§ 53-309. Trust deposits of authorized trust institutions.
§ 53‑309. Trustdeposits of authorized trust institutions.
(a) Subsection (b) ofG.S. 36A‑63 shall not apply to an authorized trust institution.
(b) In the absence of acontrary provision in an instrument governing an account, an authorized trustinstitution may deposit client funds with itself to satisfy its duties underG.S. 36A‑63(a) provided:
(1) It maintains, ascollateral for the deposits, a separate fund of readily marketable commercialbonds having not less than a recognized "A" rating equal to onehundred and twenty‑five percent (125%) of the funds so deposited;
(2) The separate fund isdesignated as such; and
(3) The separate fundeither is maintained under the control of another trust institution, a bank, ora government agency, or is held by the authorized trust institution for thebenefit of the accounts with deposits secured by the separate fund; provided,that the Commissioner may require such a separate fund of an authorized trustinstitution that is insolvent, in a hazardous condition, or jeopardized, to beheld by a separate trust institution or bank approved by the Commissioner.
(c) An authorized trustinstitution may make periodic withdrawals from or additions to the separatefund required by subsection (b) of this section as long as the required valueis maintained. Income from the separate fund belongs to the authorized trustinstitution.
(d) Collateral is notrequired for a deposit under subsection (b) of this section to the extent thedeposit is insured by the Federal Deposit Insurance Corporation. (2001‑263, s. 1.)