Capital Briefs: New Law to Let Miss. Trusts Set Up Outside State

Mississippi-chartered trust operations will be able to branch into other states, thanks to a new state law that takes effect July 1.

The law, signed March 23 by Gov. Kirk Fordice, requires Mississippi trust operations to notify the state banking commissioner before setting up branches across state lines. Out-of-state trust operations would be permitted to enter Mississippi after getting approval from banking regulators there. A similar law takes effect in Oklahoma Nov. 1.

The laws were designed after model legislation drafted by the Conference of State Bank Supervisors. The model bill was intended to match decisions by the Office of the Comptroller of Currency and the Office of Thrift Supervision in recent years, allowing federally chartered trusts to set up interstate operations.