GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
SESSION LAW 2009-222
SENATE BILL 482
AN ACT to clarify that a permissible appointee under a power of appointment is not a trust beneficiary, and to clarify that a loan or pledge by a trustee may be made in connection with a loan of the trustee's own funds.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 36C-1-103(3) reads as rewritten:
"§ 36C-1-103. Definitions.
The following definitions apply in this Chapter:
…
(3) Beneficiary. - A person who:
a. Has a
present or future beneficial interest in a trust, vested or contingent,
including the owner of an interest by assignment or transfer;transfer,
but excluding a permissible appointee of a power of appointment; or
b. In a capacity other than that of trustee, holds a power of appointment over trust property."
SECTION 2. G.S. 36C-3-302 reads as rewritten:
"§ 36C-3-302. Representation by holder of general testamentary power of appointment.
The sole holder or all coholders of a power of revocation or
a presently exercisable or testamentary general power of appointment,
including one in the form of a power of amendment, shall represent and bind
other persons to the extent that their interests, as permissible appointees,
takers in default, or otherwise, are subject to the power. To the
extent there is no conflict of interest between the holder of a general
testamentary power of appointment and the persons represented with respect to
the particular question or dispute, the holder may represent and bind persons
whose interests, as permissible appointees, takers in default, or otherwise,
are subject to the power."
SECTION 3. Subdivisions (19), (19a), (19b), and (19c) of G.S. 36C-8-816 read as rewritten:
"§ 36C-8-816. Specific powers of trustee.
Without limiting the authority conferred by G.S. 36C-8-815, a trustee may:
…
(19) Pledge trust property to
guarantee loans made by others to any beneficiary;
(19a) Guarantee loans made by others to
any beneficiary;
(19b) Pledge trust property to guarantee
loans made by others to any proprietorship, partnership, limited
liability company, business trust, corporation, venture, agricultural
operation, or other form of business or enterprise in which the trust or any beneficiary
has an ownership interest.
(19c) Guarantee loans made by others to
a any proprietorship, partnership, limited liability company,
business trust, corporation, venture, agricultural operation, or other form of
business or enterprise in which the trust or any beneficiary has an ownership
interest."
SECTION 4. This act becomes effective October 1, 2009.
In the General Assembly read three times and ratified this the 23rd day of June, 2009.
s/ Walter H. Dalton
President of the Senate
s/ Joe Hackney
Speaker of the House of Representatives
s/ Beverly E. Perdue
Governor
Approved 5:42 p.m. this 30th day of June, 2009