Section .0100 ‑ Licensing

Link to law: http://reports.oah.state.nc.us/ncac/title 04 - commerce/chapter 03 - banking commission/subchapter d/subchapter d rules.html
Published: 2015

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
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Repealed Eff.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Repealed Eff.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.