NAC681A.300. Authorized acts that may be included in trust agreement.

     1. A trust agreement may authorize:

     (a) The trustee to resign by delivering written notice to the beneficiary and grantor. Except as otherwise provided in subsection 2, a resignation is effective on the date specified in the written notice, but not less than 90 days after receipt of the notice by the beneficiary and grantor.

     (b) The grantor to remove the trustee by delivering written notice to the trustee and the beneficiary. Except as otherwise provided in subsection 2, a written notice of removal is effective on the date specified in the notice, but not less than 90 days after receipt of the notice by the trustee and beneficiary.

     2. A notice of resignation or removal is not effective until a successor trustee has been appointed and approved by the beneficiary and grantor, and all assets in the trust have been transferred to the new trustee.

     3. A trust agreement may authorize the beneficiary to designate a natural person or entity to which all or part of the trust assets are to be transferred. Such a transfer may be conditioned upon the trustee receiving other specific assets before the transfer or simultaneously with the transfer.

     4. A trust agreement may authorize the grantor to vote any shares of stock in the trust account and to receive payments of any dividends or interest upon any shares of stock or obligations included in the trust account. All such interest or dividends must be promptly forwarded to the grantor upon receipt or deposited in a separate account established in the name of the grantor.

     5. A trust agreement may authorize the trustee to invest and accept substitutions of any assets in the trust account if the consent of the beneficiary is obtained before the investment or substitution is made. The consent of the beneficiary is not necessary if the trust agreement:

     (a) Specifies categories of investments which are acceptable to the beneficiary; and

     (b) Authorizes the trustee to invest assets and accept substitutions which the trustee determines are at least equal in market value to the assets withdrawn and are consistent with the restrictions set forth in NAC 681A.325.

     6. A trust agreement may provide that, upon termination of the trust account, all assets not previously withdrawn by the beneficiary must, upon written approval of the beneficiary, be delivered to the grantor.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96; A by R027-02, 5-31-2002)