GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	1 

SENATE BILL 205

Short Title:  Community Reinvestment Act.	(Public)

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Sponsors: Senator Jordan.

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Referred to:  Commerce.

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February 15, 1995

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE COMMUNITY REINVESTMENT ACT.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 53 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 22.
"Community Reinvestment Act.
"§ 53-273.  Title.
This Article shall be known and may be cited as the 'Community Reinvestment Act'.
"§ 53-274.  Definitions.
As used in this Article, the following definitions apply:
(1)	'Bank' means any corporation, other than savings and loan associations, savings banks, industrial banks, and credit unions, receiving, soliciting, or accepting money or its equivalent on deposit as a business.
(2)	'Commissioner' means the Commissioner of Banks.
"§ 53-275.  Community reinvestment by financial institutions.
(a)	The Commissioner shall assess the record of each bank in satisfying its continuing and affirmative obligations to help meet the credit needs of its local communities, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of banks, and shall consider the records in connection with applications submitted by banks as set forth in G.S. 53-279(e).
(b)	Each bank shall prepare and, at least annually, review a delineation of the local community or communities that comprise its community, including low- and moderate-income neighborhoods.  Maps shall be used to portray community delineations.  The Commissioner shall review the reasonableness of the delineations.  For purposes of this Article, a local community consists of the contiguous areas surrounding each office or group of offices of the bank, including any low- and moderate-income neighborhoods in the areas.  More than one office of a bank may be included in the same local community.  A community delineation need not take into account an automated or electronic facility that receives deposits for more than one bank unless the Commissioner determines otherwise.  In preparing its delineation of a local community, a bank shall use any one of the following:
(1)	Existing boundaries such as those of metropolitan statistical areas or counties in which the bank's office or offices are located.  Where appropriate, portions of adjacent areas should be included.  The bank may make adjustments in the case of areas divided by state borders or significant geographic barriers, or areas that are extremely large or of unusual configuration.  In addition, a small bank may delineate those portions of metropolitan statistical areas or counties it reasonably may be expected to serve;
(2)	The local area or areas around each office or group of offices where the bank makes a substantial portion of its loans, and all other areas equidistant from its offices as those areas.  Adjustments such as those provided in subdivision (1) of this subsection may be made; or
(3)	Any other reasonably delineated local area that meets the purposes of this section and does not exclude low- and moderate-income neighborhoods.
"§ 53-276.  Adoption of community reinvestment statement.
(a)	The board of directors or trustees of each bank shall adopt a community reinvestment statement for each delineated community.  Each statement shall include at least the following:
(1)	The delineation of the local community.
(2)	A list of specific types of credit within certain categories such as residential loans for one to four dwelling units, residential loans for five dwelling units and over, housing rehabilitation loans, home improvement loans, small business loans, farm loans, community development loans, commercial loans, and consumer loans that the bank is prepared to extend within the local community.
(3)	A copy of the community reinvestment notice as provided in G.S. 53-278.
(b)	Each bank may include the following in each community reinvestment statement:
(1)	A description of how its current efforts, including special credit-related programs, help to meet community credit needs.
(2)	A periodic report regarding its record of helping to meet community credit needs.
(3)	A description of its efforts to ascertain the credit needs of its community, including efforts to communicate with members of its community regarding credit services.
(c)	Each bank's board of directors or trustees shall review each community reinvestment statement at least annually and shall act upon any material change made in the interim at its first regular meeting after the change.  All actions shall be noted in its minutes.
(d)	Each current community reinvestment statement shall be readily available for public inspection (i) at the main office of the bank, and (ii) at each office of the bank in the local community delineated in the statement, except automated or electronic facilities.  Copies of each current community reinvestment statement and copies of the public section of the most recent community reinvestment performance evaluation prepared by the Commissioner pursuant to G.S. 53-279, or by the appropriate federal regulatory agency pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. and any regulations thereunder shall be provided to the public upon request.  A bank may charge a fee not to exceed the cost of reproduction and mailing, if applicable.
"§ 53-277.  Bank files; availability; content.
(a)	Each bank shall maintain files that are readily available for public inspection of:
(1)	Signed, written comments received from the public within the past two years that specifically relate to any community reinvestment statement or to the bank's performance in helping to meet the credit needs of its community or communities.
(2)	A copy of the public section of the most recent community reinvestment performance evaluation prepared by the Commissioner pursuant to G.S. 53-279, or by the appropriate federal regulatory agency pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. as from time to time amended, and any regulations thereunder.
(3)	Responses to comments or to the performance evaluation that the bank wishes to make.
(4)	All community reinvestment statements in effect during the past two years.  The bank shall place a copy of the public section of the performance evaluation in the files within 30 business days after receiving the performance evaluation from the Commissioner or the appropriate federal regulatory agency.  The format and content of the performance evaluation may not be altered or abridged by the bank in any manner.  The bank shall be required to maintain in the files only the most recent performance evaluation, whether prepared by the Commissioner or the appropriate federal regulatory agency.
(b)	The bank files shall not contain any comments or responses that reflect adversely upon the good name or reputation of any person other than the bank, or the publication of which would violate specific provisions of law.  The files shall be maintained by each bank as follows:
(1)	All materials required by this section at the main office.
(2)	The materials required by this section relating to each local community at a designated office in the community.
"§ 53-278.  Community reinvestment notice.
(a)	Each bank shall provide, in the public lobby of each of its offices other than automated or electronic facilities, a public notice substantially similar to the one set forth below.  Bracketed material shall be used only by a bank having more than one local community.

'COMMUNITY REINVESTMENT NOTICE

Community reinvestment requires the evaluation of our performance in helping to meet the credit needs of this community, and to take this evaluation into account when the Commissioner decides on certain applications submitted by us.

Your involvement is encouraged.

You should know that:

You may obtain our current Community Reinvestment Statement for this community in this office.  (Current Community Reinvestment Statements for other communities served by us are available at our main office, located at:

..........................................)

You may send signed, written comments about our Community Reinvestment Statement or our performance in helping to meet community credit needs to (title and address of bank official) and to the Commissioner of Banks (address).  Your letter, together with any responses by us, may be made public.

You may look at a file of all signed, written comments received by us within the past two years, any response we have made to the comments and all Community Reinvestment Statements in effect during the past two years at our office located at (address).  (You also may look at the file about this community at (name and address of designated office).)

You may ask to look at any comments received by the Commissioner of Banks.'

(b)	If the bank is a subsidiary of a holding company, the following provision shall be included in the community reinvestment notice required by subsection (a) of this section:
'You may obtain the public section of our most recent Community Reinvestment Performance Evaluation at (name and address of main office and designated community office).'
(c)	Within 30 business days of receiving its most recent community reinvestment performance evaluation prepared by the Commissioner or the appropriate federal regulatory agency, each bank shall add the following provision to the community reinvestment notice required by subsection (a) of this section:
'You may obtain the public section of our most recent Community Reinvestment Performance Evaluation at (name and address of main office and designated community office).'
(d)	The information, statements, evaluations, and notices required under this section, G.S. 53-276 and G.S. 53-277, may be combined with or attached to the information, statements, evaluations, and notices required under Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. as from time to time amended, and any regulations thereunder.
"§ 53-279.  Assessment of banks; factors to be considered; community reinvestment performance evaluation.
(a)	In connection with the examination of a bank required pursuant to G.S. 53-4, 53-117, and 53-144, the Commissioner shall assess the record of the performance of the bank in helping to meet the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the bank.  The Commissioner shall review the bank's community reinvestment statement and signed, written comments retained by the bank or the Commissioner.  In addition, the Commissioner shall consider the following factors in assessing a bank's record of performance:
(1)	Activities conducted by the bank to ascertain the credit needs of its community, including the extent of the bank's efforts to communicate with members of its community regarding the credit services being provided by the bank.
(2)	The extent of the bank's marketing and special credit-related programs to make members of the community aware of the credit services offered by the bank.
(3)	The extent of participation by the bank's board of directors or trustees in formulating the bank's policies, and reviewing its performance with respect to the purposes of community reinvestment as set forth in this section.
(4)	Any practices intended to discourage applications for types of credit set forth in the bank's community reinvestment statement.
(5)	The geographic distribution of the bank's credit extensions, credit applications, and credit denials.
(6)	Evidence of prohibited discriminatory or other illegal credit practices.
(7)	The bank's record of opening and closing offices and providing services at offices.
(8)	The bank's participation, including investments, in local community development and redevelopment projects or programs.
(9)	The bank's origination of residential mortgage loans, housing rehabilitation loans, home improvement loans, and small business or small farm loans within its community, or the purchase of loans originated in its community.
(10)	The bank's participation in governmentally insured, guaranteed, or subsidized loan programs for housing, small businesses, or small farms.
(11)	The bank's ability to meet various community credit needs based on its financial condition and size, its legal impediments, local economic conditions, and other factors.
(12)	The geographic district and use of automatic teller machines, point-of-sale terminals, or similar electronic facilities.
(13)	Other factors, including efforts of the bank to work with delinquent residential mortgage customers who are unemployed or underemployed to facilitate a resolution of the delinquency, or other initiatives and programs that, in the Commissioner's judgment, reasonably bear upon the extent to which a bank is helping to meet the credit needs of its entire community.
(b)	Upon the conclusion of the assessment required under subsection (a) of this section, the Commissioner shall prepare a written evaluation of the bank's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods.  Each community reinvestment performance evaluation prepared under this subsection shall have a public section and a confidential section.
(c)	The public section of the performance evaluation shall:
(1)	State the Commissioner's conclusions for each assessment factor set forth in subsection (a) of this section.
(2)	Discuss the facts supporting the Commissioner's conclusions.
(3)	Contain the bank's rating and a statement describing the basis for the rating.  The rating shall be one of the following:
a.	Outstanding record of meeting community credit needs;
b.	Satisfactory record of meeting community credit needs;
c.	Needs to improve record of meeting community credit needs; or
d.	Substantial noncompliance in meeting community credit needs.
The Commissioner shall furnish a copy of the public portion of the performance evaluation to the bank upon its completion.
(d)	The confidential section of the performance evaluation shall contain all references that identify any customer of the bank, any employee or officer of the bank, or any person or organization that has provided information in confidence to the Commissioner or to any authorized employee of the State Banking Commission, or to a federal depository institution's regulatory agency.  The confidential section shall also contain any statements obtained or made by the Commissioner or the Commissioner's authorized employee in the course of an examination which, in the judgment of the Commissioner, are too sensitive or speculative in nature to disclose to the bank or the public.  The confidential section may be disclosed, in whole or in part, to the bank if the Commissioner determines that the disclosure will promote the objectives of this Article, provided disclosures shall not identify a person or organization that has provided information in confidence to the Commissioner or any authorized employee, or to any federal depository institution's regulatory agency.
(e)	In considering an application for the establishment of a branch or other facility with the ability to accept deposits, the relocation of the main office or a branch office, or a merger or consolidation with or the acquisition of assets or assumption of liabilities of another bank or federally insured bank, the Commissioner shall consider the bank's record of performance.  The assessment of a bank's record of performance in helping to meet the credit needs of its community may be the basis for denial of an application.
"§ 53-280.  Commissioner to prepare lists of banks.
(a)	The Commissioner shall annually prepare and submit to the State Treasurer a list of banks that have received a rating of 'needs to improve' or of 'substantial noncompliance' in connection with the community reinvestment performance evaluation prepared by the Commissioner pursuant to G.S. 53-279 or by a federal depository institution's regulatory agency pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. as from time to time amended, and any regulations promulgated thereunder, whichever evaluation is made available most recently.  No bank included in the list may receive deposits pursuant to G.S. 147-69, 147-77, or 159-30.
(b)	The Commissioner shall also prepare and submit annually to the State Treasurer a list, based on information received from the appropriate federal agency that indicates those national banking associations that have been determined by the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of the Currency to have received a rating of 'needs to improve' or of 'substantial noncompliance' in connection with the most recent community reinvestment performance evaluation prepared and made available by a federal depository institution's regulatory agency pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. as from time to time amended, and any regulations  promulgated thereunder.  No institution included in the list may receive deposits pursuant to G.S. 147-69, 147-77, or 159-30."
Sec. 2.  G.S. 53-4 reads as rewritten:
"§ 53-4.  Examination by Commissioner; when certification to be refused; review by Commission.
Upon receipt of a copy of the certificate of incorporation of the proposed bank, the Commissioner of Banks shall at once examine into all the facts connected with the formation of the proposed corporation including its location and proposed stockholders, and if it appears that the corporation, if formed, will be lawfully entitled to commence the business of banking, the Commissioner of Banks shall so certify to the Secretary of State, unless upon examination and investigation the Commissioner finds that:
(1)	The proposed corporation is formed for any other than legitimate banking business; or
(2)	That the character, general fitness, and responsibility of the persons proposed as stockholders in such corporation and directors, officers, and other managerial officials are not such as to command the confidence of the community in which the bank is proposed to be located; or
(3)	That the probable volume of business and reasonable public demand in the community is not sufficient to assure and maintain the solvency of the new bank and of the then existing bank or banks in the community; or
(4)	That the name of the proposed corporation is likely to mislead the public as to its character or purpose; or
(5)	That the proposed name is the same as the one already adopted or appropriated by an existing bank in this State, or so similar thereto as to be likely to mislead the public.
Upon certification the Secretary of State shall issue and record the certificate of incorporation.
Notwithstanding any other provisions of this section, the Commissioner of Banks shall not make the certification to the Secretary of State described above until the Commissioner ascertains that the establishment of the bank will meet the needs and promote the convenience of the community to be served by the bank, including the needs of low- and moderate-income neighborhoods in the community pursuant to Article 22 of this Chapter. Any action taken by the Commissioner of Banks pursuant to this section shall be subject to review by the State Banking Commission which shall have the authority to approve, modify or disapprove any action taken or recommended by the Commissioner of Banks."
Sec. 3.  G.S. 53-12 reads as rewritten:
"§ 53-12.  Merger or consolidation of banks.
(a)	A bank may merge, consolidate with or transfer its assets and liabilities to another bank with the approval of the Commissioner of Banks.  Before a merger, consolidation or transfer shall become effective, each bank concerned in the merger, consolidation or transfer shall file, or cause to be filed, with the Commissioner of Banks, certified copies of all proceedings of its directors and stockholders.  The proceedings shall set forth that holders of at least two thirds of the stock voted in the affirmative on the proposition of merger, consolidation or transfer and shall contain a complete copy of the agreement made and entered into between the banks, with reference to the merger, consolidation or transfer.
(b)	Upon the filing of the stockholders' and directors' proceedings, the Commissioner of Banks shall investigate each bank. The Commissioner must approve all mergers and consolidations based on the investigation.  The Commissioner shall not approve a merger, consolidation, or transfer unless the Commissioner finds:
(1)	That the interests of the depositors, creditors, and stockholders of each bank are protected.
(2)	The merger, consolidation, or transfer is in the public interest.
(3)	The merger, consolidation, or transfer is for legitimate purposes.
(4)	Each of the banks has an 'outstanding' or 'satisfactory' performance rating of meeting the credit needs of the community, including low- and moderate-income neighborhoods consistent with the safe and sound operation of the banking institution pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. and Article 22 of this Chapter.
The expense of the investigation shall be paid by the banks. 
(c)	Notice of the merger, consolidation or transfer shall be published for four weeks before or after the notice is to become effective, at the discretion of the Commissioner of Banks, in a newspaper published in a city, town, or county in which each of the banks is located, and a certified copy shall be filed with the Commissioner of Banks. The rights of creditors shall be preserved unimpaired, and the respective companies shall be deemed to be in existence to preserve the rights of the creditors for a period of three years."
Sec. 4.  G.S. 53-17.2 reads as rewritten:
"§ 53-17.2.  Conversion of savings association to a State bank.
(a)	Any association, as defined in G.S. 54B-4, may convert to a State bank as provided in this section.  A mutual association must first convert to a stock association 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 and (ii) any other transaction that results in a change of identity of an association 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, 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 the association's certificate of incorporation to effect the conversion.
(c)	The association 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 the Commissioner 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 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.
(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.
(5)	The applicant has an 'outstanding' or 'satisfactory' performance rating of meeting the credit needs of the community it services, including the credit needs of low- and moderate-income neighborhoods consistent with the safe and sound operation of the applicant pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. and Article 22 of this Chapter.
(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 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 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 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.  The Commission must also determine that the applicant has an 'outstanding' or 'satisfactory' performance rating of meeting the credit needs of the community it services, including the credit needs of low- and moderate-income neighborhoods consistent with the safe and sound operation of the applicant pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. and Article 22 of this Chapter.
(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 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 approved plan of conversion.
(g)	After lawful notice to the stockholders of the association 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 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 shall file with the Commissioner of Banks the results of the vote certified by an appropriate officer of the association.  The Commissioner of Banks shall then approve the requested conversion and the association 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 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 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 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 to a bank, the legal existence of the association does not terminate, and the resulting bank is a continuation of the association.  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 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 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 was a party prior to conversion shall be unaffected by the conversion and shall proceed as if the conversion had not taken place."
Sec. 5.  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, the bank may, with the consent of the Commissioner of Banks, resume business upon terms and conditions approved by the State Banking Commission. When banks have been taken in possession under the provisions of G.S. 53-20, subsections (a)	or (b), the conditions shall be fully stated in writing and a copy shall be filed with the clerk of the superior court in the action required to be commenced in cases against the bank under the provisions of G.S. 53-20, subsection (c): Provided, however, no bank or banking institution that 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.
(3)	It shall clearly appear to the Commissioner of Banks that the bank may be reopened with safety to the public and the reopening is necessary to serve the business interests of the community.
(4)	The Commissioner of Banks determines that the bank will serve the interests of the community it services, including the low- and moderate-income neighborhoods in the community, consistent with the safe and sound operation of the bank based on the performance rating of the bank pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. and Article 22 of this Chapter."
Sec. 6.  G.S. 53-62(b) reads as rewritten: 
"(b)	A bank doing business under this Chapter may establish branches or limited service facilities within this State after having first obtained the written approval in the Commissioner's discretion. The Commissioner of Banks 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 the applicant's capital structure, its future earnings prospects, and the general character of its management.  Approval shall not be given until the Commissioner finds:
(1)	 That the establishment of the branch or limited service facility will meet the needs and promote the convenience of the community to be served by the bank.
(2)	That the probable volume of business and reasonable public demand in the community are sufficient to assure and maintain the solvency of the branch or limited service facility and of the existing bank or banks in the community.  
(3)	That the bank has an 'outstanding' or 'satisfactory' performance rating of meeting the credit needs of the community it services, including the credit needs of low- and moderate-income neighborhoods consistent with the safe and sound operation of the banking institution pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. and Article 22 of this Chapter.
The assessment of a bank's record of performance in helping to meet the credit needs of its community may be the basis for denial of an application."
Sec. 7.  G.S. 53-141 reads as rewritten:
"§ 53-141.  Powers.
Industrial banks shall have the powers conferred by subdivisions (1), (2), (3), (5) and (7) of subsection (a) of G.S. 55-17 and subdivision (3) of G.S. 53-43, such additional powers as may be necessary or incidental for the carrying out of their corporate purposes, and in addition thereto the following powers:
(1)	To discount and negotiate promissory notes, drafts, bills of exchange and other evidences of indebtedness, and to loan money on real or personal security, and to purchase notes, bills of exchange, acceptances or other choses in action, and to take and receive interest or discounts subject to G.S. 53-43(1).
(2)	To make loans and charge and receive interest at rates not exceeding the rates of interest provided in G.S. 24-1.1 and G.S. 24-1.2.
(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 the Commissioner's discretion. The Commissioner of Banks 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 the applicant's capital structure, its future earnings prospects, and the general character of its management.  Approval shall not be given until the Commissioner finds:
a.	That the establishment of a branch or teller's window will meet the needs and promote the convenience of the community to be served by the bank.
b.	That the probable volume of business and reasonable public demand in the community are sufficient to assure and maintain the solvency of the branch or teller's window and of the existing bank or banks in the community.
c.	That the bank has an 'outstanding' or 'satisfactory' performance rating of meeting the credit needs of the community it services, including the credit needs of low- and moderate-income neighborhoods consistent with the safe and sound operation of the banking institution pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. and Article 22 of this Chapter.
	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 or board of managers. Upon the adoption of a resolution, the bank shall file a certification with the Commissioner of Banks specifying the location of the branch office to be discontinued and the date upon which it is proposed that the discontinuance shall be effective. This certificate must state the reasons for the closing of the branch and indicate that the needs and convenience of the community would still be adequately met. Notice stating the intention to discontinue the branch shall be published in a newspaper serving the community once a week for four consecutive weeks before a certificate requesting a discontinuance is filed with the Commissioner of Banks. No branch may be discontinued until approved by the Commissioner of Banks, who shall first hold a public hearing thereon, if so requested by any interested party.
(4)	Subject to the approval of the Commissioner of Banks and on the authority of its board of directors, or a majority thereof, to enter into a contract, incur obligations and generally to do and perform any and all acts and things whatsoever as may be necessary or appropriate in order to take advantage of any and all memberships, loans, subscriptions, contracts, grants, rights or privileges, which may at any time be available or inure to banking institutions, or to their depositors, creditors, stockholders, conservators, receivers or liquidators, by virtue of those provisions of section eight of the Federal Banking Act of 1933 (section twelve B of the Federal Reserve Act as amended) which establish the Federal Deposit Insurance Corporation and provide for the insurance of deposits, or of any other provisions of that or any other act or resolution of Congress to aid, regulate or safeguard banking institutions and their depositors, including any amendments of the same or any substitutions therefor; also, to subscribe for and acquire any stock, debentures, bonds or other types of securities of the Federal Deposit Insurance Corporation and to comply with the lawful regulations and requirements from time to time issued or made by corporations.
(5)	To solicit, receive and accept money or its equivalent on deposit both in savings accounts and upon certificates of deposit.
(6)	Subject to the approval of the State Banking Commission, to solicit, receive and accept money or its equivalent on deposit subject to check; provided, however, no approval shall be given unless and until the industrial bank meets the capital requirements of a commercial bank as set forth in G.S. 53-2."
Sec. 8.  G.S. 53-168(a) reads as rewritten:
"(a)	Necessity for License; Prerequisites to Issuance. – No person shall engage in or offer to engage in the business regulated by this Article unless and until a license has been issued by the Commissioner of Banks, and the Commissioner shall not issue any license unless and until the Commissioner finds:
(1)	That authorizing the applicant to engage in the business will promote the convenience and advantage of the community in which the applicant proposes to engage in business, including low- and moderate-income neighborhoods of the community.
(2)	That the financial responsibility, experience, character and general fitness of the applicant are such as to command the confidence of the public and to warrant the belief that the business will be operated lawfully and fairly, within the purposes of this Article.
(3)	That the applicant has available for the operation of the business at the specified location loanable assets of at least twenty-five thousand dollars ($25,000)."
Sec. 9.  G.S. 53-232.4(a) reads as rewritten:
"(a)	International banking corporations, other than federal international bank institutions, are subject to Articles 1 through 14 and Articles 17, 18, and 22 of this Chapter, except where it appears, from the context or otherwise, that a provision is clearly applicable only to banks or trust companies organized under the laws of this State or the United States.  An international banking corporation has no greater right under, or by virtue of, this Article than is granted to banks organized under the laws of this State."
Sec. 10.  Chapter 54B of the General Statutes is amended by adding a new Article to read:
"ARTICLE 15.
"Savings and Loan Associations Community Reinvestment Act.
"§ 54B-290.  Title.
This Article shall be known and may be cited as the 'Savings and Loan Associations Community Reinvestment Act'.
"§ 54B-291.  Definitions.
As used in this Article, the following definitions apply:
(1)	'Administrator' means the Administrator of the Savings Institutions Division.
(2)	'Association' means State and federal associations, including mutual savings and loan associations and stock associations as those terms are defined in Article 1 of this Chapter.
"§ 54B-292.  Community reinvestment by financial institutions.
(a)	The Administrator shall assess the record of each association in satisfying its continuing and affirmative obligations to help meet the credit needs of its local communities, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of banks, and shall consider the records in connection with applications submitted by associations as set forth in G.S. 54B-296(e).
(b)	Each association shall prepare and, at least annually, review a delineation of the local community or communities that comprise its community, including low- and moderate-income neighborhoods.  Maps shall be used to portray community delineations.  The Administrator shall review the reasonableness of the delineations.  For purposes of this Article, a local community consists of the contiguous areas surrounding each office or group of offices of the association, including any low- and moderate-income neighborhoods in the areas.  More than one office of an association may be included in the same local community.  A community delineation need not take into account an automated or electronic facility that receives deposits for more than one association unless the Administrator determines otherwise.  In preparing its delineation of a local community, an association shall use any one of the following:
(1)	Existing boundaries such as those of metropolitan statistical areas or counties in which the association's office or offices are located.  Where appropriate, portions of adjacent areas should be included.  The association may make adjustments in the case of areas divided by state borders or significant geographic barriers, or areas that are extremely large or of unusual configuration.  In addition, a small association may delineate those portions of metropolitan statistical areas or counties it reasonably may be expected to serve;
(2)	The local area or areas around each office or group of offices where the association makes a substantial portion of its loans, and all other areas equidistant from its offices as those areas.  Adjustments such as those provided in subdivision (1) of this subsection may be made; or
(3)	Any other reasonably delineated local area that meets the purposes of this section and does not exclude low- and moderate-income neighborhoods.
"§ 54B-293.  Adoption of community reinvestment statement.
(a)	The board of directors or trustees of each association shall adopt a community reinvestment statement for each delineated community.  Each statement shall include at least the following:
(1)	The delineation of the local community.
(2)	A list of specific types of credit within certain categories such as residential loans for one to four dwelling units, residential loans for five dwelling units and over, housing rehabilitation loans, home improvement loans, small business loans, farm loans, community development loans, commercial loans, and consumer loans that the association is prepared to extend within the local community.
(3)	A copy of the community reinvestment notice as provided in G.S. 54B-295.
(b)	Each association may include the following in each community reinvestment statement:
(1)	A description of how its current efforts, including special credit-related programs, help to meet community credit needs.
(2)	A periodic report regarding its record of helping to meet community credit needs.
(3)	A description of its efforts to ascertain the credit needs of its community, including efforts to communicate with members of its community regarding credit services.
(c)	Each association's board of directors or trustees shall review each community reinvestment statement at least annually and shall act upon any material change made in the interim at its first regular meeting after the change.  All actions shall be noted in its minutes.
(d)	Each current community reinvestment statement shall be readily available for public inspection (i) at the main office of the association, and (ii) at each office of the association in the local community delineated in the statement, except automated or electronic facilities.  Copies of each current community reinvestment statement and copies of the public section of the most recent community reinvestment performance evaluation prepared by the Administrator pursuant to G.S. 54B-296, or by the appropriate federal regulatory agency pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. and any regulations thereunder, shall be provided to the public upon request.  An association may charge a fee not to exceed the cost of reproduction and mailing, if applicable.
"§ 54B-294.  Files; availability; content.
(a)	Each association shall maintain files that are readily available for public inspection of:
(1)	Signed, written comments received from the public within the past two years that specifically relate to any community reinvestment statement or to the association's performance in helping to meet the credit needs of its community or communities.
(2)	A copy of the public section of the most recent community reinvestment performance evaluation prepared by the Administrator pursuant to G.S. 54B-296, or by the appropriate federal regulatory agency pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. as from time to time amended, and any regulations thereunder.
(3)	Responses to comments or to the performance evaluation that the association wishes to make.
(4)	All community reinvestment statements in effect during the past two years.  The association shall place a copy of the public section of the performance evaluation in the files within 30 business days after receiving the performance evaluation from the Administrator or the appropriate federal regulatory agency.  The format and content of the performance evaluation may not be altered or abridged by the association in any manner.  The association shall be required to maintain in the files only the most recent performance evaluation, whether prepared by the Administrator or the appropriate federal regulatory agency.
(b)	The association files shall not contain any comments or responses that reflect adversely upon the good name or reputation of any person other than the association or the publication of which would violate specific provisions of law.  The files shall be maintained by each association as follows:
(1)	All materials required by this section at the main office.
(2)	The materials required by this section relating to each local community at a designated office in the community.
"§ 54B-295.  Community reinvestment notice.
(a)	Each association shall provide, in the public lobby of each of its offices other than automated or electronic facilities a public notice substantially similar to the one set forth below.  Bracketed material shall be used only by an association having more than one local community.

'COMMUNITY REINVESTMENT NOTICE

Community Reinvestment requires the evaluation of our performance in helping to meet the credit needs of this community, and to take this evaluation into account when the Administrator decides on certain applications submitted by us.

Your involvement is encouraged.

You should know that:

You may obtain our current Community Reinvestment Statement for this community in this office.  (Current Community Reinvestment Statements for other communities served by us are available at our main office, located at:

..........................................)

You may send signed, written comments about our Community Reinvestment Statement or our performance in helping to meet community credit needs to (title and address of association official) and to the Administrator.  Your letter, together with any responses by us, may be made public.

You may look at a file of all signed, written comments received by us within the past two years, any response we have made to the comments and all Community Reinvestment Statements in effect during the past two years at our office located at (address).  (You also may look at the file about this community at (name and address of designated office).)

You may ask to look at any comments received by the Administrator.'

(b)	If the association is a subsidiary of a holding company, the following provision shall be included in the Community Reinvestment Notice required by subsection (a) of this section:
'You may obtain the public section of our most recent Community Reinvestment Performance Evaluation at (name and address of main office and designated community office).'
(c)	Within 30 business days of receiving its most recent community reinvestment performance evaluation prepared by the Administrator or the appropriate federal regulatory agency, each association shall add the following provision to the community reinvestment notice required by subsection (a) of this section:
'You may obtain the public section of our most recent Community Reinvestment Performance Evaluation at (name and address of main office and designated community office).'
(d)	The information, statements, evaluations, and notices required under this section, G.S. 54B-293, and G.S. 54B3-294 may be combined with or attached to the information, statements, evaluations, and notices required under Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq., as from time to time amended, and any regulations thereunder.
"§ 54B-296.  Assessment of associations; factors to be considered; community reinvestment performance evaluation.
(a)	In connection with the examination of an association required pursuant to G.S. 54B-56, the Administrator shall assess the record of the performance of the association in helping to meet the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the association.  The Administrator shall review the association's community reinvestment statement and signed, written comments retained by the association or the Administrator.  In addition, the Administrator shall consider the following factors in assessing an association's record of performance:
(1)	Activities conducted by the association to ascertain the credit needs of its community, including the extent of the association's efforts to communicate with members of its community regarding the credit services being provided by the association.
(2)	The extent of the association's marketing and special credit-related programs to make members of the community aware of the credit services offered by the association.
(3)	The extent of participation by the association's board of directors or trustees in formulating the association's policies, and reviewing its performance with respect to the purposes of community reinvestment as set forth in this section.
(4)	Any practices intended to discourage applications for types of credit set forth in the association's community reinvestment statement.
(5)	The geographic distribution of the association's credit extensions, credit applications, and credit denials.
(6)	Evidence of prohibited discriminatory or other illegal credit practices.
(7)	The association's record of opening and closing offices and providing services at offices.
(8)	The association's participation, including investments, in local community development and redevelopment projects or programs.
(9)	The association's origination of residential mortgage loans, housing rehabilitation loans, home improvement loans, and small business or small farm loans within its community, or the purchase of loans originated in its community.
(10)	The association's participation in governmentally insured, guaranteed, or subsidized loan programs for housing, small businesses, or small farms.
(11)	The association's ability to meet various community credit needs based on its financial condition and size, its legal impediments, local economic conditions, and other factors.
(12)	The geographic district and use of automatic teller machines, point-of-sale terminals, or similar electronic facilities.
(13)	Other factors, including efforts of the association to work with delinquent residential mortgage customers who are unemployed or underemployed to facilitate a resolution of the delinquency or other initiatives and programs that, in the Administrator's judgment, reasonably bear upon the extent to which an association is helping to meet the credit needs of its entire community.
(b)	Upon the conclusion of the assessment required under subsection (a) of this section, the Administrator shall prepare a written evaluation of the association's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods.  Each community reinvestment performance evaluation prepared under this subsection shall have a public section and a confidential section.
(c)	The public section of the performance evaluation shall:
(1)	State the Administrator's conclusions for each assessment factor set forth in subsection (a) of this section.
(2)	Discuss the facts supporting the Administrator's conclusions.
(3)	Contain the association's rating and a statement describing the basis for the rating.  The rating shall be one of the following:
a.	Outstanding record of meeting community credit needs;
b.	Satisfactory record of meeting community credit needs;
c.	Needs to improve record of meeting community credit needs; or
d.	Substantial noncompliance in meeting community credit needs.
The Administrator shall furnish a copy of the public portion of the performance evaluation to the association upon its completion.
(d)	The confidential section of the performance evaluation shall contain all references that identify any customer of the association, any employee or officer of the association, or any person or organization that has provided information in confidence to the Administrator or to a federal depository institution's regulatory agency.  The confidential section shall also contain any statements obtained or made by the Administrator or the Administrator's authorized employee in the course of an examination which, in the judgment of the Administrator, are too sensitive or speculative in nature to disclose to the association or the public.  The confidential section may be disclosed, in whole or in part, to the association if the Administrator determines that the disclosure will promote the objectives of this Article, provided disclosures shall not identify a person or organization that has provided information in confidence to the Administrator or any authorized employee, or to any federal depository institution's regulatory agency.
(e)	In considering an application for the establishment of a branch or other facility with the ability to accept deposits, the relocation of the main office or a branch office, or a merger or consolidation with or the acquisition of assets or assumption of liabilities of another association, bank, federally insured bank or association, the Administrator shall consider the association's record of performance.  The assessment of an association's record of performance in helping to meet the credit needs of its community may be the basis for denial of an application.
"§ 54B-297.  Administrator to prepare lists of associations.
(a)	The Administrator shall annually prepare and submit to the State Treasurer a list of associations that have received a rating of 'needs to improve' or of 'substantial noncompliance' in connection with the community reinvestment performance evaluation prepared by the Administrator, pursuant to G.S. 54B-296 or by a federal depository institution's regulatory agency pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq., as from time to time amended, and any regulations promulgated thereunder, whichever evaluation is made available most recently.  No association included in the list may receive deposits pursuant to G.S. 147-69, 147-77, or 159-30.
(b)	The Administrator shall also prepare and submit annually to the State Treasurer a list, based on information received from the appropriate federal agency that indicates those national associations that have been determined by the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of the Currency to have received a rating of 'needs to improve' or of 'substantial noncompliance' in connection with the most recent community reinvestment performance evaluation prepared and made available by a federal depository institution's regulatory agency pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq., as from time to time amended, and any regulations promulgated thereunder.  No association included in the list may receive deposits pursuant to G.S. 147-69, 147-77, or 159-30."
Sec. 11.  G.S. 54B-9(b) reads as rewritten:
"(b)	The application to organize a State association shall be received by the Administrator not less than 60 days prior to the scheduled consideration of the application by the Commission, and it shall contain:
(1) 	The original of the certificate of incorporation, which shall be signed by the original incorporators, or a majority of them, but not less than five, and shall be properly acknowledged by a person duly authorized by this State to take proof or acknowledgment of deeds; and two conformed copies.
(2) 	The names and addresses of the incorporators; and the names and addresses of the initial members of the board of directors.
(3) 	Statements of the anticipated receipts, expenditures, earnings and financial condition of the association for its first two years of operation, or such longer period as the Administrator may require.
(4) 	A showing satisfactory to the Commission that:
a.	The public convenience and advantage will be served by the establishment of the proposed association.
b. 	There is a reasonable demand and necessity in the community which will be served by the establishment of the proposed association and the needs and demands of low- and moderate-income neighborhoods in the community will be met by the proposed association.
c. 	The proposed association will have a reasonable probability of sustaining profitable and beneficial operations within a reasonable time in the community in which the proposed association intends to locate.
d. 	The proposed association, if established, will promote healthy and effective competition in the community in the delivery to the public of savings and loan services.
(5) 	The proposed bylaws.
(6) 	Statements, exhibits, maps and other data which may be prescribed or requested by the Administrator, which data shall be sufficiently detailed and comprehensive so as to enable the administrator to pass upon the criteria set forth in this Article."
Sec. 12.  G.S. 54B-12 reads as rewritten:
"§ 54B-12.  Criteria to be met before the Administrator may recommend approval of an application.
(a)	The Administrator may recommend approval of an application to form a mutual association only when all of the following criteria are met:
(1) 	The proposed association has an operational expense fund, from which to pay organizational and incorporation expenses, in an amount determined by the Administrator to be sufficient for the safe and proper operation of the association, but in no event less than seventy-five thousand dollars ($75,000). The moneys remaining in such expense fund shall be held by the association for at least one year from its date of licensing. No portion of such fund shall be released to an incorporator or director who contributed to it, nor to any other contributor, nor to any other person and no dividends shall be accrued or paid on such funds without the prior approval of the Administrator.
(2) 	The proposed association has pledges for withdrawable accounts in an amount determined by the Administrator to be sufficient for the safe and proper operation of the association, but in no event less than four million dollars ($4,000,000).
(3) 	All entrance fees for withdrawable accounts of the proposed association have been made with legal tender of the United States.
(4) 	All initial pledges for withdrawable accounts of the proposed association are made by residents of North Carolina.
(5) 	The name of the proposed association will not mislead the public and is not the same as an existing association or so similar to the name of an existing association as to mislead the public.
(6) 	The character, general fitness and responsibility of the incorporators and the initial board of directors of the proposed association who shall be residents of North Carolina are such as to command the confidence of the community in which the proposed association intends to locate.
(7) 	There is a reasonable demand and necessity in the community which will be served by the establishment of the proposed association and the needs and demands of low- and moderate-income neighborhoods of the community will be served.
(8) 	The public convenience and advantage will be served by the establishment of the proposed association.
(9) 	The proposed association will have a reasonable probability of sustaining profitable and beneficial operations in the community.
(10)	The proposed association, if established, will promote healthy and effective competition in the community in the delivery to the public of savings and loan services.
(b)	The Administrator may recommend approval of an application to form a stock association only when all of the following criteria are met:
(1) 	The proposed association has prepared a plan to solicit subscriptions for capital stock in an amount determined by the Administrator to be sufficient for the safe and proper operation of the association, but in no event less than three million dollars ($3,000,000).
(2)	Repealed by Session Laws 1989, c. 76, s. 3.
(3) 	All subscriptions for capital stock of the proposed association have been purchased with legal tender of the United States.
(4) 	to (7). Repealed by Session Laws 1983, c. 144, s. 5.
(8) 	The name of the proposed association will not mislead the public and is not the same as an existing association or so similar to the name of an existing association as to mislead the public; and contains the wording 'corporation,' 'incorporated,' 'limited,' or 'company,' an abbreviation of one of such words or other words sufficient to distinguish stock associations from mutual associations.
(9) 	The character, general fitness, and trustworthiness of the incorporators, initial board of directors, and initial stockholders of the proposed association are such as to command the confidence of the community in which the proposed association intends to locate.
(10)	There is a reasonable demand and necessity in the community which will be served by the establishment of the proposed association and the needs and demands of low- and moderate-income neighborhoods of the community will be served.
(11)	The public convenience and advantage will be served by the establishment of the proposed association.
	(12)	The proposed association will have a reasonable probability of sustaining profitable and beneficial operations in the community.
(13)	The proposed association, if established, will promote healthy and effective competition in the community in the delivery to the public of savings and loan services.
(c)	The minimum amount of pledges for withdrawable accounts or subscriptions for capital stock may be adjusted in the discretion of the Administrator if he determines that a greater requirement is necessary or that a smaller requirement will provide a sufficient capital base.  Such a finding and recommendation to the Commission shall be based upon due consideration of (i) the population of the proposed trade area, (ii) the total deposits of the depository financial institutions operating in the proposed trade area, (iii) the economic conditions of and projections for the proposed trade area, (iv) the business experience and reputation of the proposed management, (v) the business experience and reputation of the proposed incorporators and directors, and (vi) the projected deposit growth, capitalization, and profitability of the proposed association."
Sec. 13.  G.S. 54B-22 reads as rewritten:
"§ 54B-22.  Branch offices.
(a)	Any State association may apply to the Administrator for permission to establish a branch office.  The application shall be in a form as may be prescribed by the Administrator and shall be accompanied by the proper branch application fee.  Branch applications shall be approved or denied by the Administrator within 120 days of filing.
(b)	The Administrator shall approve a branch application when all of the following criteria are met:
(1)	The applicant has gross assets of at least ten million dollars ($10,000,000).
(2)	The applicant has evidenced financial responsibility.
(3)	The applicant has a net worth equal to or exceeding the amount required by the insurer of the applicant's withdrawable accounts.
(4)	The applicant has an acceptable internal control system, which includes certain basic internal control requirements essential to the protection of assets and the promotion of operational efficiency regardless of the size of the applicant.  Some of the factors that require extensive internal control requirements such as the use of the controller or internal auditor and more distinctive placement responsibilities include the applicant's size, number of personnel and history of and anticipated plans for expansion.
(5)	That the applicant has an 'outstanding' or 'satisfactory' performance rating of meeting the credit needs of the community it services, including the credit needs of low- and moderate-income neighborhoods consistent with the safe and sound operation of the association pursuant to Title VIII of the Federal Community Reinvestment Act, 12 U.S.C. § 2901, et seq. and Article 15 of this Chapter.
(c)	Upon receipt of a branch application, the Administrator shall examine or cause to be examined all the relevant facts connected with the establishment of the proposed branch office.  If it appears to the satisfaction of the Administrator that the applicant has complied with all the requirements set forth in this section and the regulations for the establishment of a branch office and that the association is otherwise lawfully entitled to establish a branch office, then the Administrator shall approve the branch application.  The assessment of an applicant's record of performance in helping to meet the credit needs of its community may be the basis for denial of an application.
(d)	Not more than 10 days following the filing of the branch application with the Administrator, the applicant shall cause a notice to be published in a newspaper of general circulation in the area to be served by the proposed branch office.  The notice shall contain:
(1)	A statement that the branch application has been filed with the Administrator.
(2)	The proposed address of the branch office, including city or town and street.
(3)	A statement that any interested or affected party may file a written statement with the Administrator, within 30 days of the date of the publication of the notice, protesting the establishment of the proposed branch office and requesting a hearing before the Administrator on the application.
(e)	Any interested or affected party may file a written statement with the Administrator within 30 days of the date of initial publication of the branch application notice, protesting the establishment of the proposed branch office and requesting a hearing before the Administrator on the application.  If a hearing is held on the branch application, the Administrator shall only receive information and hear testimony from the applicant and from any interested or affected party which is relevant to the branch application and the operation of the proposed branch office.  The Administrator shall issue a final decision on the branch application within 30 days following the hearing.  The final decision shall be in accordance with the applicable provisions of Chapter 150B of the General Statutes.
(f)	If a hearing is not held on the branch application, the Administrator shall issue a final decision within 120 days of the filing of the application.  The final decision shall be in accordance with the applicable provisions of Chapter 150B of the General Statutes.
(g)	to (i) Repealed by Session Laws 1981 (Regular Session, 1982), c. 1238, s. 3.
(j)	Any party to a branch application may appeal the final decision of the Administrator to the Commission at any time after final decision, but not later than 30 days after a written copy of the final decision is served upon the party and the attorney of record by personal service or by certified mail.  Failure to file an appeal within the time stated shall operate as a waiver of the right of the party to review by the Commission and by a court of competent jurisdiction in accordance with Chapter 150B of the General Statutes, relating to judicial review."
Sec. 14.  G.S. 54B-23 reads as rewritten:
"§ 54B-23.  Application to change location of a branch or principal office.
(a)	The board of directors of a State association may change the location of a branch office or the principal office of the association by submitting to the Administrator an application for such change on forms prescribed by the Administrator.
(b)	Upon receipt of an application accompanied by the proper application fee, the Administrator shall conduct, or cause to be conducted, an examination and investigation of the facts and circumstances connected with the consideration of the application. In considering the application, the Administrator shall consider the association's record of performance in helping to meet the credit needs of its community pursuant to G.S. 54B-296.  After an examination and investigation, the Administrator shall approve or deny the application.
(c)	If an application filed under this section is approved by the Administrator and the association fails to change the location of the branch office or principal office within six months after the date of the order approving the application, approval shall be revoked. The six-month period may be extended upon a showing to the satisfaction of the Administrator of good cause."
Sec. 15.  Article 3 of Chapter 54B is amended by adding a new section to read:
"§ 54B-39.1.  Community performance ratings considered.
Neither the Administrator nor the Commission shall approve a plan of conversion or a merger under this Article unless the associations applying for conversion or the associations applying for merger have 'outstanding' or 'satisfactory' performance ratings of meeting the credit needs of the community served pursuant to Article 15 of this Chapter."
Sec. 16.  G.S. 147-69 reads as rewritten:
"§ 147-69.  Deposits of State funds in banks and savings and loan associations regulated.
Banks and savings and loan associations having State deposits shall furnish to the Auditor of the State, upon the Auditor's request, a statement of the moneys which have been received and paid by them on account of the treasury.  The Treasurer shall keep a full account of all moneys deposited in and drawn from all banks and savings and loan associations in which the Treasurer may deposit or cause to be deposited any of the public funds, and the accounts shall be open to the inspection of the Auditor.  The Treasurer shall sign all checks, and no depository bank or savings and loan association shall be authorized to pay checks not bearing the official signature.  The Treasurer is authorized to use a facsimile signature machine or device in affixing the Treasurer's signature to warrants, checks or any other instrument required by law.  The Commissioner of Banks and the bank examiners, and the Administrator of the Savings Institutions Division, and savings and loan examiners, when so required by the State Treasurer, shall keep the State Treasurer fully informed at all times as to the condition of all depository banks and savings and loan associations, so as to fully protect the State from loss.  The State Treasurer shall, before making deposits in any bank or savings and loan association, require ample security from the bank or savings and loan association for the deposit.  Banks and savings and loan associations listed by the Commissioner of Banks and the Administrator of the Savings Institution Division pursuant to G.S. 53-280 and G.S. 54B-297, respectively, may not receive deposits of State funds."
Sec. 17.  G.S. 159-30(b) reads as rewritten:
"(b)	Moneys may be deposited at interest in any bank, savings and loan association, or trust company in this State in the form of certificates of deposit or such other forms of time deposit as the Commission may approve, except that banks and savings and loan associations listed by the Commissioner of Banks and the Administrator of the Savings Institution Division pursuant to G.S. 53-280 and G.S. 54B-297, respectively, may not receive deposits of State funds. Investment deposits, including investment deposits of a mutual fund for local government investment established under subdivision (c)(8) of this section, shall be secured as provided in G.S. 159-31(b)."
Sec. 18.  This act becomes effective October 1, 1995.