North Carolina General Statutes § 53-340 Investment in State trust company facilities

(a)        A State trust company may invest in one or more State trust company facilities consistent with the safe and sound operation of a State trust company.

(b)        For the purposes of this Part, "State trust company facility" means real estate owned, or leased to the extent the lease or the leasehold improvements are capitalized, by a State trust company for the purposes of:

(1)        Providing space for State trust company employees, officers, and directors to perform their duties and space for appropriate parking;

(2)        Conducting trust business, including meeting the reasonable needs and convenience of the State trust company's customers, employees, officers, and directors, and providing for necessary computer operations, data processing, maintenance, and record retention and storage;

(3)        Future expansion of the State trust company's facilities; or

(4)        Conducting another activity authorized by law or by rules, orders, or declaratory rulings of the Commissioner.

(c)        Without the approval of the Commissioner, a State trust company shall not, within the first three years following issuance of its charter, directly or indirectly, invest an amount in excess of one-half of its initial capital in State trust company facilities, furniture, fixtures, and equipment. Except as otherwise provided by rules, orders, or declaratory rulings of the Commissioner, in computing this limitation, a State trust company shall include:

(1)        Its direct investment in State trust company facilities;

(2)        Any investment in a company with an interest in a State trust company facility;

(3)        Any indebtedness incurred on State trust company facilities by an affiliate of the State trust company.

Except as otherwise provided by rules, orders, or declaratory rulings of the Commissioner, in computing this limitation, a State trust company may exclude an amount included under subdivisions (1) through (3) of this subsection to the extent any lease of a facility from the company holding title to the facility is capitalized by the State trust company.

(d)       Real estate acquired under subdivision (3) of subsection (b) of this section ceases to be a State trust company facility if it is not used for a purpose listed in subdivision (1), (2), or (4) of subsection (b) of this section on the third anniversary of the date of its acquisition unless the Commissioner grants approval to hold the real estate for a longer period. (2001-263, s. 1.)

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Last modified: March 23, 2014