§ 1-339.10. Bond of person holding sale. - North Carolina Statutes - USA Laws Searching

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§ 1-339.10. Bond of person holding sale.

§ 1‑339.10.  Bond ofperson holding sale.

(a)        Whenever acommissioner specially appointed or a trustee in a deed of trust is ordered tosell property, the judge or clerk of court having jurisdiction

(1)        May in any caserequire the commissioner or trustee, before receiving the proceeds of the sale,to furnish bond to cover such proceeds, and

(2)        Shall require thecommissioner or trustee to furnish such bond when the commissioner or trusteeis to hold the proceeds of the sale other than for immediate disbursement uponconfirmation of the sale.

(b)        Whenever anyadministrator or collector of a decedent's estate, or guardian or trustee of aminor's or incompetent's estate, or administrator, collector, conservator orguardian of an absent or missing person's estate, is ordered to sell property,the judge or clerk having jurisdiction shall require such fiduciary, beforereceiving the proceeds of the sale, to furnish bond or to increase his thenexisting bond, to cover such proceeds.

(c)        Whenever anexecutor or trustee of a testamentary trust is ordered to sell real property,the judge or clerk having jurisdiction shall require such executor or trusteeof a testamentary trust, before receiving the proceeds of the sale, to furnishbond to cover such proceeds, unless the will provides otherwise, in which casethe judge or clerk may require such bond.

(d)        Whenever a receiveris ordered to sell real property, the judge having jurisdiction may, when hedeems it advisable, require the receiver to furnish bond, or to increase histhen existing bond, to cover such proceeds.

(e)        The bond requiredby this section need not be furnished when the property is to be sold by a dulyauthorized trust company acting as commissioner or fiduciary.

(f)         The bond shall beexecuted by one or more sureties and shall be subject to the approval of thejudge or clerk having jurisdiction.

(g)        If the bond is tobe executed by personal sureties, the amount of the bond shall be double theamount of the proceeds of the sale to be received by the commissioner orfiduciary, if such amount can be determined in advance, and, if not, suchamount as the judge or clerk may determine to be approximately double theamount of the proceeds to be received. If the bond is to be executed by a dulyauthorized surety company, the amount of the bond shall be one and one‑fourthtimes the amount of the proceeds determined as set out in this subsection.

(h)        The bonds shall bepayable to the State of North Carolina for the use of the parties in interest.A bond furnished by a commissioner or by a trustee in a deed of trust shall beconditioned that the principal in the bond shall comply with the orders of thecourt made in the proceeding with respect to the funds received and shallproperly account for the proceeds of the sale received by him. A bond furnishedby any other fiduciary shall be conditioned as required by law for the originalbond required, or which might have been required, of such fiduciary at the timeof his qualification.

(i)         The premium on anybond furnished pursuant to this section is a part of the costs of theproceeding, to be paid out of the proceeds of the sale. (1949,c. 719, s. 1; 1971, c. 268, s. 18; 1993, c. 377, s. 3.)