State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-363

Subpart E. Private TrustCompanies.

§ 53‑363.  Private trustcompanies.

(a)        The followingdefinitions apply in this Subpart:

(1)        "Designatedrelative" means the individual required to be named in the applicationunder G.S. 53‑364(a)(5) requesting an exemption from certain provisionsof this Act pursuant to G.S. 53‑364.

(2)        "Familymember" means the designated relative and

a.         Any individualwithin the fifth degree of lineal kinship to the designated relative computedin accordance with G.S. 104A‑1;

b.         Any individualwithin the ninth degree of collateral kinship to the designated relativecomputed in accordance with G.S. 104A‑1;

c.         The spouse of thedesignated relative and of any individual qualifying as a family member undersub‑subdivision a. and b. of this subdivision;

d.         A company controlledby one or more family members;

e.         A trust establishedby (i) a family member or (ii) an individual who is not a family member ifincome or principal of the trust could be distributed currently to or for thebenefit of a family member;

f.          The estate of afamily member; or

g.         A charitablefoundation or other charitable entity created by a family member.

Forpurposes of this subdivision, a legally adopted individual shall be treated asa natural child of the adoptive parents.

(3)        "Transactbusiness with the general public" means to engage in any sales,solicitations, arrangements, agreements, or transactions to provide trustbusiness services, whether or not for a fee, commission, or other type ofremuneration, to more than 35 persons who are not family members, except thatrules, orders, or declaratory rulings of the Commissioner may provide for othercircumstances in which a State trust company either does or does not transactbusiness with the general public. For the purposes of this subdivision, anestate, a trust, or any other legal entity having multiple beneficiaries orowners shall be deemed to constitute one person.

(b)        A private trustcompany engaging in trust business in this State shall comply with allprovisions of this Article applicable to a State trust company unless expresslyexempted from this Article by the Commissioner pursuant to this section orprior to the enactment of this Article.

(c)        A private trustcompany or proposed private trust company may request in writing that it beexempted from specified provisions of G.S. 53‑333(b), 53‑337(a), 53‑340,53‑341, 53‑342, 53‑345, 53‑346, and 53‑394(b).The Commissioner may grant the exemption request in whole or in part. TheCommissioner also may issue rules, orders, or declaratory rulings grantingexemptions to all private trust companies, or to private trust companies thatmeet specified conditions.

(d)        The Commissionermay examine or investigate the private trust company or proposed private trustcompany in connection with the application for exemption. Unless theapplication presents novel or unusual questions, the Commissioner shall approveor deny the application for exemption no later than the sixty‑first dayafter the date the Commissioner considers the application complete and acceptedfor filing. The Commissioner may require the submission of additionalinformation in order to make an informed decision to approve or reject theproposed exemption.

(e)        Any exemptiongranted under the provisions of this section may be made subject to conditionsor limitations imposed by the Commissioner consistent with this Subpart, andthose conditions or limitations shall be included in an order.

(f)         Rules, orders, ordeclaratory rulings of the Commissioner may provide for other circumstancesthat justify exemption from specific provisions of this Article, specifying theprovisions of this Act that are subject to the exemption request, andestablishing procedures and requirements for obtaining, maintaining, orrevoking exemptions. (2001‑263, s. 1.)