74-9

74-9

San Francisco, California

January 23, 1974

Re: Acting as Trustee of Real Property in California

Dear _______________:

This letter is meant to confirm our telephone conversation of January 18, 1974.

This Department would interpose no objections to an out-of-state bank with trust powers acting as a trustee under a Deed of Trust for real property in the State of California.

However, problems do arise when the bank is acting as trustee under trust. It is our opinion that if the bank takes any affirmative action relative to the property in California, it is, in fact, doing a trust business in this State without a license which is prohibited by the Financial Code. For instance, collecting rents or managing the use of land would constitute such acts as to indicate that the bank was doing a trust business this State.

We hope the information we have supplied will be useful to you. If you have any further questions in regard to this matter, please do not hesitate to contact us.

Very truly yours,

DONALD E. PEARSON Superintendent of Banks

By

JOHN F. STUART Counsel

JFS:jw

cc: Opinion File