Answers to Your Legal Questions

Texas BankingVol. 97 Nbr. 2, February 2008

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Summary


Questions on a customer that wants to set up a trust and wants to use the SSN, power-of-attorney on trust account, does real estate qualify for the purpose of Reg O on "readily marketable collateral," insurance company has to notify a bank if a policy was cancelled are answered. If the trust is revocable by either of the grantors, SSNs can be used. A power-of-attorney only covers personal business. It has nothing to do with your duties and authority as trustee. Real Estate is not "readily" marketable collateral. The insurance company is under no legal obligation to notify the bank should the insured cancel borrower's insurance.

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Answers to Your Legal Questions

Question: We have a customer that wants to set up a trust with two grantors and wants to use the SSN of one of the grantors on the trust. Can we do t...

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