NORTH CAROLINA GENERAL ASSEMBLY

1969 SESSION

CHAPTER 1073

SENATE BILL 823

AN ACT TO REWRITE AND CLARIFY G.S. 116-174.1 CONCERNING CONTRACTS OF MINORS WHO ARE BORROWING FOR POST-SECONDARY EDUCATION.

The Genera] Assembly of North Carolina do enact:

Section 1.  Article 18A, Section 174.1 of Chapter 116 of the General Statutes as the same appears in the 1966 Replacement Volume 3A is hereby rewritten in its entirety to read as follows:

"All minors in North Carolina of the age of seventeen (17) years and upwards shall have full power and authority to enter into written contracts of indebtedness, at a rate of interest not' exceeding the contract rate authorized in Chapter 24 of the General Statutes, with persons and educational institutions or with firms and corporations licensed to do business in North Carolina and to execute notes evidencing such indebtedness. Such loans shall be:

"(1)      Unsecured by the conveyance of any property as security, whether real, personal or mixed;

"(2)      For the sole purpose of borrowing money to obtain post-secondary education at an accredited college, university, junior college, community college, technical institute, industrial education center, business or trade school provided, however, that none of the proceeds of such loans shall be used to pay for any correspondence courses;

"(3)      The proceeds of any loan shall be disbursed either directly to the educational institution for the benefit of the borrower or jointly to the borrower and the educational institution."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 30th day of June, 1969.