§ 37A-4-403. Business and other activities conducted by trustee. - North Carolina Statutes

§ 37A‑4‑403. Business and other activities conducted by trustee.

(a)        If a trustee whoconducts a business or other activity determines that it is in the bestinterest of all the beneficiaries to account separately for the business oractivity instead of accounting for it as part of the trust's general accountingrecords, the trustee may maintain separate accounting records for itstransactions, whether or not its assets are segregated from other trust assets.

(b)        A trustee whoaccounts separately for a business or other activity may determine the extentto which its net cash receipts shall be retained for working capital, theacquisition or replacement of fixed assets, and other reasonably foreseeableneeds of the business or activity, and the extent to which the remaining netcash receipts are accounted for as principal or income in the trust's generalaccounting records. If a trustee sells assets of the business or otheractivity, other than in the ordinary course of the business or activity, thetrustee shall account for the net amount received as principal in the trust'sgeneral accounting records to the extent the trustee determines that the amountreceived is no longer required in the conduct of the business.

(c)        Activities forwhich a trustee may maintain separate accounting records include:

(1)        Retail,manufacturing, service, and other traditional business activities;

(2)        Farming;

(3)        Raising and sellinglivestock and other animals;

(4)        Management of rentalproperties;

(5)        Extraction ofminerals and other natural resources;

(6)        Timber operations;and

(7)        Activities to whichG.S. 37A‑4‑414 applies. (2003‑232, s. 2.)