Butler Test 2 || 100% CORRECT Q&A!!
Opening a Trust Account (8 Steps) correct answers 1. Independent trust company must have a
minimum amount of capital surplus
2. Bank must have adequate capital to assume the risk of the trust department
3. Strong SR. Managers (Inc. Board of Directors)
4. Whoever is leading trust operation must have experience
5. Must have a lawyer
6. Establish a community need
7. Has to have a reasonable chance for success
8. Preopening examination
FDIC Statement of principals (3)
The minimum req. to provide for sound banking practices in the operation of a trust department
and to provide safeguards for the protection of depositors, fiduciary beneficiaries, creditors,
stockholders, and the public should include correct answers 1. Involvement by the BoD in
providing for the establishment and continuing operation of a trust department
2. Operation of the trust department seperate and apart from every other department of the bank
with trust assets seperated from other assets owned by the bank, and the assets of each trust
account seperated from the assets of every other trust account
3. Maintenance of separate books and records for the trust department in sufficient detail to
properly reflect all trust department activities.
The BoD by property resolution included in its minutes should (7) [Duties of the Board] correct
answers 1. Designate an officer, qualified and competent to be responsible for and administer the
activities of the trust department. In addition the BoD should define the *Officer's Duties*
2. Provide comprehensive written policies which address all important areas of trust department
activities
3. Provide competent legal counsel to advise trust officers and the trust committee on legal
matters pertaining to fiduciary activities
4. Provide for adequate internal controls including appropriate controls over trust assets
5. *Provide for an adequate audit of all fiduciary activities annualy* trust committee minutes
should *record the fndings* of the audit *including actions taken as a result of the audit*
6. *Recieve reports* from the trust committee and *record actions* taken in its minutes
7. Review the examination reports of the trust department by supervisory agencies and record
actions taken in its minutes
8. Hire and maintain competent management
(know about audits & examinations, look for personal skills, People w/ knowledge of the
industry, adaptable, Strategic thinker, integrity)
Who has the power to name a trust committee? and what must it consist of ? correct answers The
BoD. It must consist of at least 3 directors to be responsible for and to supervise the activities of
the trust department.
The Trust Committee Should (4) correct answers 1. *Meet at least quarterly* and more
frequently if necessary and prudent *to fulfill its supervisory responsibilities*
Opening a Trust Account (8 Steps) correct answers 1. Independent trust company must have a
minimum amount of capital surplus
2. Bank must have adequate capital to assume the risk of the trust department
3. Strong SR. Managers (Inc. Board of Directors)
4. Whoever is leading trust operation must have experience
5. Must have a lawyer
6. Establish a community need
7. Has to have a reasonable chance for success
8. Preopening examination
FDIC Statement of principals (3)
The minimum req. to provide for sound banking practices in the operation of a trust department
and to provide safeguards for the protection of depositors, fiduciary beneficiaries, creditors,
stockholders, and the public should include correct answers 1. Involvement by the BoD in
providing for the establishment and continuing operation of a trust department
2. Operation of the trust department seperate and apart from every other department of the bank
with trust assets seperated from other assets owned by the bank, and the assets of each trust
account seperated from the assets of every other trust account
3. Maintenance of separate books and records for the trust department in sufficient detail to
properly reflect all trust department activities.
The BoD by property resolution included in its minutes should (7) [Duties of the Board] correct
answers 1. Designate an officer, qualified and competent to be responsible for and administer the
activities of the trust department. In addition the BoD should define the *Officer's Duties*
2. Provide comprehensive written policies which address all important areas of trust department
activities
3. Provide competent legal counsel to advise trust officers and the trust committee on legal
matters pertaining to fiduciary activities
4. Provide for adequate internal controls including appropriate controls over trust assets
5. *Provide for an adequate audit of all fiduciary activities annualy* trust committee minutes
should *record the fndings* of the audit *including actions taken as a result of the audit*
6. *Recieve reports* from the trust committee and *record actions* taken in its minutes
7. Review the examination reports of the trust department by supervisory agencies and record
actions taken in its minutes
8. Hire and maintain competent management
(know about audits & examinations, look for personal skills, People w/ knowledge of the
industry, adaptable, Strategic thinker, integrity)
Who has the power to name a trust committee? and what must it consist of ? correct answers The
BoD. It must consist of at least 3 directors to be responsible for and to supervise the activities of
the trust department.
The Trust Committee Should (4) correct answers 1. *Meet at least quarterly* and more
frequently if necessary and prudent *to fulfill its supervisory responsibilities*
