Foreclosure Hamlet

Supporting, Informing & Connecting People in Foreclosure

National banks love making the argument that they don't have to register the trust with the state. However, they conveniently forget to tell the whole story. Pursuant to 12 USC § 92a they are exempted from state law. But they MUST first obtain a special permit from the Comptroller of the Currency (OCC) in order to be exempt.

Section 92a(a) provides: 
The Comptroller of the Currency shall be authorized and empowered to grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary  capacity in which State banks, trust  companies, or other corporations which come into competition with national banks are permitted to act  under the laws of the State in which the national bank is located. 

 

The OCC Interpretive Letter #1106 gives more detail information. So the bank must show with evidence that it obtained a special permit from the OCC.

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