§ 33B-12. Liability to the third person. - North Carolina Statutes

§33B‑12.  Liability to the third person.

(a)        A claim based on(i) a contract entered into by a custodial trustee acting in a fiduciarycapacity, (ii) an obligation arising from the ownership or control of custodialtrust property, (iii) a tort committed in the course of administering thecustodial trust, may be asserted by a third person against the custodial trustproperty by proceeding against the custodial trustee in a fiduciary capacity,whether or not the custodial trustee or the beneficiary is personally liable.

(b)        A custodial trusteemay be held personally liable to a third person:

(1)        On a contractentered into in a fiduciary capacity if the custodial trustee fails to revealthat capacity or to identify the custodial trust in the contract; or

(2)        For an obligationarising from control of custodial trust property or for a tort committed in thecourse of the administration of the custodial trust if the custodial trustee ispersonally at fault.

(c)        A beneficiary isnot personally liable to a third person for an obligation arising frombeneficial ownership of custodial trust property or for a tort committed in thecourse of administration of the custodial trust unless the beneficiary ispersonally in possession of the custodial trust property giving rise to theliability or is personally at fault.

(d)        Subsections (b) and(c) of this section do not preclude actions or proceedings to establishliability of the custodial trustee or beneficiary as owner or possessor of thecustodial trust property to the extent that person is protected as the insuredby liability insurance. (1995, c. 486, s. 1.)