RSA 564-F:8-802 · Trust Powers

564-F:8-802 Trust Powers. –

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(a)

A foundation shall have trust powers to the extent that it:

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(1)

Does not transact business with the general public;

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(2)

Is a family trust company as defined in RSA 383-A:2-201(a)(26); or

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(3)

Is a foreign family trust company that is authorized to engage in trust business in this state under RSA 383-D:13-1301.

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(b)

Trust powers include the power to act as a trustee or other fiduciary, a trust advisor as defined in RSA 564-B:1-103(27), or a trust protector as defined in RSA 564-B:1-103(28).

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(c)

For purposes of subsection (a)(1), a foundation does not transact business with the general public to the extent that the foundation:

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(1)

Qualifies as a family office under 15 U.S.C. section 80b-2(a)(11)(G); or

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(2)

Offers and provides its services only to persons who would qualify as family clients as defined in RSA 383-D:2-201(b)(5) if the foundation was chartered as a family trust company under RSA 383-D.

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(d)

For purposes of subsection (c)(2), a foundation may use any reasonable method for:

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(1)

Identifying a designated relative as defined in RSA 383-D:2-201(b)(2); and

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(2)

Selecting a method for determining family members as described in RSA 383-D:4-402(b)(2) or (c).

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(e)

A foundation described in subsection (a)(1) shall be exempt from RSA Title 35 and shall not be subject to the jurisdiction of the New Hampshire bank commissioner.

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(f)

To the extent that a foundation other than a foundation described in subsection (a)(2) or (a)(3) transacts business with the general public, the following shall apply:

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(1)

Any action by the foundation shall not be void or voidable solely by reason of the foundation transacting business with the general public.

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(2)

Each of the foundation's directors shall be personally, jointly, and severally liable for all liabilities created by the foundation transacting business with the general public, including any breach of a fiduciary duty to a member of the general public.

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(3)

A director's liability under subsection (f)(2) is in addition to any civil or criminal penalties imposed by applicable law.

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(g)

This section does not restrict the rights and remedies of any person affected by a foundation's exercise of trust powers, including the right to commence a judicial proceeding seeking:

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(1)

A remedy for a breach of trust under RSA 564-B:10-1001;

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(2)

Damages for a breach of trust under RSA 564-B:10-1002; or

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(3)

Damages under RSA 564-B:10-1003. Source. 2017, 257:47, eff. Oct. 1, 2017. ARTICLE 9 Capital

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