GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
SESSION LAW 1998-119
The General Assembly of North Carolina enacts:
Section 1. G.S. 24-1.1(c) reads as rewritten:
"(c) On the fifteenth day
of each month, the Commissioner of Banks shall announce and publish the maximum
rate of interest permitted by subdivision (1) of subsection (a) of this
section on that date. Such rate shall be the latest published
noncompetitive rate for U.S. Treasury bills with a six-month maturity as of the
fifteenth day of the month plus six percent (6%), rounded upward or downward,
as the case may be, to the nearest one-half of one percent (1/2 of 1%) or
sixteen percent (16%), whichever is greater. If there is no nearest
one-half of one percent (1/2 of 1%), the Commissioner shall round downward to
the lower one-half of one percent (1/2 of 1%). The rate so announced
shall be the maximum rate permitted for the term of loans made under this
section during the following calendar month when the parties to such loans have
agreed that the rate of interest to be charged by the lender and paid by the
borrower shall not vary or be adjusted during the term of the loan. The
parties to a loan made under this section may agree to a rate of interest which
shall vary or be adjusted during the term of the loan in which case the maximum
rate of interest permitted on such loans during a month during the term of the
loan shall be the greater of the rate announced by the Commissioner in (i)
the preceding calendar month. month or (ii) the calendar month
preceding that in which the rate is varied or adjusted."
Section 2. G.S. 24-1.1C and G.S. 24-1.2 are repealed.
Section 2.1. G.S. 24-1.2A reads as rewritten:
"§ 24-1.2A. Equity lines of credit.
(a) Notwithstanding any
other provision of this Chapter, the parties to an equity line of credit, as
defined in G.S. 45-81, may contract in writing for interest at rates which
shall not exceed the maximum rates permitted under G.S. 24-1.2(2a); G.S.
24-1.1(c); provided, however, that the parties may contract for interest
rates which shall be adjustable or variable, so long as for adjustable or
variable rate contracts the rate in effect for a given period does not exceed
the maximum rate permitted under G.S. 24-1.2(2a) G.S. 24-1.1(c) for
the same period.
(b) Fees may be charged on equity lines of credit which in the aggregate, over the life of the contract based on the maximum limit of the line of credit, do not exceed those permitted under G.S. 24-10. Any lender may charge a party to a loan or extension of credit governed by this section a fee for the modification, renewal, extension, or amendment of any terms of the loan or extension of credit, such fee not to exceed the greater of one-quarter of one percent (1/4 of 1%) of the balance outstanding at the time of the modification, renewal, extension, or amendment of terms, or fifty dollars ($50.00)."
Section 3. G.S. 53B-8 reads as rewritten:
"§ 53B-8. Disclosure of financial records.
No financial institution or its officer, employee, or agent
may disclose a customer's financial record to a government authority except as
provided in this Chapter. This section does not prohibit a financial
institution from giving notice of or disclosing a financial record to a
government authority, as defined in G.S. 53B-2(4), to the same extent as is
authorized with respect to federal government authorities in the Right to
Financial Privacy Act § 1103(d), 12 U.S.C. § 3403(d). Nothing in this Chapter
section shall prohibit a financial institution or its officer,
employee or agent from disclosing, or require the disclosure of, the name,
address, and existence of an account of any customer to a government authority
that makes a written request stating the reason for the request. Nothing
in this Chapter shall prohibit a financial institution or its officer,
employee, or agent from notifying a government authority that the financial
institution or its officer, employee, or agent has information that may
be relevant to a possible violation of law or regulation. The information shall
be limited to a description of the suspected illegal activity and the name or
other identifying information concerning any individual, corporation, or
account involved in the activity. Any financial institution or its officer,
employee, or agent making a disclosure of information pursuant to this section
shall not be liable to the customer under the laws and rules of the State of
North Carolina or any political subdivision of the State for disclosure or for
failure to notify the customer of the disclosure."
Section 4. This act becomes effective October 1, 1998. and Section 1 of this act applies to variations or adjustments in rates occurring on or after that date regardless of the date on which the loan was made.
In the General Assembly read three times and ratified this the 18th day of August, 1998.
Approved 1:00 p.m. this 27th day of August, 1998