State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-422

§ 53‑422.  Effect ofaffiliate transfer.

(a)        Following anaffiliate transfer, the transferee trust institution shall have all of therights, powers, privileges, appointments, accounts, and designations of thetransferring trust institution and shall be deemed successor to thetransferring trust institution in any deed, trust, agreement, filing,instrument, notice, certificate, pleading, or other document related to theaccount.

(b)        Following anaffiliate transfer, the transferee trust institution is responsible for theperformance of all duties, responsibilities, and obligations related to anaccount subject to the affiliate transfer.

(c)        The affiliatetransfer does not limit the transferring trust institution's liability for anyof its acts as fiduciary.

(d)        Unless theaffiliate transfer is authorized by the documents governing the account, thetransferring trust institution remains liable and responsible, while affiliatedwith the transferee trust institution, for the transferee trust institution'sadministration of accounts subject to an affiliate transfer. For purposes ofthis subsection, an affiliate transfer of an account made in reliance onsubsection (e) of this section shall not be deemed to be authorized by thedocuments governing the account.

(e)        Except asexplicitly provided in provisions or laws governing accounts:

(1)        Qualifications foradministration such as capital, assets, assets under management, or similarstandards set forth in documents or laws governing the account may be satisfiedby the combined financial resources of the transferring trust institution andthe transferee trust institution.

(2)        Standards relatingto the location or charter of the trust institution administering the accountmay be satisfied by the transferring trust institution or the transferee trustinstitution.

(f)         Nothing in thisPart shall be construed to impair any right of a trust institution to resignfrom administration of an account, or the right of a trust institution or aperson interested in the account to seek the appointment of a replacement.

(g)        Neither the rightsof creditors to nor any liens upon the property held in an account shall beimpaired by an affiliate transfer.

(h)        Any claim orproceeding by or against the transferring trust institution pending at the timeof the affiliate transfer may proceed as if the affiliate transfer had nottaken place. (2005‑274,s. 2.)