Article 25 When handling trust affairs, a trust company shall avoid conflicts of interest. If it is inevitable, they should fully disclose the information to the clients and beneficiaries, or refuse to engage in this business.
Article 26 A trust company shall handle trust affairs in person. If there are other agreements in the trust documents or there are compelling reasons, the trust company may entrust others to handle the trust affairs on its behalf, but the trust company shall fulfill its full supervision obligations and be responsible for the actions of others in handling the trust affairs.
Article 27 A trust company has the obligation to keep confidential the information and materials of the trustor, beneficiary and the trust affairs handled according to law, except as otherwise provided by laws, regulations or trust documents.
Article 28 A trust company shall properly keep complete records of handling trust affairs, and regularly report the trust property, its management, utilization, disposal and income and expenditure to the trustor and beneficiary.
The trustor and beneficiary have the right to know from the trust company about the management, use, disposal and income and expenditure of their trust property, and ask the trust company to make an explanation.
Article 29 A trust company shall establish separate accounts for the trust property and its inherent property, and establish separate accounts for the trust property of different customers.
Article 30 A trust company shall establish account books according to law, accounting for trust business and non-trust business respectively, and accounting for various trust businesses separately.
Article 31 The trust business department of a trust company shall be independent from other departments of the company, and its personnel shall not work part-time in other departments of the company, and business information shall not be shared with other departments of the company.
Article 32 Where a trust is established in the form of a trust contract, the trust contract shall specify the following items:
(1) the purpose of the trust.
(2) Names and domiciles of the trustor and the trustee.
(3) Beneficiaries or the scope of beneficiaries;
(4) The scope, types and conditions of the trust property.
(5) The rights and obligations of the parties to the trust.
(six) the risk disclosure and commitment of trust property management.
(seven) the management mode of the trust property and the management authority of the trustee;
(8) Calculation of trust benefits, and the forms and methods of delivering trust benefits to beneficiaries;
(9) Calculation and payment of remuneration of trust companies.
(10) Accounting of trust property tax and other expenses;
(eleven) the term of trust and the termination of trust;
(12) Ownership of the trust property at the time of termination of the trust.
(13) Report on trust affairs.
(14) Liability for breach of contract and dispute settlement methods of the trust parties;
(15) Method for the formation of the new trustee;
(16) Other matters that the parties to the trust think need to be explained.
Where a trust is established by other written documents other than the trust contract, the matters specified in the written documents shall be implemented in accordance with relevant laws and regulations.
Article 33 A trust company shall not engage in any of the following acts when carrying out its inherent business:
(1) Borrowing funds from related parties or transferring property;
(2) Providing guarantees for related parties;
(3) Financing with the company's equity held by shareholders as pledge.
The related parties of trust companies are defined according to the Company Law of People's Republic of China (PRC) and the Accounting Standards for Business Enterprises.
Article 34 A trust company shall not engage in any of the following acts when conducting trust business:
(1) Taking advantage of the position of the trustee to seek illegitimate interests;
(2) misappropriating the trust property for non-trust purposes.
(3) Promise that the trust property will not be damaged or guarantee the minimum income;
(4) Providing guarantee with trust property.
(5) Other acts prohibited by laws and regulations and the China Banking Regulatory Commission.
Article 35 Trust companies shall conduct related transactions at fair market prices, report to China Banking Regulatory Commission one by one in advance, and disclose information in accordance with relevant regulations.
Article 36 A trust company shall collect remuneration in the form of handling fees or commissions in accordance with the trust documents, except as otherwise provided by the China Banking Regulatory Commission.
When a trust company receives remuneration, it shall disclose it to the beneficiary and explain the specific charging standard to the beneficiary.
Article 37 If a trust company disposes of the trust property in violation of the trust purpose, or causes losses to the trust property due to violation of management duties or improper handling of trust affairs, the trust company shall not request payment of remuneration before restoring the trust property to its original state or making compensation.
Article 38 The expenses and debts of a trust company in handling trust affairs shall be borne by the trust property, but it shall be clearly stated or informed to the beneficiaries in the trust contract. If a trust company pays in advance with its inherent property, it has the priority to be compensated for the trust property. The debts and damages caused by the trust company's violation of management duties or improper management of trust affairs shall be borne by its inherent property.
Article 39 If a trust company disposes of the trust property in violation of the trust purpose, or there is gross negligence in the management, use and disposal of the trust property, the trustor or beneficiary has the right to dissolve the trust company according to the agreement in the trust document, or apply to the people's court for dissolution.
Article 40 If the duties of the trustee are terminated according to law, a new trustee shall be created in accordance with the provisions of the trust documents; If there is no agreement in the trust document, it shall be selected by the trustor; If the trustor cannot be appointed, the beneficiary shall be appointed; If the beneficiary is a person without or with limited capacity for civil conduct, it shall be designated by his guardian according to law. Before a new trustee is created, the China Banking Regulatory Commission may appoint a temporary trustee.
Article 41 When a trust company engages in trust business, the trust shall be terminated under any of the following circumstances:
(1) The reasons for termination agreed in the trust documents appear;
(2) The existence of the trust violates the purpose of the trust.
(3) The purpose of the trust has been achieved or cannot be achieved;
(4) The parties to the trust reach an agreement through consultation;
(5) The trust term expires.
(6) Dissolution of the trust.
(7) The trust is revoked.
(8) All beneficiaries waive the beneficial right of the trust.
Article 42 If the trust is terminated, the trust company shall make a liquidation report on handling the trust affairs in accordance with the agreement in the trust documents. If the beneficiary or the owner of the trust property has no objection to the liquidation report, the trust company shall be relieved of its responsibilities for the matters listed in the liquidation report, unless the trust company commits misconduct.