North Carolina Administrative Code

04 NCAC 16D .0406 ACCOUNTING FOR GAINS AND LOSSES History Note: Authority G.S. 54B-55; Eff. December 1, 1981; Amended Eff. April 1, 1984; Repealed Eff. July 1, 1990.

04 NCAC 16D .0407 LOANS TO ONE BORROWER History Note: Authority G.S. 54B-55; 54B-164; Eff. July 1, 1983; Amended Eff. December 1, 2011; February 15, 1992; July 1, 1990; November 1, 1985; January 1, 1985; Repealed Eff. November 1, 2017.

04 NCAC 16D .0408 ACCOUNTING FOR UNCOLLECTIBLE INCOME History Note: Authority G.S. 54B-55; Eff. January 1, 1984; Repealed Eff. July 1, 1990.

04 NCAC 16D .0503 NONNEGOTIABLE ORDERS OF WITHDRAWAL History Note: Authority G.S. 54B-55; 54B-128; Eff. August 31, 1981; Repealed Eff. July 1, 1990.

04 NCAC 16D .0504 NEGOTIABLE ORDER OF WITHDRAWAL ACCOUNTS History Note: Authority G.S. 54B-55; 54B-127; Eff. August 31, 1981; Amended Eff. February 1, 1983; Repealed Eff. November 1, 2017.

04 NCAC 16D .0505 NON-INTEREST-BEARING NEGOTIABLE ORDER OF WITHDRAWAL ACCTS. History Note: Authority G.S. 54B-55; 54B-127; Eff. August 31, 1981; Repealed Eff. July 1, 1990.

04 NCAC 16D .0506 CREDIT CARDS History Note: Authority G.S. 54B-55; 54B-77; Eff. August 31, 1981; Repealed Eff. February 15, 1992.

SECTION .0700 - GENERAL RESERVE ACCOUNT 04 NCAC 16D .0701 GENERAL RESERVE REQUIREMENTS History Note: Authority G.S. 54B-216; Eff. December 1, 1981; Amended Eff. November 1, 1982; October 1, 1982; Repealed Eff. January 1, 1986.

04 NCAC 16D .0702 REQUIREMENTS FOR NEWLY-CHARTERED STOCK ASSOCIATIONS History Note: Authority G.S. 54B-216; Eff. December 1, 1981; Repealed Eff. November 1, 1982.

04 NCAC 16D .0703 APPRAISED EQUITY CAPITAL History Note: Authority G.S. 54B-216; Eff. November 1, 1982; Amended Eff. July 1, 1983; Repealed Eff. January 1, 1986.

SECTION .0800 - TRUST POWERS Editor's Note: 4 NCAC 16D .0801 - .0817 was recodified to 4 NCAC 16K .0001 - .0017, effective September 6, 1991.

SECTION .0900 - INVESTMENTS 04 NCAC 16D .0901 SECURITIES History Note: Authority G.S. 54B-55; 54B-193; 54C-53; 54C-141; Eff. October 1, 1987; Amended Eff. December 1, 2011; July 1, 1990; Repealed Eff. November 1, 2017.

04 NCAC 16D .0902 STOCK IN OTHER DEPOSITORY INSTITUTIONS History Note: Authority G.S. 54B-55; 54B-193; 54C-53; 54C-141; Eff. July 1, 1990; Amended Eff. December 1, 2011; February 15, 1992; Repealed Eff. November 1, 2017.

SECTION .1000 - VOLUNTARY DISSOLUTION Editor's Note: 4 NCAC 16D .1001 - .1004 was recodified to 4 NCAC 16L .0001 - .0004, effective September 6, 1991.

04 NCAC 16E .0103 BOARD OF DIRECTORS (a) A director shall not vote on any matter in which they have a personal or financial interest. (b) When a savings institution takes action establishing a new chief executive officer or director, the savings institution shall notify the Commi…

04 NCAC 16E .0104 BYLAWS The Commissioner of Banks shall be deemed to have approved any amendments to bylaws that the Commissioner has not objected within 25 days after the date that the bylaws are filed with the Commissioner of Banks. History Note: Authority G.S. 54B-9; 54B-52; …

04 NCAC 16E .0105 AMENDMENT OF CONVERTED SAVINGS BANK'S CHARTER History Note: Filed as a Temporary Adoption Eff. October 2, 1991 for a period of 180 days to expire on March 31, 1992; Statutory Authority G.S. 54C-33; 54C-53; Eff. February 15, 1992; Repealed Eff. April 15, 1993.

SECTION .0300 - RECORDS AND POLICIES 04 NCAC 16E .0301 GENERAL POLICIES (a) Records to be Kept at Principal Office. Each savings institution, each affiliate, and the institution's parent company shall keep and make available for examination by the representatives of the Commissio…

04 NCAC 16E .0302 RETENTION, REPRODUCTION AND DISPOSITION OF RECORDS (a) Each savings institution shall take precautions to protect records from damage by fire, flood, or other hazards and to safeguard records from unnecessary deterioration as a result of excess heat, humidity, d…

04 NCAC 16E .0303 REQUIRED POLICIES History Note: Filed as a Temporary Adoption Eff. October 2, 1991 for a period of 180 days to expire on March 31, 1992; Authority G.S. 54C-53; Eff. February 15, 1992; Repealed Eff. November 1, 2017.

SECTION .0400 - LOANS 04 NCAC 16E .0401 SERVICING LOANS A savings institution may service loans originated by the savings institution or by other lenders. History Note: Authority G.S. 54B-55; 54B-161; 54C-53; Temporary Adoption Eff. October 2, 1991 for a period of 180 days to exp…

04 NCAC 16E .0402 APPRAISALS History Note: Filed as a Temporary Adoption Eff. October 2, 1991 for a period of 180 days to expire on March 31, 1992; Authority G.S. 54C-53; 54C-128; Eff. February 15, 1992; Repealed Eff. November 1, 2017.

04 NCAC 16E .0403 RECORDS WITH RESPECT TO LOANS Each savings institution shall maintain the following loan documentation: (1) Financial Statements. Financial statements shall be required from any person who is a maker, co-maker, guarantor, endorser, or surety on any unsecured loa…

SECTION .0500 - DEPOSIT ACCOUNTS 04 NCAC 16E .0501 SIGNATURE CARDS History Note: Filed as a Temporary Adoption Eff. October 2, 1991 for a period of 180 days to expire on March 31, 1992; Authority G.S. 54C-53; 54C-164; Eff. February 15, 1992; Repealed Eff. November 1, 2017.

04 NCAC 16E .0502 HOLDING OF CERTIFICATE OR PASSBOOK An unpledged savings certificate or passbook shall not be held by a savings institution for the convenience of an account holder. History Note: Authority G.S. 54B-55; 54B-121; 54C-53; 54C-164; Temporary Adoption Eff. October 2,…

SUBCHAPTER 16F - SERVICE CORPORATIONS AND FINANCE SUBSIDIARIES 04 NCAC 16F .0101 PERMITTED ACTIVITIES The service corporation of a savings institution may engage in activities that are approved by the federal regulatory authority pursuant to 12 C.F.R. 5.59(f) for service corporat…

04 NCAC 16F .0102 INVESTMENT LIMITATION Investments in a service corporation include not only stock and other securities of a service corporation, such as notes, bonds and debentures, but also any loans, secured or unsecured, to the service corporation. The investment limitation …

04 NCAC 16F .0103 DEBT LIMITATION FOR WHOLLY-OWNED SERVICE CORPORATIONS The aggregate amount of secured and unsecured debt that a wholly-owned service corporation may have outstanding at any one time to the savings institution and to non-stockholders shall not exceed: (1) ten tim…

04 NCAC 16F .0104 STOCK IN A SERVICE CORPORATION History Note: Authority G.S. 54B-55; 54B-194; Eff. August 31, 1981; Repealed Eff. July 1, 1990.

04 NCAC 16F .0105 AMENDMENTS TO ARTICLES OF INCORPORATION OR BYLAWS (a) Prior to filing with the Secretary of State of North Carolina, a service corporation shall file with the Commissioner of Banks copies of any proposed amendment to its articles of incorporation. The Commission…

04 NCAC 16G .0103 DEFINITIONS As used in this Subchapter the words and phrases defined by G.S. 54C-4 and the following definitions apply: (1) "An affiliate of," or "a person affiliated with" used in connection with another specified person shall mean a person that directly, or in…

04 NCAC 16G .0104 GENERAL REQUIREMENTS (a) No application for conversion shall be approved by the Commissioner of Banks unless: (1) The conversion shall be conducted in compliance with G.S. 54B or G.S. 54C, and this Subchapter and pursuant to a plan of conversion approved by the …

04 NCAC 16G .0105 application for conversion History Note: Authority G.S. 54C-33; 54C-53; Eff. February 15, 1992. Repealed Eff. November 1, 2017.

04 NCAC 16G .0106 CONFIDENTIAL INFORMATION An applicant that submits information as part of an application may request that the information be confidential by separately binding and labeling the information as "confidential," and a statement shall be submitted setting forth the g…

04 NCAC 16G .0308 ACQUISITION OF CONVERTED ASSOCIATION History Note: Authority G.S. 54-24; 54-24.1; 54-33.2; 54A-13; 150A-12; Eff. January 1, 1980; Transferred From 4 NCAC 9I Eff. August 31, 1981; Repealed Eff. October 1, 1982.

04 NCAC 16G .0309 MERGER OF CONVERTED ASSOCIATIONS History Note: Authority G.S. 54B-33; Eff. December 15, 1980; Amended Eff. January 14, 1981; Transferred From 4 NCAC 9I Eff. August 31, 1981; Amended Eff. September 1, 1983; Repealed Eff. January 1, 1986.

04 NCAC 16G .0310 ACQUISITION/SECURITIES: CONVERTING/CONVERTED ASSOCIATION History Note: Authority G.S. 54B-33; Eff. October 1, 1982; Repealed Eff. September 1, 1983.

04 NCAC 16G .0311 REQUIRED PROVISIONS IN PLAN OF CONVERSION The plan of conversion shall: (1) Provide that the converting savings institution shall issue and sell its capital stock at a total price equal to the estimated pro forma market value of the stock in the converted saving…

04 NCAC 16G .0312 OPTIONAL PROVISIONS IN PLAN OF CONVERSION The plan of conversion may provide any of the following: (1) The applicant may commence the direct community offering or the public offering, or both, concurrently with or at any time during the subscription offering. Th…

04 NCAC 16G .0313 RECORD DATES FOR QUALIFYING DEPOSITS The amount of the qualifying deposit of an eligible account holder or supplemental eligible account holder shall be the total of the deposit balances in the eligible account holder's or supplemental eligible account holder's …

04 NCAC 16G .0314 LIQUIDATION ACCOUNT History Note: Authority G.S. 54C-33; 54C-53; Eff. February 15, 1992; Repealed Eff. November 1, 2017.

04 NCAC 16G .0315 MANIPULATIVE AND DECEPTIVE DEVICES In the offer, sale, or purchase of securities issued incident to its conversion, no savings institution, director, executive officer, attorney, agent, or employee shall: (1) employ any device, scheme, or artifice to defraud; (2…

04 NCAC 16G .0316 MERGER OF CONVERTED SAVINGS BANKS History Note: Authority G.S. 54C-33; 54C-53; Eff. February 15, 1992; Repealed Eff. November 1, 2017.

04 NCAC 16G .0404 INFORMATION PRIOR TO APPROVAL OF PLAN OF CONVERSION History Note: Authority G.S. 54C-33; 54C-53; Eff. February 15, 1992; Repealed Eff. November 1, 2017.

04 NCAC 16G .0405 NOTICE OF FILING (a) Upon determination that an application for conversion is complete, the Commissioner of Banks shall advise the applicant to publish a notice of the filing of the application. The applicant shall publish the notice in a newspaper having genera…

04 NCAC 16G .0509 SOLICITATIONS TO WHICH RULES APPLY This Section applies to every solicitation of a proxy from a member of a savings institution for the meeting that a plan of conversion will be voted upon, except the following: (1) any solicitation made otherwise than on behalf…

04 NCAC 16G .0510 USE OF PROXY SOLICITING MATERIAL TO BE AUTHORIZED Proxy solicitation material shall not be furnished to members or distributed until the material has been authorized, in writing by the Commissioner of Banks. Proxy solicitation material authorized for use by the …

04 NCAC 16G .0511 INFORMATION TO BE FURNISHED to MEMBERS No solicitation shall be made unless each person solicited is furnished, or has previously been furnished, a written proxy statement that has been authorized by the Commissioner of Banks. History Note: Authority G.S. 54C-33…

04 NCAC 16G .0512 REQUIREMENTS AS TO PROXY (a) The form of proxy shall: (1) indicate in bold face type whether the proxy is solicited on behalf of management; (2) provide blank spaces for dating and signing the proxy; (3) identify each matter or group of related matters intended …

04 NCAC 16G .0513 MATERIAL REQUIRED TO BE FILED (a) An applicant shall file a preliminary copy of the proxy materials to be used by the applicant as a part of the application for conversion filed with the Commissioner of Banks. (b) A copy of the proxy statement, a copy of the for…