Trust Updates Archive

20070508--TRN, BofA Preemption Landmines Ahead for National Banks

(June 20, 2007--Chicago, IL)
--State attorneys general warn that national banks that open trust offices, but fail to register with state bank regulators, may have problems doing business in that state.

Federal courts, including the U.S. Supreme Court, have upheld the right of the Office of the Comptroller of the Currency to preempt state laws. State regulators insist that these court decisions only address state statutes that restrict or prohibit national banks from engaging in fiduciary activities. These decisions, they say, do not preempt state law or state court restrictions on unregistered trustees. Courts in Missiouri and North Carolina have regularly refused to allow nonregistered bank trustees to represent trusts and estates, according to state regulators. The OCC declined to comment on the issue.

For more on this topic, see the current issue of Trust Regulatory News.

No statement in this issue is offered as or should be
construed as legal opinion or advice

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