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Subject 80-13-1 TRUST COMPANIES

Rule 80-13-1-.01 Definitions

(1) As used in Chapters 80-13-1, the terms that are defined in O.C.G.A. § 7-1-4 shall have the identical meaning.
(2) As used in Chapters 80-13-1, the below terms shall be defined as follows unless the term is otherwise defined in a specific rule:
(a) "External auditor" means an outside compensated, Certified Public Accountant (CPA) that is independent or works for an entity that is independent of the institution being audited.
(b) "Fiduciary account" means an account administered by a trust company when it is acting in a fiduciary capacity including, but not limited to, a trustee, executor, administrator, registrar of stocks and bonds, transfer agent, guardian, receiver, custodian under a uniform gifts to minor act, investment advisor if the trust company receives a fee for the investment advice, any capacity in which the trust company possess investment discretion on behalf of another, or any other similar capacity designated as such by the Department.
(c) "Independent" means an auditor must be personally and financially independent from the trust company's employees, members of the board of directors, and members of their immediate families.
(d) "Investment discretion" means, with respect to an account, the sole or shared authority (whether or not that authority is exercised) to determine what securities or other assets to purchase or sell on behalf of the account.

Rule 80-13-1-.02 Minimum Capital Requirements for Trust Companies

(1) Pursuant to O.C.G.A. § 7-1-317, a trust company must maintain, at a minimum, $3 million in capital. The Department will evaluate the factors set forth in O.C.G.A. § 7-1-317 in analyzing a trust company's capital adequacy and may determine that the capital required is greater than $3 million.
(2) The amount of the initial capital requirement maintained by a trust company shall be established by the Department in writing prior to the trust company beginning business. Further, any revision to the capital requirement maintained by a trust company shall be established in writing by the Department prior to the trust company implementing the revised capital ratio. It shall be in the Commissioner's sole discretion to determine the capital ratio required to be maintained by each trust company.
(1) A trust company with less than the minimum capital requirement:
(a) Is operating with inadequate capital and, therefore, has inadequate financial resources. Thus, at the discretion of the Department, such trust company may be deemed to be operating in an unsafe or unsound or unauthorized manner and subject to the Department's enforcement powers.
(b) Must file a written capital restoration plan with the Department within thirty (30) days of the date that the trust company knows or should have known that the trust company is operating with an inadequate capital structure, unless the Department notifies the trust company in writing that the plan is to be filed within a different period.

Rule 80-13-1-.03 Trust Company Independent Audits

(1) Every trust company shall have an opinion audit of its books and records performed at least annually by a licensed external auditor in accordance with generally accepted auditing standards and procedures. The audit must be of sufficient scope to enable the auditor to render an opinion on the financial statements of the trust company, consolidated holding company, or parent company. Such audit shall include a review of the trust company's internal controls, fiduciary activities (pursuant to agreed-upon procedures), fiduciary accounts, affirmative verifications of investments and deposits made by the trust company, adequate testing and review of the trust company's information technology activities, and such other tests and reviews of trust company records as deemed appropriate by the external auditor. The extent of the audit work should be clearly defined in engagement letters. Such letters should discuss the scope of the audit, the objectives, resource requirements, audit timeframe, and resulting reports. External auditors must make their audit work papers, policies, and procedures available to Department examiners for review upon request.
(2) The external auditor should be generally familiar with the statutes, rules, and regulations under which the trust company being audited operates, and with its charter and bylaw provisions. The annual audit should incorporate the necessary procedures to satisfy the auditor that there is compliance with the applicable requirements that might materially affect the trust company's financial position or operation.
(3) Audit reports in which the auditor expresses an unqualified opinion shall be provided to the Department upon request. Audit reports in which the auditor expresses anything other than an unqualified opinion, including, but not limited to, a qualified opinion, an adverse opinion, or a disclaimer of opinion, shall be provided to the Department within fifteen (15) days following receipt by the financial institution. Audit reports submitted to the Department shall be accompanied by the Letter to Management, if applicable, detailing any reportable conditions discovered during the audit engagement. Failure to obtain the required opinion audit, or the auditor's report thereof, shall be reported to the Department within fifteen (15) days of discovery.

Rule 80-13-1-.04 The Internal Auditor of a Trust Company

(1) Internal Audit System. An institution should have an internal audit system that is appropriate to the size of the institution and the nature and scope of its activities. The internal audit system should consist of qualified persons. The internal audit system shall provide for:
(a) Adequate monitoring of the system of internal controls through an internal audit function;
(b) Adequate testing and review of information systems;
(c) Adequate documentation of tests and findings and any corrective actions;
(d) Verification and review of management actions to address material weaknesses; and
(e) Review by the institution's audit committee or board of directors of the effectiveness of the internal audit systems.
(2) The Board of Directors of every trust company shall name an internal auditor. If the trust company names an employee as the internal auditor, then the internal auditor must not audit his/her department.
(3) The internal auditor shall:
(a) Report a summary of audit activities to the Board of Directors at least annually;
(b) Implement the trust company's internal audit program; and
(c) Monitor the implementation of corrective action with respect to audit exceptions, including but not limited to internal control exceptions, discovered by the internal audit program or reported by the independent auditor.
(4) A trust company can designate an external auditor as its internal auditor. In the event an external auditor is designated as the internal auditor, then the Board of Directors or the audit committee must appoint an internal liaison among the officers of the trust company that will be responsible for coordinating the internal audit function with the external auditor and overseeing compliance with the internal audit requirements.

Rule 80-13-1-.05 Audit Committee

A trust company shall have an audit committee. The audit committee must consist of a committee of the trust company's directors or directors of an affiliate of the trust company. However, in either case, the committee:

(a) Must not include any officers of the trust company or an affiliate who participate significantly in the administration of the trust company's fiduciary activities; and
(b) Must consist of a majority of members who are not also members of any committee to which the board of directors has delegated power to manage and control the fiduciary activities of the trust company.

Rule 80-13-1-.06 Insurance Coverage for Trust Companies

(1) Every stand-alone trust company chartered by the Department shall obtain the following:
(a) Fidelity insurance coverage, such as a fidelity bond, to provide protection and indemnity against theft, defalcation, or other similar actions by officers and employees of the trust company as well as agents and independent contractors of the trust company, related to fiduciary accounts, customer funds, and assets of the trust company.
(b) Data breach insurance coverage to provide protection and indemnity against the release of nonpublic confidential information in the legal care, custody or control of the trust company to an untrusted or unauthorized environment or other similar action by the trust company as well as agents and independent contractors of the trust company.
(c) Fiduciary liability insurance coverage or its equivalent to provide protection and indemnity against errors or omissions or breach of fiduciary duties by officers and employees of the trust company as well as agents and independent contractors of the trust company, related to fiduciary accounts and customer funds. Further, every trust company shall require agents and independent contractors of the trust company that have access to fiduciary accounts or customer funds to obtain fiduciary liability insurance coverage or its equivalent to provide protection and indemnity against errors or omissions or breach of fiduciary duties.
(2) The required insurance coverage or its equivalent shall contain a provision that coverage will not be canceled, or not renewed, or allowed to lapse for any reason until at least sixty (60) days prior written notice has been given by the insurer to the Department or contain substantially similar protections approved in writing by the Department. A certificate of insurance or similar documentation showing such insurance coverage or its equivalent to be in force shall be provided to the Department prior to the trust company engaging in any fiduciary activities. The insurance coverage or its equivalent shall be obtained from an insurance company licensed to do business in Georgia that continuously maintains an A.M. Best Company rating of at least A: VII or an equivalent rating from an insurance rating agency approved in advance by the department in writing. Such insurance coverage or its equivalent shall continuously remain in full force and effect subject to Department approved revisions to the amount of coverage.
(3) The amount of the initial insurance coverage or its equivalent obtained by the trust company, as well as any subsequent reductions to the amount, shall be approved by the Department in writing prior to the trust company obtaining the insurance coverage or taking action to reduce the amount of coverage. It shall be in the Commissioner's sole discretion to determine the amount of required insurance coverage or its equivalent.
(4) In order for the Department to make the determination in Paragraph 3 of this Rule related to the appropriate amount of insurance coverage or its equivalent, a trust company, upon request by the Department, shall provide the Department with a written justification setting forth the trust company's rationale for the appropriate and necessary amount of insurance coverage. Such justification for the different required insurance coverage shall set forth in detail the following:
(a) For fidelity coverage, the safeguards or protections which will be employed to ensure the continuing sound operation of the trust company, which shall include, but not be limited to, an evaluation of potential exposures under various stress scenarios that include intentional and unintentional failures in the trust company's control environment and the sufficiency of the proposed fidelity coverage to mitigate such exposures. In addition, the trust company's justification for the proposed proper amount of fidelity coverage or its equivalent shall evaluate the potential costs to the trust company as a result of a breach.
(b) For data breach coverage, the safeguards or protections which will be employed to mitigate the risks of an intentional or unintentional release of the data in the trust company's possession or in the possession of agents and independent contractors of the trust company, which shall include, but not be limited to, an evaluation of potential exposures under various stress scenarios that include intentional and unintentional releases of data in the trust company's control environment and the sufficiency of the proposed data breach insurance coverage to mitigate such exposures. In addition, the trust company's justification for the proposed proper amount of data breach insurance coverage shall evaluate the potential costs to the trust company as a result of a breach, which shall include, but not be limited to, forensic costs, legal fees, first party and third-party liabilities, notification requirements, remediation costs, restoration costs, and business impact.
(c) For fiduciary liability insurance coverage, the safeguards or protections which will be employed to mitigate the risks of intentional or unintentional errors or omissions or breach of fiduciary duties related to fiduciary accounts and customer funds by officers and employees of the trust company, which shall include, but not be limited to, an evaluation of potential exposures under various stress scenarios that include intentional and unintentional breaches of fiduciary duties and the sufficiency of the proposed fiduciary liability insurance coverage or its equivalent to mitigate such exposures. In addition, the trust company's justification for the proposed proper amount of fiduciary liability insurance coverage or its equivalent shall evaluate the potential costs to the trust company as a result of a breach.

Rule 80-13-1-.07 Review of Fiduciary Accounts

(1) Before accepting a fiduciary account, a trust company shall review the prospective account to determine whether it can properly administer the account.
(2) Upon the acceptance of a fiduciary account for which a trust company has investment discretion, the trust company shall conduct a prompt review of all assets of the account to evaluate whether they are appropriate for the account.
(3) At least once during every calendar year, a trust company shall conduct a review of all assets of each fiduciary account for which the bank has investment discretion to evaluate whether they are appropriate, individually and collectively, for the account.

Rule 80-13-1-.08 Custody of Fiduciary Assets

(1) A trust company shall place assets of fiduciary accounts in the joint custody or control of not fewer than two of the fiduciary officers or employees designated for that purpose by the Board of Directors. A trust company may maintain the investments of a fiduciary account off-premise, if consistent with applicable law and if the trust company maintains adequate safeguards and controls.
(2) A trust company shall keep the assets of fiduciary accounts separate from the assets of the trust company. A trust company shall keep the assets of each fiduciary account separate from all other accounts or shall identify the investments as the property of a particular account, except as provided in 12 CFR § 9.18 for collective investment funds.

Rule 80-13-1-.09 Receivership of Trust Company

If the Department is appointed receiver of a trust company or appoints a receiver of a trust company, the receiver shall promptly close or transfer to a substitute fiduciary all fiduciary accounts in accordance with Department instructions or the orders of the court having jurisdiction.

Rule 80-13-1-.10 Collective Investment Funds

A trust company administering a collective investment fund authorized under O.C.G.A. § 7-1-313 shall comply with the following requirements:

(1) The trust company shall develop, and the Board of Directors must approve, a collective investment fund plan that must contain appropriate provisions, not inconsistent with this part, regarding the manner in which the trust company will operate the fund, including provisions relating to:
(a) Investment powers and policies with respect to the fund;
(b) Allocation of income, profits, and losses;
(c) Fees and expenses that will be charged to the fund and to participating accounts;
(d) Terms and conditions governing the admission and withdrawal of participating accounts;
(e) Audits of participating accounts;
(f) Basis and method of valuing assets in the fund;
(g) Expected frequency for income distribution to participating accounts;
(h) Minimum frequency for valuation of fund assets;
(i) Amount of time following a valuation date during which the valuation must be made;
(j) Bases upon which the trust company may terminate the fund; and
(k) Any other matters necessary to define clearly the rights of participating accounts.
(2) A trust company administering a collective investment fund shall have exclusive management thereof, except as a prudent person might delegate responsibilities to others.
(2.1) Each participating account in a collective investment fund must have a proportionate interest in all the fund's assets.
(3)
(a) A trust company administering a collective investment fund shall determine the value of the fund's readily marketable assets at least once every three months. A trust company shall determine the value of the fund's assets that are not readily marketable at least once a year.
(b) Except for short-term investment funds ("STIFs"), a trust company shall value each fund asset at mark-to-market value as of the date set for valuation, unless the trust company cannot readily ascertain mark-to-market value, in which case the trust company shall use a fair value determined in good faith. STIFs shall be valued as set forth in 12 C.F.R. § 9.18.
(4)
(a) At least once during each 12-month period, a trust company administering a collective investment fund shall arrange for an audit of the collective investment fund by auditors responsible to both the audit committee and the Board of Directors of the trust company.
(b) At least once during each 12-month period, a trust company administering a collective investment fund shall prepare a financial report of the fund based on the audit required by paragraph (4)(a) of this section. The report must disclose the fund's fees and expenses in a manner consistent with applicable law in the state in which the trust company maintains the fund. This report must contain a list of investments in the fund showing the cost and current market value of each investment, and a statement covering the period after the previous report showing the following (organized by type of investment):
1. A summary of purchases (with costs);
2. A summary of sales (with profit or loss and any other investment changes);
3. Income and disbursements; and
4. An appropriate notation of any investments in default.
(c) A trust company may include in the financial report a description of the fund's value on previous dates, as well as its income and disbursements during previous accounting periods. A trust company may not publish in the financial report any predictions or representations as to future performance.
(d) A trust company administering a collective investment fund shall provide a copy of the financial report, or shall provide notice that a copy of the report is available upon request without charge, to each person who ordinarily would receive a regular periodic accounting with respect to each participating account. The trust company may provide a copy of the financial report to prospective customers. In addition, the trust company may provide a copy of the report upon request to any person for a reasonable charge.
(5) A trust company administering a collective investment fund may charge a reasonable fund management fee only if:
(a) The fee is permitted under applicable law (and complies with fee disclosure requirements, if any) in the state in which the trust company maintains the fund; and
(b) The amount of the fee does not exceed an amount commensurate with the value of legitimate services of tangible benefit to the participating fiduciary accounts that would not have been provided to the accounts were they not invested in the fund.
(6) A trust company administering a collective investment fund may charge reasonable expenses incurred in operating the collective investment fund, to the extent not prohibited by applicable law in the state in which the trust company maintains the fund. However, a trust company shall absorb the expenses of establishing or reorganizing a collective investment fund.
(7) The Department will not deem a trust company's mistake made in good faith and in the exercise of due care in connection with the administration of a collective investment fund to be a violation of this rule if, promptly after the discovery of the mistake, the trust company takes whatever action is practicable under the circumstances to remedy the mistake.

Rule 80-13-1-.11 Permissible Investments and Limitations of Trust Companies

Subject to such further restrictions and approvals as its board of directors may set forth in its investment policy, a trust company may purchase, sell, and hold securities, for its own behalf, the following:

(1) Debt Obligations.
(a) Obligations of the United States Government or Agencies of the United States Government.

The following may be held without limitation:

1. Securities issued by the United States government or an agency of the United States government;
2. Securities guaranteed as to principal and interest by the United States government or an agency of the United States government;
3. Securities issued under the U.S. Treasury's Separate Trading of Registered Interest and Principal (STRIP's) program, which are offered in book entry form and which are direct obligations of the U.S. Government, as authorized by Subtitle III, Chapter 31 of Title 31 U.S.C.; and
4. Securities which are pre-refunded, with the redemption proceeds invested in securities issued by the United States Government or an Agency of the United States Government.
(b) Obligations of a State or Territorial Government of the United States or Agencies of State or Territorial Governments.

The following may be held without limitation:

1. General obligations of any state or territorial government of the United States or any agency of such governments;
2. Securities guaranteed as to principal and interest by such state or territorial governments or any agency thereof; and
3. Securities which are pre-refunded, with the redemption proceeds invested in securities issued by state or territorial governments or agencies thereof.
(c) Obligations of other Political Subdivisions.
1. The general obligations of a single obligor domiciled within the United States which is authorized to levy taxes may be held in an amount up to twenty-five (25) percent of a trust company's equity capital, as defined by GAAP. This percentage limitation shall not apply where the equity capital is at least $10,000,000.
2. Securities which are secured by a pledge or assignment of tax receipts sufficient to pay the principal and interest of such securities as they become due may be held in an amount up to twenty-five (25) percent of the trust company's equity capital, as defined by GAAP. This percentage limitation shall not apply where the equity capital is at least $10,000,000.
3. Revenue obligations of a political subdivision authorized to establish utility fees, public transportation usage fees or public use fees where such levies or fees are pledged to and are sufficient to pay the principal and interest of the securities as they become due may be held in an amount up to twenty-five (25) percent of a trust company's equity capital, as defined by GAAP. This percentage limitation shall not apply where the equity capital is at least $10,000,000.
4. In those instances where the repayment of revenue obligations is dependent upon rentals or other fees payable to a political subdivision by a non-governmental unit, such as in the case of industrial revenue bonds, the obligor shall be deemed to be the non-governmental unit responsible for the payment of such rentals or other fees and any guarantor of such payments. Investment in such securities is limited to fifteen (15) percent of the trust company's equity capital, as defined by GAAP.
5. Securities issued by political subdivisions rated in the four highest rating categories by a nationally recognized rating service and not otherwise authorized under (c)(1)-(4) of this section may be held in an amount up to fifteen (15) percent of a trust company's equity capital, as defined by GAAP.
(d) Corporate Debt Securities.

Corporate debt securities may be purchased which are:

1. Rated in the four highest rating categories by a nationally recognized rating service;
2. Readily salable in an established market with reasonable promptness at a price which corresponds to its fair value;
3. Denominated in U.S. dollars; and
4. With respect to trust companies having equity capital, as defined by GAAP, of less than $20,000,000, such securities must mature within 15 years.

A bank's investment in corporate debt securities is limited to fifteen (15) percent of the trust company's equity capital, as defined by GAAP, per obligor. A trust company's aggregate investment in corporate debt securities shall not exceed one hundred (100) percent of the trust company's equity capital, as defined by GAAP.

(2) Equity Securities.

The total investment in equity and investment of any one issuer, obligor, or maker held by a trust company for its own account shall not exceed an amount equal to 15 percent of the trust company's equity capital, as defined by GAAP.

(3) Investment Funds.

A trust company for its own account may invest up to fifteen (15) percent of its equity capital, as defined by GAAP, in securities of, or other interests in, any open-end or closed-end management type investment fund or investment trust which is registered under the Investment Company Act of 1940, subject to the following additional conditions.

(a) The investment portfolio of such investment fund or investment trust shall be limited to those securities in which trust companies are permitted to invest directly under this rule and Title 7 of the Official Code of Georgia; and
(b) The investment fund or trust shall not:
1. Except to the extent authorized in subparagraph (1)(a)3. of this rule, acquire or hold investments in the form of stripped or detached interest obligations;
2. Engage in the purchase or sale of interest rate futures contracts;
3. Purchase securities on margin, make short sales of securities or maintain a short position; or
4. Otherwise engage in futures, forwards or options transactions, except that forward commitments may be entered into for the express purpose of acquiring securities on a when-issued basis.
(c) On an aggregate basis, investments in such funds or trusts shall not exceed:
1. Thirty (30) percent of the trust company's equity capital, as defined by GAAP, per fund/trust family or sponsor; and
2. Sixty (60) percent of the trust company's equity capital, as defined by GAAP, for all funds combined.
(d) An aggregate limitation of one hundred twenty (120) percent of the trust company's equity capital, as defined by GAAP, shall be allowed for all funds combined if the funds or trusts:
1. Are managed so as to maintain the fund or trust shares at a constant net asset value;
2. Are no-load; and
3. Are rated in the highest rating category by a nationally recognized rating service.
(4) Asset-Backed Securities.

A trust company may purchase asset-backed securities repayable in both interest and principal which are issued under any of the following:

(a) Governmentally sponsored programs which are fully collateralized by obligations fully guaranteed as to principal and interest by a governmental entity to the same extent as direct obligations of the governmental entity which is the guarantor;
(b) Private programs which are fully collateralized by obligations fully guaranteed as to principal and interest by a governmental entity to the same extent as direct obligations of the governmental entity which is the guarantor; or
(c) Other private programs in amounts which do not exceed fifteen (15) percent of the trust company's equity capital, as defined by GAAP, for each issuer, provided the issue:
1. Is in registered form;
2. Is collateralized by assets which could be owned directly by the trust company; and
3. Is rated in the top three rating bands by a recognized national rating service.
(d) Aggregate investment in private program issues by all issuers shall not exceed fifty (50) percent of the trust company's equity capital, as defined by GAAP, unless approved by the department.
(5) Interest-Only ("IO") Securities.
(a) Nothing contained herein shall permit the purchase of investments in the form of stripped or detached IO obligations. An exception to this rule is that securities issued under the U.S. Treasury's Separate Trading of Registered Interest and Principal (STRIP's) program, which are offered in book entry form and which are direct obligations of the U.S. Government, as authorized by Subtitle III, Chapter 31 of Title 31 USC, may be purchased without limitation.
(b) Purchasing or trading any other type of IO securities may receive prior written approval from the department for institutions demonstrating technical expertise and policies sufficient to promote safe and sound use of such investments as part of prudent investment strategies.
(6) Futures, Forwards, Option Contracts and Interest Rate Swaps.

Futures, forwards, option contracts, interest rate swaps, and direct and indirect investments associated with any security which otherwise constitutes a permissible investment under provisions of this rule may be approved in writing by the department for trust companies demonstrating technical expertise and policies sufficient to promote safe and sound use of such investments as part of prudent investment strategies.

(7) All Other Securities.

A trust company may invest in such other securities or funds as the department may approve, upon a finding that the securities are marketable under ordinary circumstances, with reasonable promptness at a price which corresponds to their fair value, approval shall be in writing and subject to such limitations as the department may specify. This requirement for departmental approval shall not apply where the equity capital, as defined by GAAP, of the purchasing trust company exceeds $ 20,000,000. However, in such instances, such securities may be purchased only in an amount which does not exceed fifteen (15) percent of the trust company's equity capital, as defined by GAAP.

(8) In the event a trust company's investment in securities no longer conforms to this rule but conformed when the investment was originally made, the trust company shall provide written notification to the Department regarding the nonconforming investment within 30 days of discovering the nonconforming investment or 120 days of the investment becoming nonconforming, whichever event occurs first. In the event a trust company wishes to hold the nonconforming investment, the trust company must submit a letter form application to the Department describing the efforts the trust company will undertake to bring the nonconforming investment into conformity and the anticipated time it will take to bring the investment into conformity. Upon review of the application, the Department may request additional information if it determines such additional information is necessary in order to fully and completely evaluate the application. After completion of its review, the Department shall either approve, conditionally or otherwise, or deny such application in writing.
(9) A trust company may sell a nonconforming investment without Department authorization but only if it provides the Department with written notice no later than five (5) business days after the sale.

Rule 80-13-1-.12 Self-dealing and Conflicts of Interest

(1) Unless authorized by applicable law, a trust company may not invest funds of a fiduciary account for which a trust company has investment discretion in the stock or obligations of, or in assets acquired from: the trust company or any of its directors, officers, or employees; affiliates of the trust company or any of their directors, officers, or employees; or individuals or organizations with whom there exists an interest that might affect the exercise of the best judgment of the trust company. Notwithstanding the above, a trust company may invest such stock or obligations as part of an index pursuant to an index or model portfolio strategy unless the index was formed or otherwise created or is managed by the trust company.
(2)
(a) A trust company may not lend, sell, or otherwise transfer assets of a fiduciary account for which a trust company has investment discretion to the trust company or any of its directors, officers, or employees, or to affiliates of the trust company or any of their directors, officers, or employees, or to individuals or organizations with whom there exists an interest that might affect the exercise of the best judgment of the trust company, unless:
1. The transaction is authorized by applicable law;
2. Legal counsel advises the trust company in writing that the trust company has incurred, in its fiduciary capacity, a contingent or potential liability, in which case the trust company, upon the sale or transfer of assets, shall reimburse the fiduciary account in cash at the greater of book or market value of the assets;
3. As provided in 12 CFR § 9.18(b)(8)(iii) for defaulted investments; or
4. Required in writing by the Department.
(b) Notwithstanding the above provisions of this section, a trust company may not lend to any of its directors, officers, or employees any funds held in trust, except with respect to employee benefit plans in accordance with the exemptions found in section 408 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. § 1108) .
(3) A trust company may make a loan to a fiduciary account and may hold a security interest in assets of the account if the transaction is fair to the account and is not prohibited by applicable law.
(4) A trust company may sell assets between any of its fiduciary accounts if the transaction is fair to both accounts and is not prohibited by applicable law.
(5) A trust company may make a loan between any of its fiduciary accounts if the transaction is fair to both accounts and is not prohibited by applicable law.

Rule 80-13-1-.13 Dividends

(1) The Board of Directors of any trust company may declare and the trust company may pay dividends on its outstanding capital stock without any requirement to notify the Department or request the approval of the Department if the aggregate amount of dividends declared or anticipated to be declared in the calendar year does not:
(a) exceed fifty (50) percent of the net income, in accordance with Generally Accepted Accounting Principles, that is attributable solely to a trust company that is a Subchapter C-Corporation for the previous calendar year; or
(b) exceed seventy-five (75) percent of the net income, in accordance with Generally Accepted Accounting Principles, that is attributable solely to a trust company that is a Subchapter S-Corporation for the previous calendar year.
(2) Any proposed dividend to be declared by the Board of Directors of a trust company in excess of the amount authorized by section (1) of this Rules must be approved, in writing, by the Department prior to the payment thereof pursuant to the provisions of Section 7-1-460(a)(3) of the Official Code of Georgia. Requests for approval of dividends shall be on forms prescribed by the Department.