§ 48A-15. Financial safeguards when no court order. - North Carolina Statutes

§ 48A‑15.  Financialsafeguards when no court order.

(a)        Notwithstanding anyother statute, for any minor's contract of a type described in G.S. 48A‑11that is not being submitted for approval by the court pursuant to G.S. 48A‑12,or for which the court has issued a final order denying approval, fifteenpercent (15%) of the minor's gross earnings pursuant to the contract shall beset aside by the minor's employer in trust, in an account or other savingsplan, and preserved for the benefit of the minor in accordance with G.S. 48A‑14.At least one parent or legal guardian, as the case may be, entitled to thephysical custody, care, and control of the minor, shall be the trustee of thefunds set aside for the benefit of the minor, unless the court, upon petitionby the parent or legal guardian, the minor, through his or her guardian adlitem, or the trustee or trustees of the trust, shall determine thatappointment of a different individual, individuals, entity, or entities astrustee or trustees is required in the best interest of the minor.

(b)        A parent orguardian, as the case may be, entitled to the physical custody, care, andcontrol of the minor shall promptly provide the minor's employer with a trueand accurate photocopy of the trustee's statement pursuant to G.S. 48A‑14(c)and in addition, in the case of a guardian, a certified copy of the courtdocument appointing the person as the minor's legal guardian.

(c)        The minor'semployer shall deposit fifteen percent (15%) of the minor's gross earningspursuant to the contract within 15 business days of receiving the trustee'sstatement pursuant to G.S. 48A‑14(c), or if the court denies approval ofthe contract, within 15 business days of receiving a final order denyingapproval of the contract and thereafter as funds might be received.Notwithstanding any other statute, pending receipt of the trustee's statementor the final court order, the minor's employer shall hold for the benefit ofthe minor the fifteen percent (15%) of the minor's gross earnings pursuant tothe contract.

(d)        Once the minor'semployer deposits the set‑aside funds in trust, in an account or othersavings plan pursuant to G.S. 48A‑14, the minor's employer shall have nofurther obligation or duty to monitor or account for the funds. The trustee ortrustees of the trust shall be the only individual, individuals, entity, orentities with the obligation or duty to monitor and account for those fundsonce they have been deposited by the minor's employer. The trustee or trusteesshall do an annual accounting of the funds held in trust, in an account orother savings plan, in accordance with G.S. 28A‑21‑1, et seq.

(e)        Upon petition ofthe parent or legal guardian, the minor, through his or her guardian ad litem,or the trustee or trustees of the trust, to the superior court in any county inwhich the minor resides or in which the trust is established, the court may atany time, on good cause shown, order that the trust be amended or terminated,notwithstanding the provisions of the declaration of trust. An order amendingor terminating a trust may be made only after reasonable notice to thebeneficiary, to the parent or guardian, if any, and to the trustee or trusteesof the funds if the beneficiary is then a minor, with opportunity for allparties to appear and be heard.

(f)         A parent orguardian, as the case may be, entitled to the physical custody, care, andcontrol of the minor shall promptly notify the minor's employer in writing ofany change in facts that affect the employer's obligation or ability to setaside funds for the benefit of the minor in accordance with this section,including, but not limited to, a change of financial institution or accountnumber, or the existence of a new or amended order issued pursuant tosubsection (e) of this section amending or terminating the employer'sobligations under this section. The written notification shall be accompaniedby a true and accurate photocopy of the trustee's statement and attachmentspursuant to subdivision (c) of G.S. 48A‑14, or a true and accuratephotocopy of the new or amended order.

(g)        Where a parent orguardian, as the case may be, is entitled to the physical custody, care, andcontrol of a minor who enters into a contract of a type described in G.S. 48A‑11,the relationship between the parent or guardian, as the case may be, and theminor is a fiduciary relationship that is governed by the law of trusts,whether or not a court has issued a formal order to that effect. The parent orguardian, as the case may be, acting in his or her fiduciary relationship,shall, with the earnings and accumulations of the minor under the contract, payall liabilities incurred by the minor under the contract, including, but notlimited to, payments for taxes on all earnings, including taxes on the amounts setaside under this section or G.S. 48A‑13 and payments for personal orprofessional services rendered to the minor or the business related to thecontract. Nothing in this subsection shall be construed to alter any otherexisting responsibilities of a parent or legal guardian to provide for thesupport of a minor child.

(h)        With respect tocontracts pursuant to which a person is employed to render services as amusician, singer, songwriter, musical producer, or arranger only, "grossearnings" for purposes of this Article means the amount paid directly tothe minor pursuant to the contract, including the payment of any advances tothe minor pursuant to the contract, but excluding deductions to offset thoseadvances or other expenses incurred by the employer pursuant to the contract. (2003‑207, s. 2.)