North Carolina Administrative Code

04 NCAC 06C .0408 SALE OF LOANS (a) A credit union may sell its loans provided the Board of Directors or designated Committee approves the sale and a written agreement and a schedule of loans covered by the agreement are retained in the credit union office. (b) A credit union may…

04 NCAC 06C .0409 LOAN LIMITATIONS (a) No loan or line of credit advance shall be made to an individual member, or immediate family member, if such a loan or line of credit advance causes that member along with that member's immediate family to be indebted to the credit union in …

04 NCAC 06C .0410 Prohibited Fees (a) A North Carolina Credit Union shall not make any loan or extend any line of credit if, either directly or indirectly, any commission, fee, or other compensation is to be received by the Credit Union's directors, committee members, senior mana…

SECTION .0500 - IMPAIRMENT AND INSOLVENCY 04 NCAC 06C .0501 IMPAIRMENT (a) An impairment of capital shall exist if the credit union is unable to provide for Allowance for Loan Losses, or any other reserve required by the Administrator. (b) In determining the degree of impairment …

04 NCAC 06C .0502 INSOLVENCY Inability to meet demands of shareholders or creditors shall constitute insolvency. History Note: Authority G.S. 54-109.12; 54-109.92; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Readopted Eff. February 1, 2018.

SECTION .0600 - DIVIDENDS: DEPOSITS AND INTEREST REBATE 04 NCAC 06C .0601 DIVIDENDS (a) The board of directors may declare dividends pursuant to G.S. 54-109.44 (5) and G.S. 54-109.54. (b) No dividend shall be declared or paid unless the credit union has satisfied the reserve requ…

04 NCAC 06C .0602 DEPOSITS History Note: Authority G.S. 54-109.12; 54-109.44(6); Eff. February 1, 1976; Readopted Eff. April 4, 1978; Repealed Eff. April 1, 1985.

04 NCAC 06C .0603 INTEREST REBATES The Board of directors may authorize the payment of an interest rebate on loan accounts upon such reasonable terms as are consistent with the following provisions: (1) The Board of directors shall authorize the method of computation, payment and…

04 NCAC 06C .0706 DORMANT ACCOUNTS After an account is declared dormant and the provisions of the law have been complied with, the Credit Union must transfer the dormant account to accounts payable (N.C. Escheats Fund) and maintain detailed records of such accounts until paid to …

04 NCAC 06C .0707 STATEMENTS OF ACCOUNTS History Note: Authority G.S. 54-109.12; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Repealed Eff. February 1, 2018.

04 NCAC 06C .0708 CHARITABLE CONTRIBUTIONS AND CHARITABLE DONATION ACCOUNTS (a) A credit union may make charitable contributions and donations or may fund a charitable donation account. The following definitions apply throughout this Rule: (1) "Charitable contributions and donati…

SECTION .0800 - REPORTS TO ADMINISTRATOR 04 NCAC 06C .0801 FINANCIAL STATEMENTS AND OTHER INFORMATION Each credit union shall furnish a report of condition to the Administrator due on the same date as designated by the federal insurer in January, April, July, and October. The rep…

04 NCAC 06C .0802 ADDITIONAL REPORTS The Administrator may require any additional reports of the status of credit unions as he deems necessary. The additional reports are due within fifteen (15) days of the date specified by the Administrator. History Note: Authority G.S. 54-109.…

SECTION .0900 - PENSION PLANS 04 NCAC 06C .0901 CREDIT UNION AS CUSTODIAN A credit union is authorized to act as custodian, and may receive reasonable compensation for so acting, under any written trust instrument or custodial agreement created or organized in the United States a…

04 NCAC 06C .0902 SUCCESSOR CUSTODIAN The plan shall provide for the appointment of a successor custodian by a person, committee, corporation or organization other than the Credit Union or any person acting in his capacity as a director, employee or agent of the Credit Union, upo…

SECTION .1000 - RETENTION OF RECORDS 04 NCAC 06C .1001 PERMANENT RECORD (a) Each credit union shall retain its records in a manner consistent with reasonable business practices as set forth in G.S. 54-109.17, rules and federal regulations. (b) The credit union shall permanently r…

04 NCAC 06C .1002 NONPERMANENT RECORDS (a) Each credit union shall retain nonpermanent records as defined in Paragraph (b) of this Rule, in a manner consistent with reasonable business practices as set forth in G.S. 54-109.17, rules, and federal regulations. The board of director…

SECTION .1200 - INVESTMENTS 04 NCAC 06C .1201 INVESTMENT ACTIVITIES Investments shall be made pursuant to G.S. 54, Article 14 I. The Administrator shall consider agreements or options to buy or sell government securities at a future date that are speculative in nature as unsafe a…

04 NCAC 06C .1202 PERMISSIBLE TRANSACTIONS Credit unions may: (1) purchase or sell securities in accordance with G.S. 54-109.1 et seq. and when the purchase or sale is to be completed within five business days after the agreement is made; (2) buy or sell a future contract only if…

04 NCAC 06C .1203 RESTRICTED TRANSACTIONS Transactions such as options to buy or sell securities for merely speculative purposes are unsafe and unsound practices. Credit unions may not enter into standby commitments or cash forward agreements to purchase or sell securities or rev…

04 NCAC 06C .1204 FEDERAL FUNDS A credit union may invest in federal funds through any federally-insured financial institution. History Note Authority G.S. 54-109.21(8); 54-109.21(25); 54-109.82(5); 54-109.82(12); Eff. May 15, 1981; Amended Eff. March 1, 2016; October 1, 1983; Re…

04 NCAC 06C .1205 Automatic liens upon all shares to secure all debts In addition to the lien on shares, deposits and accumulated dividends of members as granted by G.S. 54-109.59, a credit union shall also have an automatic lien upon all such shares, deposits and accumulated div…

SECTION .1300 - RESERVES 04 NCAC 06C .1301 Special Reserves for Liquidity (a) Credit unions shall have a Liquidity Policy and Contingency Funding Plan as set forth in 12 C.F.R. Part 741.12, including any subsequent amendments, which are incorporated by reference and may be found …

04 NCAC 06C .1302 OTHER RESERVES (a) Pursuant to G.S. 54-109.86(b), transfers to regular reserves shall be set at zero percent. (b) Special reserves for delinquent loans and reserves for line of credit shall be maintained as required in Rules .0401 and .0404(b) of this Subchapter…

04 NCAC 06C .1303 CORPORATE CREDIT UNION RESERVES (a) Definitions. (1) A "corporate credit union" is a credit union whose primary mission is to serve corporate (credit union) accounts. The membership of a corporate credit union shall be institutional and only credit unions can be…

SECTION .1400 - SIGNATURE GUARANTEE SERVICES 04 NCAC 06C .1401 SIGNATURE GUARANTEE Provided the following conditions are satisfied, a credit union may offer its members signature guarantee services in connection with the transfer of securities, name change on a security certifica…

04 NCAC 07 .0504 CLASSIFICATION OF MILK History Note: Filed as a Temporary Repeal Eff. September 1, 1990 for a period of 180 days to expire on February 28, 1991; Filed as a Temporary Amendment [(a)(4)] Eff. September 20, 1982, for a period of 120 days to expire on January 18, 198…

04 NCAC 07 .0505 RULES OF CLASSIFICATION History Note: Filed as a Temporary Amendment [(e)(2)] Eff. September 20, 1982, for a period of 120 days to expire on January 18, 1983; Filed as an Emergency Amendment [(e)] Eff. October 20, 1980 for a period of 120 days to expire on Februa…

04 NCAC 07 .0506 DETERMINATION OF EQUALIZATION PAYMENTS History Note: Filed as a Temporary Repeal Eff. September 1, 1990 for a period of 180 days to expire on February 28, 1991; Statutory Authority G.S. 106-266.8(3),(7); Eff. August 1, 1989; Repealed Eff. February 28, 1991.

04 NCAC 07 .0507 MINIMUM CLASS PRICES AND BUTTERFAT DIFFERENTIALS History Note: Filed as a Temporary Repeal Eff. September 1, 1990 for a period of 180 days to expire on February 28, 1991; Filed as a Temporary Amendment [(a) and (b) (5)] Eff. August 4, 1986, for a period of 120 da…

04 NCAC 07 .0510 HANDLER AND PRODUCER PAYROLL REPORTS History Note: Filed as a Temporary Amendment Eff. September 1, 1990 for a period of 180 days to expire on February 28, 1991; Statutory Authority G.S. 106-266.8(3),(5),(7),(12),(14); Eff. August 1, 1989; Amended Eff. February 2…

04 NCAC 07 .0513 METHOD OF SETTLEMENT History Note: Filed as a Temporary Repeal Eff. September 1, 1990 for a period of 180 days to expire on February 28, 1991; Filed as a Temporary Amendment [(f)] Eff. June 1, 1983 for a period of 120 days to expire on September 29, 1983; Filed a…

04 NCAC 07 .0514 COMPUTATION OF MILK IN EACH CLASS History Note: Filed as a Temporary Repeal Eff. September 1, 1990 for a period of 180 days to expire on February 28, 1991; Statutory Authority G.S. 106-266.8(3),(7),(10); Eff. February 1, 1976; Readopted Eff. September 29, 1977; A…

04 NCAC 07 .0515 FINANCIAL RESPONSIBILITY FOR MILK RECEIVED BY BULK TANKER History Note: Filed as a Temporary Repeal Eff. September 1, 1990 for a period of 180 days to expire on February 28, 1991; Statutory Authority G.S. 106-266.8(3),(7); Eff. February 1, 1976; Readopted Eff. Se…

04 NCAC 07 .0516 USE AND ESTABLISHMENT OF CLASS I BASES History Note: Filed as a Temporary Repeal Eff. September 1, 1990 for a period of 180 days to expire on February 28, 1991; Filed as a Temporary Amendment [(a)(3), (b), (c), (f)(8)] for a period of 52 days to expire on March 1…

04 NCAC 07 .0517 PLANT RECORDS AND INSPECTION OF RECORDS History Note: Authority G.S. 106-266.8(5),(7),(12),(14); Eff. February 1, 1976; Readopted Eff. September 29, 1977; Recodified from .0511 Eff. August 1, 1989; Amended Eff. August 1, 1989; Repealed Eff. May 1, 1991.

04 NCAC 07 .0518 ASSESSMENT History Note: : Authority G.S. 106-266.8(7); 106-266.11; 106-266.12; Eff. February 1, 1976; Readopted Eff. September 29, 1977; Amended Eff. July 1, 1983; Recodified from .0512 Eff. August 1, 1989; Repealed Eff. May 1, 1991.

04 NCAC 07 .0519 EXEMPTION History Note: : Authority G.S. 106-266.6(4); 106-266.8(7); Eff. February 1, 1976; Readopted Eff. September 29, 1977; Recodified from .0513 Eff. August 1, 1989; Repealed Eff. May 1, 1991.

04 NCAC 07 .0520 UNIFORM PROCEDURE FOR DETERMINING COST History Note: Authority G.S. 106-266.8(7),(10)(d),(14); 106-266.19; Eff. April 1, 1982; Recodified from .0514 Eff. August 1, 1989; Repealed Eff. May 1, 1991.

CHAPTER 08 – RURAL ELECRIFICATION AUTHORITY SECTION .0100 – GENERAL PROVISIONS 04 NCAC 08 .0101 PURPOSE (a) The purpose of the North Carolina Rural Electrification Authority ("the Authority") is to secure and continue to provide dependable electric and telephone services to custo…

04 NCAC 08 .0102 ADDRESS OF THE AUTHORITY (a) The office of the Authority is located in Raleigh, North Carolina at 313 Chapanoke Road, Suite 210, and the mailing address is 4321 Mail Service Center, Raleigh, North Carolina 27699-4321. (b) The website address for the Authority is …

04 NCAC 08 .0103 RURAL ELECTRIFICATION AUTHORITY CREATED History Note: Authority G.S. 117-1; Eff. February 1, 1976; Repealed Eff. July 16, 1988 in accordance with G.S. 150B-59(c).

04 NCAC 08 .0104 TERM OF OFFICE History Note: Authority G.S. 117-1; Eff. February 1, 1976; Repealed Eff. July 16, 1988 in accordance with G.S. 150B-59(c).

04 NCAC 08 .0105 ORGANIZATION History Note: Authority G.S. 117-4; Eff. February 1, 1976; Repealed Eff. July 16, 1988 in accordance with G.S. 150B-59(c).

04 NCAC 08 .0106 COMPENSATION History Note: Authority G.S. 117-5; 138-5; Eff. February 1, 1976; Repealed Eff. July 16, 1988 in accordance with G.S. 150B-59(c).

04 NCAC 08 .0107 MEETINGS (a) The Authority shall not meet more than 12 times per year. (b) The Administrator shall send a notice of the date and location of the meeting to all Authority Board members, cooperatives, interested parties and members of the USDA, one week prior to th…

04 NCAC 08 .0108 NOTIFICATION OF MEETINGS History Note: Authority G.S. 117-5; Eff. February 1, 1976; Repealed Eff. March 1, 2014.

04 NCAC 08 .0109 DUTIES OF THE ADMINISTRATOR History Note: Authority G.S. 117-2(10); 117-2(11a); 117-2(12); 117-3.1(a); 117-26; 117-31; 117-32; 47 U.S.C 252; Eff. February 1, 1976; Amended Eff. May 1, 2014; Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public…

SECTION .0200 - ELECTRIC MEMBERSHIP CORPORATIONS 04 NCAC 08 .0201 DEFINITIONS For the purposes of this Section, the following definitions apply: (1) "Domestic corporation" means an electric membership corporation granted privilege by the State of North Carolina under Chapter 117 …

04 NCAC 08 .0202 LOAN APPLICATIONS AND CATEGORIES (a) All EMCs, both domestic and domesticated, shall petition the Authority to apply for any funds in the form of grants or loans issued from any agency of the United States Government for use in the State. The EMC shall send all l…