(a)

1. (1)

   1. (A) The board of directors is responsible for the proper exercise of fiduciary powers by the bank.
   2. (B) 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, employees, and committees utilized by the bank in the exercise of its fiduciary powers, are the responsibility of the board.
   3. (C) In discharging this responsibility, the board of directors may assign, by action duly entered in the minutes, the administration of such of the bank's fiduciary powers as it may consider proper to assign to such directors, officers, employees, or committees as it may designate.

2. (2)

   1. (A) No fiduciary account shall be accepted without the prior approval of the board or of the directors, officers, or committees to whom the board may have designated the performance of that responsibility.
   2. (B) A written record shall be made of such acceptances and of the relinquishment or closing out of all fiduciary accounts.
   3. (C) Upon the acceptance of an account for which the bank has investment responsibilities, a prompt review of the assets shall be made.
   4. (D) The board shall also ensure that at least once during every calendar year thereafter, all the assets held in or for each fiduciary account where the bank has investment responsibilities are reviewed to determine the advisability of retaining or disposing of such assets.
   5. (E) A written record shall be made of the approval of all purchases, sales, and changes of trust assets.

3. (3)

   1. (A) The board of directors shall name a Trust Committee consisting of at least three (3) directors, at least one (1) of whom shall not be an officer of the bank, to be responsible for and supervise the activities of the trust department.
   2. (B) The Trust Committee shall meet at least quarterly or more frequently if necessary and prudent to adequately supervise the activities of the department.
   3. (C) The Trust Committee shall:

(i) Keep full minutes of its actions; and

1. (ii) Make periodic reports thereof to the board.

(b) All officers and employees taking part in the operation of the trust department shall be adequately bonded.

1. (c) Every state bank exercising fiduciary powers shall designate, employ, or retain legal counsel who shall be readily available to:
2. (1) Pass upon fiduciary matters; and

3. (2) Advise the bank and its trust department.

   1. (d)
4. (1) The trust department may utilize personnel and facilities of other departments of the bank, and other departments of the bank may utilize personnel and facilities of the trust department only to the extent not prohibited by law.
5. (2) Every state bank exercising fiduciary powers shall adopt written policies and procedures to ensure that the federal and state securities laws are complied with in connection with any decision or recommendation to purchase or sell any security.
6. (3) Such policies and procedures, in particular, shall ensure that state bank trust departments shall not use material inside information in connection with any decision or recommendation to purchase or sell any security.

(e)

1. (1) The Trust Committee shall review the examination reports of the trust department by supervisory agencies and record its action thereon in its minutes.

2. (2) Nothing herein is intended to prohibit the board of directors from:

   1. (A) Acting as the Trust Committee;
   2. (B) Designating additional officers to administer the operations of the trust department and defining their duties; or
   3. (C) Appointing additional committees for the trust department operation and defining the duties of such committee.