North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 16 - SAVINGS INSTITUTIONS › Subchapter K - TRUST POWERS › Section 16K .0104 - ADMINISTRATION OF TRUST POWERS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The board
				of directors shall be responsible for the exercise of fiduciary powers by the
				savings institution. All matters pertinent including the determination of
				policies, the investment and disposition of property held in a fiduciary
				capacity, and the direction and review of the actions of all officers,
				employees, and committees utilized by the savings institution in the exercise
				of its fiduciary powers, shall be the responsibility of the board of directors.
				In discharging this responsibility, the board of directors may assign, by
				action duly entered in the minutes, the administration of the savings
				institution's trust powers to directors, officers, employees, or
				committees.
(b) No fiduciary
				account shall be accepted without the prior approval of the board of directors,
				officers, or committees to whom the board of directors may have assigned the
				performance of that responsibility. A written record shall be made of the
				acceptances and of the relinquishment or closing out of all fiduciary accounts.
				Upon the acceptance of an account for which the savings institution has
				investment responsibilities, a review of the assets shall be made. The board of
				directors shall also ensure that at least once during every calendar year and
				within 15 months of the last review, all the assets in each fiduciary account
				over which the savings institution has investment responsibilities shall be
				reviewed to determine the advisability of retaining or disposing of such
				assets. The board of directors shall act to ensure that all investments have
				been made in accordance with the terms and purposes of the governing
				instrument.
(c) The trust
				department may use personnel and facilities of other departments of the savings
				institution, and other departments of the savings institution may use personnel
				and facilities of the trust department only to the extent not prohibited by
				North Carolina law.
(d) Every
				savings institution exercising trust powers shall adopt written policies and
				procedures to ensure that the federal securities laws are complied with in
				connection with any decision or recommendation to purchase or sell any
				security. The policies and procedures, shall ensure that the savings
				institution's trust department shall not use material inside information in
				connection with any decision or recommendation to purchase or sell any
				security.
(e) Every savings
				institution exercising fiduciary powers shall designate, employ, or retain
				legal counsel who shall be available to review fiduciary matters and to advise
				the savings institution and its trust department.
(f) The directors, officers, and employees of
				a savings institution engaged in the operation of a trust department shall
				acquire additional bond coverage as the Commissioner of Banks may
				require.
(g) The savings
				institution shall comply with rules applicable to State Trust Entities in
				04 NCAC
				03D and the FDIC Statement of Principles on
				Trust Department Management, which is hereby incorporated by reference and
				shall include any later amendments and editions of the referenced material
				available free of charge, at the time of publication, at:
				https://www.fdic.gov/news/news/inactivefinancial/1998/fil98100b.html.
Authority
				  G.S.
				  54B-55;
				  54B-77;
				  54C-53;
				  54C-146;
Eff.
				  November 1, 1982;
Temporary Amendment Eff. October 2, 1991 for a
				  period of 180 days to expire on March 31, 1992;
Amended Eff.
				  November 1, 2017; February 15, 1992;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. November 22,
				  2018.