Glossary

 

Trust - relationship existing between two or more parties in which one party holds the legal title to real or personal property, subject to an obligation imposed by a court of equity, or expressly undertaken to keep or use the property for the benefit of the other party or parties. The party who thus gains control of the property, known as trust property, is called the trustee, and the party for whose benefit the property is held is known as the beneficiary of the trust. The party who creates a trust is known as the settlor; the settlor may make herself or himself either trustee or beneficiary.

Principal and Agent - voluntary relationship between two parties whereby one, the agent, is authorized by express or implied consent to act on behalf of the other, called the principal. The designated agent can thus affect or conduct the legal affairs of the principal with others, as in the case, for example, of the agreement known as power of attorney. The authorized acts of the agent are thus considered to be the acts of the principal, who is entitled to the benefits, if any, from these actions.

Fiduciary - person standing in a special relationship of trust, confidence, or responsibility to another.

The Office of the Comptroller of the Currency provides general supervision of national banks, including periodic bank examinations to determine compliance with rules and regulations and soundness of bank operations.