State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_32 > GS_32-71

§ 32‑71.  Investment;prudent person rule.

(a)        In acquiring,investing, reinvesting, exchanging, retaining, selling, and managing propertyfor the benefit of another, a fiduciary shall observe the standard of judgmentand care under the circumstances then prevailing, which an ordinarily prudentperson of discretion and intelligence, who is a fiduciary of the property ofothers, would observe as such fiduciary; and if the fiduciary has specialskills or is named a fiduciary on the basis of representations of specialskills or expertise, he is under a duty to use those skills. This subsectionand subsection (b) of this section do not apply to trusts governed by Article 9of Chapter 36C of the General Statutes.

(b)        Within thelimitations of the foregoing standard, a fiduciary is authorized to acquire andretain every kind of property and every kind of investment, includingspecifically, but without in any way limiting the generality of the foregoing,bonds, debentures, and other corporate or governmental obligations; stocks,preferred or common; real estate mortgages; shares in building and loanassociations or savings and loan associations; annual premium or single premiumlife, endowment, or annuity contracts; and securities of any management typeinvestment company or investment trust registered under the Federal InvestmentCompany Act of 1940, as from time to time amended.

(c),(d)  Repealed by SessionLaws 2007‑106, s. 43, effective October 1, 2007. (1870‑1, c. 197; Code,s. 1594; 1885, c. 389; 1889, c. 470; Rev., ss. 1792, 1793; 1917, c. 6, s. 9; c.67, s. 1; c. 152, s. 7; c. 191, s. 1; c. 269, s. 5; C.S., ss. 4018, 4018(a),4019; Ex. Sess. 1921, c. 63; 1931, c. 257; 1933, c. 549, s. 1; 1935, c. 449;1937, c. 14; 1943, c. 96; c. 473, ss. 1‑3; 1945, c. 713; 1953, c. 620;1959, c. 364, s. 2; c. 1015, s. 2; 1969, c. 861; 1971, c. 528, s. 34; c. 864,s. 17; 1973, c. 239, s. 1; 1975, cc. 40, 319; 1977, c. 502, s. 2; 1995, c. 153,s. 1; 1999‑215, s. 2; 2005‑192, s. 1; 2006‑259, s. 13(o);2007‑106, s. 43.)