Section 1.

Expands the General Assembly’s legislative intent and purpose in GS 108A-112 to include findings about the vulnerability of older adults and statements of the General Assembly’s intent to balance the rights of older adults and disabled adults to direct and control their assets, funds, and investments and to exercise their constitutional rights consistent with due process with the need to provide financial institutions the ability to place narrow, 30-day limited restrictions on these rights in an effort to decrease older adults or disabled adults' risk of loss due to abuse, neglect, or financial exploitation. Makes clarifying changes and broadens definition of financial exploitation to include any acts or omissions by a person, including through the use of power of attorney, guardianship, or conservatorship, to do either of the following: (1) obtain control over the older adult's or disabled adult's money, assets, or property through deception, intimidation, or undue influence to deprive him or her of the ownership, use, benefit, or possession of the money, assets, or property or (2) divert the older adult's or disabled adult's money, assets, or property to deprive him or her of the ownership, use, benefit, or possession of the money, assets, or property. Adds term trusted contact to encompass any of four listed persons, including a natural person aged 18 or older whom a customer has expressly identified in a financial institution’s records who may be contacted about either the account or account owner to discuss the specified matter.

Expands good faith immunity for making a report of suspected fraud under GS 108A-115 to include agents of a financial institution. Further instructs that the financial institution, and, and its officers, employees, and agents, cannot be compelled in any action to identify the existence of or the contents of a suspicious activity report related to suspected financial abuse activity that may have been filed with the US Department of the Treasury. Makes technical changes.

Enacts GS 108A-118, authorizing a financial institution to choose to delay or refuse a disbursement or transaction from an account of a disabled adult or older adult or an account for which a disabled adult or older adult is a beneficiary or beneficial owner if: (1) the financial institution and its employees believe, based on individual observation or information received, that financial exploitation may have attempted or occurred or is currently being attempted or occurring; (2) the belief is based on an observation or the receipt of information; and (3) it initiates an internal review. Authorizes to a financial institution to take any six listed actions in response, including delaying or refusing transactions or withdrawals. Specifies that a financial institution’s authority to delay expires at the earlier of (1) 30 business days after the date on which the depository institution first acted under the authority in GS 108A-118; (2) when the institution is satisfied that the transaction or act will not likely result in financial exploitation of the older adult or disabled adult; and (3) upon court order. Allows for an additional 30-day extension based on the institution’s reasonable belief that financial exploitation may continue to occur or be attempted. Provides for 5-year record keeping of each incident. Provides for good faith immunity for financial institutions. Requires a financial institution to conduct training and adopt policies, as specified, before it can exercise the statutory authority in GS 108A-118 to delay or deny transactions. Clarifies how GS 108A-112 operates in relation to other statutes. Enacts GS 108A-119, authorizing a financial institution to notify a trusted contact if it believes that financial exploitation has or may have occurred, is being attempted, or has been or may have been attempted. Authorizes the financial institution to not notify the trusted contact if it believes that the contact is involved in the financial exploitation. Exempts any such disclosures from State privacy laws.

Section 2.

Adds term public notice to the 32 defined terms pertaining to savings banks in GS 54C-4. Removes proviso that the definitions apply to those terms unless “the context otherwise requires.” Removes process for a savings bank to obtain permission to establish a branch office in GS 54C-23. Expands the ways that State savings bank may establish branches in the State or another State to include de novo and by acquisition of existing branch offices of another depository institution. Sets deadline for the Commissioner of Banks (Commissioner) to make a decision on an application within fourteen days of the date of publication of the public notice required under GS 54C-4. Now requires the Commissioner to consider such factors as the financial condition and history of the applicant; the adequacy of its capital; the applicant's future earnings prospects; the character, competency, and experience of its management; the probable impact of the branch on the condition of the applicant State savings bank and existing depository institutions in the community to be served; and the convenience and needs of the community the proposed branch is to serve. (Currently, Commissioner must approve applications when four factors are met, including that the applicant has gross assets of at least $10 million). Now requires State savings banks to publish public notice as part of its request a change of location for its principal office or a branch to the Commissioner under GS 54C-24. Instructs the Commissioner to take into account any public comments received in response to the notice. Requires the Commissioner to approve the request if any of four conditions apply, including that the relocation does not result in a material change in the primary service area of the principal office or branch. Makes conforming changes, including to the statute's title. Removes content of GS 54C-60, pertaining to confidential information of the Commissioner, and/or the State Banking Commission, and instead directs that GS 53C-2-7 applies to records of the Office of the Commissioner pertaining to State saving banks.

Removes provisions in GS 54C-101 requiring a director of a State savings bank to have significant ownership in the bank. Directs that the corporate powers of the State savings bank are exercised by, or under the authority of, its board of directors, and the business and affairs of the State savings bank are managed by, or under the direction of, its board of directors. Allows the Commissioner to reduce the number of a board of directors to less than five members for good cause. Provides for quarterly meetings, and liability of the board of directors. Allows for the appointment of advisory directors, and specifies that no advisory director is liable for acts or omissions undertaken as an advisory director under the laws applicable to the performance of the duties of a director of a State savings bank, unless and only to the extent the advisory director undertakes or is delegated authority as a director of the State savings bank. Repeals GS 54C-102 (requiring a State savings bank’s bylaws to be approved by the Commissioner). Directs the Commissioner to review GS Chapter 54C and form a drafting group, if appropriate, to prepare updates and revisions to modernize the Chapter or to make recommendations on more fully integrating the supervision of savings banks into GS Chapter 53C (Regulation of Banks). Requires the Commissioner to submit a report on its findings and recommendations to the specified NCGA committee within one year of the act’s effective date.