reglab/statecodes huggingface dataset:
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-349 - Decision on acquisition of control.

§ 53-349. Decision on acquisition of control.
(a) Not later than the sixtieth day following receipt of the application, the Commissioner shall either approve or deny the proposed acquisition of control.
(b) The Commissioner may deny an acquisition of control if:
(1) The financial condition of the person seeking approval to acquire control, or any member of a group seeking approval to acquire control, might jeopardize the financial stability of the State trust company or the interests of its clients;
(2) Investigation of the character, competence, general fitness, experience, or integrity of the person seeking approval to acquire control, or any member of a group seeking approval to acquire control, shows that the proposed acquisition of control would not be in the best interests of the clients of the State trust company;
(3) Plans or proposals to operate, liquidate, or sell the State trust company or its assets following the acquisition of control are not in the best interests of the State trust company's clients;
(4) The State trust company would not be solvent, have adequate equity capital, or be in compliance with the laws of this State after the acquisition of control; or
(5) The person seeking approval to acquire control has failed to furnish all information required by the Commissioner.
(c) If an application filed under the provisions of this section is approved by the Commissioner, the transaction may be consummated. Any written commitment from the person seeking approval to acquire control made as a condition for approval of the application is enforceable against the State trust company and the person acquiring control. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-350 - Appeal.

§ 53-350. Appeal.
Any order entered by the Commissioner with respect to an application for acquisition or control of a State trust company shall be subject to review by the Commission for entry of a final agency decision. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-351 - Report of changes in chief executive officer or directors.

§ 53-351. Report of changes in chief executive officer or directors.
Each State trust company shall report to the Commissioner within 48 hours, on the forms and with the information required by the Commissioner, any changes in the chief executive officer or the directors of the State trust company, including in its report a statement of the past and current business and professional affiliations of each new chief executive officer or director. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-352 - Board of directors.

§ 53-352. Board of directors.
(a) All corporate powers of a State trust company shall be exercised under the authority of, and the business and affairs of a State trust company shall be managed under the direction of, a board of directors. Without the approval of the Commissioner, the board shall consist of not less than five directors. Except as specifically provided otherwise in this section, the number, election, term, and classification of the directors of a State trust company shall be governed by the provisions of Chapter 55 of the General Statutes.
(b) Before each term to which a person is elected to serve as a director of a State trust company, the person shall submit an affidavit for filing in the minutes of the State trust company stating that the person:
(1) Accepts the position;
(2) Will not knowingly violate, or knowingly permit an officer, director, or employee of the State trust company to violate, any law applicable to the conduct of business of the State trust company; and
(3) Will diligently perform the duties of a director.
(c) A person designated with a title such as advisory director is not considered a director if that person:
(1) Is not elected by the shareholders of the State trust company; and
(2) Does not vote on matters before the board of directors or any committee of the board and is not counted for purposes of determining a quorum of the board or any committee of the board. (2001-263, s. 1; 2011-339, s. 12.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-353 - Required board meetings.

§ 53-353. Required board meetings.
The board of directors of a State trust company shall hold at least one regular meeting each quarter. At each regular meeting, the board shall review and approve, or disapprove and correct, the minutes of the prior meeting and review the operations, activities, and financial condition of the State trust company. The board may designate committees from among its members to perform these duties and approve or disapprove the committees' reports at each regular meeting. All material actions of the board shall be recorded in its minutes. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-354 - Officers.

§ 53-354. Officers.
The board of directors shall annually appoint the officers of the State trust company who shall serve at the pleasure of the board. The contract rights of officers, if any, shall be governed by applicable provisions of Chapter 55 of the General Statutes and general law. The State trust company shall have a chief executive officer primarily responsible for the execution of board policies and operation of the State trust company. The State trust company also shall have an officer responsible for the maintenance and storage of all corporate books and records of the State trust company and for required attestation of signatures. These positions shall not be held by the same person. The board may appoint any other officers of the State trust company, including assistants to the officers required by this section, the board considers necessary or appropriate. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-355 - Certain criminal offenses.

§ 53-355. Certain criminal offenses.
(a) An officer, director, employee, or shareholder of a State trust company commits an offense if the person knowingly:
(1) Conceals information or a fact, or removes, destroys, or conceals a book or record of the State trust company for the purpose of concealing information or a fact, from the Commissioner or an agent of the Commissioner; or
(2) For the purpose of concealing information or a fact, removes or destroys any book or record of the State trust company that is material to a pending or anticipated legal or administrative proceeding.
(b) An officer, director, or employee of a State trust company commits an offense if the person knowingly makes a false entry in the books or records or in any report or statement of the State trust company.
(c) An offense under the provisions of this section shall be a Class H felony. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-356 - Responsibility of directors.

§ 53-356. Responsibility of directors.
(a) The standard of conduct for directors shall be as set forth in G.S. 55-8-30.
(b) Any director of a State trust company who shall knowingly violate, or who shall knowingly permit to be violated by any officers, agents, or employees of such State trust company, any of the provisions of this Article shall be held personally and individually liable for all damages which the State trust company, its shareholders, or any other person has sustained in consequence of the violation. Any aggrieved shareholder of any State trust company in liquidation may prosecute an action for the enforcement of the provisions of this section. Only one such action may be brought. The procedure shall follow, as much as possible, that prescribed by Article 3 of Chapter 44A of the General Statutes, relative to suits on bonds of contractors with municipal corporations. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-357 - Record keeping.

§ 53-357. Record keeping.
A State trust company shall keep its fiduciary records separate and distinct from its other records. The fiduciary records shall contain all material information relative to each account as appropriate under the circumstances. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-358 - Bonding requirements; reports of apparent crime.

§ 53-358. Bonding requirements; reports of apparent crime.
(a) The board of directors of a State trust company shall require protection and indemnity for the State trust company and its clients in amounts established by rules, orders, or declaratory rulings of the Commissioner, or otherwise in reasonable amounts, against dishonesty, fraud, defalcation, forgery, theft, and other similar insurable losses, with corporate insurance or surety companies:
(1) Authorized to do business in this State; or
(2) Acceptable to the Commissioner and otherwise lawfully permitted to issue coverage against those losses in this State.
(b) Except as otherwise provided by rules, orders, or declaratory rulings of the Commissioner, coverage required under subsection (a) of this section shall include each director, officer, and employee of the State trust company without regard to whether the person receives salary or other compensation.
(c) A State trust company that is the victim of a robbery, has a shortage of corporate or account assets in excess of five thousand dollars ($5,000), or is the victim of an apparent or suspected misapplication of its corporate property or account assets in any amount shall report the robbery, shortage, or apparent or suspected misapplication to the Commissioner within 48 hours after the time it is discovered. The initial report may be oral if a written report is made promptly following the oral report. Neither the State trust company nor any director, officer, employee, or agent of the State trust company is subject to any liability for providing any information in any such report in good faith. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-359 - Merger, share exchange, or asset transfer authority.

§ 53-359. Merger, share exchange, or asset transfer authority.
(a) With the approval of the Commissioner, a State trust company may merge or exchange its shares with, or acquire or be acquired through a merger or share exchange with, another company, or may transfer to another company all or substantially all of its assets and liabilities, or may acquire from another company all or substantially all of its assets and liabilities.
(b) A merger or share exchange authorized by subsection (a) of this section, shall be governed by Article 11 of Chapter 55 of the General Statutes and G.S. 53C-7-205. An acquisition or transfer of assets authorized by subsection (a) of this section shall be governed by Article 12 of Chapter 55 of the General Statutes and G.S. 53C-7-205. (2001-263, s. 1; 2012-56, s. 30.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-360 - Merger, share exchange, or asset transfer application.

§ 53-360. Merger, share exchange, or asset transfer application.
(a) A copy of the proposed articles of merger or share exchange, or asset transfer agreement, and an application in the form required by the Commissioner, shall be filed with the Commissioner. The Commissioner shall investigate the condition of the parties proposing to engage in the merger, share exchange, or asset transfer and may require the submission of additional information.
(b) The Commissioner may approve the merger or share exchange if:
(1) Each resulting trust institution will be solvent and have adequate capitalization;
(2) Each resulting trust institution appears able and ready to comply substantially with the statutes and rules relative to its organization;
(3) Each resulting State trust company will be a "domestic corporation" as that term is defined in G.S. 55-1-40(4);
(4) All fiduciary obligations and liabilities of each trust institution that is a party to the merger, share exchange, or asset transfer have been discharged properly or otherwise have been or will be assumed or retained properly by a person;
(5) Each surviving, new, acquiring, or transferring party that is not authorized to engage in trust business will not engage in trust business and appears able and ready to comply substantially with applicable laws and rules; and
(6) All conditions imposed by the Commissioner have been satisfied or otherwise resolved. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-361 - Notice and investigation of merger, share exchange, or asset transfer; decision, hearing, and appeal.

§ 53-361. Notice and investigation of merger, share exchange, or asset transfer; decision, hearing, and appeal.
(a) The Commissioner shall notify the parties to the proposed merger, share exchange, or asset transfer when the application is complete and all required fees have been paid. Promptly following this notification, the parties shall provide notice to clients who may be affected by the proposed merger, share exchange, or asset transfer in the form and manner specified by the Commissioner.
(b) At the expense of the parties to the proposed merger, share exchange, or asset transfer, the Commissioner may investigate the proposed transaction, including the character of the proposed directors, officers, and principal shareholders of each resulting trust institution and of any other person proposed to succeed to the accounts of the applying institutions. Notwithstanding any laws to the contrary, information bearing on the character or information about the personal finances of an existing or proposed organizer, officer, director, or shareholder is confidential and not subject to public disclosure.
(c) Based on the application and investigation, the Commissioner shall enter an order approving or denying approval of the proposed merger, share exchange, or asset transfer not later than the sixtieth day following the date the Commissioner notifies the parties that the application is complete, unless extraordinary circumstances require a longer period of review.
(d) Any written commitment made by a person proposing to engage in the merger, share exchange, or asset transfer as a condition for approval of the application is enforceable against that person.
(e) Any order entered by the Commissioner under the provisions of this section shall be subject to review by the Commission for entry of a final agency decision. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-362 - Appraisal rights of shareholders in mergers, share exchanges, or asset transfers.

§ 53-362. Appraisal rights of shareholders in mergers, share exchanges, or asset transfers.
A shareholder of a State trust company may exercise appraisal rights in connection with the proposed merger, share exchange, or asset transfer to the extent allowed under, and by following the procedures prescribed by, Article 13 of Chapter 55 of the General Statutes. (2001-263, s. 1; 2011-347, s. 2.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-365 - Conversion to public trust company.

§ 53-365. Conversion to public trust company.
(a) Before transacting business with the general public, a private trust company shall file a notice on a form prescribed by the Commissioner, which shall set forth the name of the private trust company and an acknowledgment that any exemption granted or otherwise applicable to the private trust company pursuant to G.S. 53-363 shall cease to apply once the Commissioner terminates private trust company status. The private trust company shall furnish a copy of the resolution adopted by its board of directors authorizing the private trust company to commence transacting business with the general public, and shall pay the filing fee, if any, prescribed by rule of the Commissioner.
(b) The private trust company may commence transacting business with the general public on the thirty-first day after the date the Commissioner receives the notice, unless the Commissioner:
(1) Establishes an earlier or later date;
(2) Notifies the private trust company that the notice raises issues that require additional information or additional time for analysis; or
(3) Disapproves the termination of private trust company status.
(c) If the Commissioner gives a notification described in subdivision (2) of subsection (b) of this section, the private trust company status may be terminated only on approval by the Commissioner.
(d) The Commissioner may deny approval of the proposed termination of private trust company status if the Commissioner finds that the private trust company lacks sufficient resources to undertake the proposed conversion without adversely affecting its safety or soundness or if the Commissioner determines that the private trust company could not within a reasonable period be in compliance with any provision of this Article from which it previously had been exempted pursuant to G.S. 53-363. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-367 - Commissioner shall have supervision over authorized trust institutions and shall examine.

§ 53-367. Commissioner shall have supervision over authorized trust institutions and shall examine.
Every authorized trust institution shall be under the supervision of the Commissioner. The Commissioner may periodically examine and require reports from authorized trust institutions, and shall execute and enforce, through examiners and any other agents as are now or may hereafter be created or appointed, all laws and all rules, orders, and declaratory rulings relating to authorized trust institutions. All authorized trust institutions shall conduct their business in a manner consistent with all laws and all rules, orders, and declaratory rulings that may be adopted or issued by the Commissioner relating to authorized trust institutions. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-368 - Assessment of State trust companies.

§ 53-368. Assessment of State trust companies.
(a) For the purpose of operating and maintaining the office of the Commissioner, each State trust company shall pay into the office of the Commissioner, within 10 days after notice, an annual assessment of ten thousand dollars ($10,000) plus one dollar ($1.00) per one hundred thousand dollars ($100,000) of assets held for its accounts, exclusive of nonsecuritized real estate interests. For purposes of this assessment, the amount of assets held for accounts shall be determined as of the close of business on December 31 of each year.
(b) If an application for merger, share exchange, sale of assets, change of control, conversion, or a similar transaction occasions an examination or if the Commissioner determines that the financial condition or manner of operation of a State trust company warrants further examination or an increased level of supervision, a State trust company may be subject to an additional assessment not to exceed the amount required of all State trust companies by subsection (a) of this section.
(c) Repealed by Session Laws 2012-56, s. 32, effective October 1, 2012. (2001-263, s. 1; 2007-55, s. 2; 2012-56, s. 32.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-369 - Administrative orders; penalties for violation; increase of equity capital.

§ 53-369. Administrative orders; penalties for violation; increase of equity capital.
(a) In addition to any other powers conferred by this Chapter, the Commissioner may:
(1) Order any authorized trust institution, or affiliate thereof, or any director, officer, or employee of an authorized trust institution, to cease and desist violating any provision of this Article or any rule issued thereunder.
(2) Order any authorized trust institution, or affiliate thereof, or any director, officer, or employee of an authorized trust institution, to cease and desist from a course of conduct that is unsafe or unsound and which is likely to cause insolvency or dissipation of the assets of an authorized trust institution, or is likely to jeopardize or otherwise seriously prejudice the interests of the clients, creditors, shareholders, or the public in their relationships with the authorized trust institution.
(3) Order any company to cease engaging in unauthorized trust activity.
(4) Enter orders described in G.S. 53-321, 53-327, and 53-343.
(b) The Commissioner may impose a civil money penalty of not more than one thousand dollars ($1,000) for each violation of an order issued under subdivision (1) of subsection (a) of this section. The Commissioner may impose a civil money penalty of not more than five hundred dollars ($500.00) per day for each violation of a cease and desist order issued under subdivision (2) or (3) of subsection (a) or this section. The clear proceeds of civil money penalties imposed pursuant to this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2.
(c) The Commissioner may order that a State trust company in a hazardous condition increase its equity capital to a level that is adequate for the safe and sound conduct of its business. The order shall specify the period of time for meeting the requirement to increase equity capital, which period of time may be extended by further order of the Commissioner. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-370 - Notice and opportunity for hearing.

§ 53-370. Notice and opportunity for hearing.
Consistent with Chapter 150B of the General Statutes, notice and opportunity for hearing shall be provided before the Commissioner may act under the provisions of this Subpart. In cases involving extraordinary circumstances requiring immediate action, however, the Commissioner may take action without a hearing, but shall promptly afford a subsequent hearing upon request to rescind the action taken. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-371 - Removal of directors, officers, and employees.

§ 53-371. Removal of directors, officers, and employees.
The Commissioner may require the immediate removal from office of any officer, director, or employee of any State trust company, who shall be found to be dishonest, incompetent, or reckless in the management of the affairs of the State trust company, or who persistently violates the laws of this State or the rules, orders, and declaratory rulings issued by the Commissioner. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-372 - Required vote of shareholders.

§ 53-372. Required vote of shareholders.
With the approval of the Commissioner, a State trust company may go into voluntary liquidation, be closed, and surrender its charter and franchise as a corporation of this State by the affirmative vote of its shareholders owning two-thirds of its stock. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-373 - Corporate procedure.

§ 53-373. Corporate procedure.
Shareholder action to liquidate a State trust company shall be taken at a meeting of the shareholders duly called by resolution of the board of directors. Notice of the meeting, stating the purpose of the meeting, shall be mailed to each shareholder, addressed to the shareholder's last known residence at least 10 days prior to the date of the meeting. If the shareholders, by the required vote, elect to liquidate a trust company, a certified copy of all proceedings of the meeting at which the action was taken, verified by the oath of the president and secretary, shall be transmitted to the Commissioner for approval. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-374 - Authority to liquidate; publication.

§ 53-374. Authority to liquidate; publication.
If the Commissioner approves the liquidation, the Commissioner shall issue to the State trust company, under the Commissioner's seal, a permit for liquidation. No permit shall be issued by the Commissioner until the Commissioner is satisfied that provision has been made by the State trust company to satisfy and pay off all creditors and to transfer all client accounts and fiduciary records to successor fiduciaries in the manner provided by G.S. 53-383(c). If not so satisfied, the Commissioner shall refuse to issue a permit, and shall be authorized to take possession of the State trust company and its assets and business and to hold and liquidate the State trust company in the manner provided in this Part. When the Commissioner approves the voluntary liquidation of a State trust company, the directors of the State trust company shall notify clients of the State trust company in the manner prescribed by the Commissioner and shall cause to be published in a newspaper in the county in which the principal office of the trust company is located, or if no newspaper is published in that county, then in a newspaper having a general circulation in that county, a notice that the State trust company is closing down its affairs and going into liquidation and that creditors of the State trust company shall present their claims for payment. The notice shall be published once a week for four consecutive weeks. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-375 - Examination and reports.

§ 53-375. Examination and reports.
When any State trust company is in the process of voluntary liquidation, it shall be subject to examination by the Commissioner and shall furnish any reports required by the Commissioner. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-376 - Unclaimed property.

§ 53-376. Unclaimed property.
All unclaimed property remaining with a State trust company voluntarily liquidated under the provisions of this Subpart shall be subject to the provisions of Chapter 116B of the General Statutes. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-377 - When Commissioner may take charge.

§ 53-377. When Commissioner may take charge.
The Commissioner may take possession of the business and property of any State trust company whenever it appears that the trust company:
(1) Is in a hazardous condition;
(2) Has become insolvent or is in substantial danger of becoming insolvent;
(3) Has sold or attempted to sell substantially all of its assets or has merged or attempted to merge its business with another entity without meeting the requirements of this Article;
(4) Has dissolved or liquidated or attempted to dissolve or liquidate without meeting the requirements of this Article; or
(5) Has suspended operations. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-378 - Directors may act.

§ 53-378. Directors may act.
A State trust company may place its assets and business under the control of the Commissioner by a resolution of a majority of its directors upon notice to the Commissioner, and, upon taking possession of the State trust company, the Commissioner shall retain possession thereof until the State trust company is authorized by the Commissioner to resume business or until the affairs of the State trust company are fully liquidated as provided in this Subpart. No State trust company shall make any general assignment for the benefit of its creditors except by surrendering possession of its assets to the Commissioner as provided in this Subpart; and any other purported general assignment for the benefit of creditors by a State trust company shall be void. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-379 - Notice of seizure; bar to attachment of liens.

§ 53-379. Notice of seizure; bar to attachment of liens.
When the Commissioner takes possession of any State trust company under G.S. 53-377 or G.S. 53-378, the Commissioner shall, within 48 hours, file with the clerk of the superior court in the county where the principal office of the State trust company is located a notice of the action which shall state the reason for the action, and which shall be deemed the equivalent of a summons and complaint against the State trust company in an action in the superior court except that it shall not be necessary to serve the notice. The taking possession of any State trust company shall be effective on the date when the authority is first exercised and from and after that time all assets and property of the State trust company, of whatever nature, shall be deemed to be in possession of the Commissioner, and the exercise of the authority shall operate as a bar to any attachment or other legal proceeding against the State trust company or its assets. After the Commissioner's exercise of authority, no lien shall attach in any manner binding or affecting any of the assets of the State trust company, and every purported transfer or assignment made thereafter by the State trust company, or by its authority, of the whole or any part of its assets, shall be null and void; and the Commissioner shall be substituted in place of the State trust company in any civil actions or proceedings pending at the time of the exercise of the authority. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-380 - Notice to trust institutions, corporations, and others holding assets; existing liens.

§ 53-380. Notice to trust institutions, corporations, and others holding assets; existing liens.
Upon taking possession of the assets and business of any State trust company, the Commissioner shall forthwith give notice, by mail or otherwise, of the action to all banks, clearing corporations, brokers, trust institutions, or other persons or corporations holding, or having in possession, any assets of the State trust company. No lien against any assets of the State trust company shall be enforced in any manner other than as provided in this Article after the Commissioner has taken possession of the State trust company. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-381 - Permission to resume business.

§ 53-381. Permission to resume business.
(a) After the Commissioner has taken possession of a State trust company under the provisions of this Subpart, the State trust company may resume business only upon approval and subject to terms and conditions specified by the Commissioner.
(b) When possession of a State trust company has been taken pursuant to either G.S. 53-377 or G.S. 53-378, the terms and conditions under which it may resume business shall be fully stated in writing, and a copy thereof shall be filed with the clerk of superior court of the county in which the action is pending.
(c) Notwithstanding subsections (a) and (b) of this section, no State trust company possessed by the Commissioner under the provisions of this Article shall resume trust business unless and until the State trust company has been completely restored to solvency and it clearly appears to the Commissioner that the State trust company may be reopened with safety to the clients, creditors, and shareholders of the State trust company and to the public.
(d) If the Commissioner determines that the State trust company shall not resume business, the State trust company shall be liquidated in accordance with the provisions of this Part and shall cancel the charter and revoke the license of the State trust company as provided in G.S. 53-414. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-382 - Remedy for seizure; answer to notice; injunction; appeal; and motions.

§ 53-382. Remedy for seizure; answer to notice; injunction; appeal; and motions.
(a) Whenever any State trust company of which the Commissioner has taken possession under G.S. 53-377 shall deem itself aggrieved thereby, it may file an answer to the notice as in other civil actions and may also, upon notice to the Commissioner, apply to the resident or presiding judge of the superior court for an injunction to enjoin further proceedings by the Commissioner. The judge of the superior court may cite the Commissioner to show cause why further proceedings should not be enjoined and, after hearing the allegations and proof of the parties with respect to the condition of the State trust company, may dismiss an application for injunction or may enjoin further proceedings under the provisions of this section by the Commissioner. If the judge enjoins further action of the Commissioner and permits the reopening of the State trust company, the judge may require of the State trust company a surety bond as the judge deems necessary, payable to the Commissioner for the sole benefit of the creditors and clients of the State trust company and upon any terms the judge deems proper. Either party has the right to appeal a decision as in other civil actions.
(b) The State trust company or any person interested may be heard by motion as to actions taken or proposed to be taken by the Commissioner, but the judge hearing the motion shall enter an order as in the judge's discretion will best serve the parties interested. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-383 - Collection of debts and claims; Commissioner succeeds to all property of the State trust company.

§ 53-383. Collection of debts and claims; Commissioner succeeds to all property of the State trust company.
(a) Upon taking possession of the assets and business of any State trust company, the Commissioner is authorized to collect all money due the State trust company and to do any other acts necessary to conserve its assets and property. The Commissioner shall collect all debts due and claims belonging to the State trust company, and by order of the court may sell, compromise, or compound any bad or doubtful debt or claim or sell the real and personal property of the State trust company on any terms provided by the order. Where the sale is made under power contained in any mortgage or lien bond or other paper wherein the title is retained for sale and the terms of sale set out, sale may be made under that authority.
(b) Upon taking possession of any State trust company under the provisions of this section, the Commissioner shall have the possession and the right to the possession of all the property, assets, choses in action, rights, and privileges of the State trust company. The property rights and privileges shall vest in the Commissioner absolutely for the purpose of liquidating, selling, or conveying the property rights and privileges, together with all other incidental rights, privileges, and powers necessary for the right of conveyance and sale.
(c) Upon taking possession of any State trust company under the provisions of this section, the Commissioner shall administer each account of the State trust company on a temporary basis until either (i) a successor to the State trust company is appointed or the account is terminated in the manner provided by the terms of its governing instrument consistent with applicable law, or by applicable law in the absence of a provision in the governing instrument, or (ii) the Commissioner has granted the State trust company permission to resume business under the provisions of G.S. 53-381. The Commissioner may take appropriate steps for the appointment of successors or termination of accounts as the Commissioner deems necessary as to some or all of the accounts of the State trust company. If the governing instrument or other applicable law do not prescribe methods for appointing successors, or if the methods prescribed are unfeasible, the applicable law for appointment of a successor shall be as set forth in G.S. 53-399.
(d) The officers and directors of any State trust company that is in the possession of the Commissioner under this Part shall not exercise any powers declared by this Subpart to be vested in the Commissioner. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-384 - Bond of the Commissioner; surety; condition; minimum penalty.

§ 53-384. Bond of the Commissioner; surety; condition; minimum penalty.
Upon taking possession of any State trust company, the Commissioner shall execute and file a bond payable to this State for the benefit of creditors, clients, and shareholders of the State trust company, with some surety company as surety thereon, with the clerk of the superior court of the county in which the action is pending, conditioned upon the faithful performance of all duties imposed upon the Commissioner under the provisions of this Subpart with respect to the State trust company, the penal sum of the bond to be fixed by order of the Commissioner, which in no case shall be less than two hundred fifty thousand dollars ($250,000). Any person interested, by motion in the pending action, shall be heard by the resident or presiding judge of the superior court as to the sufficiency of the bond. The judge hearing the motion may fix the bond. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-385 - Inventory.

§ 53-385. Inventory.
Within 90 days after the filing of a notice described in G.S. 53-379, the Commissioner shall file an inventory of the assets and liabilities, not including assets and liabilities held in accounts of the State trust company, of the State trust company. A copy of the inventory shall be filed with the clerk of the superior court of the county in which the action is pending, and a copy shall be kept on file with the State trust company. The inventory shall be open for inspection during usual business hours, provided that nothing herein shall require the State trust company to remain open unnecessarily. (2001-263, s. 1; 2012-56, s. 33.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-386 - Notice and time for filing claims.

§ 53-386. Notice and time for filing claims.
Notice shall be given by advertisement once a week for four consecutive weeks in a newspaper published in the county where the principal office of the State trust company is located, or if no newspaper is published in the county, then in some newspaper having a general circulation in the county, calling on all persons who may have claims against the State trust company to present them to the Commissioner at the principal office of the State trust company, and within the time to be specified in the notice which time shall not be less than 90 days from the date of the first publication. A copy of this notice shall be mailed to all persons whose names appear as creditors upon the books of the State trust company. Affidavit by the Commissioner to the effect that the notice was mailed shall be conclusive evidence thereof. For purposes of this section, clients and accounts of the State trust company shall not be considered creditors of the State trust company as to the assets held by the State trust company for the benefit of its accounts. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-387 - Power to reject claims; notice; affidavit of service; action on claims.

§ 53-387. Power to reject claims; notice; affidavit of service; action on claims.
If the Commissioner doubts the validity of any claim, the Commissioner may reject the claim, in whole or in part, and serve notice of the rejection upon the claimant, either personally or by certified mail, and an affidavit of the service of the notice shall be filed in the office of the clerk of the superior court of the county in which the action is pending and shall be conclusive evidence of the notice. Any action or suit upon a rejected claim shall be brought by the claimant against the Commissioner in the superior court of the county in which the action is pending within 90 days after service, or the action or suit shall be barred. Objections to any claim not rejected by the Commissioner may be made by any person interested by filing the objection in the pending action and by serving a copy thereof on the Commissioner. The Commissioner, after investigation, shall either allow the objection and reject the claim, or disallow the objection. If the objection is not allowed and the claim is not rejected, the Commissioner shall file a notice in the pending action and serve the notice upon the person making the claim and the person objecting to the claim. Within 10 days after the notice is filed, the person filing objection by motion in the pending action may question the validity of the claim, and the questions of law and issues of fact shall thereupon be determined as in other civil actions. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-388 - List of claims presented, copies, and proviso.

§ 53-388. List of claims presented, copies, and proviso.
Upon the expiration of the time fixed for presentation of claims, the Commissioner shall make a full and complete list of the claims presented, including and specifying any claims that have been rejected. One copy shall be filed in the office of the clerk of the superior court of the county in which the action is pending, and one copy shall be kept on file with the inventory in the principal office of the State trust company for examination. Any indebtedness against any State trust company which has been established or recognized as a valid liability of the State trust company before it went into liquidation, for which no claimant has filed claim, or any liability for which a claim has been filed and rejected, shall be listed by the Commissioner in the office of the clerk of the superior court of the county in which the action is pending. Any claim that may be presented after the expiration of the time fixed for the presentation of claims in the notice provided in G.S. 53-386 shall, if allowed, share pro rata in the distribution but only as to those assets of the State trust company in the hands of the Commissioner that are undistributed at the time the claim is presented. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-389 - Declaration of dividends; order of preference in distribution.

§ 53-389. Declaration of dividends; order of preference in distribution.
(a) At any time after the expiration of the date fixed by the Commissioner for the presentation of claims against the State trust company, and from time to time thereafter, the Commissioner may declare and pay dividends to the creditors and shareholders of the State trust company. In paying and calculating dividends, all disputed claims shall be taken into account, but no dividend shall be paid upon the disputed claims until the claims have been finally determined. The following shall be the order of preference in the distribution of the assets of any State trust company liquidated hereunder:
(1) State, county, and federal taxes owed and fees due the Commissioner other than those due under the provisions of this Subpart;
(2) Wages and salaries due officers and employees of the State trust company for a period of not more than four months;
(3) Expenses of liquidation, including those described in G.S. 53-391 and G.S. 53-395;
(4) Amounts due creditors, honoring the priorities of valid security interests and subject to orders of the court concerning disputes among creditors;
(5) Amounts due shareholders.
(b) A statement of all dividends paid shall be filed in the office of the clerk of the superior court of the county in which the action is pending, and the statements shall show the expenses deducted and the disputed claims in determining dividends. (2001-263, s. 1.)
2023 North Carolina General Statutes › Chapter 53 - Regulation of Financial Services › Article 24 - Trust Companies and Interstate Trust Business. › § 53-390 - Deposit of funds collected.

§ 53-390. Deposit of funds collected.
All funds collected by the Commissioner, in liquidating any State trust company, shall be deposited from time to time in a bank as may be selected by the Commissioner and shall be subject to withdrawal by check of the Commissioner. (2001-263, s. 1.)