5 Del. C. § 797F: Capital stock; capital assets [For application of this section, see 85 Del. Laws, c. 346, § 9].

(a) Section 745 of this title does not apply to a family trust company. The capital stock of a family trust company organized under this subchapter shall be $250,000. In addition to the capital stock required by the foregoing, a family trust company shall have a paid-in surplus account equal to no less than ½ of the minimum capital stock required by this section. The minimum capital stock and paid-in surplus required to be maintained by such family trust company in its trust company business under this section may not be utilized to satisfy the capital or reserve requirements to which the family trust company may be subject with respect to any activity authorized by § 761(a)(14) of this title.

(b) The Commissioner may require a family trust company to maintain capital and surplus in excess of the minimum required under subsection (a) of this section. The Commissioner may impose this requirement at the time of organization of the family trust company or any later time. Unless the Commissioner reasonably determines that the family trust company’s operation would be unsafe and unsound or it is necessary for the protection of family members, the Commissioner may not require more than the minimum capital and surplus required by subsection (a) of this section. Unless the Commissioner reasonably determines that extraordinary circumstances exist, the Commissioner may not require more than $1,000,000 in total capital and surplus. The Commissioner shall base a family trust company’s required amount of capital and surplus on an assessment of the risks associated with the family trust company’s business plan, the application, any investigation, the conduct of its business, the nature of its fiduciary accounts, and any examination by or filing with the Commissioner. In making this determination, the Commissioner may consider any of the following:

(1) The nature and type of business proposed to be conducted or being conducted by the family trust company.

(2) The nature and liquidity of the family trust company’s assets or proposed assets.

(3) The amount of fiduciary assets that are or are projected to be under management or under administration of the family trust company.

(4) The type of fiduciary assets held or proposed to be held by the family trust company and the proposed depositories or custodians, if any, of the fiduciary assets.

(5) The complexity of fiduciary responsibilities and degree of discretion undertaken or proposed to be undertaken by the family trust company.

(6) The competence and experience of current or proposed directors and officers of the family trust company and their understanding of, and capability and willingness to perform, their duties, including, without limitation, the duties of directors arising under § 742(a) of this title; and whether, if any limitations be found in the management team, the extent to which they have been compensated for by capable and experienced outside services providers.

(7) The extent and adequacy of proposed internal controls and written policies and procedures of the family trust company.

(8) Whether the family trust company has obtained or will obtain suitable audits by qualified outside auditors of its books and records and its fiduciary activities under applicable accounting rules and standards, or suitable internal audits, and the results of any such audits that have been completed within the prior 3 years.

(9) The existence and adequacy of insurance maintained or proposed to be maintained by the family trust company.

(10) The level of success of the family trust company in achieving the financial projections submitted to the Commissioner with its application for a certificate of authority to establish a family trust company.

(11) The level of fulfillment by the family trust company of its representations and its descriptions of its business structures and methods and management set forth in its application for a certificate of authority to establish a family trust company.

(c) If the Commissioner requires capital and surplus in excess of the minimum required under this subchapter, the Commissioner shall issue an order stating the reasons for the requirement and the timetable for contribution to the family trust company of the additional capital and surplus.

(d) Assets used to satisfy the minimum capital and surplus requirements under this section must consist of 1 or more of the following:

(1) Cash.

(2) United States government obligations that mature within 3 years after acquisition.

(3) Obligations fully backed by the full faith and credit of the United States that mature within 3 years after acquisition.

(4) Bank deposits insured by the Federal Deposit Insurance Corporation that mature within 3 years after acquisition.

(5) Readily marketable securities or other liquid and secure assets.

(e) A family trust company shall maintain the liquid portion of its stockholders’ equity in accounts with 1 or more banks or other financial institutions in this State.

(f) Except as provided under subsections (d) and (e) of this section, a family trust company may invest its assets for its own account as permitted under this chapter.