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**Exhibit      31.1**

**I,      B. Grant Yarber, certify that:**

|   | (a) | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
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|   | (b) | Designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Evaluated                the effectiveness of the registrant‘s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation;                and |
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|   | (d) | Disclosed                in this report any change in the registrant‘s internal control over                financial reporting that occurred during the registrant‘s most recent                fiscal quarter (the registrant‘s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonably likely                to                materially affect, the registrant‘s internal control over financial                reporting; and |
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|                                   |                                                            |                                    |
|----------------------------------------|-----------------------------------------------------------------|-----------------------------------------|
|                                   | **CAPITAL              BANK CORPORATION**                       |
|                              |                                                       |                               |
| Date: August              9, 2006 | By:                                                   | /s/ *B.              Grant Yarber* |
|                                   |                                                                 |
|                                   | President              and              Chief Executive Officer |