§ 53-44. Investment in bonds guaranteed by United States. - North Carolina Statutes

§53‑44.  Investment in bonds guaranteed by United States.

(a)        Authority to MakeInvestments. – Any bank, building and loan association, land and loanassociation, savings and loan association, insurance company, title insurancecompany, land mortgage company, fraternal order or benevolent association, orany other corporation incorporated under the laws of this State, and operatingunder the supervision of the Commissioner of Banks, Insurance Commissioner, orSuperintendent of Savings and Loan Associations; the State Treasurer, ascustodian of the assurance fund provided under the Torrens Act, or any officercharged with the investment of sinking funds of the State, any county, city,town, incorporated village, township, school district, school taxing district,or other district or political subdivision of government of the State; theNorth Carolina State Thrift Society, any clerk of the court holding money bycolor of his office or as receiver; and any person, firm or corporation actingas executor, administrator, guardian, trustee, or other person acting in afiduciary capacity may invest in bonds issued, or in bonds which are fully andunconditionally guaranteed as to principal and interest by the United States,to the same extent as the same are now or may be hereafter authorized to investin any obligation of the United States: Provided that all investmentsauthorized hereunder shall be guaranteed, both as to the payment of principaland interest thereon, by the United States treasury.

(b)        Security for Loansand Deposits. – No bank shall be required to maintain a reserve againstdeposits secured by any of the above‑mentioned bonds equal in marketvalue to the amount of such deposits, and such bonds shall be valid securityfor all loans and deposits to the same extent as are any obligations of theUnited States.

(c)        Bonds Deemed Cashin Settlements by Fiduciaries. – In settlements by guardians, executors,administrators, trustees and others acting in a fiduciary capacity, the bondsand securities herein mentioned shall be deemed cash to the amount actuallypaid for same, including the premium, if any, paid for such bonds, and may bepaid as such by the transfer thereof to the persons entitled and without anyliability for a greater rate of interest than the amount actually accruing fromsuch bonds. (1935, c. 164; 1937, c. 433.)