NORTH CAROLINA GENERAL ASSEMBLY
1965 SESSION

CHAPTER 629
SENATE BILL 213

AN ACT TO AMEND G.S. 37-5 RELATING TO THE TREATMENT OF CORPORATE DISTRIBUTIONS BY FIDUCIARIES AS PRINCIPAL AND AS INCOME.

The General Assembly of North Carolina do enact:

Section 1.  Amend G.S. 37-5 by renumbering the present subsection (5) as subsection "(6)" and by adding a new subsection (5) immediately following the present subsection (4), as follows:
"(5)	Distributions made from ordinary income by a regulated investment company shall be deemed income. All distributions made by such a company from capital gains, whether in the form of cash or an option to take new stock or cash or an option to purchase additional shares, shall be deemed principal."
Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 3.  This Act shall be in full force and effect from and after its ratification.
In the General Assembly read three times and ratified, this the 20th day of May, 1965.