SUBCHAPTER 03D ‑ SUPERVISION OF STATE TRUST ENTITIES
SECTION .0100 ‑ LICENSING
04 NCAC 03D .0101 APPLICATION
History Note: Authority G.S. 53-92; 53-160;
Eff. February 1, 1976.
Amended Eff. September 1, 2006;
Repealed Eff. October 1, 2012 pursuant to G.S. 150B-21.7.
04 NCAC 03D .0102 ISSUANCE
04 NCAC 03D .0103 CERTIFICATE OF SOLVENCY
04 NCAC 03D .0104 REVOCATION
History Note: Authority G.S. 53‑92; 53‑160;
53‑161; 53‑162; 53‑163; 150A‑11(1);
Eff. February 1, 1976;
Repealed Eff. January 1, 1985.
04 NCAC 03D .0105 DEFINITIONs
As used in this Subchapter:
(1) "Board of Directors" shall have the same
meaning as defined in G.S. 53-301(a)(6a).
(2) "Collective investment fund" shall mean
any fund established pursuant to 12 C.F.R. 9.18, which is incorporated by
reference in Rule .0304 of this Subchapter.
(3) "State trust entity" shall mean a
"state bank" or "state trust company" as defined in G.S.
53-301(a)(43) and (45).
(4) "Trust business" shall have the same
meaning as defined in G.S. 53-301(a)(50).
History Note: Authority G.S. 53-366; 53C-2-5;
Eff. April 1, 2015.
section .0200 - REPORTS REQUIRED BY COMMISSIONER OF BANKS
04 NCAC 03D .0201 reports OF condition of state TRUST entities
Each state trust entity, on a form or forms provided by the
Office of the Commissioner of Banks, shall submit reports of condition that
shall include information on operations, statutory and regulatory requirements,
supervisory standards, and assets under management. The form or forms shall be
obtained from and filed with:
Office of the
Commissioner of Banks
316 West Edenton
Street
4309 Mail Service
Center
Raleigh, North
Carolina 27699-4309.
Forms 29TC, 29A, and TARS© may be submitted
electronically at:
http://www.nccob.gov/Public/financialinstitutions/banks/banksff.aspx.
History Note: Authority G.S. 53-366; 53-367; 53C-2-5;
53C-8-3;
Eff. February 1, 1976;
Amended Eff. April 1, 2015; September 1, 2006; September
26, 1979.
04 NCAC 03D .0202 REPORT OF TRUST DEPARTMENT
History Note: Authority G.S. 53-92; 53-106;
Eff. February 1, 1976;
Amended Eff. September 1, 2006; September 26, 1979;
Repealed Eff. October 1, 2012 pursuant to G.S. 150B-21.7.
SECTION .0300 ‑ TRUST DEPARTMENT
04 NCAC 03D .0301 DEFINITIONS
History Note: Authority G.S. 53-92; 53-104;
Eff. February 1, 1976;
Amended Eff. September 1, 1990;
Repealed Eff. October 1, 2012 pursuant to G.S. 150B-21.7.
04 NCAC 03D .0302 ADMINISTRATION OF trust business
(a) A state trust entity shall conduct its trust business
separate and apart from any other business it conducts. A state trust entity
may, however, utilize personnel and facilities of other departments of the state
trust entity and other departments of the state trust entity may utilize its
trust personnel and facilities to the extent not prohibited by law.
(b) Board of Directors
(1) The trust business of a state trust entity
shall be managed by or under the direction of its board of directors. In
discharging this responsibility, the board of directors may assign, by action
duly entered in the minutes, the administration of the state trust entity's
trust business as it may consider proper to assign to such director(s),
officers(s), or employee(s), who are qualified and competent to administer
trust business, and it may designate and appoint such committees of director(s)
or officer(s) as it deems advisable to supervise the trust business.
(2) No trust business shall be accepted without
the prior approval of the board of directors, or of the director(s),
officer(s), or committee(s) to whom the board of directors may have designated
the performance of that responsibility. A written record shall be made of such
acceptances and of the relinquishment or closing out of each account. Upon the
acceptance of an account for which the state trust entity has investment
responsibility, a review of the assets shall be made. The board of directors
shall also ensure that at least once during every calendar year thereafter, and
within 15 months of the last review, all the assets held in each account that
the state trust entity has investment responsibilities for are reviewed to
determine the advisability of retaining or disposing of such assets.
(c) All officers and employees taking part in the
administration of trust business shall be adequately bonded.
(d) Every state trust entity shall designate, employ, or
retain competent legal counsel who shall be readily available to advise on the
trust business it conducts.
(e) Negotiable and tangible assets held by the state trust
entity in its own vaults shall be placed in the joint custody of at least two
or more bonded officers or employees designated by the board of directors.
(f) Funds held by a state trust entity in a fiduciary
capacity awaiting investment or distribution shall be invested, pursuant to the
provisions of G.S. 53-163.1.
(g) Trust business investments by a state trust entity in
its own depository accounts shall be secured in the manner and to the extent
required by G.S. 53-163.1 and G.S. 53-163.3.
History Note: Authority G.S. 53-163.1; 53-163.3;
53-356; 53-366; 53C-2-5; 53C-4-6;
Eff. February 1, 1976;
Amended Eff. April 1, 2015; May 1, 1992; September 26,
1979.
04 NCAC 03D .0303 BOOKS AND RECORDS
Books and Records. Each state trust entity shall keep the
following:
(1) a separate and distinct set of books and
records showing all receipts and disbursements of funds, receipts, purchases
and sales of assets, and other transactions engaged in, in connection with
trust business; and showing at all times the ownership of all moneys, funds,
investments and property in that connection held by the state trust entity;
(2) files containing the original instruments
creating each trust or authenticated copies; and
(3) a permanent record of minutes for each
committee, showing its actions. All minutes shall be signed by the committee's
chairman and its secretary.
History Note: Authority G.S. 53-366; 53-367; 53C-2-5;
53-320(a);
Eff. February 1, 1976;
Amended Eff. April 1, 2015; May 1, 1992; September 26,
1979.
04 NCAC 03D .0304 COLLECTIVE INVESTMENT
(a) Funds held for trust business accounts by a state trust
entity may be invested collectively in one or more collective investment funds
to the extent permissible for the accounts. Such funds shall be organized and
administered in accordance with the provisions of 12 C.F.R. 9.18.
(b) 12 C.F.R. 9.18 is herein incorporated by reference,
including all subsequent amendments and editions, and may be accessed at the
U.S. Printing Office website at
http://www.ecfr.gov/cgi-bin/text-idx?SID=10db9d6d7ecd62689d768e1b0c9a2199&node=se12.1.9_118&rgn=div8
at no cost at the time of adoption of this Rule. However,
any reference in the regulation to "Comptroller of Currency" shall,
for the purpose of state trust entities, be deemed to refer to the
"Commissioner of Banks."
History Note: Authority G.S. 53-163.7; 53-366; 53C-2-5;
Eff. February 1, 1976;
Amended Eff. April 1, 2015; May 1, 1992; November 1,
1982; September 26, 1979.
04 NCAC 03D .0305 USE OF SECURITIES CLEARING
CORPORATIONS
History Note: Authority G.S. 53-92; 53-104; 53-110;
53-159.1;
Eff. February 1, 1976;
Repealed Eff. October 1, 2012 pursuant to G.S. 150B-21.7.