GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	2 

SENATE BILL 513
Banks and Thrift Institutions Committee Substitute Adopted 4/26/93

Short Title:  Banking Amendments.	(Public)
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Sponsors:
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Referred to:  
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March 22, 1993

A BILL TO BE ENTITLED
AN ACT TO AMEND THE BANKING LAWS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 53-1(3) reads as rewritten:
"(3) Insolvency. – The term 'insolvency' means:
a.	When a bank cannot meet its deposit liabilities as they become due in the regular course of business; or
b.	When the actual cash market value of its assets is insufficient to pay its liabilities to depositors and other creditors; or
c. 	When its reserve shall fall under the amount required by this Chapter, and it shall fail to make good such reserve within 30 days after being required to do so by the Commissioner of Banks; or
d.	Whenever the undivided profits and surplus shall be inadequate to cover losses of the bank, whereby an impairment of the capital stock is created."
Sec. 2. G.S. 53-7 reads as rewritten:
"§ 53-7. Statement filed before beginning business.
Before such company shall begin the business of banking, banking and trust, fiduciary, or surety business, there shall be filed with the Commissioner of Banks a statement under oath by the president or secretary containing the names of all the directors and officers, with the date of their election or appointment, term of office, residence, and post-office address of each, the amount of capital stock of which each is the owner in good faith and the amount of money paid in on account of the capital stock. Nothing shall be received in payment of capital stock but money."
Sec. 3. G.S. 53-12 reads as rewritten:
"§ 53-12. Merger or consolidation of banks and savings associations.
A bank may merge or consolidate with or transfer its assets and liabilities to another bank or to a savings association, or a savings association may transfer its assets and liabilities to a bank. Before such merger or consolidation or transfer shall become effective, each bank or savings association concerned in such merger or consolidation or transfer shall file, or cause to be filed, with the Commissioner of Banks, certified copies of all proceedings had by its directors and stockholders, or in the case of a mutual savings association, its membership, which said stockholders' or memberships' proceedings shall set forth that (i)	holders of at least two thirds of the stock of the bank voted in the affirmative on the proposition of merger or consolidation or, (ii) in the case of a stock or mutual savings association, such percentage of the stock or of the membership as the laws applicable to such institutions require. Such stockholders' or memberships' proceedings shall also contain a complete copy of the agreement made and entered into between said banks or savings associations, with reference to such merger or consolidation or transfer. Upon the filing of such stockholders' or memberships' and directors' proceedings as aforesaid, the Commissioner of Banks may cause to be made an investigation of each bank or savings association, or both, to determine whether the interests of the depositors, creditors, and stockholders or members of each bank or savings association are protected, and find such merger or consolidation is in the public interest, and that such merger or consolidation or transfer is made for legitimate purposes, and his consent to or rejection of such merger or consolidation or transfer shall be based upon such investigation. No such merger or consolidation or transfer shall be made without the consent of the Commissioner of Banks. The expense of such investigation shall be paid by the banks or savings associations, or both, involved in the proposed merger or consolidation or transfer. Notice of such merger or consolidation or transfer shall be published once a week for four consecutive weeks before or after the same is to become effective, at the discretion of the Commissioner of Banks, in a newspaper published in the county in which each of said banks or savings associations, or both, is located, or if no newspaper is published in such county, then in a newspaper having a general circulation in such county. A certified copy thereof shall be filed with the Commissioner of Banks. In case of either transfer or merger or consolidation the rights of creditors shall be preserved unimpaired, and the respective companies deemed to be in existence to preserve such rights for a period of three years. For the purposes of this section, the term 'savings association' shall be construed to include a savings and loan association or a savings bank, whether organized under the laws of North Carolina or the United States."
Sec. 4. G.S. 53-13 reads as rewritten:
"§ 53-13. Merged or consolidated banks and savings associations deemed one bank or savings association.
In case of merger or consolidation when the agreement of merger or consolidation is made, and a duly certified copy thereof is filed with the Secretary of State, together with a certified copy of the approval of the Commissioner of Banks to such merger or consolidation, the parties thereto shall be held to be one company, possessed of the rights, privileges, powers, and franchises of the several companies, but subject to all the provisions of law under which it is created. The directors and other officers named in the agreement of consolidation shall serve until the first annual meeting for election of officers and directors, the date for which shall be named in the agreement. On filing such agreement, all and singular, the property and rights of every kind of the several companies shall thereby be transferred and vested in such surviving company in the case of merger or in such new company in the case of consolidation, and be as fully its property as they were of the companies parties to the agreement."
Sec. 5. G.S. 53-17 reads as rewritten:
"§ 53-17. Fiduciary powers and liabilities of banks, trust companies, savings associations or savings banks merging or transferring assets and liabilities.
Whenever any bank, trust company, savings association, or savings bank, organized under the laws of North Carolina or the acts of Congress, and doing business in this State, shall consolidate or merge with or shall sell to and transfer its assets and liabilities to any other bank, trust company, savings association, or savings bank doing business in this State, as provided by the laws of North Carolina or the acts of Congress, all the then existing fiduciary rights, powers, duties and liabilities of such consolidating or merging or transferring institution, including the rights, powers, duties and liabilities as executor, administrator, guardian, trustee, and/or any other fiduciary capacity, whether under appointment by order of court, will, deed, or other instrument, shall, upon the effective date of such consolidation or merger or sale and transfer, vest in, devolve upon, and thereafter be  performed by, the transferee institution or the consolidated or merged institution, and such latter institution shall be deemed substituted for and shall have all the rights and powers of the transferring institution."
Sec. 6. G.S. 53-17.2 reads as rewritten:
"§ 53-17.2.  Conversion of savings association or savings bank to a State bank.
(a)	Any association, as defined in G.S. 54B-4, or any savings bank as defined in G.S. 54C-4(b), may convert to a State bank as provided in this section.  A mutual association or mutual savings bank must first convert to a stock association or stock savings bank before applying for conversion to a bank as provided in this section.  As used in this section, the term 'conversion' includes (i) a transaction in which a State bank assumes all or substantially all of the liabilities and purchases all or substantially all of the assets of an association or savings bank and (ii) any other transaction that results in a change of identity of an association or savings bank to a State bank.  A transaction in which the resulting bank is a subsidiary or an affiliate of a bank holding company or bank which has been in existence for at least two years shall not be subject to the provisions of this section but shall be subject to the approval of the Commissioner of Banks.
(b)	Any association or savings bank, upon a majority vote of its board of directors, may apply to the Commissioner of Banks for permission to convert to a bank and for certification of appropriate amendments to its certificate of incorporation to effect the conversion.
(c)	The association or savings bank shall submit a plan of conversion as a part of the application to the Commissioner of Banks.  The Commissioner of Banks may recommend approval of the plan of conversion with or without amendment.  The Commissioner of Banks shall recommend approval of the plan of conversion if upon examination and investigation he finds that:
(1)	The resulting bank will operate in a safe, sound, and prudent manner with adequate capital, liquidity, and earnings prospects;
(2)	The directors, officers, and other managerial officials of the association or savings bank are qualified by character and financial responsibility to control and operate in a legal and proper manner the bank proposed to be formed as a result of the conversion;
(3)	The interest of the depositors, the creditors, and the public generally will not be jeopardized by the proposed conversion; and
(4)	The proposed name will not mislead the public as to the character or purpose of the resulting bank, and the proposed name is not the same as one already adopted or appropriated by an existing bank in this State or so similar as to be likely to mislead the public.
(d)	Any action taken by the Commissioner of Banks pursuant to this section shall be subject to review by the State Banking Commission which may approve, modify, or disapprove any action taken or recommended by the Commissioner of Banks.  The State Banking Commission may promulgate rules to govern conversions undertaken pursuant to this section.  The requirements for a converting association or savings bank shall be no more stringent than those provided by rule or regulation applicable to other FDIC-insured commercial banks.  The requirements for a converting association or savings bank shall be no less stringent than those provided by rule or regulation applicable to other FDIC-insured commercial banks, except as may be allowed during transition periods permitted by subdivisions (e)(4) and (h)(2) of this section.
(e)	In the absence of the promulgation of rules under subsection (d), the conditions to be met for approval of the application for conversion should include the following:
(1)	Condition.  The applicant's general condition must reflect adequate capital, liquidity, reserves, earnings, and asset composition necessary for safe and sound operation of the resulting bank.
(2)	Management.  The management and the board of directors must be capable of supervising a sound banking operation and overseeing the changes that must be accomplished in the conversion from an association or savings bank to a bank.
(3)	Public Convenience.  The Commission must determine that the conversion will have a positive impact on the convenience of the public and will not substantially reduce the services available to the public in the market area.
(4)	Transition.  Within a reasonable time after the effective date of the conversion, the resulting bank must divest itself of all assets and liabilities that do not conform to State banking law or rules.  The length of this transition period shall be determined by the Commissioner and shall be specified when the application for conversion is approved.
In evaluating each of these conditions, the Commission shall consider a comparison of the relevant financial ratios of the applicant with the average ratios of North Carolina banks of similar asset size.  The Commission may not approve a conversion where the applicant presents an undue supervisory concern or has not been operated in a safe and sound manner.
(f)	If the State Banking Commission approves the plan of conversion, then the association or savings bank shall submit the plan to the stockholders as provided in subsection (g).  After approval of the plan of conversion, the Commissioner of Banks shall supervise and monitor the conversion process and shall ensure that the conversion is conducted pursuant to law and the association's or savings bank's approved plan of conversion.
(g)	After lawful notice to the stockholders of the association or savings bank and full and fair disclosure of the plan of conversion, the plan must be approved by a majority of the total votes that stockholders of the association or savings bank are eligible and entitled to cast.  The vote by the stockholders may be in person or by proxy.  Following the vote of the stockholders, the association or savings bank shall file with the Commissioner of Banks the results of the vote certified by an appropriate officer.  The Commissioner of Banks shall then approve the requested conversion and the association or savings bank shall file with the Secretary of State amended articles of incorporation with the certificate of the Commissioner of Banks attached.  The conversion of the association or savings bank to a bank shall be effective upon this filing.
(h)	The Commissioner of Banks may authorize the resulting bank to do the following:
(1)	Wind up any activities legally engaged in by the association or savings bank at the time of conversion but not permitted to State banks.
(2)	Retain for a transitional period any assets and deposit liabilities legally held by the association or savings bank at the effective date of the conversion that may not be held by State banks.
The length, terms, and conditions of the transitional periods under subdivisions (1) and (2) are subject to the discretion of the Commissioner of Banks.
(i)	Upon conversion of an association or savings bank to a bank, the legal existence of such institution does not terminate, and the resulting bank is a continuation of the same.  The conversion shall be a mere change in identity or form of organization.  All rights, liabilities, obligations, interest, and relations of whatever kind of the association or savings bank shall continue and remain in the resulting bank.  Except as may be authorized during a transitional period by the Commissioner of Banks pursuant to subsection (h), a bank resulting from the conversion of an association or savings bank shall have only those rights, powers and duties which are authorized for banks by the laws of this State and the United States.  All actions and legal proceedings to which the association or savings bank was a party prior to conversion shall be unaffected by the conversion and shall proceed as if the conversion had not taken place."
Sec. 7. G.S. 53-18 reads as rewritten:
"§ 53-18. Voluntary liquidation.
A bank may go into voluntary liquidation and be closed, and may surrender its charter and franchise as a corporation of this State by the affirmative votes of its stockholders owning two thirds of its stock, such vote to be taken at a meeting of the stockholders duly called by resolution of the board of directors, written notice of which, stating the purpose of the meeting, shall be mailed to each stockholder, or in case of his death, to his legal representative or heirs at law, addressed to his last known residence 10 days previous to the date of said meeting. Whenever stockholders shall by such vote at a meeting regularly called for the purpose, notice of which shall be given as herein provided, decide to liquidate such bank, a certified copy of all proceedings of the meeting at which said action shall have been taken, verified by the oath of the president and secretary, shall be transmitted to the Commissioner of Banks for his approval. If the Commissioner of Banks shall approve the same, he shall issue to the said bank, under his seal, a permit for such purpose. No such permit shall be issued by the Commissioner of Banks until said Commissioner of Banks shall be satisfied that provision has been made by such bank to satisfy and pay off all depositors and all creditors of such bank. If not so satisfied, the Commissioner of Banks shall refuse to issue a permit, and shall be authorized to take possession of said bank and its assets and business, and hold the same and liquidate said bank in the manner provided in this Chapter. When the Commissioner of Banks shall approve the voluntary liquidation of a bank, the directors of said bank shall cause to be published in a newspaper in the county in which such bank is located, or if no newspaper is published in the county, then in a newspaper having a general circulation in the county, a notice that the bank is closing up its affairs and going into liquidation, and notify its depositors and creditors to present their claims for payment. The notice shall be published once a week for four consecutive weeks. When any bank shall be in process of voluntary liquidation, it shall be subject to examination by the Commissioner of Banks, and shall furnish such reports from time to time as may be called for by the Commissioner of Banks. All unclaimed deposits and dividends remaining in the hands of such bank shall be subject to the provisions of Chapter 116B. Whenever the Commissioner of Banks shall approve it, any bank may sell and transfer to any other bank, either State bank or national bank, all of its assets of every kind upon such terms as may be agreed upon and approved by the Commissioner of Banks and by two-thirds vote of its board of directors. A certified copy of the minutes of any meeting at which such action is taken, under the oath of the president and secretary, together with a copy of the contract of sale and transfer, shall be filed with the Commissioner of Banks. Whenever voluntary liquidation shall be approved by the Commissioner of Banks or the sale and transfer of the assets of any bank shall be approved by the Commissioner of Banks, a certified copy of such approval under seal of the Commissioner of Banks, filed in the office of the Secretary of State, shall authorize the cancellation of the charter of such bank, subject, however, to its continued existence, as provided by this Chapter and the general law relative to corporations."
Sec. 8. G.S. 53-19 reads as rewritten:
"§ 53-19. When Commissioner of Banks may take charge.
The Commissioner of Banks may forthwith take possession of the business and property of any bank to which this Chapter is applicable whenever it shall appear that such bank:
(1)	Has violated its charter or any laws applicable thereto;
(2)	Is conducting its business in an unauthorized or unsafe manner; 
(3)	Is in an unsafe or unsound condition to transact its business; 
(4)	Has an impairment of its capital stock; 
(5)	Has refused to pay its depositors in accordance with the terms on which such deposits were received, or has refused to pay its holders of certificates of indebtedness or investment in accordance with the terms upon which such certificates of indebtedness or investment were sold; 
(6)	Has become otherwise insolvent; 
(7)	Has neglected or refused to comply with the terms of a duly issued lawful order of the Commissioner of Banks; 
(8)	Has refused, upon proper demand, to submit its records, affairs, and concerns for inspection and examination of a duly appointed or authorized examiner of the Commissioner of Banks; 
(9)	Its officers have refused to be examined upon oath regarding  its affairs; or
(10)	Has made a voluntary assignment of its assets to trustees.
Such banks may resume business as provided in G.S. 53-37."
Sec. 9. G.S. 53-20(a) reads as rewritten:
"(a)	When Commissioner of Banks to Take Possession. – Whenever any State bank shall neglect or refuse for a period of 60 days to make a report to the Commissioner of Banks, as he may demand, or shall, after demand under seal of the Commissioner of Banks, fail, neglect or refuse to comply with any of the rules, regulations or requirements of the State Banking Commission, or the provisions of the banking law, or if at any time the Commissioner of Banks shall find a bank subject to the supervision of the Commissioner of Banks, in an insolvent, unsafe or unsound condition to transact the business for which it was organized, or in an unsafe, or unsound condition to continue its business, or if such institution shall neglect or refuse to correct any irregularity which may be called to the attention of the president or board of directors, by the Commissioner of Banks, or any of his assistants, then, in either of such events, the Commissioner of Banks, or any duly authorized agent of the Commissioner of Banks appointed under seal of the Commissioner of Banks, shall forthwith take possession of such bank, and all of its assets and business and shall retain possession thereof until such bank shall be authorized by the Commissioner of Banks to resume business, or its affairs shall be fully liquidated as herein provided, or possession thereof shall have been surrendered under order of a judge of the superior court under the provisions of this section."
Sec. 10. G.S. 53-20(j) reads as rewritten:
"(j)	Notice and Time for Filing Claims; Copies Mailed. – Notice shall be given by advertisement once a week for four consecutive weeks in a newspaper published in said county; if no newspaper is published in said county, then in some newspaper having a general circulation in said county, calling on all persons who may have claims against the bank to present the same to the Commissioner of Banks at the office of the bank, and within the time to be specified in the notice, not less, however, than 90 days from the date of the first publication. A copy of this notice shall be mailed to all persons whose names appear as creditors upon the books of the bank. Affidavit by the Commissioner of Banks, or agent mailing the notice, to the effect that said notice was mailed shall be conclusive evidence thereof."
Sec. 11. G.S. 53-20(r) reads as rewritten:
"(r)	Action by Commissioner of Banks after Full Settlement. – Whenever the Commissioner of Banks shall have paid all the expenses of liquidation and shall have paid to each and every depositor and creditor of such bank, whose claims shall have been duly proven and allowed, the full amount of such claims, and shall have made proper provision for unclaimed and unpaid deposits and disputed claims and deposits, and shall have in hand other assets of said bank, he shall call a meeting of the stockholders of said bank by giving notice thereof by publication once a week for consecutive four weeks in a newspaper published in said county, or if no newspaper is published in said county, then in a newspaper having general circulation in said county, and by mailing a copy of such notice to each stockholder addressed to him at his address as the same shall appear upon the books of the bank. Affidavit of the officer mailing the notice herein required and of the printer as to the publication shall be conclusive evidence of notice hereunder. At such meeting any stockholders may be represented by proxy and the stockholders shall elect, by a majority vote of the stock present, an agent or agents who shall be authorized to receive from the Commissioner of Banks all the assets of said bank then remaining in his hands; and the Commissioner of Banks shall cause to be transferred and delivered to the said agent, or agents, all such assets of said bank. The Commissioner of Banks shall thereupon cause to be filed in the office of the clerk of the superior court in the pending actions a full and complete report of all his transactions, showing the assets of said bank so transferred, together with the name of the agent or agents receipting for the same; and the filing of such report shall act as a full and complete discharge of the Commissioner of Banks from all further liabilities by reason of the liquidation of the bank. Such agent, or agents, shall convert the assets coming into his hands, or their hands, into cash, and shall make distribution to the stockholders of said bank as herein provided. Said agent, or agents, shall file semiannually a report of all transactions with the superior court of the county in which the bank is located, and with the Commissioner of Banks, and shall be allowed for such services such fees not in excess of five percent (5%), as may be fixed by the court. In case of death, removal or refusal to act, of any agent or agents elected by the stockholders, the Commissioner of Banks shall, upon report of such action on the part of such agent or agents to the superior court of the county in which the bank is located, turn over to said superior court for the stockholders of said bank, all the remaining assets of the bank, file his report and be discharged from any and all further liability to the stockholders as herein provided. Said assets, when turned over to the superior court hereunder, shall remain in the hands of the superior court until such time as, by order of court or by action of the stockholders, distribution shall be provided for."
Sec. 12. G.S. 53-24 reads as rewritten:
"§ 53-24. Destruction of records of liquidated insolvent banks.
After the expiration of 10 years from the date of filing in the office of the clerk of the superior court of a final order approving the liquidation by the banking department of any insolvent bank and the delivery to the clerk or into his custody of the records of such bank, the said records may be destroyed by the clerk of the superior court holding said records in the presence of the register of deeds and the sheriff of said county, who  shall join with the clerk in the execution of a certificate as to the destruction of said records. The certificate shall be filed by the clerk in the court records of the liquidation of the bank whose records are thus destroyed.
After 10 years from the filing by the Commissioner of Banks of a final report of liquidation of any insolvent bank, the said Commissioner, by and with the consent of the State Banking Commission or its successor, may destroy by burning the records of any insolvent bank held in the Department of the Commissioner of Banks in connection with the liquidation of such bank: Provided, that in connection with any unpaid dividends the Commissioner of Banks shall preserve the deposit ledger or other evidence of indebtedness of the bank with reference to the unpaid dividend until the dividend shall have been paid.
Nothing in this section shall be construed to authorize the destruction by the clerk of the superior court of any county or by the Commissioner of Banks of any of the formal records of liquidation, nor shall the Commissioner of Banks have authority under this section to destroy any of the records made in his office with reference to the liquidation of any insolvent bank."
Sec. 13. G.S. 53-26 reads as rewritten:
"§ 53-26. Petition for new trustee; service upon parties interested.
In all cases of such insolvency and liquidation mentioned in G.S. 53-25, the clerk of the superior court of any county in which such indenture, deed of trust or other instrument of like character is recorded shall, upon the verified petition of any person interested in any such trust, either as trustee, beneficiary or otherwise, which interest shall be set out in said petition, enter an order directing service on all interested parties either personally or by the publication in a newspaper published in the county, or if no newspaper is published in the county where such application is made, then in a newspaper having a general circulation in the county, of a notice directed to all persons concerned, commanding and requiring all persons having any interest in said trust, to be and appear at his office at a day designated in said order and notice, not less than 30 days from the date thereof, and show cause why a new trustee shall not be appointed."
Sec. 14. G.S. 53-35 reads as rewritten:
"§ 53-35. Foreclosures and execution of deeds by Commissioner of Banks validated.
Whereas, the Commissioner of Banks, created by Chapter 243 of the Public Laws of 1931, was given general supervision over the banks of this State; and
Whereas, the Commissioner of Banks, under authority of Chapter 385  of the Public Laws of 1931, succeeded to all the property of banks in liquidation, including fiduciary powers under the mortgages and deeds of trust; and
Whereas, the Commissioner of Banks, in his own name and in the name of a number of conservators or liquidating agents of banks in the process of liquidation under his supervision, has foreclosed a large number of deeds of trust in which such banks were the named trustee, and has executed under the powers contained therein a large number of trustee's deeds under authority thereof: Now, therefore, all the deeds and acts of the Commissioner of Banks and/or conservators or liquidating agents of such banks in the process of liquidation, as in the preamble to this section described, are hereby in all respects ratified, validated and confirmed.
."
Sec. 15. G.S. 53-37 reads as rewritten:
"§ 53-37. Conditions under which banks may reopen.
Whenever the Commissioner of Banks has taken in possession any bank, such bank may, with the consent of the Commissioner of Banks, resume business upon such terms and conditions as may be approved by the State Banking Commission. When such banks have been taken in possession under the provisions of G.S. 53-20, subsections (a)	or (b), such conditions shall be fully stated in writing and a copy thereof shall be filed with the clerk of the superior court in the action required to be commenced in such cases against said bank under the provisions of G.S. 53-20, subsection (c): Provided, however, no bank or banking institution which has been taken in possession by the Commissioner of Banks under the provisions of the State banking laws shall be reopened to receive deposits or for the transaction of a banking business unless and until:
(1)	The bank has been completely restored to solvency;
(2)	The capital stock, if impaired, has been entirely restored in cash; or
(3)	It shall clearly appear to the Commissioner of Banks that such bank may be reopened with safety to the public and such reopening is necessary to serve the business interests of the community."
Sec. 16. G.S. 53-42 reads as rewritten:
"§ 53-42. Impairment of capital; assessments, etc.
The Commissioner of Banks shall notify every bank whose capital shall have become impaired from losses or any other cause, and the surplus and undivided profits of such bank are insufficient to make good such impairment, to make the impairment good within 60 days of such notice by an assessment upon the stockholders thereof, and it shall be the duty of the officers and directors of the bank receiving such notice to immediately call a special meeting of the stockholders for the purpose of making an assessment upon its stockholders sufficient to cover the impairment of the capital, payable in cash, at which meeting such assessment shall be made: Provided, that such bank may reduce its capital to the extent of the impairment, as provided in G.S. 53-11. If any stockholder of such bank neglects or refuses to pay such assessment as herein provided, it shall be the duty of the board of directors to cause a sufficient amount of the capital stock of such stockholder or stockholders to be sold at public auction, upon 30 days' notice given by posting such notice of sale in the office of the bank and by publishing such notice in a newspaper in the county where the bank is located, and if none therein, a newspaper having general circulation in the county in which the bank is located, to make good the deficiency, and the balance, if any, shall be returned to the delinquent shareholder or shareholders. If any such bank shall fail to cause to be paid in such deficiency in its capital stock for three months after receiving such notice from the Commissioner of Banks, the Commissioner of Banks may forthwith take possession of the property and business of such bank until its affairs be finally liquidated as provided by law. A sale of stock, as provided in this section, shall effect an absolute cancellation of the outstanding certificate or certificates evidencing the stock so sold, and shall make the certificate null and void, and a new certificate shall be issued by the bank to the purchaser of such stock."
Sec. 17. G.S. 53-46 reads as rewritten:
"§ 53-46. Limitations on investments in securities.
The investment in any bonds or other debt obligations of any one firm, individual, or corporation, unless it be the obligations of the United States, or agency thereof, or other obligations guaranteed by the United States Government, State of North Carolina, or other state of the United States, or other political subdivision of such state or the State of North Carolina, shall at no time exceed fifty thousand dollars ($50,000) plus ten percent (10%) of all amounts in excess of two hundred fifty thousand dollars ($250,000) of the banks' unimpaired capital fund."
Sec. 18. G.S. 53-47 reads as rewritten:
"§ 53-47. Limitations on investment in stocks.
No bank shall make any investment in the capital stock of any other state or national bank or bank holding company: Provided, that nothing herein shall be construed to prevent banks doing business under this Chapter from subscribing to or purchasing, upon such terms as may be agreed upon, the capital stock of clearing corporations as defined in G.S. 25-8-102(3), the capital stock of banks organized under that act of Congress known as the 'Edge Act', the capital stock of central reserve banks whose capital stock exceeds one million dollars ($1,000,000), or capital stock of the Federal Home Loan Bank.  To constitute a central reserve bank as contemplated by this Chapter, at least fifty percent (50%) of the capital stock of such bank shall be owned by other banks. The investment of any bank in the capital stock of such central reserve bank or bank organized under the act of Congress commonly known as the 'Edge Act,' shall at no time exceed ten percent (10%) of the paid-in capital and permanent surplus of the bank making same. No bank shall invest more than seventy-five percent (75%) of its unimpaired capital fund in the stocks of other corporations, firms, partnerships, or companies, unless such stock is purchased to protect the bank from loss. The foregoing limitation shall not apply to stock or ownership interests acquired in corporations, firms, partnerships or companies which hold banking premises or which are bank operating subsidiaries of such bank. The term 'invest' shall be deemed to include operating a business entity acquired by the bank, provided, however, that no bank shall make any such investment resulting in operations which are not closely related to banking without the prior written approval of the Commissioner of Banks. The seventy-five percent (75%) limitation shall be cumulative and the Commissioner of Banks shall monitor the impact of investment activities of banks under this section on the safety and soundness of such banks. Any stocks owned or hereafter acquired in excess of the limitations herein imposed shall be disposed of at public or private sale within six months after the date of acquiring the same, and if not so disposed of they shall be charged to profit and loss account, and no longer carried on the books as an asset. The limit of time in which said stocks shall be disposed of or charged off the books of the bank may be extended by the Commissioner of Banks if in his judgment it is for the best interest of the bank that such extension be granted; provided that the limitations imposed in this section on the ownership of stock in or securities of corporations is suspended to the extent (and to that extent only) that any bank operating under the supervision of the Commissioner of Banks may subscribe for and purchase shares of stock in or debentures, bonds or other types of securities of any corporation organized under the laws of the United States of America for the purpose of insuring to depositors a part or all of their funds on deposit in banks where and to such extent as such stock or security ownership is required in order to obtain the benefits of such deposit insurance for its depositors."
Sec. 19.  G.S. 53-54 reads as rewritten:
"§ 53-54. Transactions not performed during banking hours.
Nothing in any law of this State shall in any manner whatsoever affect the validity of, or render void or voidable, the payment, certification, or acceptance of a check or other negotiable instrument or any other transaction by a bank in this State, because done or performed during any time other than regular banking hours.  Nothing herein shall be construed to require a bank doing business in this State to be open when it may otherwise lawfully be closed or to prohibit a bank from conducting a transaction at times other than its regularly scheduled hours of operation."
Sec. 20.  G.S. 53-62(e) reads as rewritten:
"(e)	A bank may, upon resolution by the board of directors, discontinue a branch office subject to the following:
(1)	The bank shall notify the Commissioner in writing of its intent to close a branch not later than 90 days prior to the proposed closing date.  Such notice shall include a detailed statement of the reasons for the decision to close a branch and statistical or other information in support of such reasons.
(2)	The bank shall provide a notice of its intent to close a branch to its customers.  Such notice shall be posted in a conspicuous manner on the branch premises for a period of 30 days prior to the proposed closing date and shall either be included in at least one of any regular account statement mailed to customers of such branch or in a separate mailing to such customers. The latter notice shall be given at least 90 days prior to the proposed closing date.
No branch shall be closed until approved by the Commissioner of Banks."
Sec. 21.  G.S. 53-63 reads as rewritten:
"§ 53-63. Unlawful issuing of certificate of deposit.
It shall be unlawful for any bank to issue any certificate of deposit or other negotiable instrument of its indebtedness to the holder thereof except for lawful money of the United States, checks, drafts, or bills of exchange which are the actual equivalent of such money. Any officer or employee of any bank violating the provisions of this section shall be guilty of a misdemeanor, and upon conviction thereof shall be fined or imprisoned, or both, in the discretion of the court."
Sec. 22. G.S. 53-77.1A reads as rewritten:
"§ 53-77.1A. Days and hours of operation.
				Except as provided in G.S. 53-77.2A, a bank as defined in G.S. 53-1 or G.S. 53-136, including national banking associations and Federal Reserve banks, or any branch or limited service facility of the foregoing, located in this State, may operate on such days and during such hours as the board of directors shall designate."
Sec. 23. G.S. 53-78 reads as rewritten:
"§ 53-78. Appointment of executive and loan committees by directors.
The board of directors shall appoint an executive committee or committees, each of which shall be composed of at least three of its members with such duties and powers as are defined by the regulations or bylaws, who shall serve until their successors are appointed. Such executive committee or committees shall meet as often as the board of directors may require, except that the executive committee or committees shall meet at least once during each month in which there is no meeting of the board of directors, and approve or disapprove all loans and investments. All loans and investments shall be made under such rules and regulations as the board of directors may prescribe.
The board of directors may appoint, in addition to the executive committee or committees, a general loan committee, the membership of which shall include at least three directors and such officers of the bank as may be appointed, with such duties and powers with respect to making loans and investments as are defined in the bylaws or by resolution of the board of directors, the members of such general loan committee to serve until their successors are appointed. Such general loan committee, if appointed, shall meet as often as the bylaws or resolution of the board of directors may require, which shall not be less frequently than once each month, and approve or disapprove all such loans and investments as may be required by the bylaws or by resolution of the board of directors to be submitted to the general loan committee. The board of directors of any bank, which has branches, may appoint, in addition to a general loan committee, a loan committee for the parent bank and for any branch, each of which committees shall include at least three members who are officers or members of the local advisory board for such parent bank or branch, with such duties and powers with respect to approving or disapproving loans and investments as may be defined in the bylaws or by resolution of the board of directors, and under such rules and regulations as the board of directors may prescribe. Such loans and investments as are authorized or approved by a general loan committee or either of the other loan committees hereinabove provided for may, but need not, be approved or disapproved by the executive committee or committees. All loans and investments made, however, shall be authorized or approved by either the executive committee or committees, a general loan committee, or one of the other loan committees herein provided for."
Sec. 24.  G.S. 53-80 is rewritten to read:
"§53-80. Qualifications of directors.
Not less than three fourths of the directors of every bank doing business under this Chapter shall be residents of the State of North Carolina.  ."
Sec. 25.  G.S. 53-83 reads as rewritten:
"§ 53-83. Examining committee of directors.
A committee of at least three directors shall be appointed annually to superintend the examination of the assets and the liabilities of the bank, and to report to the board of directors the result of such examination. The committee, with the approval of the board of directors, shall provide for such examinations by a certified public accountant A copy of such report of examination, which is herein required to be made, attested, and verified under oath by the signature of at least three members of such committee, shall forthwith be filed with the Commissioner of Banks."
Sec. 26.  G.S. 53-84 reads as rewritten:
"§ 53-84. Depositories designated by directors.
By resolution of the board of directors, a Federal Reserve Bank, a Federal Home Loan Bank, or any federally insured depository financial institution organized under the laws of this State, or of another state, or of the United States, may be designated as a depository in which part of a bank's funds may be deposited subject to withdrawal on demand. A copy of such resolution shall, upon its adoption, be forthwith certified to the Commissioner of Banks and the depository so designated shall be subject to the approval of the Commissioner of Banks. For causes which he may deem adequate, the Commissioner of Banks shall have authority at any time to withdraw such approval. Designation of a Federal Reserve Bank or a Federal Home Loan Bank as a depository shall not be subject to the approval of the Commissioner of Banks.
A bank may deposit funds in a bank of a foreign country, but such deposits shall not constitute any part of its reserve as defined in G.S. 53-51."
Sec. 27.  G.S. 53-91 is repealed.
Sec. 28.  Chapter 53 of the General Statutes is amended by adding the following new sections to read:
"§ 53-91.1. Loans to executive officers.
No bank may extend credit to any of its executive officers nor a firm or partnership of which such executive officer is a member, nor a company in which such executive officer owns a controlling interest, unless the extension of credit is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the bank with persons who are not employed by the bank, and provided further that the extension of credit does not involve more than the normal risk of repayment.  For the purposes of this section, the term 'executive officer' shall mean an officer who has authority to participate in major policy-making functions of the bank.  The amount of such loans shall be that as prescribed by applicable federal banking regulations.
"§ 53-91.2. Directors defined; appointment of advisory directors.
(a)	Unless otherwise expressly provided, reference to 'director' or 'board of directors' shall mean a director of the banking corporation as elected by the shareholders pursuant to North Carolina corporation law.
(b)	The board of directors so elected by the shareholders may, consistent with a bank's articles of incorporation or bylaws, appoint advisory directors to perform such duties as prescribed by the board with respect to local offices and branches of any bank chartered under Chapter 53 of the General Statues."
Sec. 29.  G.S. 53-92 reads as rewritten:
"§ 53-92. Appointment of Commissioner of Banks; State Banking Commission.
On or before April 1, 1983, and quadrennially thereafter, the Governor shall appoint a Commissioner of Banks subject to confirmation by the General Assembly by joint resolution. The name of the Commissioner of Banks shall be submitted to the General Assembly on or before February 1, of the year in which the term of his office begins. The term of office for the Commissioner of Banks shall be four years. In case of a vacancy in the office of Commissioner of Banks for any reason prior to the expiration of his term of office, the name of his successor shall be submitted by the Governor to the General Assembly, not later than four weeks after the vacancy arises. If a vacancy arises in the office when the General Assembly is not in session, the Commissioner of Banks shall be appointed by the Governor to serve on an interim basis pending confirmation by the General Assembly.
The State Banking Commission shall consist of the State Treasurer, who shall serve as an ex officio member thereof, 13 members appointed by the Governor, one member appointed by the Lieutenant Governor, and two members appointed by the General Assembly under G.S. 120-121, one of whom shall be appointed upon the recommendation of the President Pro Tempore of the Senate and one of whom shall be appointed upon the recommendation of the Speaker of the House of Representatives. The Governor shall appoint five practical bankers and eight persons selected primarily as representatives of the borrowing public.  The person appointed by the Lieutenant Governor shall be a practical banker.  The person appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate shall be a practical banker. The person appointed by the General Assembly upon the recommendation of the Speaker of the House shall be a person selected primarily as a representative of the borrowing public. One person selected by the Governor as primarily a representative of the borrowing public may be a director of a financial institution. The balance of such members of the Banking Commission shall not be employees or directors of any financial institution nor shall they have any interest in any regulated financial institution other than as a depositor or borrower.  The public members who may be a director of a financial institution shall not have an interest in any regulated financial institution except as hereinafter provided.
For purposes of this section, no person shall be considered to have an interest in any financial institution whose interest in any financial institution does not exceed one-half of one percent (1/2 of 1%) of the capital stock of that financial institution.
Except as otherwise provided, members of the Commission who shall be representatives of the borrowing public shall be selected so as to fully represent the consumer, industrial, manufacturing, professional, business, and farming interests of the State.  No person shall serve on the Commission for more than two complete consecutive terms.
As the terms of office of the appointive members of the Commission expire, their successors shall be appointed by the person appointing them for terms of four years each.  Any vacancy occurring in the membership of the Commission shall be filled by the appropriate appointing officer for the unexpired term, except that vacancies among members appointed by the General Assembly shall be filled in accordance with G.S. 120-122.  The appointed members of the Commission shall receive as compensation for their services the same per diem and expenses as is paid to the members of the Advisory Budget Commission.  This compensation shall be paid from the fees collected from the examination of banks as provided by law.
The Banking Commission shall meet at such time or times, and not less than once every three months, as the Commission shall, by resolution, prescribe, and the Commission may be convened in special session at the call of the Governor, or upon the request of the Commissioner of Banks. The State Treasurer shall be chairman of the said Commission.
No member of said Commission shall act in any matter affecting any bank in which he is financially interested, or with which he is in any manner connected. No member of said Commission shall divulge or make use of any information coming into his possession as a result of his service on such Commission, and shall not give out any information with reference to any facts coming into his possession by reason of his services on such Commission in connection with the condition of any State banking institution, unless such information shall be required of him at any hearing at which he is duly subpoenaed, or when required by order of a court of competent jurisdiction.
A quorum shall consist of a majority of the total membership of the Banking Commission. A majority vote of the members qualified with respect to a matter under review present at that meeting shall constitute valid action of the Banking Commission. The State Treasurer and all disqualified members who are present shall be counted to determine whether a quorum is present at a meeting.
The Commissioner of Banks shall act as the executive officer of the Banking Commission, but the Commission shall provide, by rules and regulations, for hearings before the Commission upon any matter or thing which may arise in connection with the banking laws of this State upon the request of any person interested therein, and review any action taken or done by the Commissioner of Banks.
The Banking Commission is hereby vested with full power and authority to supervise, direct and review the exercise by the Commissioner of Banks of all powers, duties, and functions now vested in or exercised by the Commissioner of Banks under the banking laws of this State; any party to a proceeding before the Banking Commission may, within 20 days after final order of said Commission and by written notice to the Commissioner of Banks, appeal to the Superior Court of Wake County for a final determination of any question of law which may be involved. The cause shall be entitled 'State of North Carolina on Relation of the Banking Commission against (here insert name of appellant).' It shall be placed on the civil issue docket of such court and shall have precedence over other civil actions. In the event of an appeal the Commissioner shall certify the record to the Clerk of Superior Court of Wake County within 15 days thereafter."
Sec. 30.  G.S. 53-92.1 reads as rewritten:
"§ 53-92.1. Commission bound by requirements imposed on Commissioner as to certification of new banks, establishment of branches, etc.
Notwithstanding any other provisions of this Chapter, the State Banking Commission, in the exercise of its authority to review the action of the Commissioner of Banks, shall be bound by the requirements, conditions and limitations imposed in this Chapter on the Commissioner as to the certification of new banks or the establishments of branch banks or limited service facilities."
Sec. 31. G.S. 53-93.1 reads as rewritten:
"§ 53-93.1. Deputy commissioner.
The Commissioner of Banks shall appoint, with approval of the Governor, and may remove at his discretion a deputy commissioner, who, in the event of the absence, death, resignation, disability or disqualification of the Commissioner of Banks, or in case the office of Commissioner shall for any reason become vacant, shall have and exercise all the powers and duties vested by law in the Commissioner of Banks.
Irrespective of the conditions under which the deputy commissioner may exercise the powers and perform the duties of the Commissioner of Banks, pursuant to the preceding paragraph, such deputy commissioner, in addition thereto, is hereby authorized and empowered at any and all times, at the discretion of the Commissioner of Banks, to perform such duties and exercise such powers of the Commissioner of Banks in the name of and on behalf of the Commissioner as the Commissioner, in his discretion, may direct.
."
Sec. 32.  G.S. 53-99 is amended by adding the following new subsection to read:
"( d)	Nothing in this section shall prohibit a bank, upon approval by the Commissioner, from disclosing to an insurance carrier, for purposes of obtaining insurance coverage required by this Chapter, the bank's regulatory rating prepared by the Commissioner's office provided that the insurance underwriter agrees in writing to maintain the confidentiality of such information and to not disclose the information in any manner."
Sec. 33. G.S. 53-105 reads as rewritten:
"§ 53-105. Reports of condition.
Every bank shall make to the Commissioner of Banks not less than four reports during each year in the manner and form prescribed by the Commission by regulation.  Each such report shall exhibit in detail and under appropriate heads the resources, assets, and liabilities of such bank at the close of business on any past day by the Commissioner of Banks specified, and shall be transmitted to the Commissioner of Banks within 10 days after the receipt of a request or requisition therefor from the Commissioner of Banks; provided, however, the Commissioner of Banks may extend the time for a period not to exceed 30 days for any bank to transmit the reports heretofore required whenever in his judgment such extension is necessary; and in a form prescribed by the Commissioner of Banks; a summary of the report for the quarter ending December 31, shall be published in a newspaper published in the county where the bank is located, or if there is no newspaper in the county, then in a newspaper having a general circulation in the county in which such bank is established. Proof of such publication shall be furnished the Commissioner of Banks in such form as may be prescribed by him."
Sec. 34.  G.S. 53-106 reads as rewritten:
"§ 53-106. Special reports.
The Commissioner of Banks may call for special reports whenever in his judgment it is necessary to inform him of the condition of any bank, or to obtain a full and complete knowledge of its affairs. Said reports shall be in and according to the form prescribed by the Commissioner of Banks and shall be published as provided in G.S. 53-105, if required by the Commissioner of Banks so to be. The Commissioner of Banks may extend the time for filing special reports for a period not to exceed 30 days."
Sec. 35. G.S. 53-114 reads as rewritten:
"§ 53-114. Other powers of State Banking Commission.
In addition to all other powers conferred upon and vested in the State Banking Commission, the said Commission, with the approval of the Governor, is hereby authorized, empowered and directed, whenever in its judgment the circumstances warrant it:
(1)	To authorize, permit, and/or direct and require all banking corporations under its supervision, to extend for such period and upon such terms as it deems necessary and expedient, payment of any demand and/or time deposits.
(2)	To direct, require or permit, upon such terms as it may deem  advisable, the issuance of other evidence of claims against assets of such banking institutions.
(3)	To authorize and direct the creation, in such banking institutions, of special trust accounts for the receipt of new deposits, which deposits shall be subject to withdrawal on demand without any restriction or limitation and shall be kept separate in cash or on deposit in such banking institutions as it shall designate or invested in such obligations of the United States and/or the State of North Carolina as it shall designate.
(4)	To adopt for such banking institutions such regulations as are necessary in its discretion to enable such banking institutions to comply fully with the federal regulations prescribed for national or state banks."
Sec. 36.  G.S. 53-125 reads as rewritten:
"§ 53-125. Examiners disclosing confidential information.
If any bank examiner or other employee of the Commissioner of Banks fails to keep secret the facts and information obtained in the course of an examination of a bank, except when the public duty of such examiner or employee requires him to report upon or take official action regarding the affairs of such bank, he shall be guilty of a misdemeanor, and upon conviction thereof shall be fined not more than five hundred dollars ($500.00) or imprisoned not more than 12 months, or both, in the discretion of the court. Nothing in this section shall prevent the proper exchange of information with the representatives of the banking departments of other states, with the federal reserve bank or national bank examiners, or other authorities, with the creditors of such bank or others with whom a proper exchange of information is wise or necessary."
Sec. 37.  G.S. 53-141(3) reads as rewritten:
"(3)	To establish branch offices or places of business within the  county in which its principal office is located, and elsewhere in the State, after having first obtained the written approval of the Commissioner of Banks, which approval may be given or withheld by the Commissioner of Banks in his discretion. The Commissioner of Banks, in exercising such discretion, shall take into account, but not by way of limitation, such factors as the financial history and condition of the applicant bank, the adequacy of its capital structure, its future earnings prospects, and the general character of its management. Such approval shall not be given until he shall find
a.	That the establishment of such branch or limited service facility will meet the needs and promote the convenience of the community to be served by the bank, and
b.	That the probable volume of business and reasonable public demand in such community are sufficient to assure and maintain the solvency of said branch or limited service facility and of the existing bank or banks in said community.
	Provided, that the Commissioner of Banks shall not authorize the establishment of any branch the paid-in capital of whose parent bank is not sufficient in amount to provide for capital in an amount equal to that required with respect to the establishment of branches of commercial banks under the provisions of G.S. 53-62. For the purposes of this paragraph, the provisions of G.S. 53-62 as to the meaning of the word 'capital' shall be applicable.
		A bank may discontinue a branch office upon resolution of its board of directors. Upon the adoption of such a resolution, the bank shall follow the procedures for closing a branch as set forth in G.S. 53-62(e).  No branch may be closed until approved by the Commissioner."
Sec. 38.  G.S. 53-145 reads as rewritten:
"§ 53-145. Sections of general law applicable.
Sections 53-1, 53-3, 53-4, 53-5, 53-6, 53-7, 53-8, 53-9, 53-10, 53-11, 53-12, 53-13, 53-18, 53-20, 53-22, 53-23, 53-42, 53-42.1, 53-47, 53-50, 53-51, 53-54, 53-63, 53-64, 53-67, 53-68, 53-70, 53-71, 53-72, 53-73, 53-74, 53-78, 53-79, 53-80, 53-81, 53-82, 53-83, 53-85, 53-87, 53-88, 53-90, 53-91.1, 53-91.2, 53-105, 53-106, 53-107, 53-108, 53-109, 53-110, 53-111, 53-112, 53-117, 53-118, 53-119, 53-120, 53-121, 53-122, 53-123, 53-124, 53-125, 53-126, 53-128, 53-129, 53-132, 53-133, 53-134, relating to the supervision and examination of commercial banks, shall be construed to be applicable to industrial banks, insofar as they are not inconsistent with the provisions of this Article. Sections 53-19, 53-24, 53-37, 53-39, 53-40, 53-41, 53-44, 53-45, 53-61, 53-66, 53-75, 53-76, 53-77, 53-86, 53-113, 53-114, 53-115, 53-116, 53-135, 53-146, and 53-148 through 53-158, relating to commercial banks, shall be construed to be applicable to industrial banks."
Sec. 39.  G.S. 53-153 reads as rewritten:
"§ 53-153. Segregation of recent deposits not effective after bank turned back to officers; notice of turning bank back to officers.
After 15 days after the affairs of a bank shall have been turned back to its board of directors by the conservator, either with or without a reorganization as provided in G.S. 53-152 hereof, the provisions of G.S. 53-151 with respect to the segregation of deposits received while it is in the hands of the conservator, and with respect to the use of such deposits to liquidate the indebtedness of such bank, shall no longer be effective: Provided, that before the conservator shall turn back the affairs of the bank to its board of directors, he shall cause to be published in a newspaper published in the county in which such bank is located, and if no newspaper is published in such county, in a newspaper having a general circulation in the county, a notice in form approved by the Commissioner of Banks, stating the date on which the affairs of the bank will be returned to its board of directors, and that the said provisions of G.S. 53-151 will not be effective after 15 days after such date; and on the date of publication of such notice, the conservator shall immediately send to every person who is a depositor in such bank under G.S. 53-151, a copy of such notice by registered mail, addressing it to the last known address of such persons shown by the records of the bank; and the conservator shall send similar notice in like manner to every person making deposit in such bank under G.S. 53-151, after the date of such newspaper publication and before the time when the affairs of the bank are returned to its directors."
Sec. 40.  G.S. 53-193 reads as rewritten:
"§ 53-193. Definitions.
The following definitions apply in this Article:
(1)	Check. – A check, draft, money order, or other instrument for the transmission or payment of money, including any instrument transmitted by wire or any other means.
(1a)	Commission. – The State Banking Commission.
(2)	Commissioner. – The Commissioner of Banks of the State of North Carolina.
(3)	Licensee. – A person duly licensed by the Commissioner under this Article.
(3a)	Outstanding Checks. – Any unpaid check sold anywhere in the United States the sale of which has been reported to the licensee.
(4)	Permissible Investment. – An investment in any of the following:
a.	Cash.
b.	Interest-bearing bills, notes, bonds, debentures, or other obligations issued or guaranteed by the United States or any state or other local governmental entity or any agent or instrumentality thereof, bearing a rating of one of the three highest grades by a nationally recognized investment service organization that has been engaged regularly in rating state and municipal issues for a period of not less than five years.
c.	Certificates of deposit or other debt instruments of a commercial bank.
d.	Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers acceptances, which are eligible for purchase by member banks of the Federal Reserve System.
e.	Commercial paper of prime quality as defined by a nationally recognized organization which rates such securities.
f.	Interest-bearing bills, notes, bonds, debentures, or preferred stock traded on any national securities exchange or on a national over-the-counter market or bearing a rate of one of the three highest grades by a nationally recognized investment service organization that has been engaged regularly in rating corporate debt or equity issues for a period of not less than five years.
g.	If the Commissioner finds that any type of investment not enumerated herein has sufficient liquidity and quality to be a permissible investment, the Commissioner may by regulation or order declare such investment to be permissible.
(5)	Person. – An individual, a partnership, an association, a joint stock company, a trust, or a corporation."
Sec. 41.  G.S. 53-199.1 reads as rewritten:
"§ 53-199.1.  Required investments; permissible investments.
Every licensee shall at all times maintain permissible investments having (i)	a market value, computed in accordance with generally accepted accounting principles, at least equal to the aggregate of the amount of all of its outstanding checks or (ii) a net carrying value, computed in accordance with generally accepted accounting principles, at least equal to the aggregate of the amount of all of its outstanding checks so long as the market value of such permissible investments is at least eighty percent (80%) of the net carrying value. The requirements of this section may be waived by the Commissioner if a finding is made, upon examination of audited financial statements and other appropriate analysis, that the surety bond required by G.S. 53-198 is sufficient to cover the aggregate face value of all outstanding checks sold by the licensee."
Sec. 42.  G.S. 53-206 reads as rewritten:
"§ 53-206. Notice of denial or revocation of license; hearing; appeal.
(a)	No license shall be denied or revoked except on 10 days' notice to the applicant or licensee. Upon receipt of such notice the applicant or licensee may, within five days of such receipt, make written demand for a hearing. The hearing before the Commissioner shall be an informal hearing and shall be held with reasonable promptness. 
(b)	The Commission shall have full authority to review any rule, regulation, order, or act of the Commissioner done pursuant to or with respect to the provisions of this Article, and any person aggrieved by any such rule, regulation, order, or act may appeal to the Commission for review upon giving notice in writing within 20 days after such rule, regulation, order, or act complained of is adopted, issued, or done."
Sec. 43. G.S. 53-211(d) reads as rewritten:
"(d)	The Commissioner, within 30 days of receiving the complete application for acquisition, shall publish notice of the intent of a regional bank holding company to acquire a North Carolina bank or North Carolina bank holding company under subsection (a) or (b) of this section.  The notice shall be published in newspapers in the counties in which the principal offices of the North Carolina bank or North Carolina bank holding company and of the regional bank holding company are located; if no newspapers are published in the counties, then in newspapers having a general circulation in such counties.  Notwithstanding any other provision of this section, the application for acquisition shall not be approved until the requirement for publication has been met."
Sec. 44.  G.S. 53-215 reads as rewritten:
"§ 53-215. Appeal of Commissioner's decision.
Any aggrieved party in a proceeding under G.S. 53-211, G.S. 53-212(2)	or G.S. 53-227.1 may, within 30 days after final decision of the Commissioner, appeal his decision to the State Banking Commission. The State Banking Commission, within 30 days of receipt of the notice of appeal, shall approve, disapprove or modify the Commissioner's decision. Failure of the State Banking Commission to act within 30 days of receipt of notice of appeal shall constitute a final decision of the State Banking Commission approving the decision of the Commissioner. Notwithstanding any other provision of law, any aggrieved party to a decision of the State Banking Commission, within 30 days after final decision of the Commission, may appeal the decision pursuant to G.S. 53-92."
Sec. 45.  G.S. 53-231 reads as rewritten:
"§ 53-231. Appeal of Commissioner's decision.
Any aggrieved party in a proceeding under this Article may, within 30 days after final decision of the Commissioner, appeal such decision to the State Banking Commission.  The State Banking Commission, within 30 days of receipt of the notice of appeal, shall approve, disapprove, or modify the Commissioner's decision.  Failure of the State Banking Commission to act within 30 days of receipt of notice of appeal shall constitute a final decision of the State Banking Commission approving the decision of the Commissioner. Notwithstanding any other provision of law, any aggrieved party to a decision of the State Banking Commission shall be entitled to an appeal pursuant to G.S. 53-92."
Sec. 46.  G.S. 53-232.17 reads as rewritten:
"§ 53-232.17.  Appeal of Commissioner's decision.
Any aggrieved party in a proceeding under this Article may, within 30 days after the final decision of the Commissioner, appeal the decision to the State Banking Commission.  The State Banking Commission, within 30 days of receipt of the notice of appeal, shall approve, disapprove, or modify the Commissioner's decision.  Failure of the State Banking Commission to act within 30 days of receipt of the notice of appeal shall constitute a final decision of the State Banking Commission approving the decision of the Commissioner.  Notwithstanding any other provision of law, any aggrieved party to a decision of the State Banking Commission shall be entitled to an appeal pursuant to G.S. 53-92."
Sec. 47.  G.S. 53-247 is amended by adding the following new subsection to read:
"( d)	A person registered as a facilitator under this Article is, for the purpose of facilitating refund anticipation loans, exempt from Article 20 of Chapter 66."
Sec. 48.  G.S. 53-248 reads as rewritten:
"§ 53-248.  Registration procedure; informal hearing.
(a)	Initial Registration.  An application to become registered as a facilitator shall be in writing, under oath, and in a form prescribed by the Commissioner.  The application shall contain all information prescribed by the Commissioner.  Each application for registration shall be accompanied by a nonrefundable application fee, payable to the Commissioner, of two hundred fifty dollars ($250.00) together with a fee of one hundred dollars ($100.00) for each office where the registrant intends to facilitate refund anticipation loans.
Upon the filing of an application for registration, if the Commissioner finds that the responsibility and general fitness of the applicant are such as to command the confidence of the community and to warrant belief that the business of facilitating refund anticipation loans will be operated within the purposes of this Article, the Commissioner shall register the applicant as a facilitator of refund anticipation loans and shall issue and transmit to the applicant a certificate attesting to the registration.  If the Commissioner does not so find, the Commissioner shall not register the applicant and shall notify the applicant of the reasons for the denial by certified mail, return receipt requested.
Upon receipt of a certificate of registration, the applicant is registered under this Article and may engage in the business of facilitating refund anticipation loans at the offices identified on the application for registration.
(b)	Renewal.  Each registration as a facilitator of refund anticipation loans shall expire on December 31 following the date it was issued, unless it is renewed for the succeeding year.  Before the registration expires, the registrant may renew the registration by filing with the Commissioner an application for renewal in the form and containing all information prescribed by the Commissioner.  Each application for renewal of registration shall be filed on or before November 30 in the year issued and shall be accompanied by a nonrefundable fee of one hundred dollars ($100.00) for each office where the registrant intends to facilitate refund anticipation loans during the succeeding year.
Upon the filing of an application for renewal of registration under this Article, the Commissioner shall renew the registration unless the Commissioner determines that the fitness of the registrant or the operations of the registrant would not support an initial registration of the registrant under subsection (a) of this section.  If this determination is made, the Commissioner shall notify the registrant, by certified mail, return receipt requested, stating the reasons for the determination.
(c)	Display of Certificate.  Each registrant shall prominently display a certificate issued under this Article in each place of business in the State where the registrant facilitates the making of refund anticipation loans.
(d)	Within five days of receipt of the Commissioner's notice, as required by subsections (a) and (b) of this section, the applicant may make written demand of the Commissioner for a hearing.  The hearing before the Commissioner shall be an informal hearing and shall be held with reasonable promptness."
Sec. 49.  G.S. 53-252 reads as rewritten:
"§ 53-252.  Appeal of Commissioner's decision.
The Commission shall have full authority to review any rule, regulation, order, or act of the Commissioner done pursuant to or with respect to the provisions of this Article, and any person aggrieved by any such rule, regulation, order, or act may appeal to the Commission for review upon giving notice in writing within 20 days after such rule, regulation, order, or act complained of is adopted, issued, or done."
Sec. 50.  G.S. 53-253 reads as rewritten:
"§ 53-253.  Rules; enforcement.
The Commission may adopt reasonable rules as necessary to effectuate the purpose of this Article, to provide for the protection of the borrowing public, and to assist registrants in interpreting this Article.  In order to enforce this Article, the Commissioner may make investigations, subpoena witnesses, require audits and reports, and conduct hearings regarding possible violations of its provisions."
Sec. 51. G.S. 53-272 reads as rewritten:
"§ 53-272. Appeals.
The Commission may review any rule, regulation, order, or act of the Commissioner done pursuant to or with respect to the provisions of this Article, and any person aggrieved by any such rule, regulation, order, or act may appeal to the Commission for review upon giving notice in writing within 20 days after such rule, regulation, order, or act complained of is adopted, issued, or done."
Sec. 52.  This act is effective upon ratification.