A BILL TO BE ENTITLED
AN ACT to conform the laws related to permissible interest rates for home loans secured by first mortgages.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 24‑1.1A(a) reads as rewritten:
"(a)	Notwithstanding any other provision of this Chapter, but subject to the provisions of G.S. 24‑1.1E, parties to a home loan may contract in writing as follows:
(1)	Where the principal amount is ten thousand dollars ($10,000) or more the parties may contract for the payment of interest as agreed upon by the parties.
(2)	Where the principal amount is less than ten thousand dollars ($10,000) the parties may contract for the payment of interest as agreed upon by the parties, if the lender is one of the following:
a.	Approved as a mortgagee by the Secretary of Housing and Urban Development, the Federal Housing Administration, the Department of Veterans Affairs, a national mortgage association or any federal agency.
b.	A local or foreign bank, savings and loan association or service corporation wholly owned by one or more savings and loan associations and permitted by law to make home loans, credit union or insurance company.
c.	A State or federal agency.
d.	A mortgage banker who is a licensee or an exempt person as those terms are defined in G.S. 53-243.01.
(3)	Where the principal amount is less than ten thousand dollars ($10,000) and the lender is not a lender described in the preceding subdivision (2) the parties may contract for the payment of interest not in excess of sixteen percent (16%) per annum.
	"
SECTION 2.  G.S. 24‑1.1A(c2) is repealed.
SECTION 3.  G.S. 24‑1.4 is repealed.
SECTION 4.  This act becomes effective July 1, 2003, and applies to loans entered into on or after that date.