§ 48A-16. Trust to be established.
§ 48A‑16. Trust to beestablished.
(a) The trustee ortrustees shall establish a trust pursuant to this section at a bank, savingsand loan institution, credit union, brokerage firm, or company registered underthe Investment Company Act of 1940, 15 U.S.C. § 80a‑1, et seq., unless asimilar trust has been previously established, for the purpose of preservingfor the benefit of the minor the portion of the minor's gross earnings pursuantto G.S. 48A‑13(a) or pursuant to G.S. 48A‑13.1(a). The trustee ortrustees shall establish the trust pursuant to this section within sevenbusiness days after the minor's contract is signed by the minor and theemployer.
(b) Except as otherwiseprovided in this section, prior to the date on which the beneficiary of thetrust attains the age of 18 years or the issuance of a declaration ofemancipation of the minor under Article 35 of Chapter 7B of the GeneralStatutes, no withdrawal by the beneficiary or any other individual,individuals, entity, or entities may be made of funds on deposit in trustwithout written order of the superior court pursuant to G.S. 48A‑13(g) orG.S. 48A‑13.1(e). Upon reaching the age of 18 years, the beneficiary maywithdraw the funds on deposit in trust only after providing a certified copy ofthe beneficiary's birth certificate to the financial institution where thetrust is located.
(c) The trustee ortrustees shall, within 10 business days after the minor's contract is signed bythe minor and the employer, prepare a written statement under penalty ofperjury that shall include the name, address, and telephone number of thefinancial institution, the name of the account, the number of the account, thename of the minor beneficiary, the name of the trustee or trustees of theaccount, and any additional information needed by the minor's employer todeposit into the account the portion of the minor's gross earnings prescribedby G.S. 48A‑13(a) or G.S. 48A‑13.1(a). The trustee or trusteesshall attach to the written statement a true and accurate photocopy of anyinformation received from the financial institution confirming the creation ofthe account, such as an account agreement, account terms, passbook, or othersimilar writings.
(d) If the trust isestablished in the United States, it shall be established either with afinancial institution that is and remains insured at all times by the FederalDeposit Insurance Corporation, the Securities Investor Protection Corporation,or the National Credit Union Share Insurance Fund or their respective successors,or with a company that is and remains registered under the Investment CompanyAct of 1940, 15 U.S.C. § 80a‑1, et seq. If the trust is establishedoutside the United States, the financial institution shall be an internationalbanking corporation, as defined in G.S. 53‑232.2. The trustee or trusteesof the trust shall be the only individual, individuals, entity, or entitieswith the obligation or duty to ensure that the funds remain in trust, in anaccount or other savings plan, in a financial institution insured in accordancewith this section, or with a company that is and remains registered under theInvestment Company Act of 1940, 15 U.S.C. § 80a‑1, et seq., as authorizedby this section.
(e) Upon application bythe trustee or trustees to the financial institution or company where the trustis held, the trust funds may be handled by the trustee or trustees in any ofthe following methods:
(1) The trustee ortrustees may transfer funds to another account or other savings plan at thesame financial institution or company, provided that the funds transferredshall continue to be held in trust and subject to this section.
(2) The trustee ortrustees may transfer funds to another financial institution or company,provided that the funds transferred shall continue to be held in trust andsubject to this Article and that the trustee or trustees have provided writtennotification to the financial institution or company to which the funds will betransferred that the funds are subject to this section and written notice ofthe requirements of this Article.
(3) The trustee ortrustees may use all or a part of the funds to purchase, in the name of and forthe benefit of the minor:
a. Investment fundsoffered by a company registered under the Investment Company Act of 1940, 15U.S.C. § 80a‑1, et seq., provided that if the underlying investments areequity securities, the investment fund is a broad‑based index fund orinvests broadly across the domestic or a foreign regional economy, is not asector fund, and has assets under management of at least two hundred fiftymillion dollars ($250,000,000); or
b. Governmentsecurities and bonds, certificates of deposit, money market instruments, moneymarket accounts, or mutual funds investing solely in those governmentsecurities and bonds, certificates, instruments, and accounts that areavailable at the financial institution where the trust fund or other savingsplan is held, provided that the funds remain in trust at a financialinstitution insured by the Federal Deposit Insurance Corporation, theSecurities Investor Protection Corporation, or the National Credit Union ShareInsurance Fund if within the United States or maintained in an internationalbanking corporation, as defined in G.S. 53‑232.2, if not within theUnited States; provided that those purchases have a maturity date on or beforethe date upon which the minor will attain the age of 18 years, and providedfurther that any proceeds accruing from those purchases be redeposited intothat account or accounts or used to further purchase any of those or similarsecurities, bonds, certificates, instruments, funds, or accounts. (2003‑207, s. 2.)