A trust company, like a state bank, is organized under state law. In New York it may be formed by seven or more natural persons filing and publishing a notice of intention and filing an organization certificate, in the same manner as in the case of organizing a state bank. The capital requirements for a trust company are as follows:
Not exceeding 25,000
25,000 to 100,000
100,000 to 250,000
250,000 and up
When the usual investigation is completed by the Superintendent of Banks and he has indorsed the organization certificate, the corporate existence of the trust company begins, but it cannot commence business until the full payment of the capital stock is certified to the Superintendent and a list of stockholders giving the name, residence, number of shares owned, and post-office address of each of them, is verified by two officers and filed with the Superintendent of Banks. The trust company must deposit with the Superintendent, registered in his official title in trust for the depositors and creditors of the company, interest-bearing stocks or bonds either of the United States, or of the state of New York or any municipality in the state, issued by the authority of the legislature. These deposited stocks or bonds must amount to 10 per cent of the trust company's capital stock and must not be less than $100,000 if its principal office is located in a city whose population exceeds 500,000, $50,000 if the population is between 100,000 and 500,000, $30,000 if between 25,000 and 100,000, and $20,000 in places less than 25,000.
After all requirements as to certificates of intention, organization, payment of capital and deposit of securities have been fulfilled, the Superintendent of Banks issues an authorization certificate. The persons named in the organization certificate, or such of them as are holders of at least ten shares of stock, constitute the first board of directors, which should number not less than seven nor more than thirty. The directors should then organize and elect a president from their own number, together with a vice-president and other officers required under their bylaws. The directors have a three-year tenure of office and the members of the first board are required to group themselves in three classes so that one-third will be elected and take office annually thereafter. Every director in a trust company must hold in his own right at least ten shares of its capital stock. Not less than two-thirds of the directors must be citizens of the United States.