Regulatory Alerts1998-01-29
Fiduciary in Pennsylvania-Ohio
The Pennsylvania Department of Banking confirms that an Ohio state-chartered bank with trust powers qualifies as an interstate bank and may act as a fiduciary in Pennsylvania under section 106 of the Banking Code. The Department clarifies that while the Ohio bank may hire third parties or national banks as agents to process trust operations, it must remain named as the fiduciary and retain ultimate responsibility for Pennsylvania accounts. This regulatory position is contingent upon the bank maintaining compliance with its home state regulator's oversight and the specific conditions outlined in the correspondence.
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