1. (a) Investment policy which shall set forth a general statement of investment policies and objectives, and in addition, set forth standards and procedures on investment matters.
2. (b) In case the subject institution is a commercial bank, a loan policy which shall set forth a general statement of loan policies and objectives, and, in addition, set forth standards and procedures on lending matters.
3. (c) In case the subject institution is to engage in trust business, a trust investment policy which shall set forth a general statement of trust investment policies and objectives, and, in addition, set forth standards and procedures on trust investment matters.

4. (d) In case the subject institution is to be a commercial bank with trust department or an independent trust company which will be an affiliate of a commercial bank, a trust conflict of interest policy which shall set forth the standards and procedures of the subject institution to prevent conflicts of interest relating to trust business and which shall contain, in addition to a general statement on policies and objectives in preventing conflicts of interest relating to trust business, standards and procedures to prevent the following:

   1. (1) Any improper transmission to or use by the trust department or by the independent trust company of information which is held by the commercial banking department or the affiliate commercial bank, as the case may be.
   2. (2) Any improper transmission to or use by the commercial banking department or the affiliate commercial bank of information which is held by the trust department or the independent trust company, as the case may be.
   3. (3) Any improper deposits by the trust department or the independent trust company of fiduciary account funds with the commercial banking department or the affiliate commercial bank, as the case may be, or any other improper transactions between the trust department and the commercial banking department or between the independent trust company and the affiliate commercial bank, as the case may be.

A subject institution shall, by resolution of its board, adopt the following policies:

Note: Authority cited: Section 215, Financial Code. Reference: Chapter 3, Division 1, Financial Code.

History

1. Amendment of section and new Note filed 4-7-97; operative 4-7-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 15).