State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-340

Subpart C. Investments andActivities.

§ 53‑340.  Investment inState trust company facilities.

(a)        A State trustcompany may invest in one or more State trust company facilities consistentwith the safe and sound operation of a State trust company.

(b)        For the purposes ofthis Part, "State trust company facility" means real estate owned, orleased to the extent the lease or the leasehold improvements are capitalized,by a State trust company for the purposes of:

(1)        Providing space forState trust company employees, officers, and directors to perform their dutiesand space for appropriate parking;

(2)        Conducting trustbusiness, including meeting the reasonable needs and convenience of the Statetrust company's customers, employees, officers, and directors, and providingfor necessary computer operations, data processing, maintenance, and recordretention and storage;

(3)        Future expansion ofthe State trust company's facilities; or

(4)        Conducting anotheractivity authorized by law or by rules, orders, or declaratory rulings of theCommissioner.

(c)        Without theapproval of the Commissioner, a State trust company shall not, within the firstthree years following issuance of its charter, directly or indirectly, investan amount in excess of one‑half of its initial capital in State trustcompany facilities, furniture, fixtures, and equipment. Except as otherwiseprovided by rules, orders, or declaratory rulings of the Commissioner, incomputing this limitation, a State trust company shall include:

(1)        Its direct investmentin State trust company facilities;

(2)        Any investment in acompany with an interest in a State trust company facility;

(3)        Any indebtednessincurred on State trust company facilities by an affiliate of the State trustcompany.

Except as otherwise providedby rules, orders, or declaratory rulings of the Commissioner, in computing thislimitation, a State trust company may exclude an amount included undersubdivisions (1) through (3) of this subsection to the extent any lease of afacility from the company holding title to the facility is capitalized by theState trust company.

(d)        Real estateacquired under subdivision (3) of subsection (b) of this section ceases to be aState trust company facility if it is not used for a purpose listed insubdivision (1), (2), or (4) of subsection (b) of this section on the thirdanniversary of the date of its acquisition unless the Commissioner grantsapproval to hold the real estate for a longer period. (2001‑263, s. 1.)