§ 36C-7-702. Trustee's bond.
§ 36C‑7‑702. Trustee's bond.
(a) A trustee shallprovide bond to secure the performance of the trustee's duties if:
(1) The trust instrumentwas executed before January 1, 2006, unless the terms of the trust instrumentprovide otherwise;
(2) The trust instrumentwas executed on or after January 1, 2006, but only if the terms of the trustinstrument require the trustee to provide bond;
(3) A beneficiaryrequests the trustee to provide bond, and the court finds the request to bereasonable; or
(4) The court finds thatit is necessary for the trustee to provide bond in order to protect theinterests of beneficiaries who are not able to protect themselves and whoseinterests otherwise are not adequately represented.
However, in no event shallbond be required of a trustee if the governing instrument directs otherwise.
(b) If bond isrequired, it shall be in a sum of double the value of the personal property tocome into the trustee's hands if bond is executed by a personal surety, and inan amount not less than one and one‑fourth times the value of allpersonal property of the trust estate if the bond is secured by a suretyshipbond executed by a corporate surety company authorized by the Commissioner ofInsurance to do business in this State, provided that the court, when the valueof the personal property exceeds one hundred thousand dollars ($100,000), mayaccept bond in an amount equal to the value of the personal property plus tenpercent (10%) of that value, conditioned upon the faithful performance of the trustee'sduties and for the payment to the persons entitled to receive property that maycome into the trustee's hands. All bonds executed under this Article shall befiled with the clerk of superior court.
(c) On petition of thetrustee or a qualified beneficiary, the court may excuse a requirement of bond,reduce the amount of the bond, release the surety, or permit the substitutionof another bond with the same or different sureties.
(d) As provided in G.S.53‑159 and G.S. 53‑366(a)(10), banks and trust companies licensedto do trust business in this State need not give bond, even if required by theterms of the trust. (1911, c. 39, s. 7; C.S., s. 4031; 1951, c. 264; 1965, c. 1177, s. 1;1977, c. 502, s. 2; 2001‑413, s. 1; 2003‑261, s. 5; 2005‑192,s. 2.)