North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 03 - BANKING COMMISSION › Subchapter C - BANKS › Section .0800 - MISCELLANEOUS REPORTS AND APPROVALS › Section 03C .0901 - BOOKS AND RECORDS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Each bank, each
				  affiliate of the bank, and the bank's parent holding company, shall keep, and
				  make available for examination by the representatives of the Commissioner of
				  Banks, books and records that reflect all the transactions of the bank in its
				  true financial condition. Such records shall be kept so as to permit and
				  facilitate a speedy examination, by the representatives of the Commissioner of
				  Banks. Without implying that these are the only books and records to be kept,
				  the following books and records shall be kept at the bank, or at its parent
				  holding company, unless another storage site is approved by the Commissioner of
				  Banks in writing by letter or other written agreement:
(1) Alphabetical direct and indirect
				  liability ledgers. Each bank shall keep an alphabetical direct and indirect
				  liability ledger. The alphabetical direct liability ledger shall show a
				  customer's direct obligations owed to the bank by loan name or account number
				  and the balance outstanding under each account. The alphabetical indirect
				  liability ledger shall show a customer's indirect obligations owed to the bank
				  by loan name or account number and the balance outstanding under each account.
				  The alphabetical direct liability ledger shall be kept in balance with the
				  general ledger control. The alphabetical indirect liability ledger shall be
				  updated at least monthly. Where the aggregate total of a customer's direct and
				  indirect obligations to the bank do not exceed twenty thousand dollars
				  ($20,000), the indirect obligations of that customer may be omitted from the
				  alphabetical indirect liability ledger. In a bank whose automated record system
				  is not able to produce an alphabetical liability ledger, the bank shall produce
				  an alphabetical listing of borrowers showing all of a customer's loan or
				  account numbers and the amount outstanding under each number when called upon
				  by representatives of the Commissioner of Banks. Each bank shall have the
				  ability to produce both the direct and indirect liability ledgers in hard copy
				  form upon request by representatives of the Commissioner of Banks.
(2) Monthly reconciliation of accounts with
				  correspondent banks. A record shall be kept, showing the monthly reconciliation
				  of each account with correspondent banks. A signed review of such
				  reconciliations shall be made by an officer or employee of the bank other than
				  the person responsible for preparing the reconciliation.
(3) Purchases and sales of securities. A
				  record shall be kept of purchases and sales of securities. The record shall
				  include the following:
(A) dates of purchases
				  and sales;
(B) interest
				  rates;
(C) maturities;
(D) par value;
(E) cost value;
(F) all write-ups or write-downs;
(G) a full description of the
				  security;
(H) from whom
				  purchased;
(I) to whom
				  sold;
(J) purchase price;
(K) selling price; and
(L) when, where, and why pledged or
				  deposited.
This record shall be maintained in balance with the general
					 ledger control.
(4) Charge-offs. A record shall be kept of
				  all items charged off and of all recoveries. All charge-offs shall be
				  authorized or approved by the executive committee or by the board of directors
				  and such action recorded in their minutes. The charge-off record shall show the
				  date of the charge-off, a description of the asset, and the amount of the
				  charge-off. The record shall be supported by the actual charged-off items, or
				  the final disposition of any charged-off item. The record of recoveries shall
				  show the date and amount of each recovery.
(5) Records of real estate. A record shall be
				  kept on all parcels owned, including the banking house. The record shall show
				  when the property was acquired, how the property was acquired, the cost of the
				  property, the book value of the property, and detailed income and expense
				  reports relating to the property. This record shall be supported by appraisals,
				  title certificates showing assessed value, tax receipts, and hazard insurance
				  policies relating to the property.
(6) Meeting minutes and consent to action.
				  Minutes of all board of directors meetings, board committee meetings, and
				  stockholders meetings (including each consent to action without a meeting),
				  shall be kept showing any action resulting from the meeting. All minutes shall
				  be signed by the chairman and the secretary of such meeting.
(7) Cash items held over. A daily record
				  shall be kept of all cash items held over from the day's business, including
				  all checks that would cause an overdraft if handled in the regular way. This
				  record shall be kept in balance with the general ledger control and shall
				  identify the account on which the item is drawn or is obligated for payment,
				  the reason the item is being held, the date the item was placed in the cash
				  items account, and the amount of the item.
(8) Record of income and expenses. A detailed
				  record of income and expenses shall be kept and balanced monthly. A report of
				  this record shall be made to the executive committee or board of directors, and
				  the receipt of same noted in their minutes.
(9) Industrial bank reports of condition.
				  Each industrial bank, when preparing a report of condition and income, shall
				  include and make a part of its report a list of those whose aggregate direct
				  and indirect obligations to the bank, including paper purchased by the bank,
				  are in excess of ten percent of the industrial bank's capital, surplus, and
				  undivided profits. In lieu of this list, the industrial bank may maintain a
				  direct and indirect liability ledger in accordance with Subparagraph (a)(1) of
				  this Rule.