2009 North Carolina Code
Chapter 53 - Banks.
§ 53-366. Applicability of other laws to authorized trust institutions; status of State trust company.

Part 4. Applicable Law; Enforcement Actions.

Subpart A. Supervision and Examination.

§ 53‑366.  Applicability of other laws to authorized trust institutions; status of State trust company.

(a)        Except as otherwise provided in this Article, the following provisions of this Chapter shall apply to authorized trust institutions:

(1)        G.S. 53‑14;

(2)        G.S. 53‑16;

(3)        G.S. 53‑17;

(4)        G.S. 53‑68;

(5)        G.S. 53‑77.3;

(6)        G.S. 53‑85;

(7)        Article 8 of this Chapter, except where it clearly appears from the context that a particular provision is not applicable to trust business or trust marketing, and except that the provisions of this Article shall apply in lieu of:

a.         G.S. 53‑95;

b.         G.S. 53‑104;

c.         G.S. 53‑105;

d.         G.S. 53‑106; and

e.         G.S. 53‑107.1(a), (b) and (d).

(8)        Article 9 of this Chapter, except where it clearly appears from the context that a particular provision is not applicable to trust business or trust marketing, and except that the provisions of this Article shall apply in lieu of G.S. 53‑119.

(9)        Article 10 of this Chapter, except where it clearly appears from the context that a particular provision is not applicable to trust business or trust marketing, and except that the provisions of this Article shall apply in lieu of G.S. 53‑135, and except that G.S. 53‑131 and G.S. 53‑132 shall not apply to authorized trust institutions.

(10)      Article 14 of this Chapter.

(b)        Rules adopted by the Commissioner to implement those provisions of this Chapter made applicable to authorized trust institutions by subsection (a) of this section also shall apply to authorized trust institutions unless the rules are inconsistent with this Article or it clearly appears from the context that a particular provision is inapplicable to trust business or trust marketing.

(c)        Activities of authorized trust institutions for clients shall not be considered the sale or issuance of checks under G.S. 53‑194.

(d)        Until the Commissioner has issued new rules governing State trust companies, State trust companies shall be governed by rules issued by the Commissioner for banks acting in a fiduciary capacity, except to the extent the rules are inconsistent with this Article or it clearly appears from the context that a particular provision is inapplicable to the business of a State trust company.

(e)        Notwithstanding any other provision of this Chapter, a State trust company:

(1)        Is a "banking entity" for purposes of G.S. 53‑127;

(2)        Is a "bank" for purposes of laws made applicable to authorized trust institutions in this section and for purposes of G.S. 53‑277.

(3)        Is a trust company organized and doing business under the laws of the State of North Carolina, a substantial part of the business of which is exercising fiduciary powers similar to those permitted national banks under authority of the Comptroller of the Currency, and which is subject by law to supervision and examination by the Commissioner as a banking institution; and

(4)        Is a financial institution similar to a bank.

(f)         In the case of a State trust company controlled by a company that has declared itself to be a "financial holding company" under 12 U.S.C. § 1843(l)(1)(C)(i), deposits held for an account shall be deemed to be "trust funds" within the meaning of 12 U.S.C. § 1813(p) unless all fiduciary duties with respect to the account are explicitly disclaimed. This subsection does not prescribe the nature or extend the scope of any fiduciary duties; the nature and extent of any fiduciary duties with respect to deposits held for accounts shall be as provided by the instruments and laws applicable to those accounts.

(g)        Subject to any limitations contained in this Article, an authorized trust institution is a "trust company", a "corporate trustee", a "corporate fiduciary", and a "corporation acting in a fiduciary capacity", as such and similar terms are used in the General Statutes, except where it clearly appears from the context in which those terms are used that a different meaning is intended. (2001‑263, s. 1.)