NORTH CAROLINA GENERAL ASSEMBLY

1959 SESSION

CHAPTER 1226

HOUSE BILL 1327

AN ACT TO PROVIDE FOR THE RESIGNATION OF CERTAIN GUARDIANS AND TRUSTEES FOR MINORS, AND TO PROVIDE FOR THE ADMINISTRATION BY THE CLERK OF SUPERIOR COURT OF ROWAN COUNTY OF AN ESTATE FOR A MINOR WHEN SUCH PERSON DOES NOT OWN ANY PROPERTY OTHER THAN CASH AND MONEY DUE AND THE AMOUNT OF CASH BELONGING TO AND MONEY DUE HIM DOES NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS.

The General Assembly of North Carolina do enact:

Section 1. A. The Clerk of Superior Court of Rowan County in lieu of appointing a guardian, trustee, or other fiduciary to administer an estate for a minor may receive and administer funds for such minor when all the property of said minor or ward consists of cash and money due and the total amount due and belonging to such minor does not exceed two thousand five hundred dollars ($2,500.00).

B. The word "fiduciary", as used in this Act, shall refer to any person or corporation acting for and in behalf of any person hereinafter named.

Sec. 2. A. The Clerk before accepting money belonging to a minor to be administered under the provisions of this Act shall make an investigation to determine whether the estate is one that may be administered by him. If, after making such investigation, the clerk is of the opinion that the estate is one he may administer he shall, in the manner he deems expedient and efficient, notify the fiduciary, person, firm or corporation owing to and holding money for said minor that they may pay same to him to be administered as herein provided, and the clerk's official receipt therefor shall be a complete release, discharge, and acquittance for the amount of money so paid by such fiduciary, person, firm or corporation.

B. When payment is made to the clerk either as a credit or in full settlement of a judgment in favor of a minor and the net amount due such person upon the settlement of the judgment does not exceed two thousand five hundred dollars ($2,500.00), and the minor does not have a guardian or trustee and if the father, mother, or person in loco parentis to said person does not qualify or does not procure someone to qualify as guardian or trustee to administer the estate for such person within ninety days from the date of the settlement or payment of a credit on a judgment, the clerk must transfer said fund to a ledger account in his office for administration as herein provided.

C. That for the purpose of administering estates in accordance with the provisions of this Act, the distinction between real and personal property is hereby abolished and all funds administered by the clerk shall be administered as personal property regardless of the source from which the funds were derived.

D. The clerk shall set up a proper ledger account for each minor, in which account he shall enter the date of each receipt, from whom received, the amount of same, the date of each disbursement, to whom paid and the amount.

Sec. 3. A. If the clerk has in hand or hereafter receives money for a minor, and he should ascertain that said person has a fiduciary administering his estate under appointment by the Clerk of the Superior Court of another county in North Carolina, the Clerk of Rowan County must pay the amount in his hands to said fiduciary, and must notify the clerk who made such appointment of the amount so paid; and the endorsement by the payee of the check issued by the clerk shall be a complete release, discharge, and acquittance for the amount so paid, and the clerk disbursing the fund shall be relieved of all liability for the disposition of same.

B. If the clerk should ascertain that said person has a fiduciary administering his estate under appointment by a proper court in a foreign jurisdiction, he may pay over the funds in his hands to such fiduciary upon the bringing of the proper proceeding as outlined in Section 48 and 49, Chapter 33, General Statutes of North Carolina, and any amendments thereto.

Sec. 4. A. The disbursements made by the clerk shall be for the purpose of covering costs of support, maintenance and education of a minor, and the fact that disbursements are made shall be a prima facie evidence of the necessity therefor, and that same are made in his sound discretion; that when the clerk disburses funds of a minor, the endorsement of the check by the payee shall be a complete release, discharge, and acquittance for the clerk making said disbursement, and said clerk shall not be required to see to the proper application of funds so disbursed, and the clerk shall not require any accounting of any person, firm or corporation to whom he disburses funds for a minor.

B. The clerk shall not disburse funds of a minor in payment of debts contracted by a minor prior to the vesting of title in him of this fund.

C. The clerk may make disbursements as herein provided upon a proper affidavit of the person, firm or corporation making claim for same, and any person or agent, officer or employee of a firm or corporation obtaining money from the clerk through false and fraudulent representations shall be guilty of a felony and liable to an indictment as provided by law and upon conviction may be punished as provided by the General Statutes for obtaining money under false pretense.

D. That regardless of the solvency of any person liable for the support of a minor for whom the clerk administers a fund, the said clerk may disburse the money held or received as hereinafter provided.

E. That for good cause shown, the clerk in his discretion may allow payments for the support, maintenance, and education of a minor in such amounts as he deems proper and for the best interest of said minor.

Sec. 5. When the clerk has in hand a sum of money for a minor, and such sum does not exceed one hundred dollars ($100.00), if the clerk does not have any information as to the whereabouts of said minor and no claim is filed by the minor for the funds held by the clerk within five years after the minor becomes twenty-one years of age, the clerk may escheat said sum to the University of North Carolina as provided in the General Statutes.

Sec. 6. A. The Clerk shall not be required to invest funds of a minor when the amount to be invested is less than one hundred dollars ($100.00), and if the clerk has an investment from which withdrawals are made until the balance is reduced to less than one hundred dollars ($100.00), he shall close out such investment by liquidating same. The provisions of this Section shall not be construed as placing the clerk under the duty of investing any funds received pursuant to this Act, but he shall only be required to make investments as otherwise required by law.

B. If the clerk invests funds of a minor or ward and the fund by reason of earnings on same increases to an amount in excess of two thousand five hundred dollars ($2,500.00), said clerk shall continue to administer such fund and need not appoint a guardian or trustee.

C. The clerk must not make a combined investment for several persons, but he must make a separate investment for each person.

D. The clerk need not carry a separate checking account for each person for whom he holds money, but may deposit all funds in one general checking account in his name as Clerk of Superior Court.

Sec. 7. The fees, if any, to be charged by the clerk for the administration of a fund for a minor or ward shall be as fixed by law for the Clerk of the Superior Court of Rowan County.

Sec. 8. The clerk shall not be liable to any one for any loss whatsoever sustained by reason of the administration of any estate for a minor, if said clerk has exercised reasonable care and good faith in complying with the provisions of this Act.

Sec. 9. If any clause, sentence, paragraph, subsection, Section, or any part of this Act shall for any reason be adjudged by a court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sentence, paragraph, subsection, Section or part thereof directly involved in such judgment.

Sec. 10. The provisions of this Act shall be additional provisions to General Statutes 2-53 as amended.

Sec. 11. That this Act shall apply only to Rowan County.

Sec. 12. That all laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 13. That this Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 19th day of June, 1959.