48.67 Capital of trust companies. 

    The capital of every trust company hereafter organized 
 shall be not less than $500,000.  There shall also be provided a 
 surplus of at least 20 percent of capital in addition to such 
 capital amounts in each case and neither the capital nor the 
 surplus so provided shall be reduced without the approval of the 
 commissioner of commerce.  No trust company hereafter organized 
 shall transact any business until all of its authorized capital 
 stock and required surplus have been paid in, in cash, and at 
 least 25 percent of the capital has been invested in one or more 
 of the first, second, third, and fourth classes of authorized 
 securities and railroad bonds, as described by that statute, and 
 also in the farm loan bonds issued by the federal land banks, 
 federal intermediate credit banks, and the banks for 
 cooperatives duly assigned and transferred to and deposited with 
 the state treasurer.  The state treasurer shall submit the 
 securities deposited to the commissioner, who shall carefully 
 examine the securities offered for deposit and ascertain that 
 they comply with all the provisions of law applicable thereto.  
 Upon receipt of an order of the commissioner, the state 
 treasurer shall issue a receipt therefor.  This deposit shall be 
 maintained unimpaired as a guaranty fund for depositors and 
 creditors and for the faithful discharge of its duties, with the 
 right to collect the income thereof and to substitute other like 
 authorized securities, of equal amount and value, upon approval 
 and order of the commissioner. 

    If the securities comply with the law, the commissioner 
 shall issue a certificate of authorization for the trust company 
 to commence business. 

    The capital stock of any trust company may be reduced with 
 the approval of the commissioner, but not below the minimum 
 amounts aforesaid, and no assets shall be returned to the 
 stockholders unless its deposits of authorized securities after 
 such return equal one-fourth of the reduced capital, in no event 
 less than $125,000; nor shall the liability of any stockholder 
 upon any existing contract be affected thereby. 

    When two or more trust companies have been or shall 
 hereafter be consolidated under and pursuant to the provisions 
 of sections 49.34 to 49.41, the capital of the consolidated 
 trust company shall be considered as substituted for the capital 
 of the several trust companies entering into the consolidation, 
 and the aggregate of the securities of these trust companies on 
 deposit with the state treasurer, pursuant to the provisions of 
 this section, shall be increased or diminished accordingly; 
 provided, that any company may hereafter be organized, with its 
 principal place of business at any place within the state, with 
 a capital of not less than $10,000, to be paid in cash, of which 
 50 percent shall be invested in authorized securities and 
 deposited with the state treasurer, as provided in this 
 section.  The powers and business of the company so organized 
 shall be to act as assignee under any assignment for the benefit 
 of creditors, or be appointed and act as a trustee or receiver, 
 as a guardian, as executor of any will, or administrator of any 
 estate, and the company so organized may accept and perform any 
 other lawful trust over which any court, either state or 
 federal, has jurisdiction.  This company, before entering upon 
 the duties of its trust, shall give a corporate surety bond in 
 such sum as the court directs, with sufficient surety, 
 conditioned for the faithful performance of its duties.  The 
 business of any company so organized shall be limited to the 
 above matters; provided, that the company so organized with a 
 capital stock of $10,000 shall not use the word "trust" in the 
 title or name of the company. 

    HIST: (7728) RL s 3033; 1907 c 225 s 1; 1911 c 314 s 1; 1927 c 
 323 s 1; 1931 c 375 s 1; 1935 c 339 s 1; 1965 c 171 s 20; 1973 c 
 438 s 1; 1973 c 497 s 1; 1977 c 272 s 12; 1983 c 289 s 114 subd 
 1; 1984 c 655 art 1 s 92; 1986 c 444; 1995 c 171 s 70; 1996 c 
 414 art 1 s 42,43