Currently, a bank may rely on a certificate of trust when trustees open a trust deposit account. The bill requires trustees to provide additional information in a certificate of trust. The bill also permits a bank to rely on a certificate of trust for any transaction between the bank and the trustees unless the bank has knowledge that the certificate of trust is contrary to the trust agreement. Knowledge will not be inferred solely because the bank has a copy of the trust agreement.
The bill allows credit unions to rely on a certificate of trust in the same manner as a bank.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)