A BILL TO BE ENTITLED AN ACT TO MAKE TECHNICAL CORRECTIONS AND CLARIFICATIONS TO CHAPTER 53C OF THE GENERAL STATUTES.
Identical to S 175, filed 3/4/13.
Makes clarifying and technical changes to GS 53C-1-4, Definitions and application of terms, specifically to the following definitions: bank, control, lower-tier subsidiary, public member, subsidiary. Adds new term to definitions, consumer finance licensee, defined as an individual associated with a licensee as that term is defined in GS 53-165(h).
Makes technical changes to GS 53C-2-1(d).
Amends GS 53C-2-2(d), giving the Commissioner of Banks (Commissioner) power to exercise any jurisdiction, supervise, regulate, examine, or also enforce any banking law (previously, only had power to do this with state consumer protection laws or federal laws for which the Commissioner had enforcement jurisdiction).
Amends GS 53C-4-5(c), Qualifications of bank directors, clarifying that after a director's election or appointment, the director must do the following:
(1) Consent to the jurisdiction of the Commissioner and the General Court of Justice for the State of North Carolina in any action or proceeding brought by the Commissioner.
(2) Consent to venue in Wake County.
(3) Appoint the Commissioner as the director's agent for service of process and authorize and instruct the Commissioner or the Commissioner's duly appointed deputy or agent to accept service of process for the director, unless the director appoints an agent.
Also adds language stating that when service of legal process in an action or proceeding brought by the Commissioner is made on a director, the Commissioner will, within three business days, give notice to the director of such service and acceptance of service of process by depositing a copy of the process served and accepted, together with any pleading, order, or other item accompanying the process, with a designated delivery service as defined in 26 U.S.C. § 7502(f)(2) and directed to the director's last known address in the Commissioner's records.
The Commissioner will also keep records of the day and hour of service of process, any pleading, order, or other item accompanying service of process. Additionally, the consent and appointment described above is irrevocable and will not be affected by the termination of the director's service as a director. A director may also appoint an agent for service of such process in Wake County.
Amends GS 53C-4-11(c), adding balances maintained at any federal reserve bank, either directly or on a pass-through basis, to meet federal reserve system reserve requirements to the list of liquid reserves types available to establish and put toward the required level of reserve fund.
Amends GS 53C by adding new GS 53C-4-13, Immediate report of changes in directors and certain officers, requiring banks to report to the Commissioner any changes in its directors, president, CEO, CFO, chief loan officer, or chief credit officer by close of the second day on which the bank is open for business following such change(s).
Makes technical changes to GS 53C-5-1(d). Also gives banks authority to appeal an application denial by the Commissioner, pursuant to GS 53C-2-6.
Amends GS 53C-5-2, Investment authority, deleting the requirement that investments by banks or bank subsidiaries receive the same accounting and regulatory treatment as required by the bank's federal supervisor. Gives a bank's board-authorized committee the authority to make investments. Makes technical and clarifying changes. Gives the bank the authority to appeal an objection by the Commissioner pursuant to GS 53C-2-6.
Expands the capital and asset categories that are eligible toward being counted as a bank's capital upon which the 10% investment limitation is calculated against for investments in non-government backed bonds or debt obligations. GS 53C-5-2 now allows to be counted those portions of the bank's allowance for loan and lease losses, deferred tax assets, and intangible assets that are excluded from the bank's capital under federal law (was, investments in non-government backed bonds or debt obligations could not exceed 10% of a bank's required capital), plus the bank's capital.
Amends GS 53C-6-1(b) expanding, identical to above section #8, the capital and asset categories that are eligible toward being counted as a bank's capital upon which the 15% investment limitation for total loans and extensions of credit outstanding at one time and not fully secured to include those portions of the bank's allowance for loan and lease losses, deferred tax assets, and intangible assets that are excluded from the bank's capital under federal law or the amount permitted for national banks in North Carolina by statute or by regulation of the comptroller of the currency (was, total loans and investments could not exceed 15% of the capital of the bank).
Also expands, identical to above, asset categories that are eligible toward being counted as a bank's capital upon which the 10% limitation for secured total loans and extensions of credit that are fully secured can be calculated to include those portions of the bank's allowance for loan and lease losses, deferred tax assets, and intangible assets that are excluded from the bank's capital under federal law or the amount permitted for national banks in North Carolina by statute or by regulation of the comptroller of the currency (was, secured total loans and extensions of credit could not exceed 10% of the capital of the bank).
Amends GS 53C-6-1, by adding a new subsection, GS 53C-6-1(e), giving banks the power to, by resolution passed by their boards of directors or board-authorized committees, request the Commissioner to suspend the limitations on loans as set in the statute, as they apply to the bank's books or in a way the bank desires to modify in a manner not otherwise permitted by the limitations. Commissioner may approve or deny the request.
Amends GS 53C-6-6(j), making technical and clarifying changes.
Amends GS 53C-6-7 by adding a new subsection that states payable on death acounts created under GS 53-146.2 prior to October 1, 2012, are now governed by GS 53C-6-7, and any reference to GS 53-146.2 should be understood to refer to GS 53C-6-7.
Amends GS 53C-6-8, stating that attorneys-in-fact for incapacitated or incompetent principals acting pursuant to a durable power of attorney can terminate an agent's authority to act on or behalf of the principal with respect to personal agency accounts. Makes technical changes.
Amends GS 53C-7-101, Control transactions, deleting the requirement that each bank will report to the Commissioner any changes in its directors, president, CEO, CFO, chief loan officer, or chief credit officer by the close of the second day on which the holding company is open for business following such change(s). This requirement is now contained in GS 53C-4-13, as noted in Section #6 above.
Creates new subsection GS 53C-7-101(c)(5a), adding the following transaction, an acquisition of control over voting shares exempt from the prior approval requirements set forth in section 3 of the Bank Holding Company Act, to the list of transactions that do not constitute a control transaction requiring the prior approval of the Commissioner.
Amends GS 53C-7-102(c) making a technical change, replacing a reference to GS 53C-2-8 with GS 53C-2-7(b).
Amends GS 53C-7-205 by making clarifying and technical changes.
Amends GS 53C-7-207 adding language that states that a bank proposing to do any of the listed proposed combinations in GS 53C-7-207(a), must give prior written notice to the Commissioner that provides detail of the proposed combination (was, with the approval of the Commissioner).
Allows the combination to be completed if the Commissioner does not object within 30 days of notice. Commissioner may extend the 30-day window if needed. While the period is extended, the banks or subsidiaries cannot proceed with the proposed combination. Banks have the right to appeal an objection by the Commissioner.
Creates three conditions where, if met, the prior written notice requirement above is not needed for proposed combinations. Under existing law, the written notice requirement is not applicable to a combination of a subsidiary and another company when the subsidiary is not the resulting entity, or for a combination of two or more subsidiaries of the same bank.
Repeals GS 53C-7-208 (Fiduciary powers and liabilities of combining banks).
Amends 53C-9-403, adding the requirement that a new trustee will be appointed in the manner provided in GS 36C-7-704 or other applicable law. Deletes the requirement for the entry of an order by the clerk of superior court to terminate the bank as a trustee in lieu of a duly appointed trustee.
Amends GS 153C-10-102(c) adding an acquisition of control over voting securities in a transaction subject to approval under section 3 of the Bank Holding Company Act to the list of transactions that do not constitute a control transaction, requiring the prior approval of the Commissioner.
Makes technical and clarifying changes to GS 53C-10-301.
Makes technical changes to GS-53-366(a). Also makes authorized trust institutions subject to GS Chapter 53C, more specifically GS 53C-2-7(b).
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