§ 31a.3. Administration of trust powers.
(a) The responsibility of the board of directors and the administration of accounts shall be as follows:
(1) Responsibility of the board of directors. The board of directors is responsible for the proper exercise of fiduciary powers by the association. All matters pertinent thereto, including the determination of policies, the investment and disposition of property held in a fiduciary capacity, and the direction and review of the actions of all officers, employes and committees utilized by the association in the exercise of its fiduciary powers are the responsibility of the board. In discharging this responsibility, the board of directors may assign, by action duly entered in the minutes, the administration of such of the associations trust powers as it may consider proper to assign to such director, officer, employe, or committee as it may designate.
(2) Administration of accounts. No fiduciary account shall be accepted without the prior approval of the board or of the director, officer, or committee to whom the board may have assigned the performance of that responsibility. A written record shall be made of such acceptances and of the relinquishment or closing out of all fiduciary accounts. Upon the acceptances of an account for which the association has investment responsibilities, a prompt review of the assets shall be made. The board shall also ensure that at least once during every calendar year thereafter, and within 15 months of the last review, all the assets held in or for each fiduciary account for which the association has investment responsibilities are reviewed to determine the advisability of retaining or disposing of such assets. The board of directors should act to ensure that all investments have been made in accordance with the terms and purposes of the governing instrument.
(b) The trust department may utilize personnel and facilities of other departments of the association, and other departments of the association may utilize personnel and facilities of the trust department only to the extent not prohibited by law.
(c) Every association exercising fiduciary powers shall designate, employ, or retain legal counsel who shall be readily available to pass upon fiduciary matters and to advise the association and its trust department.
(d) All institutions shall meet the minimum bond coverage set out in the regulations of the Federal Savings and Loan Insurance Corporation, 12 CFR 563.19. In addition, directors, officers, and employes of an association engaged in the operation of a trust department shall acquire such additional bond coverage as the Department may require.
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