Supervision. 1. A trust company may conduct its business directly or through one or more operating subsidiary organizations, including a limited purpose bank that is established under the laws of a jurisdiction other than this state. The activities of an operating subsidiary of a trust company must be limited to those activities in which the trust company itself could engage. 2. A trust company that desires to establish or acquire an operating subsidiary must submit a written notification to the department of financial institutions not less than thirty days before the trust company's investment in the subsidiary organization is made. The notification must include the information specified by the state banking board. 3. Within ten business days after receipt of the notification by the department, the commissioner shall determine if the notice is complete and shall notify the trust company of the determination. If within the ten business days the commissioner determines that the notice is incomplete, the commissioner shall request the additional information necessary to complete the notice. Within ten days after receipt of the additional information, the commissioner shall notify the trust company by mail of the commissioner's determination of completeness. The commissioner shall inform the state banking board of the receipt of a completed notice. Upon expiration of thirty days from the date for the mailing of a notice of completeness, the trust company's investment in the operating subsidiary in accordance with its notice is deemed approved by the state banking board, unless within that thirty -day period the state banking board has served the trust company with a notice of hearing on the company's proposed investment. 4. Any hearing required by the state banking board must be commenced and concluded by the issuance of the order of the board within ninety days after the date for the mailing of a notice of completeness by the commissioner. If the hearing is not concluded within the ninety -day period, the investment by the trust company is deemed approved by the state banking board. 5. The state banking board may prohibit the trust company's investment in an operating subsidiary organization if it finds after a hearing: a. The investment will jeopardize the solvency of the trust company; or b. The operation of the trust company through the subsidiary organization will place the trust company in an unsafe and unsound condition. 6. The state banking board has the same authority to examine and supervise an operating subsidiary as exists for the trust company.
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