32-1-808. Transfer of fiduciary relationships between affiliated banks. (1) Any bank that has received approval pursuant to 32-1-806 to maintain a trust office in the same building with the main office of any affiliated bank may file its verified application in the district court of the county in which its main office is located requesting that it be substituted, except as may be expressly excluded in the application, in every fiduciary capacity for the affiliated bank, and the affiliated bank shall join in the application. The application must indicate the county in which the main office of the affiliated bank is located and must designate each fiduciary account existing at the date of application with respect to which the applicant bank requests substitution, but fiduciary capacities in other cases need not be listed. The application must additionally set forth, with regard to each existing fiduciary account designated in the application, the name and address last known to the applicant of each person entitled to mailed notice of hearing on the application, who must be those persons specified in 32-1-807(1)(a) through (1)(e).

(2) When an application has been filed, the clerk of the court where the application is filed shall make an order fixing a date and time for hearing on the application and shall cause notice of the hearing to be given by publication and mailing in the manner required by 32-1-807.

(3) The notice to be published and mailed for each application must state the time and place of the hearing on the application, the name of the bank that has filed the application, the name of the affiliated bank that has joined in the application, that the application requests that the applicant bank to be substituted in every fiduciary capacity for the affiliated bank specified in the application, and that any person beneficially interested in any affected fiduciary account may appear on or before the date of hearing and file a written objection to the substitution for the affected fiduciary account, and the notice must refer to the application for further particulars.

(4) On or before the date and time of hearing on the application, any person beneficially interested in any fiduciary account for which substitution of the applicant bank is requested may appear and file objection to the substitution and is entitled to be heard with respect to the objection.

(5) On the date of hearing, upon finding that notice has been given as required by this part and upon finding that the applicant bank has received the requisite approval from the department or the comptroller of the currency if the applicant bank is a national banking association, the district court shall enter an order substituting the applicant bank in every fiduciary capacity for the affiliated bank designated in the application except as may be otherwise specified in the application and except for fiduciary capacities in any account with respect to which an objection has been filed pursuant to this section. Upon entry of the order, the applicant bank must, without further act, be substituted in every fiduciary capacity. The substitution may be made a matter of record in any county of this state by filing a certified copy of the order of substitution in the office of the clerk of any district court in this state or by filing a certified copy of the order in the office of the clerk and recorder of any county in this state. The appropriate clerk shall record and index the order in the same manner and with the same effect as other orders and decrees of court are recorded and indexed.

(6) Each designation, in a will or other instrument, of a bank as fiduciary is considered a designation of the applicant bank substituted for the bank pursuant to this section except when the will or other instrument is executed after the substitution and expressly negates the application of this section. Any grant in a will or other instrument of any discretionary power is considered conferred upon the applicant bank designated as the fiduciary pursuant to this section.

(7) A bank shall account jointly with the applicant bank that has been substituted as fiduciary for the bank pursuant to this section for the accounting period during which the applicant bank is initially substituted. Upon substitution pursuant to this section, the affiliated bank for which substitution has been made shall deliver to the applicant bank all assets held by the affiliated bank as fiduciary, except assets held for accounts with respect of which there has been no substitution pursuant to this section, and upon the substitution, all of the assets become the property of the applicant bank without the necessity of any instrument of transfer or conveyance.

History: En. 5-1508 by Sec. 8, Ch. 401, L. 1975; amd. Sec. 27, Ch. 71, L. 1977; R.C.M. 1947, 5-1508; amd. Sec. 1020, Ch. 56, L. 2009.