State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-208_6

§ 53‑208.6.  Permissibleinvestments and statutory trust.

(a)        Each licensee underthis Article shall possess at all times unencumbered permissible investmentshaving an aggregate market value, calculated in accordance with generallyaccepted accounting principles, of not less than the aggregate face amount ofall outstanding payment instruments and stored value obligations issued orsold. This requirement may be waived by the Commissioner if the dollar volumeof a licensee's outstanding payment instruments and stored value do not exceedthe bond or other security devices posted by the licensee pursuant to G.S. 53‑208.8.

(b)        Permissibleinvestments, even if commingled with other assets of the licensee, shall bedeemed by operation of law to be held in trust for the benefit of thepurchasers and holders of the licensee's outstanding payment instruments andstored value obligations in the event of the bankruptcy of the licensee. (2001‑443, s. 2.)