Article 2. Fiduciary Activities of California Financial Code >> Division 1.1. >> Chapter 16. >> Article 2.
It is the intent of the Legislature that the provisions of
this article, insofar as they are contained in the regulations
regarding fiduciary activities of national banks (Part 9 (commencing
with Section 9.1) of Title 12 of the Code of Federal Regulations) of
the Office of the Comptroller of the Currency, conform, and be
interpreted by anyone construing the provisions of this article to so
conform, to those regulations, any rule or interpretation
promulgated thereunder by the Office of the Comptroller of the
Currency, and to any interpretation issued by an official or employee
of the Office of the Comptroller of the Currency duly authorized to
issue the interpretation.
For purposes of Section 1562, the following terms have the
(a) "Bank" means any of the following:
(1) A commercial bank, industrial bank, or trust company
incorporated under the laws of this state.
(2) A foreign (other state) bank that may establish a branch
office in this state in accordance with Article 2 (commencing with
Section 1680) of Chapter 19.
(b) "Fiduciary Regulations" means the regulations regarding
fiduciary activities of national banks promulgated by the Office of
the Comptroller of the Currency (Part 9 (commencing with Section 9.1)
of Title 12 of the Code of Federal Regulations), as amended from
time to time.
(c) "Affiliate" has the meaning set forth in Section 150 of the
(d) "Applicable law" means the law of the state, another state, or
other jurisdiction governing a bank's fiduciary relationships, any
applicable federal laws governing those relationships, or any court
order pertaining to those relationships.
(e) "Custodian under a uniform gifts to minors act" means a
fiduciary relationship established pursuant to the California Uniform
Transfers to Minors Act (Part 9 (commencing with 3900) of Division 4
of the Probate Code).
(f) "Fiduciary account" means an account administered by a bank
acting in a fiduciary capacity.
(g) "Fiduciary capacity" means trustee, executor, administrator,
registrar of stocks and bonds, transfer agent, guardian, assignee,
receiver, or custodian under a uniform gifts to minors act;
investment adviser, if the bank receives a fee for its investment
advice; any capacity in which the bank possesses investment
discretion on behalf of another; or any other similar capacity.
(h) "Fiduciary powers" means the powers granted a bank by virtue
of its receipt of the authority to engage in trust business from the
(i) "Guardian" means the guardian or conservator, by whatever name
used by law, of the estate of a minor, an incompetent person, an
absent person, or a person over whose estate a court has taken
jurisdiction, other than under bankruptcy or insolvency laws.
(j) "Investment discretion" means, with respect to an account, the
sole or shared authority, whether or not that authority is
exercised, to determine what securities or other assets to purchase
or sell on behalf of that account. A bank that delegates its
authority over investments and a bank that receives delegated
authority over investments shall both be deemed to have investment
(k) "Trust office" means an office of a bank, other than a main
office, at which the bank engages in the trust business. A trust
office that engages in core banking business, as defined in
subdivision (b) of Section 1670, is considered a branch office of the
(l) "Trust representative office" means a facility as defined in
subdivision (c) of Section 1670.
(a) Sections 9.4 to 9.6, inclusive, Sections 9.8 to 9.15,
inclusive, and Sections 9.18 to 9.101, inclusive, of the Fiduciary
Regulations in all of their particular, including footnotes, are
hereby referred to, incorporated by reference into this article, and
(b) All references to the term "national bank" or "national banks"
used in the Fiduciary Regulations shall mean "bank" or "banks" for
purposes of this article.