NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 40

SENATE BILL 109

 

 

AN ACT TO REDUCE THE BOND REQUIREMENTS OF GUARDIANS AND TRUSTEES BY THE AMOUNT OF STOCKS, BONDS, SECURITIES AND SAVINGS ON DEPOSIT WITH CERTAIN BUILDING AND LOAN ASSOCIATIONS RELINQUISHED BY SAID GUARDIANS AND TRUSTEES TO THE CLERK OF COURT.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Article 1 of Chapter 36 of the General Statutes as the same appears in 1966 Replacement Volume 2A is hereby amended by:

a.   Rewriting the second paragraph of G.S. 36-4 to read as follows:

"Upon delivery of such registered securities, or, upon the delivery of any savings account passbook issued by virtue of investment in any savings and loan association authorized by G.S. 36-3, or, if a guardian or trustee so elects, upon the delivery of any stocks, bonds, securities and other similar intangible personal property, to the clerk of the superior court of the county in which the estate of said decedent, minor ward, incompetent person, or persons non compos mentis, is being administered and with respect to any such savings accounts, stocks, bonds, securities, and other similar intangible personal properties, the performance by such guardian or trustee of such additional acts (including the execution and delivery of necessary transfer instruments) as are necessary to divest himself of the control of the principal invested therein and to confer control of same upon the clerk, said clerk of the superior court shall give said guardian or trustee a receipt for the same and said clerk of superior court shall thereafter hold same for said estate, ward, incompetent person, or persons non compos mentis, subject only to final disposition thereof to be approved by the resident judge or presiding judge of the superior court: Provided, however, all income accruing therefrom, and payable under the terms of the investment instrument, shall be paid to said guardian or trustee in the same manner and for the same purposes as any other income of said estate derived from other sources."

b.   Rewriting the third paragraph of G.S. 36-4 to read as follows:

"Whenever any guardian or trustee shall have delivered to the clerk of the superior court registered securities as hereinbefore provided, he shall be entitled to credit in his account as guardian or trustee for the amount actually expended for such securities, and in addition, after the delivery of such registered securities, as well as upon the delivery of any savings account passbooks as hereinbefore authorized, or upon the delivery of any of the types of intangible personal property as authorized above, the bond of such guardian or trustee shall thereupon be reduced, as follows:

(1)        In the event of the delivery of registered securities, in an amount equal in proportion to the total amount of the bond as the funds expended for the securities are to the total amount of the estate covered by such bond.

(2)        In the event of the delivery of savings account passbooks, in an amount equal in proportion to the total amount of the bond as the funds represented actually deposited thereunder bear to the total amount of the estate covered by such bond, provided the Clerk of the Superior Court finds that the guardian or trustee has notified the savings account depository of the transfer of control in manner and form satisfactory to the said Clerk.

(3)        In the event of the delivery of any of the hereinabove authorized types of intangible personal property, in an amount equal in proportion to the total amount of the bond as their fair market value bears to the total amount of the estate covered by such bond."

Sec. 2.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 10th day of March, 1975.