NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 864

HOUSE BILL 959

 

 

AN ACT TO PROVIDE FOR THE JOINT OWNERSHIP OF CORPORATE STOCK AND INVESTMENT SECURITIES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Chapter 25 of the General Statutes of North Carolina is hereby amended by inserting the following Section:

"G.S. 25-8-407.  Joint Ownership of Corporate Stock and Investment Securities. (a) In addition to other forms of ownership, shares of corporate stock or investment securities may be owned by a husband and wife as joint tenants with the right of survivorship, and not as tenants in common, in the manner provided in this Section.

"(b) (1)       A joint tenancy in shares of corporate stock or investment securities as provided by this Section shall exist when such shares or securities indicate that they are owned with the right of survivorship, or otherwise clearly indicate an intention that upon the death of either spouse the interest of the decedent shall pass to the surviving spouse.

"(2)      Such a joint tenancy may also exist when a broker or custodian holds the shares or securities for the joint tenants and by book entry or otherwise indicates (i) that the shares or securities are owned with the right of survivorship, or (ii) otherwise clearly indicates that upon the death of either spouse the interest of the decedent shall pass to the surviving spouse. Money in the hands of such broker of custodian derived from the sale of, or held for the purchase of, such shares or securities shall be treated in the same manner as such shares or securities.

"(c)       Upon the death of a joint tenant his interest shall pass to the surviving joint tenant. The interest of the deceased joint tenant, even though it has passed to the surviving joint tenant, remains liable for the debts of the decedent in the same manner as the personal property included in his estate, and recovery thereof shall be made from the surviving joint tenant when the decedent's estate is insufficient to satisfy such debts.

"(d)      Nothing herein contained shall be construed to repeal or modify any of the provisions of G.S. 105-2, G.S. 105-11, and G.S. 105-24, relating to the administration of the inheritance tax laws, or any other provisions of the law relating to inheritance taxes."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall be in full force and effect from and after October 1, 1967.

In the General Assembly read three times and ratified, this the 21st day of June, 1967.