North Carolina Statutes

Chapter 53 Banks

Article 1 - Definitions.

Article 2 - Creation.

Article 3 - Dissolution and Liquidation.

Article 4 - Reopening of Closed Banks.

  • § 53-37   Conditions under which banks may reopen
    Whenever the Commissioner of Banks has taken in possession any bank, such bank may, with the consent of the Commissioner of Banks, resume business upon...
  • § 53-38   Certain contracts not affected
    Nothing in G.S. 53‑37 shall impair or affect any contracts made by banks and depositors of banks reopened prior to May 12, 1931, under the...

Article 5 - Stockholders.

  • § 53-39   New State banks to set up surplus fund
    The common stockholders of any bank organized after March 17, 1933, under the laws of the State of North Carolina shall pay in, in cash,...
  • § 53-40   Executors, trustees, etc., not personally liable
    Persons holding stock as executors, administrators, guardians, or trustees shall not personally be subject to any liabilities as stockholders, but the estate and funds in...
  • § 53-41   Stock sold if subscription unpaid
    Whenever any stockholder, or his assignee, fails to pay any installment on the stock, when the same is required by law to be paid, the...
  • § 53-42   Impairment of capital; assessments, etc
    The Commissioner of Banks shall notify every bank whose capital shall have become impaired from losses or any other cause, and the surplus and undivided...
  • § 53-42.1   Change in bank control or management
    (a) (1) No person shall acquire voting stock of any bank or bank holding company, as defined in section 2 of the Bank Holding Company...

Article 6 - Powers and Duties.

Article 7 - Officers and Directors.

  • § 53-78   Appointment of executive and loan committees by directors
    The board of directors shall appoint an executive committee or committees, each of which shall be composed of at least three of its members with...
  • § 53-79   Minutes of meetings of directors and executive and loan committees
    Minutes shall be kept of all meetings of the board of directors, executive committee or committees, and of the loan committee or committees, if appointed,...
  • § 53-80   Qualifications of directors
    Every director of a bank doing business under this Chapter shall be the owner and holder of shares of stock in the bank representing not...
  • § 53-81   Directors shall take oath
    Every director shall, within 30 days after his election, take and subscribe, in duplicate, an oath that he will diligently and honestly perform his duties...
  • § 53-82   Liability of directors
    Any director of any bank who shall knowingly violate, or who shall knowingly permit to be violated by any officers, agents, or employees of such...
  • § 53-83   Examining committee of directors
    A committee of at least three directors or stockholders shall be appointed annually to examine, or to superintend the examination of the assets and the...
  • § 53-84   Depositories designated by directors
    By resolution of the board of directors, other banks organized under the laws of this State, or of another state, or under the laws of...
  • § 53-85   Shareholders' book
    The directors shall provide a book in which shall be kept the name and resident address of each shareholder of record, the number of shares...
  • § 53-86   Directors, officers, etc., accepting fees, etc
    No gift, fee, commission, or brokerage charge shall be received, directly or indirectly, by any officer, director, or employee of any bank doing business under...
  • § 53-87   Directors may declare dividends
    The board of directors of any bank may declare a dividend of so much of its undivided profits as they may deem expedient, subject to...
  • § 53-88   Use of surplus
    The surplus of any bank doing business under this Chapter shall not be used for the purpose of paying expenses or losses until the credit...
  • § 53-89   Overdrafts, payment by officer, etc
    Any officer (other than a director), or employee of a bank, who shall permit any customer or other person to overdraw his account, or who...
  • § 53-90   Officers and employees shall give bond
    The active officers and employees of any bank before entering upon their duties shall give bond to the bank in a bonding company authorized to...
  • § 53-91   Repealed by Session Laws 1995, c. 129, s. 17
  • § 53-91.1   Assets to be written off
    Every bank doing business under this Chapter shall be required to write off any asset, or portion thereof, which, following the most recent report of...
  • § 53-91.2   Loans to executive officers
    No bank may extend credit to any of its executive officers nor a firm or partnership of which such executive officer is a member, nor...
  • § 53-91.3   Directors defined; appointment of advisory directors
    (a) Unless otherwise expressly provided, reference to "director" or "board of directors" shall mean a director of the banking corporation as elected by the shareholders...

Article 8 - Commissioner of Banks and State Banking Commission.

Article 9 - Bank Examiners.

  • § 53-117   Appointment by Commissioner of Banks; examination of banks
    (a) The Commissioner of Banks, for the purpose of carrying out the provisions of this Chapter, shall appoint from time to time such State bank...
  • § 53-118   Duties and powers
    It shall be the duty of the examiners to verify all reports made to the Commissioner of Banks by the officers and directors, members, or...
  • § 53-119   Removal of officers and employees
    The Commissioner of Banks shall have the right, and is hereby empowered, to require the immediate removal from office of any officer, director, or employee...
  • § 53-120   Examiners may administer oaths; summoning witnesses
    For the purpose of making examinations as required by this Chapter, any duly appointed examiner may administer oaths to examine any officer, director, agent, employee,...
  • § 53-121   Examiners may make arrest
    When it shall appear to any examiner, by examination or otherwise, that any officer, agent, employee, director, stockholder, or owner of any bank has been...
  • § 53-122   Fees and assessments
    (a) For the purpose of operating and maintaining the office of the Commissioner of Banks, banks and consumer finance licensees doing business under the authority...
  • § 53-123   Examiners shall make report
    Examiners shall make a full and detailed report in writing to the Commissioner of Banks of the condition of each bank within 10 days after...

Article 10 - Penalties.

Article 11 - Industrial Banks.

  • § 53-136   Industrial bank defined
    The term "industrial bank," as used in this Article shall be construed to mean any corporation organized or authorized under this Article which is engaged...
  • § 53-137   Manner of organization
    Any number of persons, not less than five, may organize an industrial bank by setting forth in a certificate of incorporation, under their hands and...
  • § 53-138   Corporate title
    Every corporation incorporated or reorganized pursuant to the provisions of this Article shall be known as an industrial bank, and may use the word "bank"...
  • § 53-139   Capital stock
    The amount of capital stock with which any industrial bank shall commence business shall not be less than fifty percent (50%) of that which would...
  • § 53-140   Sales of capital stock; accounting; fees
    The capital stock sold by any industrial bank in process of organization, or for an increase of the capital stock, shall be accounted for to...
  • § 53-141   Powers
    Industrial banks shall have perpetual duration and succession in their corporate name unless a limited period of duration is stated in their certificate of incorporation....
  • § 53-142   Restriction on powers
    No industrial bank shall deposit any of its funds in any banking corporation unless such corporation has been designated as such depositary by a vote...
  • § 53-143   Investments; securities; loans; limitations
    The provisions of G.S. 53‑46, 53‑48 and 53‑49, with reference to the limitations of investments in securities, limitations of loans and suspensions of investment and...
  • § 53-144   Supervision and examination
    Every industrial bank now or hereafter transacting the business of an industrial bank as defined by this Article, whether as a separate business or in...
  • § 53-145   Sections of general law applicable
    Sections 53‑1, 53‑3, 53‑4, 53‑5, 53‑6, 53‑7, 53‑8, 53‑9, 53‑10, 53‑11, 53‑12, 53‑13, 53‑18, 53‑20, 53‑22, 53‑23, 53‑42, 53‑42.1, 53‑47, 53‑50, 53‑51, 53‑54, 53‑63, 53‑64,...

Article 12 - Joint Deposits.

  • § 53-146   Deposits in two names
    When a deposit has been or is hereafter made in any bank, trust company, banking and trust company, or any other institution transacting business in...
  • § 53-146.1   Joint accounts
    (a) Any two or more persons may establish a deposit account or accounts by written contract. The deposit account and any balance thereof shall be...
  • § 53-146.2   Payable on Death (POD) accounts
    (a) If any person or persons establishing a deposit account shall execute a written agreement with the bank containing a statement that it is executed...
  • § 53-146.3   Personal agency accounts
    (a) Any person may establish a personal agency account by written contract containing a statement that it is executed pursuant to the provisions of this...
  • § 53-147   Repealed by Session Laws 1943, c. 543

Article 13 - Conservation of Bank Assets and Issuance of Preferred Stock.

Article 14 - Banks Acting in a Fiduciary Capacity.

  • § 53-159   Bank may act as fiduciary
    Any bank licensed by the Commissioner of Banks, where such powers or privileges are granted it in its charter, may be guardian, trustee, assignee, receiver,...
  • § 53-159.1   Power of fiduciary or custodian to deposit securities in a clearing corporation
    Notwithstanding any other provision of law, any fiduciary holding securities in its fiduciary capacity, any bank or trust company holding securities in a fiduciary capacity...
  • § 53-160   License to do business
    Before any such bank or trust company is authorized to act in any fiduciary capacity without bond, it must be licensed by the Commissioner of...
  • § 53-161   Examination as to solvency
    The Commissioner of Banks shall examine into the solvency of such bank, and shall, if he deem it necessary, at the expense of the bank,...
  • § 53-162   Certificate of solvency
    After any bank has been licensed by the Commissioner of Banks, a certificate issued by the Commissioner of Banks, showing the bank to be solvent...
  • § 53-163   Clerk of superior court notified of license and revocation
    The Commissioner of Banks, upon granting license to any such bank or trust company, shall immediately notify the clerk of the superior court of each...
  • § 53-163.1   Funds held by a corporation exercising fiduciary powers awaiting investment or distribution
    (a) Funds held in a fiduciary capacity by a bank, trust company, savings and loan association, or other corporation authorized to exercise the powers of...
  • § 53-163.2   Investments in securities by banks or trust companies
    Unless the governing instrument, court order, or a statute specifically directs otherwise, a bank or trust company serving as trustee, guardian, agent, or in any...
  • § 53-163.5   Establishment of common trust funds
    (a) Any bank or trust company duly authorized to act as a fiduciary in this State may establish and maintain one or more common trust...
  • § 53-163.6   Court accountings
    Unless ordered by a court of competent jurisdiction the bank or trust company operating such common trust fund or funds shall not be required to...
  • § 53-163.7   Supervision by State Banking Commission
    All common trust funds established under the provisions of this Part shall be subject to the rules and regulations of the State Banking Commission. (1939,...
  • § 53-163.8   Uniformity of interpretation
    This Part shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it....
  • § 53-163.9   Short title
    This Part may be cited as the Uniform Common Trust Fund Act. (1939, c. 200, s. 5; 1977, c. 502, s. 2; 2005‑192, s. 1.)

Article 15 - North Carolina Consumer Finance Act.

Article 16 - Money Transmitters Act.

Article 16A - Money Transmitters Act.

  • § 53-208.1   Citation of Article
    This Article shall be known and cited as the "Money Transmitters Act". (2001‑443, s. 2.)
  • § 53-208.2   Definitions
    (a) Unless otherwise provided in this Article, or when the context clearly indicates that a different meaning is intended, the following definitions apply in this...
  • § 53-208.3   License required
    (a) On or after October 1, 2001, no person except those exempt pursuant to G.S. 53‑208.4 shall engage in the business of money transmission in...
  • § 53-208.4   Exemptions
    (a) This Article shall not apply to any of the following: (1) The United States or any department, agency, or instrumentality thereof. (2) The United...
  • § 53-208.5   License qualifications
    (a) Each licensee shall have at all times a net worth of not less than one hundred thousand dollars ($100,000) calculated in accordance with generally...
  • § 53-208.6   Permissible investments and statutory trust
    (a) Each licensee under this Article shall possess at all times unencumbered permissible investments having an aggregate market value, calculated in accordance with generally accepted...
  • § 53-208.7   License application
    (a) Each application for a license under this Article shall be made in writing, under oath, and in a form prescribed by the Commissioner. For...
  • § 53-208.8   Surety bond
    (a) Each application shall be accompanied by a surety bond acceptable to the Commissioner in the amount of one hundred fifty thousand dollars ($150,000). If...
  • § 53-208.9   Fees
    (a) Investigation and License Fees. Each application for a license shall be accompanied by a nonrefundable investigation fee of five hundred dollars ($500.00), together with...
  • § 53-208.10   Issuance of license
    (a) Upon the filing of a complete application, the Commissioner shall investigate the financial condition and responsibility, financial and business experience, and the character and...
  • § 53-208.11   Renewal of license and annual report
    (a) The annual license fee shall be accompanied by a report, in a form prescribed by the Commissioner, to be filed by the licensee on...
  • § 53-208.12   Quarterly reports
    A licensee shall file for each calendar quarter, no later than 60 days after the quarter has ended, a report which contains the total number...
  • § 53-208.13   Extraordinary reporting requirements
    (a) Within 15 days of the occurrence of any one of the events listed below, a licensee shall file a written report with the Commissioner...
  • § 53-208.14   Changes in control of a license
    Within 15 days of a change or acquisition of control of a licensee, the licensee shall provide notice of the event to the Commissioner in...
  • § 53-208.15   Examinations
    (a) The Commissioner may conduct an annual on‑site examination of a licensee. Should the Commissioner conclude that an on‑site examination of a licensee is necessary,...
  • § 53-208.16   Maintenance of records and certificate of authority
    (a) Each licensee shall make, keep, and preserve the following books, accounts, and other records for a period of three years: (1) A record or...
  • § 53-208.17   Confidentiality of data submitted to the Commissioner
    (a) Notwithstanding any other provision of law, all information or reports obtained by the Commissioner from an applicant, licensee, or authorized delegate, whether obtained through...
  • § 53-208.18   Suspension or revocation of licenses
    After notice and hearing, the Commissioner may suspend or revoke a license issued under this Article if the Commissioner finds any of the following: (1)...
  • § 53-208.19   Authorized delegate contracts
    Licensees desiring to conduct licensed activities through authorized delegates in this State shall authorize each delegate to operate pursuant to an express written contract, which...
  • § 53-208.20   Authorized delegate conduct
    (a) An authorized delegate shall not make any fraudulent or false statement or misrepresentation to a licensee or to the Commissioner. (b) All money transmission...
  • § 53-208.21   Revocation or suspension of authorized delegates
    (a) If, after notice and a hearing, the Commissioner finds that any authorized delegate of a licensee or any director, officer, employee, or controlling person...
  • § 53-208.22   Licensee liability
    A licensee's responsibility to any person for a money transmission conducted on that person's behalf by the licensee or the licensee's authorized delegate shall be...
  • § 53-208.22A   Disclosures of transmissions
    (a) At the time of a monetary transmission transaction to a location outside of the United States, the licensee shall provide a receipt to the...
  • § 53-208.23   Hearings; procedures
    Except as provided by G.S 53‑208.10(c), hearings conducted pursuant to this Article shall proceed in accordance with Article 3A of Chapter 150B of the General...
  • § 53-208.24   Civil penalties
    (a) If, after notice and hearing, the Commissioner finds that a person has intentionally violated this Article or a rule adopted under this Article, the...
  • § 53-208.25   Enforcement
    (a) If it appears to the Commissioner that any person has committed or is about to commit a violation of any provision of this Article...
  • § 53-208.26   Criminal penalties
    (a) Any person who knowingly and willfully violates any provision of this Article for which a penalty is not specifically provided is guilty of a...
  • § 53-208.27   Rules
    (a) The Banking Commission may adopt rules necessary to implement this Article. (b) The Banking Commission may review any rule, regulation, order, or act of...
  • § 53-208.28   Severability
    Should any provision, sentence, clause, section, or part of this Article for any reason be held unconstitutional, illegal, or invalid, such unconstitutionality, illegality, or invalidity...
  • § 53-208.29   Appointment of Secretary of State as agent for service of process
    (a) Any licensee, authorized delegate, or other person who knowingly engages in business activities that are regulated under this Article, with or without filing an...
  • § 53-208.30   Transition
    Any person who holds in good standing a money transmitters license issued by the Commissioner of Banks on November 1, 2001 may continue to engage...

Article 17 - North Carolina Reciprocal Interstate Banking Act.

  • § 53-209   Title
    This Article shall be known and may be cited as the North Carolina Reciprocal Interstate Banking Act. (1983 (Reg. Sess., 1984), c. 1113, s. 1;...
  • § 53-210   Definitions
    Notwithstanding any other section of this Chapter, for the purposes of this Article: (1) "Acquire" means: a. The merger or consolidation of one bank holding...
  • § 53-211   Acquisitions by out-of-state bank holding companies
    (a) An out‑of‑state bank holding company that does not have a North Carolina bank subsidiary, other than a North Carolina bank subsidiary that was acquired...
  • § 53-212   Repealed by Session Laws 1993, c. 175, s. 10, as amended by Session Laws 1993 (Regular Session, 1994), c. 599, s. 1
  • § 53-212.1   Bank agent for deposit institution affiliate
    A bank may act as the agent of any depository institution affiliate in receiving deposits, renewing time deposits, closing loans, servicing loans, and receiving payments...
  • § 53-213   Prohibitions
    (a) Except as expressly permitted by this Article or by federal law, no out‑of‑state bank holding company shall acquire a North Carolina bank holding company...
  • § 53-214   Applicable laws, rules and regulations
    (a) Any North Carolina bank that is controlled by a bank holding company that is not a North Carolina bank holding company shall be subject...
  • § 53-215   Appeal of Commissioner's decision
    Any aggrieved party in a proceeding under G.S. 53‑211 or G.S. 53‑227.1 may, within 30 days after final decision of the Commissioner, appeal his decision...
  • § 53-216   Periodic reports; interstate agreements
    The Commissioner may from time to time require reports under oath in such scope and detail as he may reasonably determine of each out‑of‑state bank...
  • § 53-217   Enforcement
    The Commissioner shall have the power to enforce the provisions of this Article through an action in any court of this State or any other...
  • § 53-218   Nonseverability
    It is the purpose of this Article 17 to facilitate orderly development within North Carolina of banking organizations that have banking offices in more than...

Article 17A - Interstate Branch Banking.

Article 17B - Interstate Branch Banking.

  • § 53-224.9   Definitions
    The following definitions apply in this Article: (1) "Acquisition of a branch" means the acquisition of a branch located in a host state without engaging...
  • § 53-224.10   Purpose
    It is the express intent of this Part to permit interstate branching under sections 102 and 103 of the Riegle‑Neal Interstate Banking and Branching Efficiency...
  • § 53-224.11   Interstate branching by North Carolina State banks
    (a) With the prior approval of the Commissioner, any North Carolina State bank may establish and maintain a de novo branch or acquire a branch...
  • § 53-224.12   Interstate branching by de novo entry
    An out‑of‑state bank that does not have a branch in North Carolina and that meets the requirements of this Article may establish and maintain a...
  • § 53-224.13   Interstate branching through the acquisition of a branch
    An out‑of‑state bank that does not have a branch in North Carolina and that meets the requirements of this Article may establish and maintain a...
  • § 53-224.14   Requirement of notice and other conditions
    (a) An out‑of‑state bank desiring to establish and maintain a de novo branch or to acquire a branch in this State shall provide written notice...
  • § 53-224.15   Conditions for approval
    In the case of notice under G.S. 53‑224.14 by an out‑of‑state state bank, the notice shall be subject to approval by the Commissioner, which approval...
  • § 53-224.16   Powers
    (a) An out‑of‑state state bank which establishes and maintains one or more branches in North Carolina under this Article may conduct any activities at such...
  • § 53-224.17   Purpose
    It is the express intent of this Part to permit interstate branching by merger under section 102 of the Riegle‑Neal Interstate Banking and Branching Efficiency...
  • § 53-224.18   Authority of State banks to establish interstate branches by merger
    With the prior approval of the Commissioner, a North Carolina State bank may establish, maintain, and operate one or more branches in a state other...
  • § 53-224.19   Interstate merger transactions and branching permitted
    One or more North Carolina banks may enter into an interstate merger transaction with one or more out‑of‑state banks under this Article, and an out‑of‑state...
  • § 53-224.20   Notice and filing requirements
    Any out‑of‑state bank that will be the resulting bank pursuant to an interstate merger transaction involving a North Carolina bank shall notify the Commissioner of...
  • § 53-224.21   Conditions for interstate merger prior to June 1, 1997
    An interstate merger transaction prior to June 1, 1997, involving a North Carolina bank shall not be consummated, and any out‑of‑state bank resulting from such...
  • § 53-224.22   Powers
    (a) An out‑of‑state state bank which establishes and maintains one or more branches in North Carolina under this Article may conduct any activities at such...
  • § 53-224.23   Applicability of supervisory authority
    The supervisory powers and other provisions set forth in G.S. 53‑224.24 through G.S. 53‑224.31 shall apply to Parts 2 and 3 of this Article. (1995,...
  • § 53-224.24   Examinations; periodic reports; cooperative agreements; assessment of fees
    (a) The Commissioner may make such examinations of any branch of an out‑of‑state state bank established under this Article and located in this State as...
  • § 53-224.25   Enforcement
    If the Commissioner determines that a branch maintained by an out‑of‑state state bank in this State is being operated in violation of any provision of...
  • § 53-224.26   Rules
    The Commissioner, subject to review and approval of the North Carolina State Banking Commission, may adopt rules needed to implement this Article. Chapter 150B of...
  • § 53-224.27   Additional branches
    An out‑of‑state bank that has a branch in North Carolina may establish and acquire additional branches in this State to the same extent as a...
  • § 53-224.28   Notice of subsequent merger or other change in control
    An out‑of‑state bank that maintains a branch in this State established pursuant to this Article shall give 30 days' prior written notice to the Commissioner...
  • § 53-224.29   Branch closings
    An out‑of‑state state bank that is subject to an order or written agreement revoking its authority to establish or maintain a branch in North Carolina...
  • § 53-224.30   Appeal of Commissioner's decision
    Any aggrieved party in a proceeding under this Article may, within 30 days after final decision of the Commissioner, appeal such decision to the North...
  • § 53-224.31   Severability
    If any provision of this Article or the application of such provision is found invalid as to any bank, branch, bank holding company, person, or...

Article 18 - Bank Holding Company Act of 1984.

  • § 53-225   Title and scope
    (a) This Article shall be known and may be cited as the North Carolina Bank Holding Company Act of 1984. (b), (c) Repealed by Session...
  • § 53-226   Definitions
    For the purposes of this Article: (1) "Bank" means any insured bank as the term is defined in Section 3(h) of the Federal Deposit Insurance...
  • § 53-227   Registration of bank holding companies
    Every bank holding company, not later than July 1, 1985, or within 180 days after becoming a bank holding company controlling a North Carolina federally...
  • § 53-227.1   Criteria for certain bank holding company acquisitions
    (a) In addition to the criteria set forth in G.S. 53‑211(a) and (b) to be used by the Commissioner in reviewing applications for acquisitions of...
  • § 53-228   Cease and desist
    Upon a finding that any action of a bank holding company or nonbank subsidiary subject to this Article may be in violation of any North...
  • § 53-229   Repealed by Session Laws 1995, c. 129, s. 31
  • § 53-230   Rules
    The Banking Commission may adopt such reasonable rules as may be necessary to effectuate the purposes of this Article. (1983 (Reg. Sess., 1984), c. 1113,...
  • § 53-231   Appeal of Commissioner's decision
    Any aggrieved party in a proceeding under this Article may, within 30 days after final decision of the Commissioner, appeal such decision to the Banking...
  • § 53-232   Fees
    Each bank holding company subject to this act shall pay the following fees: (1) An initial registration fee of $1,000. (2) An annual registration fee...

Article 18A - North Carolina International Banking Act.

  • § 53-232.1   Title and scope
    (a) This act shall be known and cited as the North Carolina International Banking Act. (b) This Article is intended to set forth the terms...
  • § 53-232.2   Definitions
    (a) The following definitions apply in this Article: (1) Commissioner. The North Carolina Commissioner of Banks. (2) Federal international bank institution. A branch, agency, or...
  • § 53-232.3   Authority to establish and operate federal international bank institutions, international bank branches, international bank agencies, and international representative offices
    (a) An international banking corporation with a home state other than North Carolina may establish and operate, directly or indirectly, a federal international bank institution...
  • § 53-232.4   Application of this Chapter
    (a) International banking corporations, other than federal international bank institutions, are subject to Articles 1 through 14 and Articles 17 and 18 of this Chapter,...
  • § 53-232.5   Application of the North Carolina Business Corporation Act
    Notwithstanding the definition of the term "foreign corporation" in G.S. 55‑1‑40(10), Article 15 of Chapter 55, relating to foreign corporations, where it is not inconsistent...
  • § 53-232.6   Requirements for carrying on banking business
    (a) No international banking corporation, other than a federal international bank institution, shall transact a banking business or maintain in this State any office for...
  • § 53-232.7   Actions against international banking corporations
    (a) A resident of this State may maintain an action against an international banking corporation doing business in this State for any cause of action....
  • § 53-232.8   Application for license
    (a) Every international banking corporation, before being licensed by the Commissioner to transact a banking business in this State as an international bank branch or...
  • § 53-232.9   Effect, renewal, and revocation of licenses; permissible activities
    (a) When the Commissioner has issued a license to an international banking corporation, it may engage in the business authorized by this Article at, and...
  • § 53-232.10   Securities, etc., to be held in this State
    (a) An international banking corporation licensed under this Article shall hold, at its office in this State, currency, bonds, notes, debentures, drafts, bills of exchange,...
  • § 53-232.11   Financial certification; restrictions on investments, loans, and acceptances
    (a) Before opening an office in this State, and annually thereafter so long as a bank office is maintained in this State, an international banking...
  • § 53-232.12   Reports
    (a) An international banking corporation licensed under this Article shall, at the times and in the form prescribed by the Commissioner, make written reports in...
  • § 53-232.13   Dissolution
    (a) When an international banking corporation licensed to maintain an international bank branch or an international bank agency in this State is dissolved or its...
  • § 53-232.14   International representative offices
    (a) An international banking corporation that does not transact a banking business or any part of a banking business in or through an office in...
  • § 53-232.15   Rules
    The Banking Commission may adopt rules necessary to implement this Article. (1991, c. 679, s. 1.)
  • § 53-232.16   Cease and desist
    Upon a finding that any action of an international banking corporation or its international banking agency, international banking branch, or international representative office subject to...
  • § 53-232.17   Appeal of Commissioner's decision
    Any aggrieved party in a proceeding under this Article may, within 30 days after final decision of the Commissioner, appeal such decision to the Banking...

Article 19 - Registration of Mortgage Bankers and Brokers: Repealed.

Article 19A - Mortgage Lending Act.

  • § 53-243.01   Definitions
    The following definitions apply in this Article: (1) Act as a mortgage broker. To act, for compensation or gain, or in the expectation of compensation...
  • § 53-243.02   License required; licensee records
    (a) Other than an exempt person, it is unlawful for any person in this State to act as a mortgage broker or mortgage banker, or...
  • § 53-243.03   Review by Banking Commission
    The Banking Commission may review any rule, regulation, order, or article of the Commissioner adopted pursuant to or with respect to the provisions of this...
  • § 53-243.04   Rule-making authority
    The Commissioner may adopt any rules that the Commissioner deems necessary to carry out the provisions of this Article, to provide for the protection of...
  • § 53-243.05   Qualifications for licensure; issuance
    (a) Any person, other than an exempt person, desiring to obtain a license pursuant to this Article shall make written application for licensure to the...
  • § 53-243.05A   Licensing for limited loan officers; qualifications, revoked, suspended, or barred
    (a) An affiliated mortgage banker shall notify the Commissioner when it hires a limited loan officer on forms prescribed by the Commissioner. The form shall...
  • § 53-243.06   License renewal; termination
    (a) All licenses issued by the Commissioner under the provisions of this Article shall expire annually on the 30th day of June following issuance or...
  • § 53-243.07   Continuing education
    (a) As a condition of license renewal, the Commissioner may adopt rules to require continuing education of licensees under this Article for the purpose of...
  • § 53-243.08   Managing principals and branch managers
    Each mortgage broker or mortgage banker licensed under this Article shall have a managing principal who operates the business under that person's full charge, control,...
  • § 53-243.09   Offices; address changes; display of license
    (a) Each mortgage broker licensee shall maintain and transact business from a principal place of business in this State. A principal place of business in...
  • § 53-243.10   Mortgage broker duties
    A mortgage broker, including any mortgage broker licensee and any person required to be licensed as a mortgage broker under this Article, shall, in addition...
  • § 53-243.11   Prohibited activities
    In addition to the activities prohibited under other provisions of this Article, it shall be unlawful for any person in the course of any mortgage...
  • § 53-243.12   Disciplinary authority
    (a) The Commissioner may, by order, deny, suspend, revoke, or refuse to issue or renew a license of a licensee or applicant under this Article...
  • § 53-243.13   Records; escrow funds or trust accounts
    (a) The Commissioner shall keep a list of all applicants for licensure under this Article that includes the date of application, name, and place of...
  • § 53-243.14   Criminal penalty
    A violation of G.S. 53‑243.02 is a Class I felony. Each transaction involving the unlawful making or brokering of a mortgage loan is a separate...
  • § 53-243.15   Filing required for exempt persons; civil penalty
    (a) All exempt persons described in G.S. 53‑243.01(8) who are engaged in the mortgage brokerage or mortgage banking business on October 1, 2002, shall be...
  • § 53-243.16   Criminal history record checks
    (a) The Department of Justice may provide a criminal record check to the Commissioner for any person who has applied for or holds a mortgage...
  • § 53-243.17   Participation in national mortgage licensing system; licensing proprietary software
    (a) The Commissioner of Banks is authorized to participate in the formation and operation of a centralized and automated licensing system and data depository funded...
  • § 53-243.18   Payment of fees
    Payment of fees specified in this Article shall be made to the Office of Commissioner of Banks or, at the election of the Commissioner, to...
  • § 53-244   Reserved for future codification purposes

Article 20 - Refund Anticipation Loan Act.

  • § 53-245   Title and scope
    (a) Title. This Article shall be known and cited as the "Refund Anticipation Loan Act". (b) Scope. No person may individually or in conjunction or...
  • § 53-246   Definitions
    The following definitions apply in this Article: (1) Applicant. A person who applies for registration as a facilitator of refund anticipation loans. (2) Commission. The...
  • § 53-247   Registration requirement
    (a) Registration Requirement. No person may individually or in conjunction or cooperation with another person process, receive, or accept for delivery an application for a...
  • § 53-248   Registration procedure; informal hearing
    (a) Initial Registration. An application to become registered as a facilitator shall be in writing, under oath, and in a form prescribed by the Commissioner....
  • § 53-249   Filing and posting of loan fees; disclosures
    (a) Filing of Fee Schedule. On or before January 2 of each year, each registrant shall file with the Commissioner a schedule of the refund...
  • § 53-250   Prohibited activities
    A facilitator of a refund anticipation loan may not engage in any of the following activities: (1) Misrepresenting a material factor or condition of a...
  • § 53-251   Cease and desist; revocation of registration; penalties
    (a) Cease and Desist Order. Upon the finding that any action of a registrant may be in violation of this Article or that the registrant...
  • § 53-252   Appeal of Commissioner's decision
    The Commission shall have full authority to review any rule, regulation, order, or act of the Commissioner done pursuant to or with respect to the...
  • § 53-253   Rules; enforcement
    The Banking Commission may adopt reasonable rules as necessary to effectuate the purpose of this Article, to provide for the protection of the borrowing public,...
  • § 53-254   Exemption
    This Article does not apply to a person who does not deal directly with debtors but who acts solely as an intermediary by processing or...

Article 21 - Reverse Mortgages.

  • § 53-255   Title
    This Article shall be known and may be cited as the Reverse Mortgage Act. (1991, c. 546, s. 1; 1995, c. 115, s. 1.)
  • § 53-256   Purpose
    It is the intent of the General Assembly that reverse mortgage loans be available so that elderly homeowners may use the equity in their homes...
  • § 53-257   Definitions
    The following definitions apply in this Article: (1) Authorized lender or lender. The North Carolina Housing Finance Agency, any lender authorized to engage in business...
  • § 53-258   Authority and procedures governing reverse mortgage loans
    (a) Except as provided in subsection (b1) of this section, no person, firm, or corporation shall engage in the business of making reverse mortgage loans...
  • § 53-259   Application of rules
    In addition to the provisions of this Article, authorized lenders shall comply with rules adopted by the Commissioner that are reasonable and necessary to effectuate...
  • § 53-260   Interest
    Notwithstanding any other provisions of law to the contrary, the parties to a reverse mortgage loan may contract for the payment of interest at a...
  • § 53-261   Taxes, insurance, and assessments
    A reverse mortgage loan contract may provide that it is the primary obligation of the borrower to pay all property taxes, insurance premiums, and assessments...
  • § 53-262   Renegotiation of loan; calculation of outstanding balance; prepayment
    (a) If a reverse mortgage loan contract allows for a change in the payments or payment options, the lender may charge a reasonable fee when...
  • § 53-263   Limits on borrowers' liability
    (a) When a reverse mortgage loan becomes due, if the borrower mortgaged one hundred percent (100%) of the full value of the house then the...
  • § 53-264   Disclosures of loan terms
    (a) On forms prescribed by the Commissioner, all authorized lenders shall provide all of the following information to the Commissioner for dissemination to all counselors...
  • § 53-265   Information required of lender
    (a) At the closing of the reverse mortgage loan, the lender shall provide to the borrower the name of the lender's employee or agent who...
  • § 53-266   Effects of lender's default
    (a) A lender's failure to make loan advances to the borrower under the reverse mortgage loan contract shall be deemed the lender's default of the...
  • § 53-267   Repayment upon borrower's default
    A reverse mortgage loan contract may provide for a borrower's default, thereby triggering early repayment of the loan, based only upon one or more of...
  • § 53-268   Time for initiation of foreclosure
    When a borrower's obligation to repay the reverse mortgage loan is triggered under G.S. 53‑267, in addition to all rights conferred upon owners and borrowers...
  • § 53-269   Counseling provisions
    (a) The North Carolina Housing Finance Agency shall adopt rules governing the training of counselors and necessary standards for counselor training and shall establish reasonable...
  • § 53-270   Prohibited acts
    Reverse mortgage lenders are prohibited from engaging in any of the following acts in connection with the making, servicing, or collecting of a reverse mortgage...
  • § 53-270.1   Contracts for shared appreciation or shared value
    (a) A lender and a borrower may agree, in writing, that in addition to the principal and any interest accruing on the outstanding balance of...
  • § 53-271   Commissioner's authority to enforce; penalties
    (a) The Commissioner shall adopt rules necessary to implement and enforce the provisions of this Article. Upon finding probable cause to believe that an authorized...
  • § 53-272   Appeals
    The Banking Commission shall have full authority to review any rule, regulation, order, or act of the Commissioner done pursuant to or with respect to...
  • § 53-273   Reserved for future codification purposes
  • § 53-274   Reserved for future codification purposes

Article 22 - Check-Cashing Businesses.

  • § 53-275   Definitions
    As used in this Article, unless the context clearly requires otherwise, the term: (1) "Cashing" means providing currency for payment instruments, but does not include...
  • § 53-276   License required
    No person or other entity may engage in the business of cashing checks, drafts, or money orders for consideration without first obtaining a license under...
  • § 53-277   Exemptions
    (a) This Article shall not apply to: (1) A bank, savings institution, credit union, or farm credit system organized under the laws of the United...
  • § 53-278   Application for license; investigation; application fee
    (a) An application for licensure under this Article shall be in writing, under oath, and on a form prescribed by the Commissioner. The application shall...
  • § 53-279   Liquid assets required; other qualifications; denial of license; hearing
    (a) Every licensee and applicant shall have and maintain liquid assets of at least fifty thousand dollars ($50,000) per licensee. (b) Upon the filing and...
  • § 53-280   Maximum fees for service; fees posted; endorsement of checks cashed
    (a) Notwithstanding any other provision of law, no check‑cashing business licensed under this Article shall directly or indirectly charge or collect fees or other consideration...
  • § 53-281   Expired
  • § 53-282   Record keeping; receipt requirements
    (a) Every person required to be licensed under this Article shall maintain in its offices such books, accounts, and records as the Commissioner may reasonably...
  • § 53-283   Prohibited practices
    No person required to be licensed under this Article shall do any of the following: (1) Charge fees in excess of those authorized under this...
  • § 53-284   Suspension and revocation of license; grounds; procedure
    (a) The Commissioner may suspend or revoke any license or licenses issued pursuant to this Article if, after notice and opportunity for hearing, the Commissioner...
  • § 53-285   Cease and desist orders
    If the Commissioner determines that a person required to be licensed under this Article has violated this Article or rules adopted pursuant to it, then...
  • § 53-286   Civil penalties and restitution
    The Commissioner may order and impose civil penalties upon any person required to be licensed under this Article for violations of this Article or rules...
  • § 53-287   Criminal penalties
    A violation of G.S. 53‑276 by a person required to obtain a license under this Article is a Class I felony. Each transaction involving the...
  • § 53-288   Commissioner to adopt rules
    The Commissioner may adopt rules necessary to carry out the purposes of this Article, to provide for the protection of the public, and to assist...
  • § 53-289   Commission may review rules, orders, or acts by Commissioner
    The Commission shall have full authority to review any rule, regulation, order, or act of the Commissioner done pursuant to or with respect to the...
  • § 53-290 through 53-294   Reserved for future codification purposes

Article 23 - Continuity of Contract Under European Monetary Union.

  • § 53-295   Definitions
    The following definitions shall apply in this Article: (1) Euro. The currency of participating member states of the European Union that adopt a single currency...
  • § 53-296   Continuity of contract
    (a) If a subject of medium of payment of a contract, security, or instrument is a currency that has been substituted or replaced by the...
  • § 53-297   Effect of currency substitution on performance
    None of the following shall have the effect of discharging or excusing performance under any contract, security, or instrument, or give a party the right...
  • § 53-298   References to ECU in contracts
    (a) References to the ECU in a contract, security, or other instrument that also refers in substance to the definition of the ECU as set...
  • § 53-299   Application
    Notwithstanding any other law, this Article shall apply to all contracts, securities, and instruments, including contracts with respect to commercial transactions. (1999‑312, s. 1.)
  • § 53-300   No application to other currency alteration
    In circumstances of currency alteration other than the introduction of the euro, this Article shall not be interpreted as creating any negative inference or negative...

Article 24 - Trust Companies and Interstate Trust Business.

  • § 53-301   Definitions
    (a) Except as otherwise provided in this Article, or when the context clearly indicates that a different meaning is intended, the following definitions shall apply...
  • § 53-302   Title and purposes
    (a) This Part may be cited as the Multistate Trust Institutions Act. (b) It is the express intent of this Part to permit trust institutions...
  • § 53-303   Companies authorized to engage in trust business
    (a) No company shall engage in trust business in this State except: (1) A State trust company; (2) A State bank; (3) A State savings...
  • § 53-304   Activities not requiring a charter, license, or approval
    Notwithstanding any other provision of this Article, a company does not act as a fiduciary; engage in trust business or in any other business requiring...
  • § 53-305   Trust business of State trust institution
    A State trust institution may conduct any activities outside this State that are permissible for a trust institution in the host state, subject to the...
  • § 53-306   Trust business of out-of-state trust institution
    An out‑of‑state trust institution that establishes or acquires and maintains one or more trust offices or representative trust offices in this State under the provisions...
  • § 53-307   Trust business of foreign trust institution
    A foreign trust institution that establishes or acquires and maintains one or more trust offices in this State under the provisions of this Part may,...
  • § 53-308   Name of trust institution
    Subject to other provisions of applicable law, a person may register or reserve any name with the Secretary of State in connection with engaging or...
  • § 53-309   Trust deposits of authorized trust institutions
    (a) Subsection (b) of G.S. 36A‑63 shall not apply to an authorized trust institution. (b) In the absence of a contrary provision in an instrument...
  • § 53-310   Offices of State trust companies
    (a) A State trust company may engage in trust business or trust marketing through its principal office and through each trust office as permitted by...
  • § 53-311   State trust company principal office
    (a) Each State trust company is required to maintain a principal office in this State and to register that principal office with the Commissioner by...
  • § 53-312   Trust offices; representative trust offices
    (a) Before establishing or acquiring and maintaining a trust office or representative trust office in this State, a State trust company shall file a notice...
  • § 53-313   Out-of-state trust offices and representative trust offices
    (a) Before establishing or acquiring and maintaining a trust office or representative trust office in a host state, a State trust company shall file a...
  • § 53-314   Trust business through a branch or trust office
    An out‑of‑state trust institution may engage in trust business in this State only if it (i) maintains a trust office in this State as permitted...
  • § 53-315   Establishing an interstate trust office
    An out‑of‑state trust institution that obtains approval from the Commissioner in accordance with the provisions of this Subpart may establish and maintain a trust office...
  • § 53-316   Acquiring an interstate trust office
    An out‑of‑state trust institution that obtains approval from the Commissioner in accordance with the provisions of this Subpart may acquire and maintain a trust office...
  • § 53-317   Requirement of notice
    Before establishing or acquiring and maintaining a trust office in this State, an out‑of‑state trust institution shall provide, or cause its home state regulator to...
  • § 53-318   Action on notice
    (a) The out‑of‑state trust institution may commence business in this State through the trust office on the sixty‑first day following the date the Commissioner receives...
  • § 53-319   Additional trust offices; representative trust offices
    (a) An out‑of‑state trust institution that maintains a trust office in this State may establish or acquire and maintain additional trust offices or one or...
  • § 53-320   Examinations; periodic reports; cooperative agreements; assessment of fees
    (a) The Commissioner may examine any activity conducted through a trust office or representative trust office maintained in this State by an out‑of‑state trust institution...
  • § 53-321   Enforcement
    (a) Consistent with Article 3A of Chapter 150B of the General Statutes, after notice and opportunity for hearing, the Commissioner may determine: (1) That activities...
  • § 53-322   Notice of transactions that cause a change in control
    Each out‑of‑state trust institution that maintains a trust office or representative trust office in this State, or the home state regulator of the trust institution,...
  • § 53-323   Foreign trust institution application for trust office or representative trust office
    Before establishing or acquiring and maintaining a trust office in this State, a foreign trust institution shall make application to the Commissioner for permission to...
  • § 53-324   Conditions for approval
    (a) A foreign trust institution may engage in trust business in this State only on approval by the Commissioner of an application described in G.S....
  • § 53-325   Additional trust offices and representative trust offices
    A foreign trust institution that maintains a trust office in this State under the provisions of this Subpart may establish or acquire and maintain additional...
  • § 53-326   Examinations; periodic reports; cooperative agreements; assessment of fees
    (a) The Commissioner may examine any activity conducted through a trust office or representative trust office maintained in this State by a foreign trust institution...
  • § 53-327   Enforcement
    (a) Consistent with Article 3A of Chapter 150B of the General Statutes, after notice and opportunity for hearing, the Commissioner may determine: (1) That activities...
  • § 53-328   Notice of transactions that cause a change in control
    Each foreign trust institution that maintains a trust office or representative trust office in this State, or the home country regulator of the foreign trust...
  • § 53-329   International agreements
    If any provision of this Article concerning foreign trust institutions, or the application of that provision, is found by any competent adjudicatory body to violate...
  • § 53-330   Title and purposes
    (a) This Part may be cited as the State Trust Company Charter Act. (b) It is the express intent of this Part to provide for...
  • § 53-331   Organization and powers of State trust company
    (a) Subject to the other provisions of this Part, one or more persons may organize and charter a State trust company, which may be incorporated...
  • § 53-332   Articles of incorporation of State trust company
    The articles of incorporation of a State trust company shall be signed and acknowledged by or on behalf of each organizer and shall contain: (1)...
  • § 53-333   Application for State trust company charter and permission to incorporate State trust company
    (a) An application for a State trust company charter and permission to incorporate the State trust company shall be made to the Commissioner in the...
  • § 53-334   Notice and investigation of charter application
    (a) The Commissioner shall notify the organizers when the application is complete and accepted for filing and all required fees have been paid. (b) The...
  • § 53-335   Decision on charter application and hearing
    (a) The Commissioner, based on the application and investigation described in this Subpart, shall enter an order approving or denying approval of the application. (b)...
  • § 53-336   Issuance of charter
    (a) A proposed State trust company shall not be incorporated or engage in trust business or trust marketing until it receives a charter issued by...
  • § 53-337   Required initial capital
    (a) The Commissioner shall not issue a charter to a proposed State trust company having initial capital of less than two million dollars ($2,000,000), except...
  • § 53-338   Subordinated notes or debentures
    The amount of any outstanding notes or debentures that are subordinated to creditors or classes of creditors of the State trust company may be treated...
  • § 53-339   Application of laws relating to general business corporations
    Chapter 55 of the General Statutes applies to a State trust company to the extent not inconsistent with this Article. Except for the filing of...
  • § 53-340   Investment in State trust company facilities
    (a) A State trust company may invest in one or more State trust company facilities consistent with the safe and sound operation of a State...
  • § 53-341   Other real estate
    (a) A State trust company shall not acquire real estate other than a State trust company facility for its own account except: (1) Securitized interests...
  • § 53-342   Securities and other investments
    (a) A State trust company may invest its corporate funds in any type or character of equity securities or debt securities subject to the limitations...
  • § 53-343   Prohibited distributions, acquisitions, liens, or pledges
    A State trust company shall not make any distribution to its shareholders, acquire its own shares, acquire a lien upon its own shares, or pledge...
  • § 53-344   Subsidiaries
    (a) Before acquiring, establishing, or performing activities through a subsidiary, a State trust company shall file a notice with the Commissioner, in the form required...
  • § 53-345   Engaging in commerce prohibited
    Except as otherwise provided by this Part, or by rules, orders, or declaratory rulings of the Commissioner, a State trust company shall not engage in...
  • § 53-346   Lending and lease financing; conversion to State bank
    (a) Except as may be appropriate for extensions of credit in connection with trust or other account relationships, and as provided in and subject to...
  • § 53-347   Acquisition of control
    (a) Except as this section otherwise expressly permits, a person shall not, without the approval of the Commissioner, directly or indirectly acquire control of a...
  • § 53-348   Application regarding acquisition of control
    (a) A person seeking approval to acquire control of a State trust company shall file with the Commissioner: (1) An application in the form required...
  • § 53-349   Decision on acquisition of control
    (a) Not later than the sixtieth day following receipt of the application, the Commissioner shall either approve or deny the proposed acquisition of control. (b)...
  • § 53-350   Appeal
    Any order entered by the Commissioner with respect to an application for acquisition or control of a State trust company shall be subject to review...
  • § 53-351   Report of changes in chief executive officer or directors
    Each State trust company shall report to the Commissioner within 48 hours, on the forms and with the information required by the Commissioner, any changes...
  • § 53-352   Board of directors
    (a) All corporate powers of a State trust company shall be exercised under the authority of, and the business and affairs of a State trust...
  • § 53-353   Required board meetings
    The board of directors of a State trust company shall hold at least one regular meeting each quarter. At each regular meeting, the board shall...
  • § 53-354   Officers
    The board of directors shall annually appoint the officers of the State trust company who shall serve at the pleasure of the board. The contract...
  • § 53-355   Certain criminal offenses
    (a) An officer, director, employee, or shareholder of a State trust company commits an offense if the person knowingly: (1) Conceals information or a fact,...
  • § 53-356   Responsibility of directors
    (a) The standard of conduct for directors shall be as set forth in G.S. 55‑8‑30. (b) Any director of a State trust company who shall...
  • § 53-357   Record keeping
    A State trust company shall keep its fiduciary records separate and distinct from its other records. The fiduciary records shall contain all material information relative...
  • § 53-358   Bonding requirements; reports of apparent crime
    (a) The board of directors of a State trust company shall require protection and indemnity for the State trust company and its clients in amounts...
  • § 53-359   Merger, share exchange, or asset transfer authority
    (a) With the approval of the Commissioner, a State trust company may merge or exchange its shares with, or acquire or be acquired through a...
  • § 53-360   Merger, share exchange, or asset transfer application
    (a) A copy of the proposed articles of merger or share exchange, or asset transfer agreement, and an application in the form required by the...
  • § 53-361   Notice and investigation of merger, share exchange, or asset transfer; decision, hearing, and appeal
    (a) The Commissioner shall notify the parties to the proposed merger, share exchange, or asset transfer when the application is complete and all required fees...
  • § 53-362   Rights of dissenters to mergers, share exchanges, or asset transfers
    A shareholder of a State trust company may dissent from the proposed merger, share exchange, or asset transfer to the extent allowed under, and by...
  • § 53-363   Private trust companies
    (a) The following definitions apply in this Subpart: (1) "Designated relative" means the individual required to be named in the application under G.S. 53‑364(a)(5) requesting...
  • § 53-364   Requirements to apply for and maintain status as a private trust company
    (a) A private trust company or a proposed private trust company requesting an exemption from the provisions of this Article pursuant to G.S. 53‑363 shall...
  • § 53-365   Conversion to public trust company
    (a) Before transacting business with the general public, a private trust company shall file a notice on a form prescribed by the Commissioner, which shall...
  • § 53-366   Applicability of other laws to authorized trust institutions; status of State trust company
    (a) Except as otherwise provided in this Article, the following provisions of this Chapter shall apply to authorized trust institutions: (1) G.S. 53‑14; (2) G.S....
  • § 53-367   Commissioner shall have supervision over authorized trust institutions and shall examine
    Every authorized trust institution shall be under the supervision of the Commissioner. The Commissioner may periodically examine and require reports from authorized trust institutions, and...
  • § 53-368   Assessment of State trust companies
    (a) For the purpose of operating and maintaining the office of the Commissioner, each State trust company shall pay into the office of the Commissioner,...
  • § 53-369   Administrative orders; penalties for violation; increase of equity capital
    (a) In addition to any other powers conferred by this Chapter, the Commissioner may: (1) Order any authorized trust institution, or affiliate thereof, or any...
  • § 53-370   Notice and opportunity for hearing
    Consistent with Chapter 150B of the General Statutes, notice and opportunity for hearing shall be provided before the Commissioner may act under the provisions of...
  • § 53-371   Removal of directors, officers, and employees
    The Commissioner may require the immediate removal from office of any officer, director, or employee of any State trust company, who shall be found to...
  • § 53-372   Required vote of shareholders
    With the approval of the Commissioner, a State trust company may go into voluntary liquidation, be closed, and surrender its charter and franchise as a...
  • § 53-373   Corporate procedure
    Shareholder action to liquidate a State trust company shall be taken at a meeting of the shareholders duly called by resolution of the board of...
  • § 53-374   Authority to liquidate; publication
    If the Commissioner approves the liquidation, the Commissioner shall issue to the State trust company, under the Commissioner's seal, a permit for liquidation. No permit...
  • § 53-375   Examination and reports
    When any State trust company is in the process of voluntary liquidation, it shall be subject to examination by the Commissioner and shall furnish any...
  • § 53-376   Unclaimed property
    All unclaimed property remaining with a State trust company voluntarily liquidated under the provisions of this Subpart shall be subject to the provisions of Chapter...
  • § 53-377   When Commissioner may take charge
    The Commissioner may take possession of the business and property of any State trust company whenever it appears that the trust company: (1) Is in...
  • § 53-378   Directors may act
    A State trust company may place its assets and business under the control of the Commissioner by a resolution of a majority of its directors...
  • § 53-379   Notice of seizure; bar to attachment of liens
    When the Commissioner takes possession of any State trust company under G.S. 53‑377 or G.S. 53‑378, the Commissioner shall, within 48 hours, file with the...
  • § 53-380   Notice to trust institutions, corporations, and others holding assets; existing liens
    Upon taking possession of the assets and business of any State trust company, the Commissioner shall forthwith give notice, by mail or otherwise, of the...
  • § 53-381   Permission to resume business
    (a) After the Commissioner has taken possession of a State trust company under the provisions of this Subpart, the State trust company may resume business...
  • § 53-382   Remedy for seizure; answer to notice; injunction; appeal; and motions
    (a) Whenever any State trust company of which the Commissioner has taken possession under G.S. 53‑377 shall deem itself aggrieved thereby, it may file an...
  • § 53-383   Collection of debts and claims; Commissioner succeeds to all property of the State trust company
    (a) Upon taking possession of the assets and business of any State trust company, the Commissioner is authorized to collect all money due the State...
  • § 53-384   Bond of the Commissioner; surety; condition; minimum penalty
    Upon taking possession of any State trust company, the Commissioner shall execute and file a bond payable to this State for the benefit of creditors,...
  • § 53-385   Inventory
    Within 90 days after the filing of a notice described in G.S. 53‑279, the Commissioner shall file an inventory of the assets and liabilities, not...
  • § 53-386   Notice and time for filing claims
    Notice shall be given by advertisement once a week for four consecutive weeks in a newspaper published in the county where the principal office of...
  • § 53-387   Power to reject claims; notice; affidavit of service; action on claims
    If the Commissioner doubts the validity of any claim, the Commissioner may reject the claim, in whole or in part, and serve notice of the...
  • § 53-388   List of claims presented, copies, and proviso
    Upon the expiration of the time fixed for presentation of claims, the Commissioner shall make a full and complete list of the claims presented, including...
  • § 53-389   Declaration of dividends; order of preference in distribution
    (a) At any time after the expiration of the date fixed by the Commissioner for the presentation of claims against the State trust company, and...
  • § 53-390   Deposit of funds collected
    All funds collected by the Commissioner, in liquidating any State trust company, shall be deposited from time to time in a bank as may be...
  • § 53-391   Employment of counsel, accountants, and other experts; compensation
    The Commissioner, for the purpose of exercising any power under the provisions of this Subpart, may (i) employ any liquidating agents, attorneys, accountants, consultants, and...
  • § 53-392   Unclaimed dividends held in trust
    Unclaimed dividends for claims described in subdivisions (a)(1) through (a)(4) of G.S. 53‑389 shall be held by the Commissioner in trust for the claimants to...
  • § 53-393   Action by the Commissioner following full settlement
    Whenever the Commissioner has paid all duly proven and allowed claims described in subdivisions (a)(1) through (a)(4) of G.S. 53‑389, has made proper provision for...
  • § 53-394   Annual report of the Commissioner; items included; reports of condition of State trust companies
    (a) The Commissioner shall file, as a part of an annual report to the Governor, a list of the names of any State trust companies...
  • § 53-395   Compensation of the Commissioner's office
    The office of the Commissioner, for services rendered in connection with the duties described in this Subpart, shall be entitled to actual expenses incurred in...
  • § 53-396   Exclusive method of liquidation
    No State trust company shall be liquidated other than as provided in this Part. (2001‑263, s. 1.)
  • § 53-397   Disposition of books and records
    All fiduciary records relating to the administration of particular accounts shall be turned over to the successors in charge of administration of the accounts. All...
  • § 53-398   Destruction of books and records
    (a) After the expiration of five years from the date of filing, in the office of the clerk of the superior court of the county...
  • § 53-399   Petition for new trustee
    Any person interested in any account, either as trustee, beneficiary, client, or otherwise, may petition the clerk of superior court of the county in which...
  • § 53-400   Report to the Secretary of State
    The Commissioner shall, on or before the first day of each year, file with the Secretary of State a report showing any State trust companies...
  • § 53-401   Provisions for conservator; duties and powers
    Whenever the Commissioner deems it necessary in order to conserve the assets of a State trust company for the benefit of clients or creditors, the...
  • § 53-402   Examination
    The Commissioner shall examine the affairs of a State trust company placed under conservatorship in the manner deemed necessary by the Commissioner to oversee the...
  • § 53-403   Termination of conservatorship
    If the Commissioner is satisfied that the conservatorship may be terminated with safety to the clients, creditors, and shareholders of the State trust company, and...
  • § 53-404   Rights and liabilities of conservator
    A conservator appointed pursuant to the provisions of this Subpart is subject to the provisions of G.S. 53‑331 and to the penalties prescribed by G.S....
  • § 53-405   Naming of conservator not liquidation
    No power conferred in this Subpart upon the Commissioner, when exercised, shall be deemed as an act of possession for the purposes of liquidation; and...
  • § 53-406   Sale of assets by board of jeopardized State trust company
    (a) With the Commissioner's approval, the board of directors of a jeopardized State trust company, acting without shareholder approval and notwithstanding any other provision of...
  • § 53-407   Authority to act as disbursing agent
    If a purchasing trust institution acts under a written agency contract that (i) is approved by the Commissioner; (ii) specifically names each creditor and the...
  • § 53-408   Payment to creditors
    Payment to a creditor of the selling institution of the amount to be paid under the terms of a contract of agency described in G.S....
  • § 53-409   Issuance of preferred shares by jeopardized trust company
    Notwithstanding any other provisions of this Article or any other laws, and notwithstanding any of the provisions of its articles of incorporation or bylaws, any...
  • § 53-410   Commissioner to act under authority of the Commission
    All the powers, duties, and functions granted to or imposed upon the Commissioner by law shall be exercised under the direction and supervision of the...
  • § 53-411   Rules
    The Commission may adopt rules in accordance with Chapter 150B of the General Statutes to carry out the provisions of this Article relating to authorized...
  • § 53-412   Commissioner hearings; appeals
    (a) This section does not grant a right to a hearing to a person that is not otherwise granted by governing law. (b) The Commissioner...
  • § 53-413   Civil enforcement
    The Commissioner may bring any appropriate civil action against any person the Commissioner believes has committed or is about to commit a violation of this...
  • § 53-414   Cancellation of charter
    Whenever a merger, share exchange, sale of assets, liquidation, or other transaction occurs by which a State trust company ceases to exist or ceases to...
  • § 53-415   Severability
    If any provision of this Article, or its application, is found by any court of competent jurisdiction in the United States to be invalid as...
  • § 53-416   Reserved for future codification purposes
  • § 53-417   Reserved for future codification purposes
  • § 53-418   Reserved for future codification purposes
  • § 53-419   Reserved for future codification purposes
  • § 53-420   Affiliate transfers authorized; procedure
    (a) A trust institution may make an affiliate transfer of one or more accounts subject to the provisions of this Part unless the provisions governing...
  • § 53-421   Objection to affiliate transfer
    If a client, or a person acting on behalf of the client, delivers a written objection to the affiliate transfer to the transferring trust institution...
  • § 53-422   Effect of affiliate transfer
    (a) Following an affiliate transfer, the transferee trust institution shall have all of the rights, powers, privileges, appointments, accounts, and designations of the transferring trust...
  • § 53-423   Trust institution as agent
    A trust institution may appoint another trust institution that is its affiliate as its agent for the performance of acts, obligations, and responsibilities with respect...
  • § 53-424   Construction
    (a) Except as expressly provided in this Part, nothing in this Part shall be construed to amend or modify the laws of this State governing...

Article 25 - Asset-Backed Securities Facilitation.

  • § 53-425   Definitions
    The following definitions apply in this Article: (1) Beneficial interest. Debt or equity interests or obligations of any type that are issued by a special...
  • § 53-426   Waiver of equity of redemption
    (a) Notwithstanding any other provision of law, except to the extent otherwise set forth in the transaction documents relating to a securitization, all of the...