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A compliance reviewer in Apex is updating the policy manual on trust account reconciliation, audit trail, and account designation. Which statement best applies under current North Carolina law?

Correct Answer

B) North Carolina trust accounts are demand accounts and must be designated clearly as trust or escrow accounts.

North Carolina trust accounts are demand accounts and must be designated clearly as trust or escrow accounts.

Answer Options
A
A broker may use any ordinary operating account as long as the bookkeeper knows which deposits are client money.
B
North Carolina trust accounts are demand accounts and must be designated clearly as trust or escrow accounts.
C
Only rental trust accounts require designation, not sales trust accounts.
D
Trust account designation is optional if the bank clerk understands the arrangement.

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Related Topics & Key Terms

Key Terms:

account_designationcore_rules_and_definitionsdemand_accountdifficulty_2nc_statenc_trust_account_escrow_requirementsnorth_carolinatrust_accounttrust_account_reconciliation_audit_trail_and_designation
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