1. No retail trust company may be organized or operated with a stockholders equity of less than $1,000,000, or in such greater amount as may be required by the Commissioner. The full amount of the initial stockholders equity must be paid in cash, exclusive of all organization expenses, before the trust company is authorized to commence business. 2. A retail trust company shall maintain at least 25 percent of its required stockholders equity in cash and at least an additional 25 percent of its required stockholders equity in cash or cash equivalents comprising certificates of deposit, money market funds or other insured deposits. Cash equivalents held by a retail trust company pursuant to this subsection may, upon prior approval by the Commissioner, comprise investments in treasury bills, government obligations or commercial paper which, if acquired after October 1, 2011, must mature not later than 3 months after the date of acquisition by the retail trust company. Any certificate of deposit, money market fund, insured deposit, commercial paper, treasury bill or government obligation, other than an obligation of the United States or an obligation guaranteed by the United States, that is held as a cash equivalent by a retail trust company pursuant to this subsection must not exceed 10 percent of the total required stockholders equity at the time the cash equivalent is purchased. The remaining amount of the retail trust companys required stockholders equity may be a different form of readily marketable securities, or with prior approval by the Commissioner, other liquid, secure asset, bond, surety or insurance, or some combination of the foregoing. Any bond or other evidence of indebtedness held by a retail trust company pursuant to this subsection must have an investment grade credit rating and must have received a rating within one of the top three rating categories of Moodys Investors Service, Inc. or Standard and Poors Ratings Services. 3. Any grandfathered trust company other than a noncustodial trust company that does not have the minimum capital required by this section as of October 1, 2009, shall: (a) Except as otherwise determined by the Commissioner, increase its capital to a minimum of: (1) By October 1, 2010, $500,000; (2) By October 1, 2011, $750,000; and (3) By October 1, 2012, $1,000,000; and (b) Maintain 25 percent of such minimum capital in cash on and after October 1, 2010. 4. Any noncustodial trust company that does not have the minimum capital required by this section as of October 1, 2009, shall: (a) Except as otherwise determined by the Commissioner, increase its capital to a minimum of: (1) By October 1, 2010, $350,000; (2) By October 1, 2011, $400,000; and (3) By October 1, 2012, $500,000; and (b) Maintain 25 percent of such minimum capital in cash on and after October 1, 2010. 5. As used in this section, in cash means in depository accounts with one or more banks in this State.
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