reglab/statecodes huggingface dataset:
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0200 - ORGANIZATION OF CREDIT UNIONS › Section 06C .0208 - CONVERSION OF CHARTER TO NORTH CAROLINA CHARTER

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Another
				  state or federal credit union organized under applicable laws, may be converted
				  into a North Carolina Credit Union by complying with all applicable
				  requirements requisite to enabling it to convert to a North Carolina Credit
				  Union or cease being a credit union of another state, or a federal credit
				  union; and filing with the North Carolina Credit Union Division proof of such
				  compliance, satisfactory to the Administrator of credit unions, and filing with
				  the North Carolina Credit Union Division an organization certificate as
				  required by the North Carolina Credit Union Act.
(b) When the Administrator of the North
				  Carolina Credit Union Division has been satisfied that all of such
				  requirements, and all other requirements of the General Statutes of North
				  Carolina have been complied with, the Administrator of the Credit Union
				  Division shall approve the organization certificate. Upon such approval, the
				  Credit Union shall become a North Carolina credit union as of the date it
				  ceases to be a credit union of another state or a federal credit union. The
				  North Carolina Credit Union shall be vested with all of the assets and shall
				  continue responsibility for all of the obligations of the Credit Union to the
				  same extent as though the conversion had not taken place.
Authority
					 G.S.
					 54-109.95;
Eff. February 1,
					 1976;
Readopted Eff. April 4, 1978;
Amended Eff. April
					 1, 1981;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0200 - ORGANIZATION OF CREDIT UNIONS › Section 06C .0209 - OUT OF STATE OFFICE FACILITIES

Current through Register Vol. 39, No. 2, July 15, 2024
Before a credit union may open a branch office in another
					 state, a written request shall be submitted to the Administrator of credit
					 unions for his or her approval. TheAdministrator may request necessary
					 information and conduct an investigation in evaluating the request. It shall be
					 the responsibility of the board of directors of each credit union operating in
					 more than one state to seek the advice of an attorney to ensure that the credit
					 union complies with applicable state laws of the other
					 state(s).
Authority
					 G.S.
					 54-109.6(a);
					 54-109.7;
					 54-109.11;
					 54-109.12;
					 54-109.16;
					 54-109.21(25);
Eff. April 4, 1978;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0200 - ORGANIZATION OF CREDIT UNIONS › Section 06C .0210 - REPEALED - OUT OF STATE CREDIT UNIONS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 54-109.5;
					 54-109.21(25);
					 54-109.94;
					 54-109.95;
Eff.
					 October 1, 1983;
Repealed Eff. January 1,
					 1992.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0301 - GENERAL PROVISIONS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Internal
				  controls, accounting procedures, and operational standards adequate to
				  safeguard the assets shall be established by all credit unions.
(b) Credit unions with ten million dollars
				  ($10,000,000) or more in assets shall follow generally accepted accounting
				  principles (GAAP) for financial statement and report preparation. Credit unions
				  with less than ten million dollars ($10,000,000) in assets may follow GAAP or
				  use the procedures in the "Accounting Manual for Federal Credit Unions,"
				  including any subsequent amendments that are incorporated by reference, and may
				  be found at no cost on the National Credit Union Administration website
				  (www.ncua.gov).
(c) At least 60
				  days before a credit union converts its records from a manual to an Electronic
				  Data Processing (EDP) system through an outside servicer or changes EDP
				  services, a copy of the proposed contract and a description of the data
				  processing system shall be submitted to the Administrator for review and
				  approval. If an in-house EDP system or the sponsoring company's EDP facilities
				  are to be used, the Administrator shall be notified in writing of the proposed
				  change before planning and system programming begins. Contracts and agreements
				  for EDP systems shall conform with the following:
(1) the right of the Administrator or his or
				  her representative to request and receive from the service center any reports,
				  summaries, or information contained in or derived from the data in the
				  possession of the service center relating to the credit union;
(2) terms of the contract, including dates
				  for the beginning and end with disclosure of the charges to be
				  incurred;
(3) notice of the
				  termination of the servicing contract or agreement, consistent with industry
				  standards;
(4) the description of
				  the equipment, services, reports, location of original documents and source
				  data and method of transmittal of input information to the service center, and
				  applicable controls;
(5) a
				  maintenance agreement that is consistent with industry standards;
(6) availability of technically qualified
				  personnel;
(7) the due diligence
				  and review by the board of directors or legal counsel; and
(8) fidelity bond coverage for service center
				  personnel and for losses due to system errors and insurance coverage for losses
				  from fire, disaster, or other causes resulting in an interruption of
				  service.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0303 - REPEALED - DEPRECIATION AND AMORTIZATION SCHEDULES

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 54-109.12;
Eff. February 1,
					 1976;
Readopted Eff. April 4, 1978;
Repealed Eff. March
					 1, 2015.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0304 - MANAGEMENT DUTIES

Current through Register Vol. 39, No. 2, July 15, 2024
All credit unions shall conduct their business and the
					 selection of their employees using management and business skills to assure the
					 safe and sound operation of the credit union. Management shall be responsible
					 for:
(1) implementing the policies
				  established by the board of directors;
(2) ensuring the accuracy of the credit
				  union's financial statements, reports, and any other supporting
				  documents;
(3) adopting and
				  implementing an annual budget;
(4)
				  developing and implementing a written plan that guides the strategic direction
				  of the credit union and that is also commensurate with the credit union's size
				  and complexity;
(5) conducting
				  performance evaluations of all employees of the credit union; and
(6) ensuring all directors, committee
				  members, and employees of the credit union receive training through educational
				  opportunities commensurate with their responsibilities and duties and document
				  completion of the training. In the event examiners find that a director,
				  committee member, or employee of the credit union has not received training
				  commensurate with his or her responsibilities and duties, the Credit Union
				  Division shall require training. Educational opportunities may be obtained from
				  but not limited to the League, the Credit Union Division, other trade
				  associations, credit union support groups, and other industry training
				  organizations.
Authority
					 G.S.
					 54-109.12;
					 54-109.19;
					 54-109.35;
					 54-109.92;
Eff.
					 February 1, 1976;
Readopted Eff. April 4, 1978;
Amended
					 Eff. October 1, 1983;
Readopted Eff. February 1, 2018;
Amended Eff. September 1, 2021.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0305 - INDEPENDENT AUDITS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) An audit of
				  each State-chartered credit union shall occur at least once each calendar year
				  and shall cover the period elapsed since the last audit. The audit shall be
				  performed using generally accepted auditing standards. It shall be the
				  responsibility of the supervisory committee, or board of directors if there is
				  no supervisory committee, to ensure that:
(1)
				  generally accepted auditing standards are used;
(2) an audit of the credit union records is
				  conducted using the minimum procedures applicable to federally insured
				  state-chartered credit unions as set forth in 12 CFR Part 715, which is herein
				  incorporated by reference, including subsequent amendments and editions, and
				  may be found at no cost at www.ecfr.gov; and
(3) the audit report is prepared and
				  submitted to the board of directors.
Workpapers of the supervisory committee or its independent
					 auditors shall be made available for review by the Credit Union
					 Division.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0306 - DISPLAY OF FINANCIAL STATEMENTS

Current through Register Vol. 39, No. 2, July 15, 2024
Each credit union shall display at its main office and all
					 branches, copies of its monthly financial statement. The statement shall be
					 posted in a manner that is accessible for inspection by
					 members.
Authority
					 G.S.
					 54-109.12;
Eff. February 1,
					 1976;
Readopted Eff. April 4, 1978;
Amended Eff.
					 October 1, 1983;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0307 - LISTING OF OFFICIALS AND OPERATING HOURS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Each credit
				  union shall notify the Administrator of the names and addresses of its
				  officers, directors, committee members of the credit committee and supervisory
				  committee, managers, and internal auditors.
(b) Each credit union shall notify the
				  Administrator of its days and hours of operation.
(c) The credit union shall notify the
				  Administrator of any changes to the information required by this Rule within 15
				  business days.
Authority
					 G.S.
					 54-109.12;
					 54-109.36;
Eff.
					 February 1, 1976;
Readopted Eff. April 4, 1978;
Amended
					 Eff. July 1, 2013;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0308 - BORROWING LIMITATIONS

Current through Register Vol. 39, No. 2, July 15, 2024
No credit union may borrow funds from any source in excess
					 of 50 percent of its unimpaired capital without the written approval of the
					 Administrator. Nonmember deposit accounts are considered to be borrowed
					 funds.
Authority
					 G.S.
					 54-109.12;
Eff. February 1,
					 1976;
Readopted Eff. April 4, 1978;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0309 - OPERATIONAL SYSTEMS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Credit unions,
				  associations of credit unions, and any other parties interested in credit union
				  programs may submit pilot programs relating to electronic funds transfer
				  through remote service units, loan programs, and other operational systems to
				  the Administrator for evaluation and approval.
(b) A program will be designated a pilot
				  program if it is determined that the implementation of the program will provide
				  the Administrator with the information necessary for the establishment of
				  permanent programs which will effectively benefit all credit unions and the
				  parties they serve.
(c) Where a
				  pilot program is deemed appropriate and the submitting party is a
				  state-chartered credit union, such state-chartered credit union will be
				  designated as a credit union to implement the pilot program, provided the
				  Administrator determines that the implementation by such state-chartered credit
				  union would best serve the Administrator's observation and evaluation of the
				  actual operation of the pilot program. If the requesting credit union is deemed
				  unqualified for implementation, or if the submitting party is not a
				  state-chartered credit union, the Administrator may, with the consent of the
				  submitting party, designate an alternate credit union to test the
				  program.
(d) A termination date
				  will be specified for the Credit Union designated to implement a pilot program.
				  If, at the termination date, additional time is needed for complete evaluation,
				  the Administrator may extend the time at the request of the designated credit
				  union. The Administrator reserves the right to terminate or otherwise modify
				  any ongoing pilot program. At the end of the evaluation period or extensions
				  thereof, the Administrator will determine the benefits of the program and may
				  authorize other qualified credit unions to adopt the same program, or a
				  modification thereof, in which case approval by the Administrator will be
				  required.
Authority
					 G.S.
					 54-109.12;
Eff. February 1,
					 1976;
Readopted Eff. April 4, 1978;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0310 - SHARE DRAFT PROGRAMS

Current through Register Vol. 39, No. 2, July 15, 2024
Share draft programs are permissible if provided for in the
					 Credit Union bylaws or have otherwise been approved by the
					 Administrator.
Authority
					 G.S.
					 54-109.12;
					 54-109.3(9)(11);
					 54-109.21(23);
					 54-109.22;
					 54-109.53;
54-109.55;
Eff. December 1, 1979;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0311 - FIDELITY AND SURETY BONDS AND INSURANCE COVERAGE

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The board
				  of directors of a credit union shall purchase a blanket fidelity bond as
				  required by
				  G.S.
				  54-109.44(2).
(b) Every credit union shall maintain the
				  minimum bond and insurance coverage as required by
				  G.S.
				  54-109.11(5).
(c) No form of surety bond shall be used
				  except as is approved by the Administrator as set forth in
				  G.S.
				  54-109.11(5). The approved
				  bond forms shall be Credit Union Blanket Bond 500 Bond Series, plus faithful
				  performance rider, Credit Union Blanket Bond, Standard Form No. 23 of the
				  Surety Association of America, or an equivalent approved Bond Form including a
				  faithful performance rider on a current listing, including any subsequent
				  amendments to the bond forms. The approved bond forms are incorporated by
				  reference and may be found at no cost on the Credit Union Division website
				  (www.nccud.org). These bond forms shall be considered the minimum coverages
				  required for the purpose of this Rule. The approved bond forms in this
				  Paragraph provide faithful performance coverage for all employees and
				  officials. Other forms, or changes in the amount of bond coverage, shall be
				  approved by the Administrator as set forth in
				  G.S.
				  54-109.11(5).
(d) Maximum deductible limits may be applied
				  to the required coverage contained in 500 Bond Series, and Standard Form No.
				  23, as specified in this Paragraph:
$0 to 100,000
0
$100,001 to $250,000
$1,000
$250,000 to $1,000,000
2,000
Over $1,000,000
2,000 plus 1/1000 of total assets up to a
maximum of $200,000
Deductibles in excess of those provided in this Paragraph
					 shall be approved by the Administrator based upon the applicable State rules
					 and laws.
(e) In
				  considering a request to deviate from the bond coverage and deductible amounts
				  set forth in this Rule, the Administrator shall consider the following factors
				  about the credit union:
(1) financial
				  strength;
(2) net worth;
(3) return on assets;
(4) quality of assets; and
(5) capital, asset quality, management,
				  earnings, and liquidity, (CAMEL) rating, used by the Credit Union Division and
				  NCUA to evaluate the soundness of credit unions on a uniform basis.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0312 - INSURANCE AND GROUP PURCHASING

Current through Register Vol. 39, No. 2, July 15, 2024
Credit unions may purchase, make available, or enter into
					 cooperative marketing arrangements (group purchasing) to facilitate its
					 members' voluntary purchase of insurance and other goods and services that
					 shall be in the interest of improving economic and social conditions of its
					 members. Prior to entering into any agreement for cooperative marketing
					 arrangements to provide goods, services, or insurance to its members, the
					 credit union board of directors shall ensure that the service is researched, is
					 needed and wanted by the members, is communicated in an understandable
					 format,and is monitored and evaluated to ensure that the action will not have
					 an adverse effect on the safety and soundness of the credit
					 union.
Authority
					 G.S.
					 54-109.12;
					 54-109.21;
					 54-109.75;
					 54-109.77;
					 54-109.92(a)(5);
Eff. March 1, 1982;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0313 - CREDIT UNION SERVICE ORGANIZATION (CUSO)

Current through Register Vol. 39, No. 2, July 15, 2024
(a) For
				  purposes of this Section, a "credit union service organization" (CUSO) is an
				  entity defined in Rule .0101(9) of this Subchapter.
(b) A CUSO may provide the following
				  functions or services:
(1) credit union
				  operational functions including, credit card and debit card services, ATM
				  services, accounting systems, data processing, management training and support,
				  payment item processing, record retention and storage, locator services,
				  research services, debt collection services, credit analysis and loan
				  servicing, and coin and currency services;
(2) family financial services including,
				  financial planning, and counseling, including retirement counseling, estate
				  planning and income tax preparation, developing and administering IRA and Keogh
				  plans and other personnel benefit plans, and provision of trust services
				  including acting as trustee or in other similar fiduciary capacities;
(3) acting as agent for the sale of
				  liability, casualty, automobile, life, health, accident, title, and other
				  insurance;
(4) personal property
				  leasing and development of leasing plans;
(5) any preapproved activities or services
				  set forth in 12 C.F.R. Part 712.5, and any subsequent amendments are
				  incorporated by reference and may be found at no cost on the Code of Federal
				  Regulations website www.ecfr.gov; and
(6) other functions and services, as
				  determined by the board of directors.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0401 - DELINQUENT LOANS AND LOAN LOSSES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Monthly
				  Schedule of Delinquent Loans. Each credit union shall, at the end of each
				  month, prepare and review a schedule of delinquent loans that shall list the
				  account number, name(s) of borrower(s), date of loan, date of last payment,
				  original amount of loan, and outstanding balance of loan at date of schedule,
				  together with space to note current action or status.
(b) The unpaid balance of loans shall be set
				  apart in columns of the schedule of delinquent loans that shall indicate the
				  extent of delinquency as determined by the delinquent installments according to
				  the note contract, as follows:
(1) loans which
				  the delinquent installments are 60 days but less than 180 days past
				  due;
(2) loans which the delinquent
				  installments are 180 days but less than 365 days past due; and
(3) loans which the delinquent installments
				  are past due 365 days or more.
Similar formats customized to a credit union's needs shall
					 be acceptable as long as the report described in this Paragraph may be produced
					 upon request.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0402 - CHARGE OFF OF UNCOLLECTABLE LOANS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) All credit
				  unions shall have a Charge-Off of UncollectableLoans Policy. All losses
				  resulting from uncollectable loans shall be charged against the Allowance for
				  Loan Losses or any special reserve as set forth in
				  G.S.
				  54-109.86(c).
(b) A record shall be maintained of all loans
				  charged off. The record shall contain the following information: account
				  number, name, original date, amount of original loan, security, balance at time
				  of charge-off, efforts made to collect, and what, if any, recovery has been
				  made on the security. This record shall be kept current and made available to
				  the examiners at each examination.
(c) Any loans delinquent 365 days or more,
				  shall be charged off in accordance with Paragraph (a) of this Rule, unless one
				  of the following applies to the loan:
(1) has
				  a high probability of no loss;
(2)
				  is secured by real estate where the borrower is demonstrating a reasonable
				  level of repayment; or
(3) is in
				  the process of legal action.
Any loan deemed uncollectable, because collection efforts
					 are nonproductive regardless of the number of days delinquent, shall be charged
					 off in accordance with Paragraph (a) of this Rule.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0403 - REAL ESTATE LOANS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Loan
				  Limitations. No more than 30 percent of the total dollar amount of shares and
				  deposits shall be made in fixed rate real estate loans with a remaining
				  maturity of more than seven years without the permission of the Administrator,
				  based on the Administrator's evaluation of the credit union's
				  management.
(b) Selection of
				  Attorneys. If an attorney's fee is paid by the borrower in connection with any
				  loans, the borrower shall have the right to select an attorney of his choice;
				  provided, the attorney or attorneys are acceptable to the Credit Union. The
				  decision as to the acceptability of the attorney or attorneys must be on a
				  reasonable, nondiscriminatory standard to be determined by the Board of
				  directors of each credit union.
Authority
					 G.S.
					 54-109.12;
					 54-109.18;
					 54-109.21(25);
Eff. February 1, 1976;
Readopted Eff. April 4, 1978;
Amended Eff. February 1, 1992; January 1, 1988; October 1, 1983; October 1,
					 1982;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0404 - LINE OF CREDIT LOANS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A credit union
				  shall not make a line of credit loan that exceeds the stated sum or specified
				  period of time approved by the board of directors of that credit
				  union.
(b) A credit union shall
				  maintain for a period of one month, beginning on the seventh day of each month,
				  a reserve, that shall consist of cash on hand or legal investments that mature
				  in one year or less, in an amount not less than five percent of the aggregate
				  unused portion of its line of credit loans determined as of the close of the
				  previous month. Not more than 20 percent of the required reserve shall be in
				  direct United States Government obligations. The credit union shall keep
				  current records of the aggregate unused portion of its line of credit loans and
				  reserves, and the Administrator may require periodic or special reports based
				  on these records.
Authority
					 G.S.
					 54-109.11(4);
					 54-109.12;
					 54-109.15;
					 54-109.16;
					 54-109.17;
					 54-109.70;
					 54-109.71(b);
					 54-109.82;
Eff.
					 February 1, 1976;
Readopted Eff. April 4, 1978;
Amended
					 Eff. January 1, 1992; December 1, 1979;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0405 - REPEALED - MAXIMUM INTEREST RATE ON LOANS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 54-109.65;
Eff. April 4,
					 1978;
Amended Eff. April 15, 1980;
Repealed Eff. April
					 1, 1985.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0406 - REPEALED - MAXIMUM UNSECURED LOAN LIMITS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G. S.
					 54-109.67;
Eff. October 1,
					 1983;
Repealed Eff. April 1,
					 1985.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0407 - COMMERCIAL LENDING AND MEMBER BUSINESS LOANS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Commercial
				  lending and member business loans. State chartered federally insured credit
				  unions shall adhere to the federal regulations prescribed by the National
				  Credit Union Administration relating to commercial lending and member business
				  loan program pursuant to 12 C.F.R. Part 723, and this Rule, and any subsequent
				  amendments, are incorporated by reference and may be found at no cost on the
				  Code of Federal Regulations website www.ecfr.gov.
(b) Written loan policies. The Board of
				  Directors shall give notification to the Administrator of Credit Unions prior
				  to initiating a commercial lending and member business loan program and adopt
				  specific commercial lending and member business loan policies and review them
				  at least annually. The Board of Directors shall review its commercial lending
				  and member business loan policies prior to any material change in the credit
				  union's commercial lending and member business loan program or related
				  organizational structure, and in response to any material change in portfolio
				  performance or change in economic conditions. Credit unions with an asset size
				  of two hundred fifty million dollars ($250,000,000) or below shall have
				  commercial lending and member business loan polices submitted to the
				  Administrator of Credit Unions 30 days prior to initiating a commercial lending
				  and member business loan program.
Authority
					 G.S.
					 54-109.12;
					 54-109.21(25);
					 54-109.78; 12 C.F.R. Part 741.3;
					 12 C.F.R. Part 723; 12 C.F.R. Part 741.203;
Eff. January 1,
					 1988;
Amended Eff. August 1, 1998; March 2, 1992;
Temporary Amendment Eff. January 1, 2017;
Amended Eff. August 1,
					 2017;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0408 - SALE OF LOANS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A credit union
				  may sell its loans provided the Board of Directors or designated Committee
				  approves the sale and a written agreement and a schedule of loans covered by
				  the agreement are retained in the credit union office.
(b) A credit union may not sell loans with
				  recourse without the permission of the Administrator of Credit
				  Unions.
(c) A credit union may
				  agree to service any obligation it purchases or sells in whole or in
				  part.
Authority
					 G.S.
					 54-109.12;
					 54-109.21(9);
					 54-109.21(25);
					 54-109.22;
Eff. June
					 1, 1991;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0409 - LOAN LIMITATIONS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) No loan or line
				  of credit advance shall be made to an individual member, or immediate family
				  member, if such a loan or line of credit advance causes that member along with
				  that member's immediate family to be indebted to the credit union in an
				  aggregate amount exceeding 10 percent of the credit union's unimpaired shares
				  and surplus as set forth in
				  G.S.
				  54-109.67. For purposes of this Rule
				  "unimpaired shares" shall mean shares without any assignments or pledges.
				  "Surplus" shall mean undivided earnings and reserves.
(b) In the case of member business loans,
				  additional loan limitations apply as set forth in Rule .0205(d) of this
				  Subchapter and pursuant to 12 C.F.R. Part 723.
Authority
					 G.S.
					 54-109.12;
					 54-109.26;54-109.67;
Eff. August
					 1, 1998;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0400 - LOANS › Section 06C .0410 - PROHIBITED FEES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A North
				  Carolina Credit Union shall not make any loan or extend any line of credit if,
				  either directly or indirectly, any commission, fee, or other compensation is to
				  be received by the Credit Union's directors, committee members, senior
				  management employees, loan officers, or any immediate family members of such
				  individuals, in connection with underwriting, insuring, servicing, or
				  collecting the loan or line of credit. For the purposes of this Rule, the
				  following definitions shall apply:
(1)
				  "senior management employees" shall mean the Credit Union's Chief Executive
				  Office or President, the Treasurer or Manager, the Vice President, the
				  Assistant Vice President, the Assistant Treasurer or Manager, the Chief
				  Financial Officer, and the Comptroller; and
(2) "immediate family member" shall include a
				  spouse or other family member living in the same household.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0500 - IMPAIRMENT AND INSOLVENCY › Section 06C .0501 - IMPAIRMENT

Current through Register Vol. 39, No. 2, July 15, 2024
(a) An impairment
				  of capital shall exist if the credit union is unable to provide for Allowance
				  for Loan Losses, or any other reserve required by the Administrator.
(b) In determining the degree of impairment
				  of capital that may exist, loans receivable shall be valued at book value less
				  the amount of reserves required. If share deposit balances exceed net assets an
				  impairment shall exist. The total of the credit union's assets, valued
				  according to generally accepted accounting principles, including loans
				  receivable, less current and long term liabilities, shall be considered to be
				  net assets.
(c) Whenever it is
				  determined that there exists an impairment of capital, the board of directors
				  shall notify the Administrator. If required by the Administrator, pursuant to
				  G.S. 54, Article 14A to 14N, the board of directors shall disclose to all
				  shareholders the impairment of capital and other matters regarding the
				  financial condition of the credit union.
Authority
					 G.S.
					 54-109.12;
					 54-109.92;
					 54-109.93;
Eff.
					 February 1, 1976;
Readopted Eff. April 4, 1978;
Amended
					 Eff. January 1, 1983;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0500 - IMPAIRMENT AND INSOLVENCY › Section 06C .0502 - INSOLVENCY

Current through Register Vol. 39, No. 2, July 15, 2024
Inability to meet demands of shareholders or creditors
					 shall constitute insolvency.
Authority
					 G.S.
					 54-109.12;
					 54-109.92;
Eff.
					 February 1, 1976;
Readopted Eff. April 4, 1978;
Readopted Eff. February 1, 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0600 - DIVIDENDS: DEPOSITS AND INTEREST REBATE › Section 06C .0601 - DIVIDENDS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The board of
				  directors may declare dividends pursuant to
				  G.S.
				  54-109.44(5) and
				  G.S.
				  54-109.54.
(b) No dividend shall be declared or paid
				  unless the credit union has satisfied the reserve requirements set forth in
				  G.S.
				  54-109.86 and any other reserve account that
				  shall be maintained as prescribed by the Administrator.
Authority
					 G.S.
					 54-109.12;
					 54-109.44(5);
					 54-109.54;
					 54-109.86;
					 54-109.87;
Eff.
					 February 1, 1976;
Readopted Eff. April 4, 1978;
Amended
					 Eff. October 1, 1983;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0600 - DIVIDENDS: DEPOSITS AND INTEREST REBATE › Section 06C .0602 - REPEALED - DEPOSITS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 54-109.12;
					 54-109.44(6);
Eff. February 1, 1976;
Readopted Eff. April 4, 1978;
Repealed Eff. April 1, 1985.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0600 - DIVIDENDS: DEPOSITS AND INTEREST REBATE › Section 06C .0603 - INTEREST REBATES

Current through Register Vol. 39, No. 2, July 15, 2024
The Board of directors may authorize the payment of an
					 interest rebate on loan accounts upon such reasonable terms as are consistent
					 with the following provisions:
(1) The
				  Board of directors shall authorize the method of computation, payment and
				  qualifications for participation in such rebate.
(2) Any rebate of interest shall be recorded
				  as a reduction of loan interest for the accounting period to which it
				  applies.
Authority
					 G.S.
					 54-109.12;
					 54-109.44(3);
Eff. February 1, 1976;
Readopted Eff. April 4, 1978;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0700 - ACCOUNTS › Section 06C .0701-0705

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 54-109.12;
					 54-109.44(6);
Eff. February 1, 1976;
Readopted Eff. April 4, 1978;
Repealed Eff. June 1, 1990.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0700 - ACCOUNTS › Section 06C .0706 - DORMANT ACCOUNTS

Current through Register Vol. 39, No. 2, July 15, 2024
After an account is declared dormant and the provisions of
					 the law have been complied with, the Credit Union must transfer the dormant
					 account to accounts payable (N.C. Escheats Fund) and maintain detailed records
					 of such accounts until paid to the N.C. Escheats Fund according to the North
					 Carolina Escheats Law.
Authority
					 G.S.
					 54-109.12;
Eff. February 1,
					 1976;
Readopted Eff. April 4, 1978;
Amended Eff.
					 October 1, 1982;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0700 - ACCOUNTS › Section 06C .0707 - REPEALED - STATEMENTS OF ACCOUNTS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 54-109.12;
Eff. February 1,
					 1976;
Readopted Eff. April 4, 1978;
Repealed Eff.
					 February 1, 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0700 - ACCOUNTS › Section 06C .0708 - CHARITABLE CONTRIBUTIONS AND CHARITABLE DONATION ACCOUNTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a)
				  A credit union may make charitable contributions and donations or may fund a
				  charitable donation account. The following definitions apply throughout this
				  Rule:
(1) "Charitable contributions and
				  donations" means gifts provided by credit unions to assist others through
				  contributions of staff, equipment, money, or other resources. This definition
				  includes donations to community groups, nonprofit organizations, other credit
				  unions or credit union affiliated causes, political donations, or donations to
				  create charitable foundations.
(2)
				  "Charitable donation account" ("CDA") means a hybrid charitable and investment
				  vehicle that a credit union may fund as a means to provide charitable
				  contributions to qualified charities.
(3) "Qualified charity" means a charitable
				  organization or other non-profit entity that serves either a charitable,
				  social, welfare, or educational purpose, and recognized by section 501(c)(3) of
				  the Internal Revenue Code as tax exempt.
(4) "Total return" means the actual rate of
				  return on all investments in a CDA over a given period of up to five years,
				  including realized interest, capital gains, dividends, and distributions, but
				  exclusive of account fees and expenses.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0800 - REPORTS TO ADMINISTRATOR › Section 06C .0801 - FINANCIAL STATEMENTS AND OTHER INFORMATION

Current through Register Vol. 39, No. 2, July 15, 2024
Each credit union shall furnish a report of condition to
					 the Administrator due on the same date as designated by the federal insurer in
					 January, April, July, and October. The report shall be submitted on forms
					 supplied by the federal insurer for that purpose. The Administrator shall
					 assess fines and penalties for reports not filed within 15 days, as set forth
					 in G.S.
					 54-109.13 and
					 G.S.
					 54-109.15(b).
Authority
					 G.S.
					 54-109.11(4);
					 54-109.12;
					 54-109.13;
					 54-109.15;
					 54-109.16;
Eff.
					 February 1, 1976;
Readopted Eff. April 4, 1978;
Amended
					 Eff. July 1, 2013; December 1, 1979;
Readopted Eff. February 1,
					 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0800 - REPORTS TO ADMINISTRATOR › Section 06C .0802 - ADDITIONAL REPORTS

Current through Register Vol. 39, No. 2, July 15, 2024
The Administrator may require any additional reports of the
					 status of credit unions as he deems necessary. The additional reports are due
					 within fifteen (15) days of the date specified by the
					 Administrator.
Authority
					 G.S.
					 54-109.12;
					 54-109.15;
Eff.
					 February 1, 1976;
Readopted April 4, 1978;
Amended Eff.
					 December 1, 1979;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0900 - PENSION PLANS › Section 06C .0901 - CREDIT UNION AS CUSTODIAN

Current through Register Vol. 39, No. 2, July 15, 2024
A credit union is authorized to act as custodian, and may
					 receive reasonable compensation for so acting, under any written trust
					 instrument or custodial agreement created or organized in the United States and
					 forming part of a pension fund that qualifies or qualified for specific tax
					 treatment under Section 401(d) or 408 of the Internal Revenue Code for its
					 members, groups, or organizations of members. The funds of such plans shall be
					 invested in share accounts of the credit union. All funds held in a custodial
					 capacity shall be maintained in accordance with applicable State and federal
					 laws, rules, and federal regulations, as may be promulgated by the Secretary of
					 Labor, the Secretary of the Treasury, or any other State and federal authority
					 exercising jurisdiction over such custodial accounts. The credit union shall
					 maintain individual records for each participant that shows all transactions
					 relating to the funds of each participant or beneficiary.
Authority
					 G.S.
					 54-109.12;
					 54-109.17;
					 54-109.21(21);
Eff. February 1, 1976;
Readopted Eff. April 4, 1978;
Readopted Eff. February 1, 2018.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0900 - PENSION PLANS › Section 06C .0902 - SUCCESSOR CUSTODIAN

Current through Register Vol. 39, No. 2, July 15, 2024
The plan shall provide for the appointment of a successor
					 custodian by a person, committee, corporation or organization other than the
					 Credit Union or any person acting in his capacity as a director, employee or
					 agent of the Credit Union, upon notice from the Credit Union or the
					 Administrator that the Credit Union is unwilling or unable to continue to act
					 as custodian.
Authority
					 G.S.
					 54-109.12;
					 54-109.21(21);
Eff. February 1, 1976;
Readopted Eff. April 4, 1978;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. September 6,
					 2016.
North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .1000 - RETENTION OF RECORDS › Section 06C .1001 - PERMANENT RECORD

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Each credit
				  union shall retain its records in a manner consistent with reasonable
				  businesspractices as set forth in
				  G.S.
				  54-109.17, rules andfederal
				  regulations.
(b) The credit union
				  shall permanently retain the original records of the credit union's
				  charter,bylaws, and any amendments to those documents.
(c) The following records shall be retained
				  permanently in their original form or in anyelectronic or digital form that
				  permits their retrieval and replication:
(1)
				  the minutes of meetings of members and of the board of directors;
(2) audit reports;
(3) copies of the examination reports of the
				  Credit Union Division;
(4) rulings
				  and opinions from the Credit Union Division; and
(5) supervisory committee minutes and
				  audits.