A Only Statement 1 is True B Only Statement 2 is True C Both Statements are True D Both Statements are False Statement 1 When the principal dies, the assets will be immediately transferred to the agent in an IMA arrangement Statement 2 When the trustor dies, the assets or properties under a revocable PMT are subject to estate taxes, which is 6 Statement 1 One of the disadvantages of creating a trust arrangement is the separation of legal and beneficial ownerships Statement 2 A trust institution must make an initial deposit with the BSP as security for the faithful performance of its trust duties Statement 1 One of the disadvantages of creating a trust arrangement is the separation of legal and beneficial ownerships Statement 2 A trust institution must make an initial deposit with the BSP as security for the faithful performance of its trust duties Statement 1 Guardianship is a legal relationship under which a trust entity has a legal duty to take care of a minor or incompetent person Statement 2 Court trust is an agency arrangement as the court is the principal while a bank is an agent of the court Statement 1 UITFs are not insured by PDIC except for the time deposits invested by the fund Statement 2 Only conservative investors may invest in a Money Market UITF Statement 1 In a Personal Management Trust, a trustor may be the beneficiary himself Statement 2 A trustor is not allowed to reopen a PMT for one year if it is terminated for causes that are inconsistent with the intended purpose Statement 1 Transactions are documented through agreements for trust and passbook for banks Statement 2 In a Mortgage Trust Indenture, documents deposited with a neutral third party should be delivered to the parties involved upon fulfillment of certain conditions Statement 1 The Manual of Regulations for Banks includes the key processes from account opening and ongoing administration to account termination Statement 2 A person can be an agent, trustor, principal, trustee, or a beneficiary Statement 1 Express trusts are created in the form of a trust agreement while implied trusts are constructed by creation of law Statement 2 A trust is a tripartite arrangement while an agency is a bipartite agreement Statement 1 The Prudent Man Rule stipulates various investment restrictions on the part of the trustee Statement 2 Confidentiality of clients information is absolute, except when a court requires, among others Statement 1 A PMT with a maintaining balance of 100,000 may invest in corporate bonds Statement 2 Personal Management Trust is not subject to reserve requirement Statement 1 When the purpose of the trust is accomplished, the account will be automatically terminated Statement 2 A trustee may only delegate purely discretionary functions as confidence is reposed on the bank by the trustor Statement 1 If a trust account is irrevocable, assets will not form part of the estate thus, subject to donor s tax Statement 2 If a trust account is revocable, assets will form part of the estate thus, subject to estate tax Statement 1 In an Irreplaceable Trust, the trustor completely and absolutely relinquishes his ownership to the trust property Statement 2 Pre need trusts are governed by the Insurance Commission Statement 1 A client considered as aggressive by a CSA questionnaire may also invest in money market funds, provided a CSA waiver must be signed Statement 2 UITFs have voting rights Statement 1 A Trust Corporation is subject to Single Borrower Limits (SBL) except for its UITF products Statement 2 The Bank Secrecy Law (RA 1405) also applies to trust banking Statement 1 One of the advantages of an agency arrangement is that the legal title is not transferred to another entity Statement 2 IMA is a Trust Department s product and considered as an agency arrangement Statement 1 All UITF withdrawals after the cut off time will utilize the NAVPU on the next banking day Statement 2 Separation of trust and bank assets is also applicable for UITF

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Question: A. Only Statement 1 is True B. Only Statement 2 is True C. Both Statements are True D. Both Statements are False Statement 1: When

A. Only Statement 1 is True

B. Only Statement 2 is True

C. Both Statements are True

D. Both Statements are False

"Statement 1: When the principal dies, the assets will be immediately transferred to the agent in an IMA arrangement. Statement 2: When the trustor dies, the assets or properties under a revocable PMT are subject to estate taxes, which is 6%. "
Statement 1: One of the disadvantages of creating a trust arrangement is the separation of legal and beneficial ownerships. Statement 2: A trust institution must make an initial deposit with the BSP as security for the faithful performance of its trust duties
Statement 1: One of the disadvantages of creating a trust arrangement is the separation of legal and beneficial ownerships. Statement 2: A trust institution must make an initial deposit with the BSP as security for the faithful performance of its trust duties
Statement 1: Guardianship is a legal relationship under which a trust entity has a legal duty to take care of a minor or incompetent person. Statement 2: Court trust is an agency arrangement as the court is the principal while a bank is an agent of the court Statement 1: UITFs are not insured by PDIC except for the time deposits invested by the fund. Statement 2: Only conservative investors may invest in a Money Market UITF "Statement 1: In a Personal Management Trust, a trustor may be the beneficiary himself. Statement 2: A trustor is not allowed to reopen a PMT for one year if it is terminated for causes that are inconsistent with the intended purpose "
"Statement 1: Transactions are documented through agreements for trust and passbook for banks. Statement 2: In a Mortgage Trust Indenture, documents deposited with a neutral third party should be delivered to the parties involved upon fulfillment of certain conditions. "
"Statement 1: The Manual of Regulations for Banks includes the key processes from account opening and ongoing administration to account termination. Statement 2: A person can be an agent, trustor, principal, trustee, or a beneficiary "
Statement 1: Express trusts are created in the form of a trust agreement while implied trusts are constructed by creation of law. Statement 2: A trust is a tripartite arrangement while an agency is a bipartite agreement "Statement 1: The Prudent Man Rule stipulates various investment restrictions on the part of the trustee. Statement 2: Confidentiality of clients information is absolute, except when a court requires, among others "
"Statement 1: A PMT with a maintaining balance of 100,000 may invest in corporate bonds. Statement 2: Personal Management Trust is not subject to reserve requirement " "Statement 1: When the purpose of the trust is accomplished, the account will be automatically terminated. Statement 2: A trustee may only delegate purely discretionary functions as confidence is reposed on the bank by the trustor "
"Statement 1: If a trust account is irrevocable, assets will not form part of the estate; thus, subject to donor s tax. Statement 2: If a trust account is revocable, assets will form part of the estate; thus, subject to estate tax"
"Statement 1: In an Irreplaceable Trust, the trustor completely and absolutely relinquishes his ownership to the trust property. Statement 2: Pre-need trusts are governed by the Insurance Commission "
"Statement 1: A client considered as aggressive by a CSA questionnaire may also invest in money market funds, provided a CSA waiver must be signed. Statement 2: UITFs have voting rights "
Statement 1: A Trust Corporation is subject to Single Borrower Limits (SBL) except for its UITF products. Statement 2: The Bank Secrecy Law (RA 1405) also applies to trust banking
Statement 1: One of the advantages of an agency arrangement is that the legal title is not transferred to another entity. Statement 2: IMA is a Trust Department s product and considered as an agency arrangement
Statement 1: All UITF withdrawals after the cut-off time will utilize the NAVPU on the next banking day. Statement 2: Separation of trust and bank assets is also applicable for UITF

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