A BILL to amend and reenact the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §44-6-10, relating to authorizing the purchasing of certain services from a bank or trust company or an affiliate of a bank or trust company.

Be it enacted by the Legislature of West Virginia:
That of the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §44-6-10, to read as follows:

§44-6-10. Purchase of service or product through or directly from bank or trust company or affiliate.

(a) A bank or trust company acting in any fiduciary capacity, including, but not limited to, the capacities described in this article, may purchase any service or product, including, but not limited to, insurance or securities underwritten or otherwise distributed by the bank or trust company or by an affiliate, through or directly from the bank or trust company or an affiliate or from a syndicate or selling group that includes the bank or trust company or an affiliate, provided that the purchase is otherwise prudent under Article six-c of this chapter, and the compensation for the service or product is reasonable and is not prohibited by the instrument governing the fiduciary relationship. The compensation for the service or product may be in addition to the compensation that the bank or trust company is otherwise entitled to receive from the fiduciary account.
(b) A bank or trust company shall disclose at least annually any purchase authorized by this section that was made by the bank or trust company during that reporting period. The disclosure shall be given, in writing or electronically, to all persons entitled to receive statements of account activity, and shall include any capacities in which the bank or trust company or an affiliate acts for the issuer of the securities or the provider of the products or services and the fact that the bank or trust company or an affiliate may have an interest in the products or services.
(c) This section shall apply to the purchase of securities made at the time of the initial offering of the securities or at any time thereafter.


NOTE: The purpose of this bill is to allowing a bank or trust company acting in a fiduciary capacity for a trust to offer to the trust, services that the trust company provides to other customers, as long as the bank or trust company discloses that the bank or trust company or an affiliate has an interest in the service offered, and the transaction is of benefit to the trust.