State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-364

§ 53‑364.  Requirementsto apply for and maintain status as a private trust company.

(a)        A private trustcompany or a proposed private trust company requesting an exemption from theprovisions of this Article pursuant to G.S. 53‑363 shall file anapplication with the Commissioner, in the form required by the Commissioner,containing, preceded, or accompanied by:

(1)        An application feeas set by rules of the Commissioner;

(2)        A statement underoath of the reasons for requesting the exemption;

(3)        A statement underoath showing that the private trust company is not currently transactingbusiness with the general public and that the company will not transactbusiness with the general public without the approval of the Commissioner;

(4)        A listing of thespecific provisions of the Act from which exemption is requested; and

(5)        The name of thedesignated relative whose relationship to other individuals determines whetherthe individuals are family members under G.S. 53‑363(a)(2). Thedesignated relative must be living and 18 years of age or older at the time theapplication is made.

(b)        The Commissionermay make further inquiry and investigation as the Commissioner deemsappropriate. Notwithstanding any other law to the contrary, information bearingon actual or proposed accounts of the private trust company or proposed privatetrust company applying for the exemption is confidential and not subject topublic disclosure.

(c)        To maintain itsstatus as a private trust company and to maintain any exemptions from the provisionsof this Article granted by the Commissioner, a private trust company shall filewith the Commissioner an annual certification that it is in compliance with theprovisions of this Subpart and the conditions and limitations of all exemptionsgranted. This annual certification shall be filed in the form required by theCommissioner and accompanied by any fee required by the Commissioner by rule.The annual certification shall be filed on or before December 31 of each year.The Commissioner may examine or investigate the private trust companyperiodically as necessary to verify the certification.

(d)        In any transactioninvolving a private trust company for which an application is required underG.S. 53‑360, any exemption from the provisions of this Article granted tothe private trust company shall automatically terminate upon the consummationof the transaction unless the Commissioner approves the continuation of theexemption.

(e)        The Commissionermay revoke any exemption from the provisions of this Article granted to aprivate trust company in the following circumstances:

(1)        An officer ordirector of the private trust company makes a false statement under oath on anydocument required to be filed by this Article or by any rules or orders of theCommissioner;

(2)        The private trustcompany fails to submit to an examination as required by G.S. 53‑367;

(3)        An officer ordirector of the private trust company withholds requested information from theCommissioner; or

(4)        The private trustcompany violates any provision of this Subpart or fails to meet any conditionon which the exemption is based.

(f)         If theCommissioner determines from examination or other credible evidence that aprivate trust company has violated any of the requirements of this Subpart orfails to meet any condition or limitation on which an exemption from theprovisions of this Article is based, the Commissioner may by personal deliveryor registered or certified mail, return receipt requested, notify the privatetrust company that the private trust company's exemptions from the provisionsof this Article will be revoked unless the private trust company corrects theviolation or failure or shows cause why any exemptions should not be revoked.The notification shall state grounds for the revocation with reasonablecertainty and shall advise of an opportunity for a hearing. The notice shallstate the date upon which the revocation shall become effective absent acorrection or showing of cause why the exemption should not be revoked, whichshall not be before the thirtieth day after the date the notification is mailedor delivered, except as provided in subsection (g) of this section. Therevocation shall take effect for the private trust company on the date statedin the notice if the private trust company does not request a hearing inwriting before the effective date. After the revocation takes effect, theprivate trust company shall be subject to all of the requirements andprovisions of this Article applicable to a State trust company.

(g)        If the Commissionerdetermines from examination or other credible evidence that a private trustcompany appears to be engaging or attempting to engage in acts intended,designed, or likely to deceive or defraud the public, the Commissioner mayshorten or eliminate the 30‑day notice period specified in subsection (f)of this section, but shall promptly afford a subsequent hearing upon request torescind the action taken.

(h)        If the privatetrust company does not comply with all of the provisions of this Article orcorrect any failure to meet any condition or limitation on which an exemptionis based within the notice period specified in subsection (f) of this section,the Commissioner may institute any action or remedy prescribed by this Articleor any applicable rule. (2001‑263, s. 1.)