A BILL TO BE ENTITLED
AN ACT to clarify that a permissible appointee under a power of appointment is not a trust beneficiary, and to clarify that a loan or pledge by a trustee may be made in connection with a loan of the trustee's own funds.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 36C‑1‑103(3) reads as rewritten:
"§ 36C‑1‑103.  Definitions.
The following definitions apply in this Chapter:
…
(3)	Beneficiary. – A person who:
a.	Has a present or future beneficial interest in a trust, vested or contingent, including the owner of an interest by assignment or  transfer, but excluding a permissible appointee of a general or nongeneral power of appointment; or
b.	In a capacity other than that of trustee, holds a power of appointment over trust property."
SECTION 2.  G.S. 36C‑3‑302 reads as rewritten:
"§ 36C‑3‑302.  Representation by holder of general testamentary power of appointment.
The sole holder or all coholders of a power of revocation or a presently exercisable or testamentary general power of appointment, including one in the form of a power of amendment, shall represent and bind other persons to the extent that their interests, as  takers in default,  are subject to the power. "
SECTION 3.  Subdivisions (19), (19a), (19b), and (19c) of G.S. 36C‑8‑816 read as rewritten:
"§ 36C‑8‑816.  Specific powers of trustee.
Without limiting the authority conferred by G.S. 36C‑8‑815, a trustee may:
…
(19)	Pledge trust property to guarantee loans made  to any beneficiary;
(19a)	Guarantee loans made  to any beneficiary;
(19b)	Pledge trust property to guarantee loans made  to any proprietorship, partnership, limited liability company, business trust, corporation, venture, agricultural operation, or other form of business or enterprise in which the trust or any beneficiary has an ownership interest.
(19c)	Guarantee loans made  to  any proprietorship, partnership, limited liability company, business trust, corporation, venture, agricultural operation, or other form of business or enterprise in which the trust or any beneficiary has an ownership interest."
SECTION 4.  This act becomes effective October 1, 2009.