6-856. Minimum capital; dividends; other requirements

A. In order to obtain a certificate, a trust company shall have not less than five hundred thousand dollars of liquid capital. The trust company shall have additional capital in the following amounts:

1. For each seven hundred fifty million dollars of nondiscretionary assets, an additional two hundred fifty thousand dollars of capital.

2. For each two hundred fifty million dollars of discretionary assets, an additional two hundred fifty thousand dollars of capital.

3. For a trust company whose most recent composite rating from the superintendent was four as defined in the revised uniform interagency trust rating system as published in the federal register volume 63, number 197, October 13, 1998, pages 54704 through 54711, an additional two hundred fifty thousand dollars of capital.

4. For a trust company whose most recent composite rating from the superintendent was five as defined in the revised uniform interagency trust rating system as published in the federal register volume 63, number 197, October 13, 1998, pages 54704 through 54711, an additional five hundred thousand dollars of capital.

B. A minimum of one-half of the additional capital required under subsection A, paragraphs 1 and 2 of this section shall consist of liquid capital. All of the additional capital required under subsection A, paragraph 3 or 4 of this section shall consist of liquid capital.

C. The trust company shall notify the superintendent of the form in which and location where the liquid capital is held and its date of maturity.

D. A trust company that has a certificate issued before June 30, 2001 has until December 31, 2002 to comply with the additional capital requirements prescribed in subsection A of this section.

E. The superintendent may reduce the amount of the additional capital requirement prescribed in subsection A of this section if the superintendent determines that the trust company is a subsidiary of a financial institution or financial holding company that is capable of providing sufficient support.

F. A trust company that has been issued a certificate by the superintendent shall maintain capital in the amount required under subsection A of this section.

G. A trust company may declare a dividend to be paid from net profits. A dividend shall not be declared, credited or paid if there is an impairment of the liquid capital. A trust company that proposes dividends in a calendar year that are more than the net profit for the same calendar year shall obtain the superintendent's approval before declaring the dividends.

H. Notwithstanding subsection A of this section, a trust company that accepts monies to be held in a savings account or time deposit prescribed in section 6-882 shall comply with all of the rules and requirements necessary to obtain and maintain insurance issued by the federal deposit insurance corporation or its successor.