SUBCHAPTER 03C - BANKS

 

SECTION .0100 - ORGANIZATION AND CHARTERING

 

04 NCAC 03C .0101         APPLICATION

04 NCAC 03C .0102         EXAMINATION BY COMMISSIONER

04 NCAC 03C .0103         REPORT TO BANKING COMMISSION

04 NCAC 03C .0104         REVIEW BY BANKING COMMISSION

 

History Note:        Authority G.S. 53C-2-5; 53C-3-1(a); 53C-3-1(b); 53C-3-4; 53C-3-5; 53C-3-6; 53-137; 53-333;

Eff. February 1, 1976;

Amended Eff. January 1, 2013; September 1, 2006; September 1, 1990; November 1, 1982; July 24, 1979; August 1, 1978;

Repealed Eff. October 1, 2014.

 

04 NCAC 03C .0105         STATEMENT FILED BEFORE BEGINNING BUSINESS

04 NCAC 03C .0106         CERTIFICATION TO THE SECRETARY OF STATE

 

History Note:        Authority G.S. 53‑4; 53‑5; 53‑7; 53‑92; 150A‑11(1);

Eff. February 1, 1976;

Repealed Eff. January 1, 1985.

 

04 NCAC 03C .0107         BANK CERTIFICATE

 

History Note:        Authority G.S. 53C-2-5; 53C-3-7;

Eff. February 1, 1976;

Amended Eff. January 1, 2013;

Repealed Eff. October 1, 2014.

 

04 NCAC 03C .0108         JUDICIAL REVIEW

 

History Note:        Authority G.S. 53‑92; 150A‑11(1); 150A‑43;

Eff. February 1, 1976;

Repealed Eff. January 1, 1985.

 

04 NCAC 03C .0109         APPLICATION TO ESTABLISH BANK: CONDITIONAL APPROVAL

 

History Note:        Authority G.S. 53‑5; 53‑92; 53‑104; 150A‑11(1);

Eff. February 1, 1976;

Repealed Eff. November 1, 1982.

 

04 NCAC 03C .0110         ORGANIZATIONAL EXPENSES

 

History Note:        Authority G.S. 53-2; 53-92; 53-104;

Eff. February 1, 1976;

Amended Eff. July 1, 1991; September 1, 1990;

Repealed Eff. January 1, 2013.

 

04 NCAC 03C .0111         NATIONAL BANK CONVERSION

 

History Note:        Authority G.S. 53C-2-5; 53C-7-301;

Eff. September 26, 1979;

Amended Eff. January 1, 2013; September 1, 2006; September 1, 1990; August 1, 1988;

Repealed Eff. October 1, 2014.

 

04 NCAC 03C .0112         ELIMINATION OF DIRECTOR LIABILITY

 

History Note:        Authority G.S 53C-2-5; 53C-4-6; 55-2-02(b)(3); 55-8-30;

Eff. June 1, 1995;

Amended Eff. January 1, 2013;

Repealed Eff. October 1, 2014.

 

SECTION .0200 - BRANCHES

 

04 NCAC 03C .0201         ESTABLISHMENT OF BRANCHES

 

History Note:        Authority G.S. 53C-2-5; 53C-6-15;

Eff. February 1, 1976;

Amended Eff. January 1, 2013; September 1, 2006; June 1, 1995; July 1, 1991; October 1, 1990; November 1, 1982;

Repealed Eff. October 1, 2014.

 

04 NCAC 03C .0202         DISCONTINUANCE

 

History Note:        Authority G.S. 53-4; 53-62; 53-92; 53-104;

Eff. February 1, 1976;

Amended Eff. September 1, 2006; June 1, 1995; October 1, 1990; November 1, 1982;

Repealed Eff. January 1, 2013.

 

04 NCAC 03C .0203         DISCONTINUANCE OF A LIMITED SERVICE FACILITY

04 NCAC 03C .0204         CONVERSION OF BRANCH TO LIMITED SERVICE FACILITY

 

History Note:        Authority G.S. 53-62; 53-92; 53-104; 53-122(3);

Eff. September 1, 1990;

Amended Eff. September 1, 2006; June 1, 1995;

Repealed Eff. January 1, 2013.

 

SUBCHAPTER 03C ‑ BANKS

 

SECTION .0300 ‑ CHANGE OF LOCATION

 

04 NCAC 03C .0301         CHANGE OF LOCATION OF MAIN OFFICE, BRANCH OR LTD SVC FACILITY

 

History Note:        Authority G.S. 53‑62; 53‑92; 53‑104; 53‑122(3);

Eff. February 1, 1976;

Amended Eff. September 1, 2006; June 1, 1995; September 1, 1990; November 1, 1982; August 1, 1978;

Repealed Eff. February 1, 2013.

 

04 NCAC 03C .0302         EXAMINATION BY COMMISSIONER

04 NCAC 03C .0303         REPORT

04 NCAC 03C .0304         REVIEW BY BANKING COMMISSION

04 NCAC 03C .0305         FINAL ORDER BY COMMISSIONER

04 NCAC 03C .0306         CERTIFICATE

 

History Note:        Authority G.S. 53‑62; 53‑92; 150A‑11(1);

Eff. February 1, 1976;

Amended Eff. March 15, 1978;

Repealed Eff. November 1, 1982.

 

SECTION .0400 ‑ CONSOLIDATION OF BANKS

 

04 NCAC 03C .0401         APPLICATION

 

History Note:        Authority G.S. 53‑12; 53‑92;

Eff. February 1, 1976;

Amended Eff. September 1, 2006; September 1, 1990; July 24, 1979;

Repealed Eff. February 1, 2013.

 

04 NCAC 03C .0402         PUBLICATION

 

History Note:        Authority G.S. 53‑12; 53‑92; 150B‑11(1);

Eff. February 1, 1976;

Repealed Eff. August 1, 1988.

 

04 NCAC 03C .0403         INVESTIGATION

04 NCAC 03C .0404         ORDER

04 NCAC 03C .0405         REVIEW BY THE BANKING COMMISSION

 

History Note:        Authority G.S. 53C-2-5; 53C-7-202; 53C-7-203; 53C-7-209;

Eff. February 1, 1976;

Amended Eff. January 1, 2013; September 1, 1990;

Repealed Eff. October 1, 2014.

 

04 NCAC 03C .0406         FILING WITH SECRETARY OF STATE

 

History Note:        Authority G.S. 53‑13; 53‑92;

Eff. February 1, 1976;

Amended Eff. September 1, 1990;

Repealed Eff. February 1, 2013.

 

04 NCAC 03C .0407         WAIVER BY COMMISSIONER

 

History Note:        Authority G.S. 53C-2-5; 53C-2-1; 53C-9-101;

Eff. November 1, 1982;

Amended Eff. January 1, 2013;

Repealed Eff. October 1, 2014.

 

SECTION .0500 ‑ WORK WEEK

 

04 NCAC 03C .0501         OPERATION OF BANKS ON A FIVE‑DAY WEEK BASIS

04 NCAC 03C .0502         BANKS REVERTING TO A SIX‑DAY WEEK BASIS

 

History Note:        Authority G.S. 53‑77.1; 53‑92; 150B‑11(1);

Eff. February 1, 1976;

Repealed Eff. July 1, 1990.

 

04 NCAC 03C .0503         DAYS AND HOURS OF REGULAR OPERATION

 

History Note:        Authority G.S. 53-77.1A(d); 53-92;

Eff. July 1, 1990;

Repealed Eff. January 1, 2013.

 

SECTION .0600 ‑ EXAMINATION OF BANKS

 

04 NCAC 03C .0601         EXAMINATION

04 NCAC 03C .0602         REPORT

 

History Note:        Authority G.S. 53‑92; 53‑99; 53‑109; 53‑117; 53‑123; 53‑125; 150A‑11(1);

Eff. February 1, 1976;

Repealed Eff. January 1, 1985.

 

SECTION .0700 ‑ REPORTS REQUIRED BY COMMISSIONER OF BANKS

 

04 NCAC 03C .0701         EXAMINING COMMITTEE REPORT

04 NCAC 03C .0702         REPORTS OF CONDITION AND INCOME

04 NCAC 03C .0703         PUBLISHER'S COPY, REPORT OF CONDITION AND INCOME

 

History Note:        Authority G.S. 53‑83; 53‑92; 53‑99; 53-105;

Eff. February 1, 1976;

Amended Eff. September 1, 2006; July 1, 1990; September 26, 1979;

Repealed Eff. April 1, 2007.

 

04 NCAC 03C .0704         CONSOLIDATED REPORT OF INCOME

04 NCAC 03C .0705         REPORT OF MANAGEMENT AND PERSONNEL

 

History Note:        Authority G.S. 53‑92; 53‑106; 53‑107; 150B‑11(1);

Eff. February 1, 1976;

Amended Eff. September 26, 1979;

Repealed Eff. July 1, 1990.

 

SECTION .0800 - MISCELLANEOUS REPORTS AND APPROVALS

 

04 NCAC 03C .0801         OATH OF DIRECTORS

04 NCAC 03C .0802         DEPOSITORY BANKS

04 NCAC 03C .0803         OTHER REAL ESTATE

04 NCAC 03C .0804         SUSPENSION OF INVESTMENT AND LOAN LIMITATION

 

History Note:        Authority G.S. 53-43(3)c; 53-49; 53-80; 53-81; 53-84; 53-92; 53-99;

Eff. February 1, 1976;

Amended Eff. September 1, 2006; May 1, 1992; September 26, 1979;

Repealed Eff. January 1, 2013.

 

04 NCAC 03C .0805         STOCKHOLDERS LIST

04 NCAC 03C .0806         CHANGES IN OWNERSHIP AND MANAGEMENT

 

History Note:        Authority G.S. 53‑42.1; 53‑85; 53‑92; 53‑108; 150A‑11(1);

Eff. February 1, 1976;

Amended Eff. September 26, 1979;

Repealed Eff. January 1, 1985.

 

04 NCAC 03C .0807         SUBSIDIARY INVESTMENT APPROVAL

 

History Note:        Authority G.S. 53-47; 53-93; 53-95; 53-104;

Eff. May 1, 1992;

Amended Eff. December 1, 2011; June 1, 1995;

Repealed Eff. January 1, 2013.

 

Section .0900 – OPERATIONS

 

04 NCAC 03C .0901         BOOKS AND RECORDS

(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.

(b)  Unless another storage site is approved by the Commissioner of Banks in writing by letter or other written agreement, a bank's books and records and the books and records of the bank's parent holding company shall be kept at the bank or at the bank's parent holding company; and the books and records of an affiliate of the bank shall be kept at the affiliate, the bank, or the bank's parent holding company.

(c)  Based upon the condition of a bank as determined by examination or otherwise, the Commissioner of Banks may require a bank to prepare or maintain different or additional books, records, and reports.

 

History Note:        Authority G.S. 53C-8-6;

Eff. February 1, 1976;

Amended Eff. October 1, 2014; June 1, 1995; May 1, 1992; October 1, 1990; September 1, 1983;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

04 NCAC 03C .0902         REQUIRED ACCOUNTS

To ensure that the books and records of the bank properly reflect all of its liabilities, the following reserve accounts shall be set up and maintained by all banks:

(1)           Reserve for Interest Due Depositors. This reserve shall be set up and proper entries made at least once each month. As interest is paid to depositors, payments shall be charged to this account. Each month, as credits are made to this reserve, the amount shall be charged to interest paid to depositors' accounts.

(2)           Reserve for Unearned Interest on Loans. All interest collected on notes shall be credited to this account on the day it is collected. At least once each month, earned interest shall be computed, charged to this account, and credited to earned interest account. This Subparagraph shall not apply to loans where interest is accounted for through an income-earned-not-collected account.

(3)           Bond Income Earned; Not Collected. At least once each month, the income on bonds earned during the month shall be charged to this account and credited to the bond income account. As coupons are collected, they shall be credited to this account.

 

History Note:        Authority G.S. 53C-8-1; 53C-8-6;

Eff. February 1, 1976;

Amended Eff. October 1, 2014; September 1, 1990;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

04 NCAC 03C .0903         RETENTION: REPRODUCTION AND DISPOSITION OF BANK RECORDS

(a)  Each bank, at a location with secured access, shall keep and retain books, ledgers, records, and documents set forth for the periods specified.

Bank Records                                                                                                                   Minimum

to be Retained                                                                                                             Retention Period

 

ACCOUNTING

 

1.             Daily Reserve Calculation and Averages                                                                        3 years

2.             Difference Records (Over/Short)                                                                                      2 years

3.             Paid Bills and Invoices                                                                                                      3 years

4.             Quarterly Report of Condition and Income and Supporting Work Papers               5 years

 

ADMINISTRATIVE

 

1.             Documentation of Charged-off Assets                                                                            10 years

2.             Escheat Reports and Records                                                                                            10 years

3.             Minutes of Meetings of Stockholders, Directors, and

Board Committees                                                                                                                         Permanent

 

AUDIT

 

1.             Audit Reports (Internal and External)                                                                             3 years

2.             Audit Work Papers (Internal)                                                                                            3 years

 

BANK PROPERTIES

 

1.             Fixed Assets-Evidence of Ownership (After Acquisition)                                           5 years

2.             Fixed Assets-Leases (After Termination)                                                                       5 years

3.             Real Estate-Construction Records                                                                                   5 years

4.             Real Estate-Deeds                                                                                                 Until conveyed

5.             Real Estate-Leases (After Termination)                                                                         5 years

 

CAPITAL

1.             Capital Stock Certificate Books, Stubs, or Interleaves                                          Permanent

2.             Capital Stock Ledger                                                                                                    Permanent

3.             Capital Stock Transfer Register                                                                                  Permanent

4.             Proxies                                                                                                                                   3 years

 

COLLECTIONS

 

1.             Collection Registers (Incoming and Outgoing)              3 years after item paid or returned

2.             Receipts and Advices (After Closed)                                                                               1 year

 

CREDIT CARDS

 

1.             Borrowing Authority Resolutions (After Closed)                                                         3 years

2.             Customer Application (After Closed)                                                                              1 year

3.             Disclosure and Compliance Documents                                                                   25 months

4.             Merchants' Agreement (After Closed)                                                                             2 years

5.             Posting or Transaction Journal                                                                                         2 years

6.             Sales Tickets or Drafts                                                                                                       3 years

7.             Statement of Account                                                                                                         5 years

 

DEMAND DEPOSIT AND TRANSACTION ACCOUNTS

 

1.             Checks and Debits                                                                                                               5 years

2.             Daily Report on Overdrafts                                                                                               2 years

3.             Deposit Resolutions (After Closed)                                                                                3 years

4.             Deposit Tickets and Credits                                                                                              5 years

5.             Ledgers, Statements, or Stubs                                                                                           5 years

6.             Letters of Administration                                                                                                   5 years

7.             Posting or Transaction Journals                                                                                       5 years

8.             Powers of Attorney                                                                                     5 years after closing

9.             Return Item Records                                                                                                           1 year

10.          Signature Cards (After Closed)                                                                                         5 years

11.          Stop Payment Orders                                                                                                          1 year

12.          Undelivered Statements                                                                                                     1 year

13.          Unidentified or Unclaimed Deposit Records                                                 Until escheated

 

DUE FROM BANKS

 

1.             Advice of Entry (After Cleared)                                                                                  3 months

2.             Drafts (After Paid)                                                                                                              5 years

3.             Draft Register                                                                                                                 Until paid

4.             Reconcilements                                                                                                                   5 years

5.             Statements                                                                                                                            3 years

 

GENERAL LEDGER

 

1.             Daily Statement of Condition                                                                                           5 years

2.             General Journal (If Book of Original Entries, with Descriptions)                              15 years

3.             General Ledgers                                                                                                                   15 years

4.             General Ledger Tickets                                                                                                      5 years

 

INSURANCE

 

1.             Bankers Blanket Bond and Excess                                                                                   5 years

2.             General Casualty Liability Policies Expired                                                                  5 years

 

INTERNATIONAL

 

1.             Bankers Acceptances                                                                                                         3 years

2.             Collection Records                                                              3 years after item paid or returned

3.             Letters of Credit and Documents                                                       3 years after expiration

4.             Transfer Orders (Wire or Written)                                                                                    1 year

 

INVESTMENTS

 

1.             Accrual and Bond Amortization or Accretion Records (After Period Ends)           3 years

2.             Brokers' Confirmations, Invoices, Statements                                                              3 years

3.             Ledgers                                                                                                                                  3 years

4.             Records of Purchases and Sales of Securities                                                                 5 years

 

LEASE RECEIVABLES (OTHER THAN REAL ESTATE)

 

1.             Lease Agreements and Documents (After Termination)                                             5 years

2.             Rental Payment Records                                                                                                    5 years

3.             Record of Disposition of Property                                                                                   5 years

 

LEGAL JUDICIAL AUTHORIZATION

 

1.             Attachments or Garnishments                                                                                           10 years

2.             Court Case Records (After Final Disposition)                                                                10 years

3.             Probate Court Appointment (After Closed)                                                                    10 years

 

LOANS (COMMERCIAL, CONSUMER, MORTGAGE)

 

1.             Appraisals, Financing Statements, and                                                                       Until paid

Title Opinions Pertaining to Collateral

2.             Borrowing Resolutions                                                                 3 years after payment of debt

3.             Credit Files (Financial Statements, Applications, Correspondence)

(After Paid)                                                                                                           2 years

4.             Collateral Records (After Released)                                                                               5 years

5.             Interest Rebate Records                                                                                                       1 year

6.             Liability Cards or Ledgers (After Closed)                                                                      3 years

7.             Loan Ledger Cards or History Sheets (After Paid)                                                       3 years

8.             Loan Proceeds Disbursement Records                                                                       Until paid

9.             Loans Paid Record                                                                                                              3 years

10.          Mortgage Files and Supporting Documents (After Paid)                                             2 years

11.          Note or Loan Register (After Paid)                                                                                  3 years

12.          Posting or Transaction Journal                                                                                         2 years

 

MAIL

 

1.             Insurance Records of Registered and Certified                                                              1 year

2.             Registered and Certified Records (In and Out)                                                              1 year

3.             Return Receipt Record                                                                                                       1 year

 

MISCELLANEOUS

 

1.             Cash and Security Vault Records-Opening, Closing                                                 6 months

2.             Taxes-Returns and Supporting Papers                                             3 years or until cleared by

IRS and Dept. of Revenue

3.             Travelers Checks-Applications                                                                                         1 year

 

MONEY TRANSFER

 

1.             Copy of Incoming and Outgoing Transfers                                                                    1 year

2.             General Correspondence                                                                                                   1 year

3.             Receipts and Advices (After Closed)                                                                               1 year

4.             Transfer Request Records                                                                                                  1 year

 

NIGHT DEPOSITORY

 

1.             Customer Agreement (After Closed)                                                                               1 year

2.             Customer Receipt                                                                                                                              1 year

3.             Daily Inventory                                                                                                                   1 year

 

OFFICIAL CHECKS

 

1.             Official Checks (Dividend, Cashiers, Expense, Loan) and Money Orders

(After Paid)                                                                                                           5 years

2.             Official Check Register or Carbon Copy                                           Until paid or escheated

3.             Certified Checks or Receipts (After Paid)                                                                      5 years

4.             Certified Check Register or File Copy                                                Until paid or escheated

5.             Affidavits and Indemnity pertaining to Issuance of Duplicate Checks               Permanent

 

PROOF AND TRANSIT

 

1.             Advice of Correction                                                                                                      6 months

2.             Cash Tickets                                                                                                                     6 months

3.             Outgoing Cash Letters and Accompanying Items (Microfilm)                                   2 years

4.             Proof Sheets, Tapes, and Listings                                                                                     2 years

 

SAFE DEPOSIT

 

1.             Access Records (After Closed)                                                                                         3 years

2.             Box History Card                                                                                                          Permanent

3.             Contracts and Agreements (After Closed)                                                                      3 years

4.             Forced Entry Records                                                                                                         10 years

 

SAFEKEEPING AND CUSTOMER SECURITIES

 

1.             Broker Confirmations, Invoices, Statements                                                                 3 years

2.             Buy and Sell Orders                                                                                                            3 years

3.             Customer Contracts and Agreements (After Closed)                                                    3 years

4.             In and Out Records (Movement of Securities)                                                               3 years

5.             Safekeeping Receipts (After Closed)                                                                               3 years

 

SAVINGS AND TIME DEPOSITS

 

1.             Certificates of Deposit Paid                                                                                               5 years

2.             Certificates of Deposit Records (Register, Ledger, Copy)          Until paid or escheated

3.             Daily Report of Overdrafts                                                                                                2 years

4.             Debits and Withdrawals                                                                                                     5 years

5.             Deposit and Credit Tickets                                                                                              5 years

6.             Deposit Resolution (After Closed)                                                                                   3 years

7.             Ledgers or Statements                                                                                                       5 years

8.             Posting or Transaction Journal                                                                                         1 year

9.             Signature Cards, Contracts, and Agreements (After Closed)                                      5 years

10.          Undelivered Statements                                                                                                     1 year

11.          Unidentified or Unclaimed Deposit Records                                                 Until escheated

 

TELLERS

 

1.             Balance Sheets, Recaps, or Records                                                                               1 year

2.             Cash Item Report                                                                                                                1 year

3.             Machine Tapes, Cash Ticket Copies, Posting or Transaction Journals     6 months

4.             Daily Record of Cash Items Held Over                                                                           1 year

 

TRUST (Corporate)

 

1.             Account Ledger or Record                                7 years after account closed

2.             Posting or Transaction Journal                                                                                         7 years

3.             Bonds of Indemnity                                                                                                     Permanent

4.             Stock Certificates (Cancelled)                                                    until returned to corporation

5.             Dividend Checks – Paid                                                                                                     5 years

6.             Dividend Check Register or Carbon Copy                                                               Until paid

7.             Bonds and Coupons –                                                                                                7 years after

Cancelled or Cremation Certificates                                             paid or until returned to corporation

8.             Resolutions and Authorizations                                                    7 years after account closed

 

TRUST (Employee Benefit)

 

1.             Accountings                                                                                    6 years after account closed

2.             Agreements, Authorizations, and Resolutions                         6 years after account closed

3.             Account Ledger or Record                                                         6 years after account closed

4.             Disbursement Checks                                                                                                         6 years

5.             Check Register or Carbon Copy                                                                                Until Paid

6.             Bonds of Indemnity                                                                                                      Permanent

 

TRUST (Personal)

 

1.             Accountings                                                                                     3 years after account closed

2.             Agreements and Authorizations                                                  5 years after account closed

3.             Account Ledger or Record                                                          7 years after account closed

4.             Minutes of Committee Meetings                                                                                Permanent

5.             Receipts for Assets Delivered                                                       3 years after account closed

6.             Tax Return                                                                                        10 years or until IRS clears

7.             Disbursement Checks                                                                                                         5 years

8.             Check Register or Carbon Copy                                                                                Until paid

9.             Bonds of Indemnity                                                                                                     Permanent

 

(b)  Nothing in these Rules shall prohibit any bank or branch thereof from keeping and maintaining any and all of its records for a longer period of time than set forth by the minimum retention period.

(c)  Paragraph (a) of this Rule sets forth state minimum records retention requirements and does not include nor cover records required to be kept by federal agencies such as federal bank supervisory agencies, and other federal agencies. Banks shall also observe the requirements of such federal agencies in retention of records required by such agencies.

(d)  Nothing in these Rules shall prohibit any bank or branch from causing any or all of its records, whether permanent records or records designated to be retained for a minimum period of time, to be maintained pursuant to G.S. 53C-6-14.

 

History Note:        Authority G.S. 53C-2-5; 53C-6-14; 53C-8-1;

Eff. February 1, 1976;

Amended Eff. October 1, 2014; January 1, 2013; May 1, 1992; September 1, 1990; January 1, 1985;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

04 NCAC 03C .0904         LETTERS OF CREDIT

The bank shall maintain supporting records on all letters of credit issued and outstanding, except for letters of credit sold for cash, and shall show the following information:

(1)           the name of the account party for whom the letter of credit is established;

(2)           the name of the beneficiary;

(3)           the amount;

(4)           the expiration date; and

(5)           the terms under which payment is authorized.

 

History Note:        Authority 53C-8-1;

Eff. April 21, 1979;

Amended Eff. October 1, 2014;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

04 NCAC 03C .0905         investment authority

A bank may invest in mutual funds to the same extent and within the same limitation as permitted for national banks by statute, regulation, or interpretation of the applicable federal regulator, as reflected in the U.S. Office of the Comptroller of Currency "Investment Securities: Comptroller's Handbook" (Section 203) or their written interpretations that is hereby incorporated by reference and shall include any later amendments and editions of the referenced material. This information may be obtained from the Office of the Comptroller of Currency website at http://www.occ.gov/publications/publications-by-type/comptrollers-handbook/investsecurities1.pdf at no cost at the time of adoption of this Rule.

 

History Note:        Authority G.S. 53C-5-2;

Eff. October 1, 2014;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

SECTION .1000 ‑ LOAN ADMINISTRATION AND LEASING

 

04 NCAC 03C .1001         LOAN DOCUMENTATION

Unless otherwise provided, each bank shall maintain on file the following loan documentation:

(1)           Financial Statements. Financial statements shall be required from any person who is a maker, co-maker, guarantor, endorser, or surety on any unsecured loans or other unsecured extensions of credit in an amount of fifty thousand dollars ($50,000) or more in the aggregate. Financial statements required by this Item shall:

(a)           be signed or otherwise properly executed;

(b)           be dated within 18 months preceding the origination date of the credit obligation;

(c)           be renewed within 18 months after the date of the last financial statement on file;

(d)           be addressed to, or made for the lending bank; and

(e)           include information reflecting the assets, liabilities, net worth, and income of the borrower.

(2)           Financial Statement Exceptions. A bank may waive the financial statement required by Item (1) of this Rule for credit granted under a credit card. For an individual whose unsecured obligations consist of consumer loans scheduled to be repaid in at least quarterly installments, a bank may substitute a current credit bureau report for the financial statement required by Item (1) of this Rule. A credit bureau report shall be current if not more than 18 months have passed from its date of issue.

(3)           Personal Property Appraisals. Appraisals on personal property used as collateral for a loan shall be obtained and shall be completed as follows:

(a)           Except as otherwise provided below, a written appraisal of personal property used to collateralize any loan shall be made or approved by the executive committee or loan committee of the bank or any branch thereof, branch, or other reliable persons familiar with the value of the property. Except as provided, all appraisals shall be renewed every 24 months.

(b)           Requirements. The appraisal required by this Item shall include:

(i)            the name of the borrower;

(ii)           the date the appraisal was made;

(iii)          the value of the collateral;

(iv)          the signatures of at least two persons making the appraisal;

(v)           a brief description of the property;

(vi)          the amount of any prior lien and holder of the lien, if any; and

(vii)         the original amount or outstanding balance of the loan which the property is used to secure.

(c)           Appraisal Exceptions. No appraisal shall be required under the following circumstances:

(i)            on collateral to notes of less than fifty thousand dollars ($50,000);

(ii)           on loans fully secured by obligations of the United States or the State of North Carolina;

(iii)          on loans fully secured by deposits in the bank maintaining the loan account;

(iv)          on loans fully secured by the cash surrender or loan value of life insurance policies;

(v)           on loans fully secured by bonded warehouse receipts;

(vi)          on floor plan loans to dealers fully secured by motor vehicles;

(vii)         on discounted notes for a dealer where the note is given as the purchase price of a motor vehicle or other consumer goods; or

(viii)        on loans fully secured by listed securities, unless such loans are within the provisions of the Securities Exchange Act of 1934 as defined by Regulation "U," as amended from time to time by the Board of Governors of the Federal Reserve System. On loans secured by such collateral, the appraisal shall be made and kept on file until the loan is paid in full.

(d)           Renewal Exceptions. Appraisals need not be renewed biennially where a motor vehicle or mobile home is the sole or partial collateral for a loan.

(e)           Single Signature Exception. An appraisal may be performed and signed by only one person where a motor vehicle or mobile home is the sole collateral for a loan.

(4)           Real Estate Appraisals. Unless otherwise provided, all real estate taken as security for loans shall be appraised in the form and manner set forth in Sub-item (4)(a) through (4)(c) of this Rule. In addition, the appraisal shall be independent in that the appraiser shall not be involved in the loan transaction secured by the property being appraised and shall have no interest, financial or otherwise, in the property.

(a)           The bank may elect to waive the requirement for an appraisal of real estate given as security for loans of fifty thousand dollars ($50,000) or less.

(b)           Appraisals of real estate given as security for loans over fifty thousand dollars ($50,000), but not exceeding two hundred fifty thousand dollars ($250,000), whether directly or indirectly pledged as collateral shall be prepared by one of the following methods:

(i)            Two members of the executive or loan committee who are familiar with real estate values in the community where the property is located;

(ii)           Two bank employees who are familiar with real estate values in the community where the property is located, provided that one of the two employees shall not be involved in the loan transaction secured by the property being appraised;

(iii)          A state-licensed real estate appraiser or state-certified real estate appraiser, or a person certified as a real estate appraiser by an appraisal trade organization approved by the bank to perform the appraisal; or

(iv)          In lieu of an appraisal as provided by Sub-items 4(b)(i) through (iii) of this Rule, for loans less than two hundred fifty thousand dollars ($250,000), a bank may elect to accept a copy of the most recent real property tax notice from the tax administrator's office in the county in which the property is located provided that such notice states the assessed ad valorem tax value of the real estate, and any improvements thereon, separate from the personal property; and the loan officer shall include with the tax notice a memorandum to file that he or she has obtained the notice from the county tax administrator and is of the opinion that such notice reflects the real property values.

(c)           Except as noted, appraisals required by Sub-items (4)(b)(i), (ii), and (iii) of this Rule shall be in writing, and signed and dated by the person or persons making the appraisal. Additionally, the appraisal shall identify the loan transaction for which it was made; identify the current balance of any prior lien and the identity of the holder of the lien, if any; segregate values of improvements from values of the land; and describe the property so as to make it easily identifiable. If a professional appraisal form is used that does not include this information, the bank shall complete and attach to such appraisal its own appraisal summary form disclosing the required information. The appraisal shall state the basis or approach used to determine the value of the property. Acceptable approaches to determining the value of real property are:

(i)            the current cost of replacing a property, less depreciation relating to deterioration from functional or economic obsolescence;

(ii)           the value indicated by recent sales of comparable properties in the market and other market factors such as listings and offers to sell; or

(iii)          the value that the property's net earning power will support, based on a capitalization of net income.

(d)           All real estate given as security for loans in an amount over two hundred fifty thousand dollars ($250,000), whether directly or indirectly pledged as collateral shall be appraised and such appraisal shall be subject to the provisions of 12 C.F.R. 323.1 through 12 C.F.R. 323.7, which are hereby incorporated by reference and includes subsequent amendments or additions. This information is available at the U.S. Printing Office website at http://www.ecfr.gov/cgi-bin/text-idx?SID=cb59b820da3e668ebb333139d429ce0c&node=pt12.5.323&rgn=div5 at no cost at the time of adoption of this Rule.

(5)           Certificate of Title. A title opinion furnished by an attorney at law, a title report or title insurance policy issued by a company licensed by the Commissioner of Insurance, or other insurance coverage that provides the bank similar protection against loss from title defects, errors or omissions at closing, or other loan-related risks, shall be obtained in connection with each deed of trust or mortgage given as security on each real estate-secured loan when:

(a)           the loan is primarily secured by real property and only secondarily by the borrower's general credit-worthiness; and

(b)           the amount of the loan secured by the real property is fifty thousand dollars ($50,000) or more.

(6)           Stock Certificate and Stock Powers. Where stock certificates, or similar negotiable securities, are accepted as collateral for a loan, each certificate shall be endorsed and witnessed in ink, or accompanied by a stock power signed and witnessed in ink. Where such collateral is in the name of someone other than the maker or endorser of the note, there shall be on file in the bank written authority from the collateral owner permitting the hypothecation of the collateral.

(7)           Corporate Resolutions. A loan made directly to a corporation shall be supported by a certified copy of a resolution of the board of directors of the corporation, authorizing the loan transaction.

(8)           Partnership Declaration. A loan made directly to a partnership shall be supported by a declaration of the general partners showing the composition of the partnership and unless all partners sign the note, the authority of the partner(s) executing the note to bind the partnership.

(9)           Limited Liability Company Certification. A loan made directly to a limited liability company shall be supported by a certification of a manager thereof that the loan has been duly authorized by the limited liability company.

(10)         Unlisted Securities. Full credit information on all unlisted securities, now owned or hereafter acquired, shall be kept on file in the bank.

 

History Note:        Authority G.S. 53C-6-1; 53C-8-1;

Eff. February 1, 1976;

Amended Eff. October 1, 2014; December 1, 2011; April 1, 2007; June 1, 1995; May 1, 1992; September 1, 1990; September 1, 1983;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

04 NCAC 03C .1002         LEASING OF PERSONAL PROPERTY

Each bank acquiring and leasing personal property or, acquiring personal property that is subject to an existing lease together with the lessor's interest therein and incurring such additional obligations as may be incident to becoming an owner and lessor of such property, may do so only when subject to the following restrictions:

(1)           Before the acquisition, upon the specific request and for the use of the customer, the prospective lessee shall execute an agreement to lease such property;

(2)           During the minimum period of the lease, the terms of the lease shall require payment to the bank by the lessee of rentals that, in the aggregate shall exceed the total expenditures by the bank for or in connection with the ownership, maintenance, and protection of the property. In determining the total expenditures under this Rule, a bank may deduct a realistic residual value in determining the rentals to be charged during the term of a lease agreement. Any unguaranteed portion of the estimated residual value relied upon by the bank to calculate total expenditures under this Rule may not exceed 25 percent of the original cost of the property to the lessor. The amount of any estimated residual value guaranteed by a manufacturer, the lessee, or a third party that is not an affiliate of the bank may exceed 25 percent of the original cost of the property where the bank determines and provides supporting documentation that the guarantor has the resources to meet the guarantee;

(3)           The total leasing obligations or rentals to any bank of any person, partnership, association, corporation, or limited liability company shall at no time exceed the legal limit permitted by G.S. 53C-6-1;

(4)           The overall investment of the bank in such property leased to all lessees shall at no time exceed 200 percent of its capital;

(5)           The bank shall at all times maintain protection by way of insurance or indemnity provided by the lessee;

(6)           No lease or other agreement shall obligate the bank to maintain, repair, or service personal property in connection with any lease held by it;

(7)           No personal property acquired pursuant to the ownership or lease of personal property shall be included in the computable investment in fixed assets under G.S. 53C-5-2;

(8)           Rental payments collected by the bank under lease arrangements shall be rent and shall not be deemed to be interest or compensation for the use of money loaned;

(9)           Upon expiration of any lease, whether by virtue of the lease agreement or by virtue of the retaking of possession by the bank, such personal property shall be re-let, sold, otherwise disposed of, or charged off within one year from the time of expiration of such lease; and

(10)         Upon written request, the Commissioner of Banks may waive or modify any of the foregoing restrictions. In evaluating such a request, the Commissioner of Banks shall consider the following factors:

(a)           the bank's size, profitability, capital sufficiency, risk profile, market, and operational capabilities, especially with a view towards the bank's involvement in lease financing;

(b)           current best practices of financial institutions engaged in lease financing;

(c)           the nature, size, duration, aggregate amount, and other risks attendant to the bank's lease financing transactions; and

(d)           the risk of significant loss to the bank if the Commissioner of Banks does not grant the request.

 

History Note:        Authority G.S. 53C-2-5; 53C-5-2; 53C-8-1;

Eff. February 1, 1976;

Amended Eff. October 1, 2014; January 1, 2013; April 1, 2007; September 1, 1990; September 1, 1983; May 1, 1982;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

SECTION .1100 ‑ CAPITAL

 

04 NCAC 03C .1101         DEFINITIONS: ISSUANCE OF CAPITAL NOTES AND DEBENTURES

04 NCAC 03C .1102         CAPITAL DEBENTURES AND NOTES

 

History Note:        Authority G.S. 53-1; 53‑43.4; 53‑92; 53‑104;

Eff. February 1, 1976;

Amended Eff. June 1, 1995; September 26, 1979;

Repealed Eff. April 1, 2007.

 

04 NCAC 03C .1103         CAPITAL STOCK

04 NCAC 03C .1104         MAINTENANCE OF CAPITAL SURPLUS

04 NCAC 03C .1105         NOTICE OF IMPAIRMENT

 

History Note:        Authority G.S. 53-1(3)d; 53-2(4); 53-42; 53-104;

Eff. May 1, 1992;

Repealed Eff. January 1, 2013.

 

SECTION .1200 - DEPOSITS

 

04 NCAC 03C .1201         SCHOOL THRIFT OR SAVINGS PLAN

04 NCAC 03C .1202         RESUME OF THE PLAN

 

History Note:        Authority G.S. 53-43.6; 53-92; 53-104;

Eff. February 1, 1976;

Repealed Eff. January 1, 2013.

 

SECTION .1300 ‑ BANK PERSONNEL

 

04 NCAC 03C .1301         ANNUAL VACATION

 

History Note:        Authority G.S. 53‑92; 53‑104;

Eff. February 1, 1976;

Amended Eff. June 1, 1995; October 1, 1990;

Repealed Eff. April 1, 2007.

 

04 NCAC 03C .1302         SHARE PURCHASE AND OPTION PLANS

 

History Note:        Authority G.S. 53-10; 53-43; 53-43.3; 53-104;

Eff. February 1, 1976;

Amended Eff. October 1, 2011; June 1, 1995; July 1, 1990;

Repealed Eff. January 1, 2013.

 

04 NCAC 03C .1303         INSIDER TRANSACTIONS

 

History Note:        Authority G.S. 53‑92; 53‑95; 53‑104; 53‑106; 53‑110;

Eff. April 21, 1979;

Repealed Eff. January 1, 1984.

 

SECTION .1400 ‑ LEGAL RESERVE

 

04 NCAC 03C .1401         REQUIREMENT OF RESERVE FUND

(a)  The amount of the reserve fund which shall be established and maintained shall at all times equal the reserves required by the Federal Reserve System for non‑member banks.

(b)  In the event the reservable liabilities of any bank are such that no reserve is required of that bank by the Federal Reserve System, such bank shall maintain a reserve fund equal to three percent of its total deposits of every kind which are not secured by a deposit of bonds, notes, bills, and certificates of indebtedness of the United States, or agency thereof, or other obligations guaranteed by the United States Government, or the bond obligations of the State of North Carolina, its counties, municipalities, and other political subdivisions thereof.

 

History Note:        Authority G.S. 53C-4-11;

Eff. February 1, 1976;

Amended Eff. July 1, 1990; August 6, 1981;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

04 NCAC 03C .1402         BASIS FOR COMPUTATION AND MAINTENANCE

Required reserves shall be computed on the basis of the daily average deposit balance during a 14-day period ending every second Monday (the "computation period"). The method for determining the amount of reserve required is set forth in Rule .1401 of this Section. The reserves that are required to be maintained shall be maintained during a corresponding 14-day period (the "maintenance period") that begins on the second Thursday following the end of a given computation period and ends on the second Wednesday thereafter. For non-business days, deposit figures of the prior banking day shall be used.

 

History Note:        Authority 53C-4-11;

Eff. February 1, 1976;

Amended Eff. October 1, 2014; July 1, 1990; August 6, 1981;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

04 NCAC 03C .1403         RESERVE FUND DEFINED

 

History Note:        Authority G.S. 53-51; 53-92; 53-104;

Eff. September 26, 1979;

Amended Eff. August 6, 1981;

Repealed Eff. January 1, 2013.

 

SECTION .1500 ‑ AUTOMATION AND DATA PROCESSING

 

04 NCAC 03C .1501         CUSTOMER‑BANK COMMUNICATION TERMINALS

04 NCAC 03C .1502         LIMITATIONS

 

History Note:        Authority G.S. 53‑62; 53‑92; 53‑104;

Eff. February 1, 1976;

Amended Eff. May 1, 1992; September 1, 1990;

Repealed Eff. April 1, 2001.

 

SECTION .1600 – FEES

 

04 NCAC 03C .1601         FEES, COPIES AND PUBLICATION COSTS

(a)  For applications, petitions, and other proceedings to be filed with the Commissioner of Banks, the following fees shall be paid to the Commissioner of Banks at the time of filing:

(1)           Application for the Formation of a New Bank or State Trust Institution                 $8,000.00

(2)           Application to Merge or Consolidate Banks, State Trust

Institutions, or Bank Holding Companies      (fee is per institution)                          $5,000.00

(3)           Application for Reorganization Into a Bank Holding Company Through                               $3,000.00

an Interim Bank                                                  (fee is per bank)

(4)           Application for Bank or Bank Holding Company Change in Control                       $5,000.00

(5)           Application for Conversion of a National Bank to State Charter                               $2,500.00

(6)           Application for Voluntary Liquidation                                                                           $3,000.00

(7)           Application for Conversion of a Savings and Loan Association or a Savings         $2,500.00

Bank to a State Bank

(b)  The fees set forth in Paragraph (a) of this Rule are for standard applications, petitions, and other proceedings filed and considered in the ordinary course of business. Any application, petition, or other proceeding that in the opinion of the Commissioner of Banks requires extraordinary review, investigation, or special examination shall be subject to the actual costs of additional expenses and the hourly rate for the staff's time to be determined annually by the Banking Commission. The Commissioner of Banks shall advise an applicant or petitioner in advance of any additional work required and the hourly rate for the same. The hourly rate shall be:

(1)           For Senior Administrative staff                                                                                       $75.00

(2)           For Senior Examination Staff                                                                                          $50.00

(3)           For Financial Program Manager                                                                                      $35.00

(4)           For Financial Examiner                                                                                                     $25.00

(c)  Unless otherwise stated, publications externally printed may be obtained at a cost equal to the actual cost of printing plus shipping and handling. All other publications or public record copies are available at the "actual cost" as defined in G.S. 132-6.2(b) for making the copy and mailing cost if applicable. The Office of the Commissioner of Banks shall provide its "actual cost" on the agency's website.

 

History Note:        Authority G.S. 53C-3-1; 53C-5-2; 53C-7-101; 53C-7-201; 53C-7-207; 53C-7-301; 53C-10-102; 53C-10-103; 53C-10-201; 54B-34.2; 54C-47;

Eff. July 1, 1990;

Amended Eff. October 1, 2014; June 1, 2004; June 1, 1995; May 1, 1992; July 1, 1991;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

SECTION .1700 – NON-Branch Bank business office

 

04 NCAC 03C .1701         DEFINITIONS

 

History Note:        Authority G.S. 53-104; 53-115; 53-127;

Eff. June 1, 1995;

Repealed Eff. January 1, 2013.

 

04 NCAC 03C .1702         ESTABLISHMENT OF A NON-BRANCH BANK BUSINESS OFFICE (nbbo)

(a)  A bank may establish or relocate a NBBO as defined in G.S. 53C-1-4(46) upon giving written notice to the Commissioner of Banks. The notice shall acknowledge:

(1)           The NBBO may be used to solicit loans, assemble credit information, make property inspections and appraisals, complete loan applications, perform preliminary paper work in preparation for the making of loans, and provide banking related services and products, other than the taking of deposits;

(2)           Loans may not be approved and loan proceeds may not be disbursed through the NBBO;

(3)           The NBBO may not be used to accept deposits; and

(4)           The NBBO may be inspected by the Commissioner of Banks for compliance with the written notice, and the cost of the inspection shall be borne by the bank.

(b)  The bank shall provide written notice to the Commissioner of Banks when relocating or closing any NBBO.

(c)  If required by the Secretary of State, the NBBO shall obtain a certificate of authority to do business in North Carolina.

 

History Note:        Authority G.S. 53C-1-4(46); 53C-6-18; 53C-8-2(3);

Eff. June 1, 1995;

Amended Eff. October 1, 2014;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

04 NCAC 03C .1703         ESTABLISHMENT OF LOCKBOX SERVICES

04 NCAC 03C .1704         ESTABLISHMENT OF A TRUST REPRESENTATIVE OFFICE (TRO)

 

History Note:        Authority G.S. 53-104; 53-115; 53-127;

Eff. June 1, 1995;

Repealed Eff. January 1, 2013.

 

SECTION .1800 - COURIER SERVICE

 

04 NCAC 03C .1801         ESTABLISHMENT OF COURIER SERVICES

A bank may provide a courier or messenger service to its customers only if:

(1)           the bank complies with the requirements imposed by the Private Protective Services Act G.S. 74C-1. Et. Seq.; and

(2)           a written agreement between the bank and the customers contains the following:

(a)           a statement that the courier is the agent of the customer and not the agent of the bank;

(b)           a statement that deposits collected by the courier or messenger are received by the bank when the deposits have been delivered to a teller at the bank's premises or a location that is eligible and designated by the bank to receive deposits;

(c)           a statement that negotiable instruments collected by the courier or messenger are paid at the bank when delivered to the courier or messenger; and

(d)           an acknowledgment by the customer that transactions conducted by a courier service are not insured by the FDIC.

 

History Note:        Authority G.S. 53C-5-1; 53C-8-1;

Eff. June 1, 1995;

Amended Eff. October 1, 2014;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

 

04 NCAC 03C .1802         COMPLIANCE AND DISCLOSURE REQUIREMENTS

 

History Note:        Authority G.S. 53C-5-1; 53C-8-1;

Eff. June 1, 1995;

Repealed Eff. October 1, 2014.