§ 32-72. Terms of creating instrument. - North Carolina Statutes

§ 32‑72.  Terms ofcreating instrument.

(a)        Nothing containedin this Article shall be construed as authorizing any departure from theexpress terms or limitations set forth in any will, agreement, court order, orother instrument creating or defining the fiduciary's powers and duties.

(b)        A fiduciary holdingfunds for investment who is specifically directed or authorized by aninstrument creating the fiduciary relationship to retain the stock of a bank ortrust company that is a member of a bank holding company currently fullyregistered under an act of Congress entitled Bank Holding Company Act of 1956,as the same may be amended from time to time, shall be considered as beingdirected or authorized to retain the stock of such bank holding company.

(c)        Whenever afiduciary holding funds for investment is directed, required, authorized, orpermitted by an instrument creating the fiduciary relationship to invest inUnited States government obligations, the fiduciary may, in the absence of anexpress prohibition in the instrument, invest in and hold such obligationseither directly or in the form of interests in a money market mutual fundregistered under the Investment Company Act of 1940, 15 U.S.C. §§ 80a‑1,et seq., as from time to time amended, the portfolio of which is limited toUnited States government obligations and repurchase agreements fullycollateralized thereby.

(d)        Whenever aninstrument reserves to the settlor or vests in any person, including anadvisory or investment committee or one or more co‑fiduciaries, theauthority to direct the making or retention of any investment to the exclusionof the fiduciary or to the exclusion of one or more of several co‑fiduciaries,the excluded fiduciary or co‑fiduciary who has no discretion in selectingthe person authorized to make or retain investments is not liable to thebeneficiaries or to the trust for the decisions or actions of the settlor orother person authorized to direct the making or retention of investments. Asused in this subsection, the term "person" includes an individual, acorporation, or any legal or commercial entity authorized to hold property ordo business in the State. (1973, c. 1277; 1977, c. 502, s. 2; 1985, c. 538, s.1; 2001‑413, s. 4; 2005‑192, s. 1.)