§ 28A-8-2. Provisions of bond. - North Carolina Statutes

§28A‑8‑2.  Provisions of bond.

A bond given pursuant to thisArticle shall be:

(1)        Payable to the Stateto the use of all persons interested in the estate; and

(2)        Conditioned that thepersonal representative giving the bond shall faithfully execute the trustreposed in him and obey all lawful orders of the clerk of superior court orother court touching the administration of the estate committed to him; and

(3)        In an amount notless than:

a.         One and one‑fourthtimes the value of all personal property of the decedent when the bond issecured by a suretyship bond executed by a corporate surety company authorizedby the Commissioner of Insurance to do business in this State, provided thatthe clerk of superior court, when the value of the personal property to beadministered by the personal representative exceeds one hundred thousanddollars ($100,000), may accept bond in an amount equal to the value of thepersonal property plus ten percent (10%) thereof; or

b.         Double the value ofall personal property of the decedent  when the bond is secured by one of themethods provided in subdivision (4)b, (4)c or (4)d; such value of said personalproperty to be ascertained by the clerk of superior court by examination, onoath, of the applicant  or of some other person determined by the clerk to bequalified to testify as to its value; and

(4)        Secured by one ormore of the following:

a.         Suretyship bondexecuted, at the expense of the estate, by a corporate surety companyauthorized by the Commissioner of Insurance to do business in this State;

b.         Suretyship bondexecuted and justified upon oath before the clerk of superior court by two ormore sufficient personal sureties each of whom shall reside in and own realestate in North Carolina and shall have assets with an aggregate value aboveencumbrances of not less than the amount of the penalty of the required bond;

c.         A first mortgage orfirst deed of trust in form approved by the administrative officer of thecourts on real estate located in North Carolina:

1.         Executed by theowner, and conditioned on the performance of the obligations of the bond, and

2.         Containing a powerof sale which, in the case of a mortgage, is exercisable by the clerk ofsuperior court upon a breach of any condition thereof, or, in  the case of a deedof trust, is exercisable by the trustee after notice by the clerk of superiorcourt that a breach of condition has occurred.

Theclerk of superior court shall not accept such mortgage or deed of trust untilit shall have been properly registered in the county or counties in which thereal estate is located, and the clerk of superior court is satisfied that thereal estate subject to the mortgage or deed of trust is worth the amount to besecured thereby, and that the mortgage or deed of trust is a first charge onsaid real estate. No such mortgage or deed of trust shall be cancelled orsurrendered until the approval of the final account, unless substitution ispermitted as provided in G.S. 28A‑8‑3(d).

d.         A deposit by theowner with the clerk of superior court of negotiable securities, of a kindpermitted by law to be proper investments for fiduciaries exercising due care,having a fair market value determined by the clerk to be equal to the amount ofthe penalty of the bond. Such securities shall be properly endorsed, deliveredto the clerk of superior court, and accompanied by a security agreementcontaining a power of sale authorizing the clerk of superior court to sell themin the event the person to whom letters are being issued commits a breach of anyduty imposed upon him by law in respect of his office. Such securities shallnot be surrendered by the clerk of superior court to the owner until theapproval of the final account, unless substitution is permitted as provided inG.S. 28A‑8‑3(d). For the purposes of determining the value of theassets of the personal sureties in subdivision (4)b, or the value of the realestate in subdivision (4)c, or the value of the negotiable securities insubdivision (4)d, the clerk of superior court may require a certificate of  thevalue of such property by one or more persons not interested in the estatedetermined by the clerk to be qualified to certify such value. (C.C.P.,s. 468; 1870‑1, c. 93; Code, s. 1388; Rev., s. 319; C.S., s. 33; 1935, c.386; 1949, c. 971; 1967, c. 41, s. 1; 1973, c. 1329, s. 3.)