GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION
HOUSE BILL 54
The General Assembly of North Carolina enacts:
Section 1. Chapter 54 of the General Statutes is amended by adding a new section to Article 14A to read:
"§ 54-109.7. Conducting business outside this State.
A credit union incorporated under this Subchapter may conduct business outside of this State in any state where it is permitted to conduct business as a credit union."
Sec. 2. G.S. 54-109.15 reads as rewritten:
"§ 54-109.15. Reports.
(a) Credit unions
organized under Articles 14A to 14L of this Chapter shall, in January and in
July of each year, make a report of condition to the Administrator of Credit
Unions on forms supplied by him for that purpose. Additional reports may
be required.
(b) Any such
corporation which credit union that neglects to make semiannual
reports as provided in subsection (a) of this section, or any of the other
reports required by the Administrator of Credit Unions at the time fixed by the
Administrator, shall forfeit pay a late penalty to the
Administrator of Credit Unions five dollars ($5.00) of seventy-five
dollars ($75.00) for each day such the neglect continues;
and, furthermore, the continues. The Administrator of Credit
Unions shall have authority, in his discretion, to may revoke the
certificate of incorporation and take possession of the assets and business of
any corporation credit union failing to pay the fees required
in a penalty imposed under this section after serving notice of at
least 15 days upon such corporation of his intention so to do. the
credit union of the proposed action. Penalties collected under this
section shall be credited to the special account established under G.S.
54-109.14."
Sec. 3. G.S. 54-109.21 reads as rewritten:
"§ 54-109.21. General powers.
A credit union may:
(1) Make contracts;
(2) Sue and be sued;
(3) Adopt and use a common
seal and alter same; the seal;
(4) Acquire, lease, hold and dispose of property, either in whole or in part, necessary or incidental to its operations;
(5) At the discretion of the board of directors, require the payment of an entrance fee or annual membership fee, or both, of any person admitted to membership;
(6) Receive savings from its members in the form of shares, deposits, or special-purpose thrift accounts;
(7) Lend its funds to its
members as hereinafter provided; provided in Articles 14A to 14L of
this Chapter;
(8) Borrow from any source in accordance with policy established by the board of directors;
(9) Discount and sell any
eligible obligations, subject to rules and regulations prescribed adopted
by the Administrator;
(10) Sell all or substantially all of its assets or purchase all or substantially all of the assets of another financial institution, subject to the approval of the Administrator of Credit Unions;
(11) Invest surplus funds as provided in Articles 14A to 14L of this Chapter;
(12) Make deposits in legally
chartered banks, savings banks, savings and loan associationsinstitutions,
trust companies and central-type credit union organizations;
(13) Assess charges to members in accordance with the bylaws for failure to meet properly their obligations to the credit union;
(14) Hold membership in other credit unions organized under Articles 14A to 14L of this Chapter or other acts, and in other associations and organizations composed of credit unions;
(15) Declare dividends; pay interest on deposits and pay interest refunds to borrowers as provided in Articles 14A to 14L of this Chapter;
(16) Sell travelers checks and money
orders and charge a reasonable fee for such services, provided the instruments
travelers checks are payable at institutions other than a credit
union;
(17) Perform such tasks and
missions as are requested by the federal government or this State or any
agency or political subdivision thereof, when approved by the board of
directors and not inconsistent with Articles 14A to 14L of this Chapter;
(18) Act as fiscal agent for and receive deposits from the federal government, this State, or any agency or political subdivision thereof;
(19) Contribute to, support, or
participate in any nonprofit service facility whose services will benefit the
credit union or its membership subject to such regulations as are prescribed
rules adopted by the Administrator;
(20) Make donations or contributions to any civic, charitable or community organization as authorized by the board of directors, subject to such regulations as are prescribed by the Administrator;
(21) Act as a custodian of qualified pension funds if permitted by federal law;
(22) Purchase or make available insurance for its directors, officers, agents, employees, and members; and
(23) Facilitate its members' purchase of goods and services in a manner which promotes the purposes of the credit union.
(24) The board of directors may expel
from the corporation any member who has not carried out his the engagement
the member made with the corporation, or has been convicted of a criminal
offensefelony or crime involving moral turpitude, or neglects or
refuses to comply with the provisions of this Article or of the bylaws, or
who habitually neglects to pay his debts, or shall become insolvent or bankrupt.
The members at a regularly called meeting may expel from the corporation any
member who has become intemperate or in any way financially irresponsible; no bylaws.
The Board may, after notice and hearing as provided in this subdivision, expel
from the corporation any member who because of the member's intemperance
disrupts the activities of the credit union or who because of the member's
habitual neglect of financial obligations reflects discredit upon the credit
union. No member shall be expelled until he has been informed in
writing of the charges against him made and given an opportunity
has been given him, opportunity, after reasonable notice, to be heard
thereon. heard.
(25) Engage in activity permitted
under this subsection. subdivision. Notwithstanding any other
provision of this Chapter, the Administrator of Credit Unions, subject to the
advice and consent of the Credit Union Commission, and upon a finding that
action is necessary to preserve and protect the welfare of credit unions and to
promote the general economy of the State, may adopt rules allowing
State-chartered credit unions to engage in any activity in which they could
engage if they were federally chartered credit unions.
(26) Subject to rules and
regulations prescribed adopted by the Administrator, act as trustee
or custodian, and may receive reasonable compensation for so acting,
under any written trust instrument or custodial agreement created or organized
and forming a part of a deferred compensation plan for its members or groups or
organization organizations of its members, provided the funds of such
the plans are invested in savings or deposits of the credit union.
All funds held may be commingled for appropriate the purpose of
investment, but individual records shall be kept by the credit union for each
participant and shall show in proper detail all transactions engaged in under
authority of this section. subdivision.
A member may withdraw from a credit union by filing a written
notice of his intention intent to withdraw.
The amounts paid in on shares or deposits by an expelled or
withdrawing member, with any dividends credited to his the shares
and any interest accrued on his the deposits to the date of
expulsion or withdrawal shall be paid to such the member, but in
the order of expulsion or withdrawal, and only as funds therefor become
available, after deducting any amounts due to the corporation by such credit
union by the member. The member shall have no other or further right in the
credit union or to any of its benefits, but such the expulsion or
withdrawal shall not operate to relieve the member from any remaining liability
to the corporation. credit union."
Sec. 4. G.S. 54-109.82 reads as rewritten:
"§ 54-109.82. Investment of funds.
The capital, deposits, undivided profits and reserve fund of
the corporation may be invested only in any of the following ways,
and in such ways only: ways:
(1) They may be lent to the members of the corporation in accordance with the provisions of this Chapter.
(2) In capital shares,
obligations, or preferred stock issues of any agency or association organized
either as a stock company, mutual association, or membership corporation,
provided the membership or stockholdings, as the case may be, of such the
agency or association are confined or restricted to credit unions or
organizations of credit unions, or provided the purposes purpose for
which such the agency or association is organized or designed is
to service or otherwise assist credit union operations.
(3) In obligations of the State of North Carolina or any subdivision thereof.
(4) In obligations of the United States, including bonds and securities upon which payment of principal and interest is fully guaranteed by the United States.
(5) They may be deposited
to the credit of the corporation in savings banks, institutions, credit
unions, savings and loan associations, or State banks or trust
companies incorporated under the laws of the State, or in national banks
located therein. in the State.
(6) In loans to other credit unions in any amount not to exceed twenty-five percent (25%) of the shares and unimpaired surplus of the lending credit union.
(7) In an aggregate amount
not to exceed twenty-five percent (25%) of the allocations to the reserve fund
in any agency or association of the type described in subdivision (2) hereof,
of this section provided the purposes of the agency or
association are designed to assist in establishing and maintaining liquidity,
solvency, and security in credit union operations.
(8) In the North Carolina Savings Guaranty Corporation.
(9) In any form of investment allowed by law to the State Treasurer under G.S. 147-69.1.
(10) Debentures which are issued
by an agency of the United States government.
(11) In the College Foundation in any amount not to exceed ten percent (10%) of the shares and unimpaired surplus of the investing credit union.
(12) They may be placed on time
deposits deposited in any banks bank insured by the
Federal Deposit Insurance Corporation or may be deposited or may be
invested in any savings or building and loan association institution
insured by the Federal Savings and Loan Insurance Corporation federal
government or any of its agencies."
Sec. 5. This act becomes effective October 1, 1991.
In the General Assembly read three times and ratified this the 12th day of July, 1991.