103(19).
(15) "Transact business with the general public" means engaging in any solicitation, agreement, or transaction to exercise trust powers or otherwise provide trust, investment, or other services (whether or not for a fee) to any person other than a family client.
(c) For purposes of RSA 383, RSA 383-A, RSA 383-C, and this chapter, "Organizations Act" means:
(1) In the case of a family trust company organized as a corporation, the Corporation Act;
(2) In the case of a family trust company organized as a limited liability company, the LLC Act; or
(3) In the case of a family trust company organized as a foundation, RSA 564-F.

Source. 2015, 272:16. 2016, 230:13, eff. Aug. 8, 2016. 2017, 257:38, eff. Oct. 1, 2017.

Section 383-D:3-301

    383-D:3-301 Qualifications. – A family trust company shall provide trust, investment, and other services only to family clients. A family trust company's organizational documents shall prohibit the family trust company from transacting business with the general public.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:3-302

    383-D:3-302 Safety and Soundness. –
(a) For purposes of determining the safety or soundness of a family trust company or any act that a family trust company has taken or proposes to take, the following shall apply:
(1) Subject to subsection (b), the commissioner shall consider the factors described in RSA 383-C:4-401;
(2) The commissioner shall give primary consideration to whether the family trust company poses a harm to the general public; and
(3) To the extent that the family trust company does not pose a harm to the general public and subject to the requirements of this chapter, the family trust company shall have broad latitude to determine how it is organized and how it will operate its affairs.
(b) For purposes of applying the factors described in RSA 383-C:4-401 to a family trust company, the commissioner shall consider that:
(1) The family trust company's market is serving family clients; and
(2) The family trust company's financial success is determined by the avoidance of net losses over multiple years.
(c) A family trust company poses a harm to the general public if the family trust company:
(1) Transacts business with the general public;
(2) Fails to establish and maintain procedures reasonably designed to assure and monitor its compliance with applicable anti-money laundering and similar laws; or
(3) Engages in any other activity that the commissioner determines poses a direct, material harm to the general public.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 257:39, eff. Sept. 16, 2017.

Section 383-D:4-401

    383-D:4-401 Family Client. –
(a) With the commissioner's prior approval, a family trust company may designate a person as a family client if that person has a close and continuous relationship with one or more family clients.
(b) A person is a family client for one year after an involuntary event that otherwise would cause the person to cease to qualify as a family client. If, as the result of an involuntary event, a person becomes a client of the family trust company but does not otherwise qualify as a family client, then the person is a family client for one year after the involuntary event. For purposes of this subsection, an involuntary event means an event that is not within the reasonable control of the family trust company or a family client, including the divorce or death of a family member, a former family member, a key employee, or former key employee. The revocation of an individual's designation as a key employee under RSA 383-D:4-403(b) is not an involuntary event.
(c) If a person who, immediately before a change of the designated relative as provided in RSA 383-D:10-1002 or a change of the method of determining family members as provided in RSA 383-D:10-1003, was a family client and a client of the family trust company, then that person is a family client for one year after the effective date of the change.
(d) In the case of a family trust company that makes an election under RSA 383-D:4-402(b), "family client" includes any person to whom the family trust company could provide services if the family trust company qualified as a family office under 15 U.S.C. section 80b-2(a)(11)(G).

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 257:40, eff. July 18, 2017.

Section 383-D:4-402

    383-D:4-402 Family Member. –
(a) Subject to subsections (a) and (b), "family member" means any of the following individuals:
(1) The designated relative;
(2) Except as otherwise provided in subsection (b), an individual who is within (i) the fifth degree of lineal kinship to the designated relative or (ii) the ninth degree of collateral kinship to the designated relative; or
(3) A spouse or former spouse of an individual described in subsection (a)(1) or (a)(2).
(b) In lieu of the method for determining family members under subsection (a)(2), a family trust company may elect to treat as a family member any individual who is the designated relative's lineal descendant and is not more than 10 generations removed from the designated relative. A family trust company that wishes to use this alternate method shall make the election on its application under RSA 383-D:5-502 or file with the commissioner a notice in accordance with RSA 383-D:10-1003.
(c) For purposes of subsections (a)(2) and (b), a family member's child includes the family member's adopted child, stepchild, or foster child or an individual who was a minor when the family member became that individual's guardian.
(d) For purposes of this section, "lineal kinship" means a family member who is in the direct line of ascent or descent from the designated relative, and "collateral kinship" means a relationship that is not lineal, but stems from a common ancestor. Degrees are calculated by adding the number of steps from the designated relative through each person to the family member either directly in the case of lineal kinship or through the common ancestor in the case of collateral kinship.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:4-403

    383-D:4-403 Key Employee. –
(a) For purposes of RSA 383-D:2-201(b)(10)(A), an individual who solely performs clerical, secretarial, or administrative functions for the family trust company, eligible trust, family entity, or family charitable organization does not participate in trust services or the entity's management.
(b) In addition to any individual who is a key employee under RSA 383-D:2-201(b)(10)(A) or (B), a family trust company may designate as a key employee an individual who is a current or former employee of the family trust company, an eligible trust, a family entity, or a family charitable organization. A family trust company may revoke any designation of an individual as a key employee. At any time, the number of individuals designated as key employees under this subsection shall not exceed 35.

Source. 2015, 272:16. 2016, 230:4, eff. Aug. 8, 2016.

Section 383-D:4-404

    383-D:4-404 Former Key Employee. –
(a) After an individual becomes a former key employee, that individual does not qualify as a former key employee with respect to any new trust, investment, or other service, except as otherwise provided in subsection (b).
(b) An individual is a former key employee only to the extent of (i) trust, investment, or other services that the family trust company was providing to that individual (or an eligible trust of which the individual or the individual's spouse was a settlor) immediately before the individual became a former key employee and (ii) any trust, investment, or other service in connection with any additional investments that, with respect to an investment that the family trust company advises or manages, the individual (or an eligible trust of which the individual or the individual's spouse was a settlor) was contractually obligated to make before the individual became a former key employee.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:4-405

    383-D:4-405 Eligible Trust. – A trust is not an eligible trust if the commissioner determines that the trust was formed or is administered for the primary purpose of evading the limitations of this chapter.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:4-406

    383-D:4-406 Family Entity. – An entity is not a family client if the commissioner determines that the entity was organized or is operated for the primary purpose of evading the limitations of this chapter.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:4-407

    383-D:4-407 Family Charitable Organization. – A charitable organization is not a family client if the commissioner determines that it was organized or is operated for the primary purpose of evading the limitations of this chapter.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:5-501

    383-D:5-501 General. – Except as otherwise provided in this chapter, a family trust company shall be organized in accordance with RSA 383-A.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:5-501A

    383-D:5-501A Type of Entity. –
(a) A family trust company may be organized as:
(1) A corporation under the Corporation Act;
(2) A limited liability company under the LLC Act; or
(3) A foundation under RSA 564-F.
(b) RSA 383-A:3-303(a) shall not apply to family trust companies.

Source. 2017, 257:41, eff. Oct. 1, 2017.

Section 383-D:5-502

    383-D:5-502 Application. – In addition to any other information that the application may or must contain under RSA 383-A:3-305, the application shall include (i) the designated relative's name and date of birth and (ii) any request for exemption under RSA 383-D:7-702. For purposes of determining family members, the application may include an election to use the alternate method described in RSA 383-D:4-402(b). Unless the application includes that election or the family trust company elects the alternate method in accordance with RSA 383-D:10-1003, the method described in RSA 383-D:4-402(a) shall apply.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:5-503

    383-D:5-503 Review of Application. –
(a) In considering whether to approve or deny an application for a family trust company charter, the commissioner shall consider the trust company's safety and soundness in accordance with RSA 383-D:3-302.
(b) During the course of his or her review of an application, the commissioner may propose that the organizer amend or supplement the application for purposes of ensuring that the family trust company meets the requirements of a family trust company under this chapter, RSA 383-A, and RSA 383-C and ensuring the family trust company's safety and soundness. The organizer may amend or supplement the application in accordance with the commissioner's proposal.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:5-504

    383-D:5-504 Exemptions From Public Notice and Hearing. –
(a) The organizer of a family trust company is exempt from publishing any notice of their application for a family trust company charter. RSA 383-A:3-305(b)(2) shall not apply to the organizer of a family trust company.
(b) The commissioner shall not order a hearing in connection with any application for a family trust company charter. RSA 383-A:3-307 shall not apply to the organizer of a family trust company.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:5-505

    383-D:5-505 Action on Application. – Upon the completion of his or her review of the application, the commissioner shall issue a notice of decision and a charter in accordance with RSA 383-A:3-308(a) or a notice of denial in accordance with RSA 383-A:3-308(b). If the commissioner approves the application, then, in addition to the information that the notice must include under RSA 383-A:3-308(a), the notice of decision shall include a statement specifying each exemption granted or denied.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:5-506

    383-D:5-506 Conversion Into a Trust Company. – A family trust company may apply to convert to a trust company that is authorized to transact business with the general public by filing an application for a trust company charter in accordance with article 3 of RSA 383-A. RSA 383-A and RSA 383-C shall govern the application, and this chapter shall not apply to the application. The conversion shall be effective upon the issuance of a certificate authority granting the entity the authority to transact trust business, including transacting business with the general public. Upon the conversion's effective date, the entity shall cease to be a family trust company, and any exemptions granted under this chapter shall terminate.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:6-601

    383-D:6-601 General. – A family trust company shall maintain the required capital under RSA 383-D:6-602, a fidelity bond under RSA 383-A:4-405, and an errors and omissions liability insurance policy under RSA 383-A:4-406. For purposes of determining the appropriate amounts of required capital, fidelity bond coverage, and errors and omissions liability insurance coverage, the commissioner shall consider the family trust company's safety and soundness and shall give primary consideration to the liability insurance coverage, which provides the primary protections for a family trust company's family clients. In addition to the requirements in RSA 383-A:4-405 and RSA 383-A:4-406, any insurance deductible shall be reasonable and shall not jeopardize the safe and sound operation of the family trust company. RSA 383-C:5-501 shall not apply to family trust companies.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 169:15, eff. Sept. 8, 2019.

Section 383-D:6-602

    383-D:6-602 Required Capital. –
(a) The minimum required capital of a family trust company is $200,000. The commissioner may require a family trust company to maintain additional capital. From time to time, the commissioner may reduce or increase the amount of additional capital that a family trust company is required to maintain.
(b) After it obtains the authority to exercise trust powers, a family trust company shall maintain an amount of capital that equals or exceeds the required capital.
(c) A family trust company shall not make any distribution to the extent that, upon making the distribution, the family trust company's total capital would be less than the required capital.
(d) For purposes of subsection (c), "distribution" means a direct or indirect transfer of money or other property (except an equity interest in the family trust company) to or for the benefit of family trust company's equity owners in respect of any of equity interests in the family trust company.
(e) RSA 383-C:5-502(a) and (b) shall not apply to family trust companies.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 257:42, eff. Sept. 16, 2017.

Section 383-D:6-603

    383-D:6-603 Liquidation Pledge. – A family trust company is exempt from RSA 383-C:5-503.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:7-701

    383-D:7-701 Powers. – A family trust company shall have the powers granted to a trust company under RSA 383-C, excluding the power to transact business with the general public. A family trust company shall not transact business with the general public.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:7-702

    383-D:7-702 Grant of Exemptions. –
(a) Subject to subsection (b), the commissioner may exempt a family trust company from any one or more requirements of RSA 383-A, RSA 383-C, and this chapter.
(b) The commissioner shall not have the power to exempt a family trust company from any of the following requirements:
(1) the qualifications of a family trust company under RSA 383-D:3-301;
(2) the requirements for organization under article 5 of this chapter;
(3) the requirement to maintain capital that equals or exceeds the minimum required capital under RSA 383-D:6-602;
(4) the requirement to maintain an errors and omissions liability insurance policy under RSA 383-A:4-406; and
(5) the prohibition against accepting deposits under RSA 383-C:3-302.
(c) In the application under RSA 383-D:5-502, a family trust company's organizer may request one or more exemptions. After obtaining its certificate of authority to exercise trust powers, a family trust company may request one or more exemptions by filing with the commissioner an application for exemption.
(d) The commissioner may grant or deny, in whole or in part, any requested exemption, and the commissioner may impose one or more reasonable conditions or limitations on any exemption that the commissioner grants.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:7-703

    383-D:7-703 Modification or Revocation of Exemptions. – The commissioner may modify or revoke any exemption granted to a family trust company under RSA 383-D:7-702 if (i) the commissioner determines that, based upon the safety and soundness of the family trust company or any action that the family trust company has taken or proposes to take, modification or revocation is necessary or advisable or (ii) the family trust company fails to comply with this chapter or any other applicable laws. A modification of an exemption includes the imposition of one or more reasonable conditions or limitations on that exemption.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:7-704

    383-D:7-704 Effects of Transacting Business with the General Public. –
(a) Any action by a family trust company in its capacity as a trustee or other fiduciary shall not be void or voidable solely by reason of the entity transacting business with the general public.
(b) To the extent that a family trust company transacts business with the general public, each of its directors and executive officers shall be personally, jointly, and severally liable for all liabilities created by transacting business with the general public, including any breach of a fiduciary duty to a member of the general public.
(c) The directors' and officers' liability under subsection (b) is in addition to any civil or criminal penalties imposed by this title or other applicable law.
(d) This section shall not limit the commissioner's enforcement powers under this title or any other applicable law, including the power to order restitution for a violation of this title and other applicable laws and each of the other powers under RSA 383:10-d.

Source. 2017, 257:43, eff. July 18, 2017.

Section 383-D:8-801

    383-D:8-801 Board of Directors. –
(a) A family trust company shall have a board of directors, and that board of directors must have not less than three members. A director need not be a resident of New Hampshire or a citizen of the United States, unless otherwise required by the commissioner in consideration of the family trust company's safety and soundness. RSA 383-C:6-601(a) shall not apply to family trust companies.
(b) Subject to any limitations set forth in its organizational documents, this chapter, and RSA 383-C, all of the family trust company's powers shall be exercised by or under the authority of the family trust company's board of directors.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2021, 194:19, eff. Oct. 9, 2021.

Section 383-D:8-802

    383-D:8-802 Standard of Care. –
(a) Except as provided in subsections (b) and (c), RSA 383-A:5-505 applies to a director or officer of a family trust company.
(b) A director or officer of a family trust company shall not be personally liable to any person to the extent that, in the performance of his or her duties, the director or officer acts in good faith. In connection with any matter involving a trust, a director or officer acts in good faith to the extent that he or she acts in reasonable reliance on the terms of the trust, a nonjudicial settlement agreement under RSA 564-B:1-111, or a court order.
(c) A family trust company may indemnify a director or officer against any liability, except to the extent that a court determines that the director or officer failed to act in good faith.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:9-901

    383-D:9-901 Trust Offices. – In accordance with RSA 383-C:7-701 through RSA 383-C:7-703, a family trust company may open, close, or relocate any trust office at which it exercises trust powers or otherwise transacts business.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:10-1001

    383-D:10-1001 Reports and Certification. –
(a) In addition to filing an annual report in accordance with RSA 383-A:5-510(a), a family trust company shall file with the commissioner an annual certification certifying that the family trust company is in compliance with:
(1) the provisions of this chapter; and
(2) the conditions and limitations of all exemptions granted by the commissioner under RSA 383-D:7-702.
(b) In its annual certification, a family trust company may change its designated relative in accordance with RSA 383-D:10-1002.
(c) A family trust company's annual certification is due on the same day as its annual report.
(d) A family trust company shall file quarterly reports in accordance with RSA 383-A:5-510, and it shall file copies of other documents as required under RSA 383-A:5-511.
(e) A family trust company shall, at the same time it files the annual report of condition pursuant to RSA 383-A:5-510, report to the commissioner the work address and other contact information where each executive officer of the family trust company conducts trust business and the residential address of all directors, which information shall be kept confidential by commissioner pursuant to RSA 383:10-b.
(f) A family trust company shall have a continuing obligation to update the information reported pursuant to subsection (e) within 30 days of any change.
(g) A family trust company failing to report the information required pursuant to subsections (e) and (f) within the prescribed time period shall pay to the commissioner a penalty of $50 for each day such a report is overdue.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 209:4, eff. Sept. 8, 2017; 257:44, eff. Sept. 8, 2017 at 12:01 a.m. 2019, 169:16, eff. Sept. 8, 2019.

Section 383-D:10-1002

    383-D:10-1002 Change of Designated Relative. –
(a) A family trust company may change its designated relative by filing with the commissioner notice in which the family trust company designates a new designated relative.
(b) Except with the commissioner's prior approval, a family trust company cannot change its designated relative more than once every 10 years after the issuance of its certificate of authority.
(c) Except with the commissioner's prior approval, the change of a family trust company's designated relative is effective on January 1 of the year after in which the family trust company files its notice with the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:10-1003

    383-D:10-1003 Change of Method of Determining Family Members. –
(a) For purposes of determining family members, a family trust company may elect to use the method described in RSA 383-D:4-402(a) or the alternate method described in RSA 383-D:4-402(b). The family trust company may change its election by filing with the commissioner a notice of the change.
(b) Except with the commissioner's prior approval, a family trust company cannot change its election more than once every 10 years after the issuance of its certificate of authority.
(c) Except with the commissioner's prior approval, the new method is effective on January 1 of the year after which the family trust company files its notice with the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:10-1004

    383-D:10-1004 Exemption From Public Hearings. – In connection with any matter subject to the procedural rules under article 6 of RSA 383-A, the commissioner shall not order a public hearing. To the extent that RSA 383-A:6-604 authorizes the commissioner to hold a public hearing, RSA 383-A:6-604 shall not apply to a family trust company.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:10-1005

    383-D:10-1005 Exemption from Annual Audits. –
(a) A family trust company may apply for an exemption from RSA 383-A:5-509 by filing with the commissioner an application for exemption.
(b) In accordance with RSA 383-A:6-604, the commissioner shall make a determination as to whether to grant to the family trust company an exemption from RSA 383-A:5-509.
(c) In determining whether to grant an exemption from RSA 383-A:5-509, the commissioner shall consider whether:
(1) The family trust company can maintain its safety and soundness without a financial audit;
(2) The cost of a financial audit would be an undue financial burden on the family trust company; and
(3) The family trust company has established and will maintain procedures that will ensure that its financial statements are accurate and complete.
(d) The commissioner may revoke an exemption granted under this section if he or she determines that a financial audit is necessary to ensure that:
(1) The family trust company maintains its safety and soundness; or
(2) The family trust company's financial statements are accurate and complete.

Source. 2017, 257:45, eff. Sept. 16, 2017.

Section 383-D:11-1101

    383-D:11-1101 Examination. –
(a) The commissioner shall examine a family trust company every 36 months, or more often when necessary in his or her judgment.
(b) RSA 383-C:14-1401 and RSA 383-C:14-1402 shall not apply to a family trust company.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 209:2, eff. Sept. 8, 2017; 257:46, eff. Sept. 8, 2017 at 12:01 a.m. 2021, 51:7, eff. July 24, 2021.

Section 383-D:11-1102

    383-D:11-1102 Repealed by 2017, 257:59, I, eff. Sept. 8, 2017 at 12:01 a.m. –

Section 383-D:12-1201

    383-D:12-1201 Voluntary Dissolution. – A family trust company may voluntarily dissolve in accordance with RSA 383-C:10-1001 through RSA 383-C:10-1007.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:12-1202

    383-D:12-1202 Revocation of Authority to Conduct Trust Business. –
(a) If the commissioner determines that a family trust company is or has engaged in any activity that jeopardizes its safety or soundness, then the commissioner may revoke the family trust company's authority to conduct trust business.
(b) The commissioner shall issue a notice to the family trust company following the revocation of its authority granting it an opportunity for a hearing in accordance with RSA 541-A. The family trust company may appeal the commissioner's decision under RSA 541.
(c) The revocation of a family trust company's authority to conduct trust business removes the family trust company as a trustee, trust advisor, or trust protector of each trust of which it is serving as a trustee, trust advisor, or trust protector.
(d) Within a reasonable time after the revocation of its authority to conduct trust business, a family trust company shall dissolve in accordance with its organizational documents.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:12-1203

    383-D:12-1203 Judicial Dissolution. –
(a) The commissioner or any interested person may commence a judicial proceeding for purposes of seeking the dissolution of a family trust company. Each interested person shall be a party to that judicial proceeding. For purposes of this section, "interested person" means a person who is (i) a shareholder of a family trust company organized as a corporation, (ii) a member of a family trust company organized as a limited liability company, or (iii) a director or officer of the family trust company.
(b) The commissioner shall have the right to intervene in a judicial proceeding under this section. Unless the commissioner commences a judicial proceeding under this section or exercises his or her right to intervene, the commissioner shall not be a party to a judicial proceeding under this section.
(c) The probate division of the circuit court shall have exclusive jurisdiction over any judicial proceeding under this section.
(d) Venue for a judicial proceeding under this section is in the county of this state in which the family trust company's trust office is located or, if it does not have a trust office in this state, its registered office.
(e) The court may dissolve the family trust company if it is established that:
(1) The family trust company has materially violated any applicable law, including the requirement to maintain its required capital under RSA 383-C:5-502 or the requirement to maintain an errors and omissions liability insurance policy under RSA 383-A:4-406;
(2) The family trust company is or has engaged in any activity that jeopardizes its safety or soundness;
(3) The directors are deadlocked in the management of the family trust company's affairs, the family trust company's equity owners are unable to break the deadlock, and irreparable injury to the family trust company or one or more of the family trust company's clients is threatened or being suffered;
(4) The directors, its executive officers, or those in control of the family trust company have acted, are acting, or will act in a manner that is illegal or fraudulent;
(5) The family trust company's equity owners are deadlocked in voting power and have failed, for a period that includes at least 2 consecutive annual meeting dates, to elect successors to directors whose terms have expired;
(6) The family trust company's assets are being misapplied or wasted;
(7) An agreement of all of the family trust company's equity owners requires the dissolution and the family trust company has not been dissolved in accordance with that agreement;
(8) The family trust company's authority to conduct trust business has terminated under RSA 383-D:12-1202 and the family trust company has failed within a reasonable time to liquidate and distribute its assets and dissolve; or
(9) The family trust company has abandoned its business and has failed within a reasonable time to liquidate and distribute its assets and dissolve.
(f) If, after a hearing, the court determines that one or more grounds for judicial dissolution described under subsection (e) exist, then it shall issue an order dissolving the family trust company, specifying the effective date of the dissolution, and specifying the effective date on which the family trust company's authority to conduct trust business terminates. The clerk of the court shall deliver certified copies of the order to the commissioner and the secretary of state, and the clerk of the court shall mail notice of the order to the department of revenue administration. The secretary of state shall file the certified copy that he or she receives. After entering the order of dissolution, the court shall direct the winding up and liquidation of the family trust company's affairs in accordance with the Corporation Act if the family trust company is organized as a corporation or the LLC Act if the family trust company is organized as a limited liability company.
(g) In a judicial proceeding under this section, the court may order any appropriate relief, including relief under RSA 547:3-b.
(h) If the commissioner is a party in a judicial proceeding under this section, then the court shall award the commissioner's costs and expenses, including reasonable attorney's fees, to be paid by the family trust company or to the extent that the family trust company's assets are insufficient, one or more of the family trust company's clients, apportioned among them as justice and equity requires.
(i) As justice and equity may require in a judicial proceeding under this section, the court may award costs and expenses, including reasonable attorney's fees, to any party, to be paid by (i) the family trust company, (ii) to the extent that the family trust company's assets are insufficient, one or more of the family trust company's clients, or (iii) another party other than the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 169:17, eff. Sept. 8, 2019.

Section 383-D:13-1301

    383-D:13-1301 Authority to Exercise Trust Powers. –
(a) A foreign family trust company may engage in trust business in this state. A foreign family trust company that exercises trust powers in this state is subject to this chapter and, except as otherwise provided in this chapter, RSA 383-A and RSA 383-C. RSA 383-C:11-1101 shall not apply to foreign family trust companies.
(b) For purposes of this chapter, "foreign family trust company" means a foreign trust company that (i) is organized in a state or jurisdiction other than New Hampshire and (ii) is authorized under the laws of that state or jurisdiction to provide trust, investment, and other services principally to members of one or two families and entities in which one or more of those family members have substantial interests. Under those laws, a trust company meeting those qualifications commonly is called a family trust company or a private trust company.
(c) A foreign trust company is not a foreign family trust company if the commissioner determines that the foreign trust company was organized or is operated for the primary purpose of evading the limitations of this chapter.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:13-1302

    383-D:13-1302 Trust Offices. – In accordance with RSA 383-C:11-1102, a foreign family trust company may open, close, or relocate any trust office at which it exercises trust powers or otherwise transacts business.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:13-1303

    383-D:13-1303 Examination. – The commissioner may examine a foreign family trust company as provided in RSA 383-D:11-1101. RSA 383-C:11-1103 shall not apply to foreign family trust companies.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:13-1304

    383-D:13-1304 Filings With the Secretary of State. – A foreign family trust company shall file with the commissioner (i) a true and complete copy of each document that the foreign family trust company submits for filing with the New Hampshire secretary of state and (ii) a copy of any notice or other document that the foreign family trust company receives from the New Hampshire secretary of state. RSA 383-C:11-1104 shall not apply to foreign family trust companies.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-D:13-1305

    383-D:13-1305 Domestication. – A foreign family trust company may domesticate in accordance with RSA 383-C:11-1104 if, upon its domestication, it will qualify as a family trust company under RSA 383-D:3-301.

Source. 2015, 272:16, eff. Oct. 1, 2015.