Bill Summary for S 113 (2017-2018)

Summary date: 

Feb 21 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
Senate Bill 113 (Public) Filed Tuesday, February 21, 2017
AN ACT TO MAKE VARIOUS CHANGES TO THE GENERAL STATUTES TO INCLUDE CREDIT UNIONS BY REFERENCING FEDERALLY INSURED DEPOSITORY INSTITUTIONS AND TO INCLUDE TRUST INSTITUTIONS, TO DECREASE THE FREQUENCY OF EXAMINATIONS BY THE ADMINISTRATOR OF CREDIT UNIONS, AND TO CORRECT A CITATION.
Intro. by Gunn, Horner, Dunn.

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Bill summary

Identical to H 144, filed 2/21/17.

Section 1

Amends GS 1A-A (Rule 22 Interpleader) to provide that the deposits made under these provisions must be made to a federally insured depository institution or a trust institution authorized to do business in this State (previously, to a bank, savings and loan, or trust company licensed to do business in this State). Makes conforming changes.

Amends GS 20-63.01 (Bonds Required for Commission Contractors) to provide that an assignment of a savings account or certificate of deposit made under these provisions, in lieu of the required bond, must be executed by a federally insured depository institution lawfully doing business in this State (previously, by a state or federal savings and loan association, bank, or national bank that is doing business in North Carolina and whose accounts are insured by a federal depository corporation).

Amends GS 42A-17 (Accounting and reimbursement relating to vacation rentals) to provide that the vacation rental agreement must identify the name and address of the federally insured depository institution (previously, bank or savings and loan association) in which the tenant's security deposit and other advance payments are held in a trust account.

Amends GS 85B-7.1 (Handling client funds by auctioneers) to provide that the licensee must deposit funds that are not disbursed at auction day with a federally insured depository institution (was, an insured bank or savings and loan association) located in North Carolina. Makes conforming changes to GS 85B-8, concerning the assessment of a civil penalty for failure to deposit funds or property of a client in a trust or escrow account in a federally insured depository institution as specified.

Amends GS 86A-22 (Licensing and regulating barber schools and colleges) to provide that an assignment of a savings account or certificate of deposit made under these provisions, in lieu of the required bond, must be executed by a federally insured depository institution lawfully doing business in this State (previously, by a state or federal savings and loan association, bank, or national bank that is doing business in North Carolina and whose accounts are insured by a federal depository corporation).

Amends GS 88B-17 (Bond required for private cosmetic art schools) to provide that an assignment of a savings account or certificate of deposit made under these provisions, in lieu of the required bond, must be executed by a federally insured depository institution lawfully doing business in this State (previously, by a state or federal savings and loan association, bank, or national bank doing business in this State and whose accounts are insured by a federal depository corporation).

Amends GS 90-171.55 (Nurses Aides Registry) to provide that an assignment of a savings account or certificate of deposit made under these provisions, in lieu of the required bond, must be executed by a federally insured depository institution lawfully doing business in this State (previously, by a state or federal savings and loan association, bank, or national bank that is doing business in North Carolina and whose accounts are insured by a federal depository corporation).

Amends GS 90-210.86 (Deposit or investment of funds of mutual burial associations) to provide that deposits made under this provision are to be made in any federally insured depository institution or any trust institution authorized to do business in this State (previously, in any bank or trust company in this State).

Amends GS 93A-3 (North Carolina Real Estate Commission) to provide the Commission can deposit moneys in accounts, certificates of deposit, or time deposits as the Commission may approve in any federally insured depository institution or any trust institution authorized to do business in this State (previously, in any bank, savings and loan association, or trust company).

Amends GS 93A-42 (Time shares deemed real estate) to provide that the independent escrow agent must deposit and maintain the purchaser of a time share's payments in an insured trust or escrow account in a federally insured depository institution lawfully doing business in this State (previously, in a bank or savings and loan association located in this State). Makes conforming changes to GS 93A-45 to provide that any payments received by a time share developer or salesperson in connection with the sale of a time share must be deposited in a trust or escrow account in a federally insured depository institution lawfully doing business in this State and must remain in that account for 10 days or cancellation by the purchaser, whichever occurs first.

Section 2

Makes a technical correction to GS 36C-8-816, concerning the powers of a trustee of a trust, to provide that a trustee may distribute the assets of an inoperative trust consistent with the authority granted under GS 28A-22-10 (was, GS 28A-22-110).

Section 3

Amends GS 20-63.01, as amended by this act, to provide that an assignment of a savings account or certificate of deposit made under these provisions may be executed by a trust institution.

Amends GS 42-50 (Deposits from a tenant) to provide that security deposits from the tenant in residential dwelling units must be deposited in a trust account with a licensed and federally insured depository institution or trust institution authorized to do business in this State (previously, did not include a trust institution). Makes language gender neutral.

Amends GS 42A-15 (Trust account uses by a landlord or real estate broker) to provide that a landlord or real estate broker is required to deposit advance payments from a tenant in a trust account in a federally insured depository institution or a trust institution authorized to do business in this State (previously, did not include a trust institution).

Amends GS 42A-17, as amended by this act, to provide that an assignment of a savings account or certificate of deposit made under these provisions may be executed by a trust institution.

Amends GS 47C-4-110 (Escrow of deposits) to provide that any deposit made in connection with the purchase or reservation of a condominium unit from a person required to deliver a public offering statement must be deposited in a federally insured depository institution or a trust institution authorized to do business in this State (previously, did not include trust institution).

Amends GS 85B-7.1, as amended by this act, to provide that the licensee may deposit funds not disbursed at auction day with a trust institution authorized to do business in this State. Makes conforming changes to GS 85B-8, as amended by this act.

Amends GS 86A-22, as amended by this act, to provide that an assignment of a savings account or certificate of deposit made under these provisions may be executed by a trust institution authorized to do business in this State.

Amends GS 88B-17, as amended by this act, to provide that an assignment of a savings account or certificate of deposit made under these provisions may be executed by a trust institution authorized to do business in this State.

Amends GS 90-171.55, as amended by this act, to provide that an assignment of a savings account or certificate of deposit made under these provisions may be executed by a trust institution authorized to do business in this State.

Amends GS 93A-42, as amended by this act, to provide that the independent escrow agent can deposit and maintain the purchaser of a time share's payments in an insured trust or escrow account in a trust institution authorized to do business in this State. Makes conforming changes to GS 93A-45, as amended by this act.

Section 4

Amends GS 54-109.11, concerning the duties of the Administrator of Credit Unions, to require the Administrator to examine the credit unions formed under Article 14A of GS Chapter 54 at least one every 18 months (was, once a year) or more often if the Administrator deems necessary upon examination. Makes technical changes and makes language gender neutral.

Amends GS 54-109.16 to direct the Administrator of Credit Unions to cause every credit union (was, corporation) formed under Article 14A of GS Chapter 54 to be examined once every 18 moths (was, once a year) and whenever the Administrator deems it necessary. Makes conforming and technical changes and makes language gender neutral.

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