20 NCAC 01H .0103. MINIMUM STANDARDS

(a)  The trustee shall be licensed in North Carolina to perform the business included in the final contract.

(b)  The trust shall be established and operated in such a manner that no unjustifiable losses shall be chargeable to the participant and no costs or losses shall be chargeable to the State.

(c)  The form and content of management fees shall be as stated in the RFP.

(d)  The trust shall provide the following levels of service:

(1)           Safekeeping of participant‑owned securities in the trustee's name and control for the benefit of the State and the participant, with income to be remitted as collected to participants not in default; and

(2)           A pooled investment fund so that participants may deposit cash in lieu of securities.  Income declared for distribution shall be paid to participants not in default.

(e)  Accounts for participants shall be maintained so that the deposits and the income accruing thereon for each participant shall be distinguished.

(f)  It shall be the duty of the trustee to promptly invest any cash deposits or income required to be retained under 20 NCAC 1H .0401 in a common trust fund which may be invested in any security enumerated in G.S. 147‑69.1(c).

(g)  Individual accounts with participants under the trust shall be accomplished by a trust document designed for this purpose and previously approved by the State Treasurer.

(h)  The trustee shall maintain at all times a place of deposit in Raleigh for cash or securities to be transferred by the applicable agency.  This may be accomplished either through a branch or through a correspondent bank or trust company.

 

History Note:        Authority G.S. 147‑78.1;

Eff. December 1, 1985.