North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 03 - BANKING COMMISSION › Subchapter E - LICENSEES UNDER NORTH CAROLINA CONSUMER FINANCE ACT › Section .0600 - CONSUMER FINANCE OFFICES › Section 03E .0601 - BOOKS, RECORDS, AND APPLICATION OF FEES

Current through Register Vol. 39, No. 2, July 15, 2024
Each consumer finance office licensed by the Commissioner
					 of Banks shall keep the following books and accounting records. Except as
					 permitted by
					 G.S.
					 53-184(a), these records
					 shall be maintained in each office and be available to the Commissioner of
					 Banks or his or her authorized agent. Licensees shall maintain separate loan
					 ledgers and accounts related to the making and collecting of loans within the
					 provisions of the Consumer Finance Act, including where a licensee is also an
					 installment paper dealer. Allocation of expenses shall be made monthly
					 according to generally accepted accounting principles. All books, records, and
					 fees covered by this Rule shall be retained for a period of three years after
					 the last transaction:
(1) Cash
				  Transaction Journal. All transactions of receipts and disbursements of any
				  nature or amount shall be recorded in a cash transaction journal, which shall
				  be the book of original entry. Each transaction made in connection with a loan
				  shall be identified with the loan by the name or account number of the borrower
				  and shall define the nature of each charge, collection, or refund made in
				  connection with the loan. All entries shall state the exact date the
				  transactions occur.
(2) General
				  Ledger. The general ledger shall be double entry, showing in detail the total
				  of assets, liabilities, capital, income, and expenses. Each account shall be
				  individually designated. No net or "wash" entries shall be made to any account.
				  The general ledger shall be posted once each month and the posting shall
				  include all transactions through the last business day of the month. The actual
				  posting shall be completed by the 30th day of each ensuing month for the
				  previous month's business. A licensee shall maintain a description of each
				  general ledger entry, including adjusting and closing entries. If any account
				  on the general ledger does not agree with the corresponding account on the
				  annual report to the Commissioner of Banks, a supplement to the annual report
				  shall be furnished that reconciles or explains any differences.
(3) Individual Account Record. A separate
				  account record shall be maintained for each loan made. Each account record
				  shall provide the following information:
(a)
				  the name and address of borrower(s) and the name of any other person obligated
				  directly or indirectly on the loan;
(b) the cross reference to other loans of the
				  borrower, endorser, guarantor, surety, or to any joint obligation of the
				  borrower;
(c) the account
				  number;
(d) the date of loan and
				  maturity;
(e) the length of
				  contract;
(f) the cash advance,
				  finance charge, number of payments, and amount of each;
(g) the date and amount of each payment, an
				  allocation between principal, interest, and any fees authorized by statute for
				  each payment, and the remaining loan balance after each payment;
(h) a brief description of
				  security;
(i) the type of
				  insurance, insurance origination fees, and amount of insurance premium for each
				  coverage written;
(j) the amount of
				  recording fee or non-filing charges;
(k) the amount of any other charge made in
				  connection with the loan;
(l) the
				  amount of unearned insurance premium refunded for each coverage
				  written;
(m) if refunds are paid by
				  cash or check, a receipt of refund; and
(n) the contract interest rate and the annual
				  percentage rate computed under 12 C.F.R. Part 226 (Regulation Z), if the rates
				  are different. Regulation Z is incorporated by reference and includes
				  subsequent amendments. A copy of the regulation may be obtained from the
				  website free of charge at U. S. Government Publications Office website at
https://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol3/CFR-2012-title12-vol3-part226
.