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 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.
In the General Assembly read three times and ratified this the 23rd day of June, 2009.

	_____________________________________
		 Walter H. Dalton
	 President of the Senate

	_____________________________________
		 Joe Hackney
	 Speaker of the House of Representatives

	_____________________________________
		 Beverly E. Perdue
	 Governor

Approved __________.m. this ______________ day of ___________________, 2009