North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 16 - SAVINGS INSTITUTIONS › Subchapter E - OPERATION OF SAVINGS INSTITUTIONS › Section .0300 - RECORDS AND POLICIES › Section 16E .0301 - GENERAL POLICIES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Records to be
				  Kept at Principal Office. Each savings institution, each affiliate, and the
				  institution's parent company shall keep and make available for examination by
				  the representatives of the Commissioner of Banks at the principal office, books
				  and records of all the transactions of the institution in its true financial
				  condition. Records shall be kept to permit and facilitate a speedy examination
				  by the representatives of the Commissioner of Banks.
(b) Maintenance of Membership and Stockholder
				  Records. Every savings institution shall maintain membership or stockholder
				  records. When a savings institution has reason to believe 10 percent or more of
				  the outstanding capital stock of the savings institution is controlled by one
				  owner, the institution shall notify the Commissioner in writing and shall
				  include the residential address and the number of shares held by the
				  shareholder.
(c) Savings
				  institutions shall keep the following books and records at the institution, or
				  at its parent holding company, unless another storage site is approved by the
				  Commissioner of Banks in writing:
(1)
				  Alphabetical direct and indirect liability ledgers. Each institution shall keep
				  an alphabetical direct and indirect liability ledger. The alphabetical direct
				  liability ledger shall show each customer's direct obligations owed to the
				  institution by loan name or account number and the balance outstanding under
				  each account. The alphabetical indirect liability ledger shall show each
				  customer's indirect obligations owed to the institution 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
				  institution do not exceed twenty thousand dollars ($20,000), the indirect
				  obligations of that customer may be omitted from the alphabetical indirect
				  liability ledger. In an institution whose automated record system is not able
				  to produce an alphabetical liability ledger, the institution shall produce an
				  alphabetical listing of customers showing all of a customer's loan or account
				  numbers and the amount outstanding under each account number when called upon
				  by representatives of the Commissioner of Banks. Each institution shall 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 institution
				  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 the action shall be 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 of 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. Every savings institution shall appraise the
				  value of each parcel of real estate taken in satisfaction of debts previously
				  contracted at the time of acquisition. The report of each appraisal shall be
				  submitted in writing to the Board of Directors and shall be kept in the records
				  of the savings institution.
(6)
				  Meeting minutes. Minutes of all board of directors' meetings, board committee
				  meetings, and members and stockholders meetings 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 according to the
				  institution's check-posting policy. 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 shall be noted in the meeting
				  minutes.