North Carolina Administrative Code

04 NCAC 06B .0103 HEARINGS History Note: Authority G.S. 54-109.12; 150B-11(3); 150B-12(d),(e); Eff. February 1, 1976; Readopted Eff. April 4, 1978; Repealed Eff. July 16, 1988 in accordance with G.S. 150B-59(c).

04 NCAC 06B .0104 TEMPORARY RULES History Note: Authority G.S. 54-109.12; 150B-13; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Repealed Eff. July 16, 1988 in accordance with G.S. 150B-59(c).

04 NCAC 06B .0105 DECLARATORY RULINGS History Note: Authority G.S. 54-109.12; 150B-17; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Repealed Eff. June 1, 1990.

SECTION .0300 - RULE-MAKING HEARINGS 04 NCAC 06B .0301 PETITION FOR ADOPTION: AMENDMENT OR REPEAL OF RULES (a) Right to Petition. Any interested person may petition the Administrator to promulgate, amend, or repeal an administrative rule. (b) Form of Petition. The petition shall …

04 NCAC 06B .0302 NOTICE OF RULE-MAKING HEARINGS Any person or agency desiring to be placed on the mailing list for the Administrator's rule-making notices may file such request by furnishing a name and mailing address in writing to the Division at its mailing address. The reques…

04 NCAC 06B .0303 RULE-MAKING HEARINGS: GENERAL INFORMATION The hearing officer shall have control of the proceedings, including extensions of any time requirements, order of presentations, time allotments for presentations, direction of the flow of the discussion and the managem…

SECTION .0400 - DECLARATORY RULINGS 04 NCAC 06B .0401 PETITION FOR DECLARATORY RULING (a) Petitioner Must Possess Interest. The petitioner must possess such an interest in the question to be ruled on that the petitioner's need to have such a ruling in order to comply with statuto…

04 NCAC 06B .0402 RESPONSE OF ADMINISTRATOR TO PETITION (a) A written response to the petition for a declaratory ruling, whether in the form of a declaratory ruling or a refusal to issue a declaratory ruling, shall be issued as set forth in G.S. 150B-4. (b) The Administrator shal…

SECTION .0500 - ADMINISTRATIVE HEARINGS 04 NCAC 06B .0501 RIGHT TO HEARING Whenever the Administrator acts in such a way as to affect the rights, duties or privileges of a specific identified party, the party may appeal for a final decision by the Administrator in accordance with…

04 NCAC 06B .0502 INFORMAL SETTLEMENT (a) Attendance at Settlement Conference. Before a hearing request can be acted upon, a person must first make an effort to resolve the matter with the Division informally and must attend and participate in any scheduled meetings or conference…

04 NCAC 06B .0503 REQUEST FOR HEARING (a) Form of Request. A request for an administrative hearing must be in writing and must contain the following information: (1) name and address of the person requesting the hearing; (2) a concise statement of the action by the Administrator …

04 NCAC 06B .0504 NOTICE OF HEARING Notice of a public hearing shall be given in writing to the appropriate parties in advance of the hearing date as required by the law applicable to the hearing being held. History Note: Authority G.S. 150B-38; Eff. June 1, 1990; Pursuant to G.S…

04 NCAC 06B .0505 INTERVENTION IN AN ADMINISTRATIVE HEARING (a) Petition to Intervene. A petition to intervene may be permitted if timely and if the petition meets the criteria set forth in G.S. 1A-1, Rule 24(b). (b) Intervention Criteria. In addition, the Administrator, in his d…

04 NCAC 06B .0506 DEPOSITIONS The use of depositions may be allowed only when attendance at a hearing would work a hardship on a person otherwise available to be subpoenaed as a witness, and such hardship is so great as to be unreasonable in light of the testimony that person may…

04 NCAC 06B .0507 SUBPOENAS (a) Hearing Officer May Issue Subpoena. Any hearing officer may issue subpoenas in the name of the Administrator. (b) Request for Subpoena. Subpoenas requiring the attendance of witnesses, or the production of documents, evidence or things will be issu…

04 NCAC 06B .0508 SERVICE OF SUBPOENAS (a) Methods of Service. Subpoenas shall be served as the officer issuing the subpoena shall direct. Subpoenas may be directed to be served by any of the following methods: (1) by an employee of the Division; or (2) by the sheriff of the coun…

04 NCAC 06B .0509 OBJECTION TO A SUBPOENA (a) Form of Objection. Except as may be otherwise stated in a particular subpoena, a party or person receiving a subpoena from the Division may object thereto by filing a written objection to the subpoena with the Division at its mailing …

SUBCHAPTER 06C - CREDIT UNIONS SECTION .0100 - GENERAL INFORMATION 04 NCAC 06C .0101 DEFINITIONS When used in this Subchapter, the following words and phrases shall have the following meaning: (1) "Administrator" means the Administrator of State-Chartered credit unions. (2) "Boar…

04 NCAC 06C .0102 POWERS OF A CREDIT UNION History Note: Authority G.S. 54-109.12; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Repealed Eff. April 1, 1985.

04 NCAC 06C .0103 TAXATION History Note: Authority G.S. 54-109.1; 54-109.2 (b)(5); 54-109.22; 54-109.99; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Amended Eff. October 1, 1983; Repealed Eff. January 1, 1992.

SECTION .0200 - ORGANIZATION OF CREDIT UNIONS 04 NCAC 06C .0201 INCORPORATION OF STATE CHARTERED CREDIT UNIONS (a) All credit unions desiring a state charter shall be organized as a corporation under the General Statutes, Articles 14A to 15A of Subchapter III, Chapter 54. In acco…

04 NCAC 06C .0202 MINIMUM POTENTIAL MEMBERSHIP GUIDELINES (a) Based on established policy, standards, and the history of the Credit Union Division chartering credit unions, the Administrator shall determine if the breadth and strength of the proposed field of membership is too br…

04 NCAC 06C .0203 FIELDS OF MEMBERSHIP (a) Parity, for the purpose of this Rule, allows the Administrator to approve fields of membership and permit State chartered credit unions the same latitude with regard to membership limitations and restrictions as is available to federally…

04 NCAC 06C .0204 BYLAWS AND ARTICLES OF INCORPORATION In addition to submitting the articles of incorporation, all credit unions desiring a state charter must prepare and adopt bylaws for the general government of the Credit Union, consistent with the General Statutes, Articles …

04 NCAC 06C .0205 LOANS TO CREDIT UNION OFFICIALS (a) Officials. For purposes of this Rule, an "official" is a member of the board of directors, credit committee, or supervisory committee. (b) Loans to Officials. A loan or line of credit, including limits of credit cards, extende…

04 NCAC 06C .0206 MERGER OF CREDIT UNIONS Two or more credit unions may merge into a single credit union, provided the Administrator, after an investigation, is satisfied that the proposed merger is favorable to the continued success of the surviving credit union. Credit unions i…

04 NCAC 06C .0207 CONVERSION OF CHARTER FROM NORTH CAROLINA CHARTER (a) A North Carolina credit union may be converted into another state or federal credit union if permitted by the other state or the Federal Credit Union Act. The proposition for such conversion shall be approved…

04 NCAC 06C .0208 CONVERSION OF CHARTER TO NORTH CAROLINA CHARTER (a) Another state or federal credit union organized under applicable laws, may be converted into a North Carolina Credit Union by complying with all applicable requirements requisite to enabling it to convert to a …

04 NCAC 06C .0209 OUT OF STATE OFFICE FACILITIES Before a credit union may open a branch office in another state, a written request shall be submitted to the Administrator of credit unions for his or her approval. The Administrator may request necessary information and conduct an…

04 NCAC 06C .0210 OUT-OF-STATE CREDIT UNIONS History Note: Authority G.S. 54-109.5; 54-109.21(25); 54-109.94; 54-109.95; Eff. October 1, 1983; Repealed Eff. January 1, 1992.

SECTION .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS 04 NCAC 06C .0301 GENERAL PROVISIONS (a) Internal controls, accounting procedures, and operational standards adequate to safeguard the assets shall be establis…

04 NCAC 06C .0302 PROCEDURES The basic internal controls, accounting procedures, and operation standards for all credit unions shall be as follows: (1) an adequate general ledger and detailed cash journal shall be maintained for the control of all transactions of the credit union…

04 NCAC 06C .0303 DEPRECIATION AND AMORTIZATION SCHEDULES History Note: Authority G.S. 54-109.12; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Repealed Eff. March 1, 2015.

04 NCAC 06C .0304 MANAGEMENT DUTIES All credit unions shall conduct their business and the selection of their employees using management and business skills to assure the safe and sound operation of the credit union. Management shall be responsible for: (1) implementing the polic…

04 NCAC 06C .0305 INDEPENDENT AUDITS (a) An audit of each State-chartered credit union shall occur at least once each calendar year and shall cover the period elapsed since the last audit. The audit shall be performed using generally accepted auditing standards. It shall be the r…

04 NCAC 06C .0306 DISPLAY OF FINANCIAL STATEMENTS Each credit union shall display at its main office and all branches, copies of its monthly financial statement. The statement shall be posted in a manner that is accessible for inspection by members. History Note: Authority G.S. 5…

04 NCAC 06C .0307 LISTING OF OFFICIALS AND OPERATING HOURS (a) Each credit union shall notify the Administrator of the names and addresses of its officers, directors, committee members of the credit committee and supervisory committee, managers, and internal auditors. (b) Each cr…

04 NCAC 06C .0308 BORROWING LIMITATIONS No credit union may borrow funds from any source in excess of 50 percent of its unimpaired capital without the written approval of the Administrator. Nonmember deposit accounts are considered to be borrowed funds. History Note: Authority G.…

04 NCAC 06C .0309 OPERATIONAL SYSTEMS (a) Credit unions, associations of credit unions, and any other parties interested in credit union programs may submit pilot programs relating to electronic funds transfer through remote service units, loan programs, and other operational sys…

04 NCAC 06C .0310 SHARE DRAFT PROGRAMS Share draft programs are permissible if provided for in the Credit Union bylaws or have otherwise been approved by the Administrator. History Note: Authority G.S. 54-109.12; 54-109.3(9)(11); 54-109.21(23); 54-109.22; 54-109.53; 54-109.55; Ef…

04 NCAC 06C .0311 FIDELITY AND SURETY BONDS AND INSURANCE COVERAGE (a) The board of directors of a credit union shall purchase a blanket fidelity bond as required by G.S. 54-109.44(2). (b) Every credit union shall maintain the minimum bond and insurance coverage as required by G.…

04 NCAC 06C .0312 INSURANCE AND GROUP PURCHASING Credit unions may purchase, make available, or enter into cooperative marketing arrangements (group purchasing) to facilitate its members' voluntary purchase of insurance and other goods and services that shall be in the interest o…

04 NCAC 06C .0313 CREDIT UNION SERVICE ORGANIZATION (CUSO) (a) For purposes of this Section, a "credit union service organization" (CUSO) is an entity defined in Rule .0101(9) of this Subchapter. (b) A CUSO may provide the following functions or services: (1) credit union operati…

SECTION .0400 - LOANS 04 NCAC 06C .0401 DELINQUENT LOANS AND LOAN LOSSES (a) Monthly Schedule of Delinquent Loans. Each credit union shall, at the end of each month, prepare and review a schedule of delinquent loans that shall list the account number, name(s) of borrower(s), date…

04 NCAC 06C .0402 CHARGE-OFF OF UNCOLLECTaBLE LOANS (a) All credit unions shall have a Charge–Off of Uncollectable Loans Policy. All losses resulting from uncollectable loans shall be charged against the Allowance for Loan Losses or any special reserve as set forth in G.S. 54-109…

04 NCAC 06C .0403 REAL ESTATE LOANS (a) Loan Limitations. No more than 30 percent of the total dollar amount of shares and deposits shall be made in fixed rate real estate loans with a remaining maturity of more than seven years without the permission of the Administrator, based …

04 NCAC 06C .0404 LINE OF CREDIT LOANS History Note: Authority G.S. 54-109.11(4); 54-109.12; 54-109.15; 54-109.16; 54-109.17; 54-109.70; 54-109.71(b); 54-109.82; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Amended Eff. January 1, 1992; December 1, 1979; Readopted Eff. Fe…

04 NCAC 06C .0405 MAXIMUM INTEREST RATE ON LOANS History Note: Authority G.S. 54-109.65; Eff. April 4, 1978; Amended Eff. April 15, 1980; Repealed Eff. April 1, 1985.

04 NCAC 06C .0406 MAXIMUM UNSECURED LOAN LIMITS History Note: Authority G. S. 54-109.67; Eff. October 1, 1983; Repealed Eff. April 1, 1985.

04 NCAC 06C .0407 Commercial Lending and Member Business Loans (a) Commercial lending and member business loans. State chartered federally insured credit unions shall adhere to the federal regulations prescribed by the National Credit Union Administration relating to commercial l…