# RCW 32.16.070: RCW 32.16.070: Restrictions on trustees

> Washington · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S070

## Section

- **Citation:** RCW 32.16.070
- **Heading:** RCW 32.16.070: Restrictions on trustees
- **Jurisdiction:** Washington
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Washington Code / Title 32 / Chapter 16 / Section 070

## Text

(1) A trustee of a savings bank shall not, except to the extent permitted for a director of a federal mutual savings bank: (a) Have any interest, direct or indirect, in the gains or profits of the savings bank, except to receive dividends (i) upon the amounts contributed by him or her to the guaranty fund and the expense fund of the savings bank as provided in RCW 32.08.090 and 32.08.100 , and (ii) upon any deposit he or she may have in the bank, the same as any other depositor and under the same regulations and conditions. (b) Become a member of the board of directors of a bank, trust company, or national banking association of which board enough other trustees of the savings bank are members to constitute with him a majority of the board of trustees. (2) Neither a trustee nor an officer of a savings bank shall, except to the extent permitted for a director or officer of a federal mutual savings bank: (a) For himself or herself or as agent or partner of another, directly or indirectly use any of the funds or deposits held by the savings bank, except to make such current and necessary payments as are authorized by the board of trustees. (b) Receive directly or indirectly and retain for his or her own use any commission on or benefit from any loan made by the savings bank, or any pay or emolument for services rendered to any borrower from the savings bank in connection with such loan, except as authorized by RCW 32.16.050 . (c) Become an indorser, surety, or guarantor, or in any manner an obligor, for any loan made by the savings bank. (d) For himself or herself or as agent or partner of another, directly or indirectly borrow any of the funds or deposits held by the savings bank, or become the owner of real property upon which the savings bank holds a mortgage. A loan to or a purchase by a corporation in which he or she is a stockholder to the amount of fifteen percent of the total outstanding stock, or in which he or she and other trustees of the savings bank hold stock to the amount of twenty-five percent of the total outstanding stock, shall be deemed a loan to or a purchase by such trustee within the meaning of this section, except when the loan to or purchase by such corporation occurred without his or her knowledge or against his or her protest. A deposit in a bank shall not be deemed a loan within the meaning of this section.

## Nearby sections

- [RCW 32.16.010 RCW 32.16.010: Board of trustees—Number—Qualifications.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S010.md)
- [RCW 32.16.012 RCW 32.16.012: Age requirements.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S012.md)
- [RCW 32.16.020 RCW 32.16.020: Oath of trustees—Declaration of incumbency—Not applicable to directors of stock savings banks.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S020.md)
- [RCW 32.16.030 RCW 32.16.030: Vacancies, when to be filled.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S030.md)
- [RCW 32.16.040 RCW 32.16.040: Quorum—Meetings.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S040.md)
- [RCW 32.16.050 RCW 32.16.050: Compensation of trustees.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S050.md)
- [RCW 32.16.060 RCW 32.16.060: Change in number of trustees.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S060.md)
- [RCW 32.16.070 RCW 32.16.070: Restrictions on trustees.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S070.md)
- [RCW 32.16.080 RCW 32.16.080: Removal of trustees—Vacancies—Eligibility to reelection.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S080.md)
- [RCW 32.16.090 RCW 32.16.090: Removal of a board director, officer, or employee—Prohibition from participation in conduct of affairs—Grounds—Notice.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S090.md)
- [RCW 32.16.093 RCW 32.16.093: Notice of intention to remove or prohibit participation in conduct of affairs—Hearing—Order of removal and/or prohibition.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S093.md)
- [RCW 32.16.095 RCW 32.16.095: Removal of one or more trustees or directors—Lack of quorum—Temporary trustees.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S095.md)
- [RCW 32.16.097 RCW 32.16.097: Penalty for violation of order issued under RCW 32.16.093.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S097.md)
- [RCW 32.16.100 RCW 32.16.100: Examination by trustees' committee—Report.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S100.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_WA_T32_C16_S070. Check the current official text before relying on it. Not legal advice.