NORTH CAROLINA GENERAL ASSEMBLY

1969 SESSION

CHAPTER 449

SENATE BILL 403

AN ACT TO AUTHORIZE STATE CHARTERED SAVINGS AND LOAN ASSOCIATIONS TO ACCEPT SAVINGS DEPOSITS IN A MANNER SIMILAR TO FEDERAL SAVINGS AND LOAN ASSOCIATIONS DOING BUSINESS IN NORTH CAROLINA.

The General Assembly of North Carolina do enact:

Section 1.  Notwithstanding any other provisions of law, any building and loan association or savings and loan association incorporated under the laws of this State or any federal savings and loan association having its principal office in North Carolina is authorized to raise capital in the form of such savings deposits or savings accounts as are authorized by its charter or by regulation of the Commissioner of Insurance and may issue such passbooks, time certificates of deposit, or other evidence of savings accounts as are so authorized. Holders of savings accounts and obligors of an association shall to such extent as may be provided by its charter or by regulations of the Commissioner of Insurance, be members of the association, and shall have such voting rights and such other rights as are thereby provided. Except as may be otherwise authorized by the association's charter or regulation of the Commissioner of Insurance in the case of savings accounts for fixed or minimum terms of not less than thirty days, the payment of any savings account shall be subject to the right of the association to require such advance notice, not less than thirty days, as shall be provided for by the charter of the association or the regulations of the Commissioner of Insurance. The payment of withdrawals from savings accounts in the event an association does not pay all withdrawals in full (subject to the right of the association to require notice) shall be subject to such rules and procedures as may be prescribed by the association's charter or by regulation of the Commissioner of Insurance. Savings accounts shall not be subject to check or to withdrawal or transfer on negotiable or transferable order or authorization to the association, but the Commissioner of Insurance may by regulation provide for withdrawal or transfer of savings accounts upon nontransferable order or authorization. To such extent as the Commissioner of Insurance may authorize by regulation or advice in writing, an association may borrow, may give security, and may issue such notes, bonds, debentures, or other obligations, or other securities as the Commissioner of Insurance may so authorize.

Sec. 2.  Any capital raised pursuant to the provisions of Section 1 of this Act shall be added to the amount of capital raised by the issuance of stock of the association for the purposes of determining the amount of the reserve fund required by G.S. 54-14.

Sec. 3.  The Commissioner of Insurance shall adopt rules and regulations for the implementation of the authority herein vested in savings and loan associations.

Sec. 4.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 5.  This Act shall become effective upon its ratification.

In the General Assembly read three times and ratified, this the 8th day of May, 1969.