§ 53-366. Applicability of other laws to authorized trust institutions; status of State trust company.

(a)Except as otherwise provided in this Article, the following provisions of this Chapter and Chapter 53C of the General Statutes apply to authorized trust institutions: (1), (2) Repealed by Session Laws 2012-56, s. 31, effective October 1, 2012. (3)G.S. 53C-7-205. (4)through (6) Repealed by Session Laws 2012-56, s. 31, effective October 1, 2012. (7)Article 8 of Chapter 53C of the General Statutes, except where it clearly appears from the context that a particular provision is not applicable to trust business or trust marketing, and except that the provisions of this Article apply in lieu of the following provisions: a.G.S. 53C-8-2. b.G.S. 53C-8-3. c.G.S. 53C-8-17. (8), (9) Repealed by Session Laws 2012-56, s. 31, effective October 1, 2012. (10)Article 14 of this Chapter. (11)G.S. 53C-2-7(b). (b)Rules adopted by the Commissioner to implement those provisions of this Chapter made applicable to authorized trust institutions by subsection (a) of this section also apply to authorized trust institutions unless the rules are inconsistent with this Article or it clearly appears from the context that a particular provision is inapplicable to trust business or trust marketing. (c)Activities of authorized trust institutions for clients shall not be considered money transmission under Article 16B of Chapter 53 of the General Statutes. (d)Until the Commissioner has issued new rules governing State trust companies, State trust companies are governed by rules issued by the Commissioner for banks acting in a fiduciary capacity, except to the extent the rules are inconsistent with this Article or it clearly appears from the context that a particular provision is inapplicable to the business of a State trust company. (e)Notwithstanding any other provision of this Chapter, a State trust company is deemed to be all of the following: (1)Repealed by Session Laws 2012-56, s. 31, effective October 1, 2012. (2)A “bank” for purposes of laws made applicable to authorized trust institutions in this section and for purposes of G.S. 53-277. (3)A trust company organized and doing business under the laws of North Carolina, a substantial part of the business of which is exercising fiduciary powers similar to those permitted national banks under authority of the Comptroller of the Currency, and subject by law to supervision and examination by the Commissioner. (4)A financial institution similar to a bank. (f)In the case of a State trust company controlled by a company that has declared itself to be a “financial holding company” under 12 U.S.C. § 1843(l)(1)(D)(i), deposits held for an account are deemed “trust funds” within the meaning of 12 U.S.C. § 1813(p) unless all fiduciary duties with respect to the account are explicitly disclaimed. This subsection does not prescribe the nature or extend the scope of any fiduciary duties; the nature and extent of any fiduciary duties with respect to deposits held for accounts are as provided by the instruments and laws applicable to those accounts. (g)Subject to any limitations contained in this Article, an authorized trust institution is a “trust company,” a “corporate trustee,” a “corporate fiduciary,” and a “corporation acting in a fiduciary capacity,” as these and similar terms are used in the General Statutes, except where it clearly appears from the context in which those terms are used that a different meaning is intended. History: History.2001-263, s. 1; 2012-56, s. 31; 2013-29, s. 22; 2021-93, s. 13.