§ 48A-14. Financial safeguards in court orders approving contracts.
§ 48A‑14. Financialsafeguards in court orders approving contracts.
(a) Notwithstanding anyother statute, in an order approving a minor's contract of a type described inG.S. 48A‑11, the court shall require that fifteen percent (15%) of theminor's gross earnings pursuant to the contract be set aside by the minor'semployer in trust, in an account or other savings plan, and preserved for thebenefit of the minor in accordance with G.S. 48A‑14. The court may alsorequire that more than fifteen percent (15%) of the minor's gross earnings beset aside in trust, in an account or other savings plan, and preserved for thebenefit of the minor in accordance with G.S. 48A‑14, upon request of theminor's parent or legal guardian, or the minor, through his or her guardian adlitem.
(b) The court shallrequire that at least one parent or legal guardian, as the case may be,entitled to the physical custody, care, and control of the minor at the timethe order is issued be appointed as trustee of the funds ordered to be setaside in trust for the benefit of the minor, unless the court shall determinethat appointment of a different individual, individuals, entity, or entities astrustee or trustees is required in the best interest of the minor.
(c) The trustee ortrustees of the funds ordered to be set aside in trust shall promptly providethe minor's employer with a true and accurate photocopy of the trustee'sstatement pursuant to G.S. 48A‑14(c).
(d) The minor'semployer shall deposit or disburse the funds as required by the order within 15business days of receiving the order and receiving the trustee's statementpursuant to G.S. 48A‑14 and thereafter as funds might be received.Notwithstanding any other statute, pending receipt of the trustee's statement,the minor's employer shall hold for the benefit of the minor the percentageordered by the court of the minor's gross earnings pursuant to the contract.
(e) When making theinitial deposit of funds pursuant to the order, the minor's employer shallprovide the financial institution with a copy of the order.
(f) Once the minor'semployer deposits the set‑aside funds pursuant to G.S. 48A‑14, intrust, in an account or other savings plan, the minor's employer shall have nofurther obligation or duty to monitor or account for the funds. The trustee ortrustees of the trust shall be the only individual, individuals, entity, orentities with the obligation or duty to monitor and account for those fundsonce they have been deposited by the minor's employer. The trustee or trusteesshall do an annual accounting of the funds held in trust, in an account orother savings plan, in accordance with Article 21 of Chapter 28A of the GeneralStatutes.
(g) The court shallhave continuing jurisdiction over the trust established pursuant to the orderand may at any time, upon petition of the parent or legal guardian, the minor,through his or her guardian ad litem, or the trustee or trustees, on good causeshown, order that the trust be amended or terminated, notwithstanding theprovisions of the declaration of trust. An order amending or terminating atrust may be made only after reasonable notice to the beneficiary, to theparent or guardian, if any, and to the trustee or trustees of the funds if thebeneficiary is then a minor, with opportunity for all parties to appear and beheard.
(h) The trustee ortrustees of the funds ordered to be set aside shall promptly notify the minor'semployer in writing of any change in facts that affect the employer'sobligation or ability to set aside the funds in accordance with the order,including, but not limited to, a change of financial institution or accountnumber, or the existence of a new or amended order issued pursuant tosubsection (g) of this section amending or terminating the employer's obligationsunder the original order. The written notification shall include theinformation set forth in subsection (c) of this section and shall beaccompanied by a true and accurate photocopy of the new or amended order. (2003‑207, s. 2.)