HB 462 — Banking Law Amendments.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 21 HOUSE BILL 462* Committee Substitute Favorable 4/6/17 Short Title:

Representatives Howard, Setzer, Destin Hall, and Conrad (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Banking, if favorable, Finance March 27, 2017 A BILL TO BE ENTITLED AN ACT TO MAKE TECHNICAL, CLARIFYING, AND OTHER AMENDMENTS TO PROVISIONS APPLICABLE TO COMMERCIAL BANKS, PROVISIONS APPLICABLE TO BANK HOLDING COMPANIES, PROVISIONS APPLICABLE TO CREDIT UNIONS, AND PROVISIONS RELATING TO MORTGAGE NOTICE REQUIREMENTS.

98 PART I.

– Any staffed physical location open to the public in this State in which an office of a bank, out-of-state bank, depository institution established under the laws of another state, or federally chartered institution that is not a branch, an office of a separately organized subsidiary of such depository institution, or an office of the holding company of such depository institution, public, at which any of the following institutions offers one or more banking or banking-related products or services are offered, services other than the taking of deposits.

services, but does not take deposits:

Non-branch bank business offices include *H462-v-2**H462-v-1* General Assembly Of North Carolina Session 2017 loan production offices, mortgage loan offices, and insurance agency offices, or a combination thereof." SECTION 3.

"(b) Notwithstanding any laws to the contrary, the following records of the Commissioner shall be in the custody of the OCOB shall be are confidential and shall not be disclosed or be subject to discovery or public inspection:

(2) Records containing information compiled in preparation for or anticipation of or in the course of litigation, examination, audit, or investigation.investigationinvestigation.investigation, or containing information that was privileged prior to being obtained by the Commissioner.

(8) Records Minutes or other records that have been obtained by the Commissioner and that are related to meetings of, or have been prepared by by, any of the following bodies of a North Carolina financial institution:a compliance review committee or other committee of the board of directors of a North Carolina financial institution or established at the direction of such a board of directors that have been obtained by the Commissioner.by,Commissioner. any of the following bodies of a North Carolina financial institution:

Page 2 House Bill 462*-Second462*-First Edition General Assembly Of North Carolina Session 2017 "§ 53C-4-12.

(1) "Compliance review committee" means an(i) audit,a loanbank's review,board orof compliancedirectors, (ii) a committee appointedauthorized by the bank's board of directorsdirectors, of a bank, or (i)(iii) aan bank'saudit, boardloan ofreview, directors,or (ii)compliance a committee authorizedappointed by the bank's board of directors,directors orof (iii)a bank, or any other committee or person to the extent the committee or person acts at the direction of or reports to such a committee, whose the bank's board of directors or such a committee, a committee authorized by the bank's board of directors whose when any part of the functions are of the board, committee, or person are is to audit, evaluate, report, or determine compliance with any of the following:following standards or requirements:

… House Bill 462*-Second462*-First Edition Page 3 General Assembly Of North Carolina Session 2017 (5) If the any beneficiary is an entity other than a natural person, not an individual, there shall be only one beneficiary.

Page 4 House Bill 462*-Second462*-First Edition General Assembly Of North Carolina Session 2017 "(a) A bank may establish in this State or another state one or more non-branch bank business offices as defined by G.S.

House Bill 462*-Second462*-First Edition Page 5 General Assembly Of North Carolina Session 2017 (1) The bank is well-capitalized and well-managed as demonstrated by the supervisory rating it received during its most recent examination.

…." 7SECTION PART10. II.

BANK HOLDING COMPANIES SECTION 10.

53C-9-405 is repealed.

SECTION 11.

G.S.

53C-9-406 is repealed.

9 PART II.

BANK HOLDING COMPANIES SECTION 12.

G.S.

53C-1-4(39), of a that directly or indirectly controls a bank or nonbank subsidiary that has an office located in this State shall register with the Commissioner and maintain that registration on an annual basis in the form prescribed by the Commissioner." SECTION 11.13.

(3) A fee of $50.00 fifty dollars ($50.00) for the issuance of any certified copies of documents plus $1.00 one dollar ($1.00) per page over a number of pages specified by the Commissioner." SECTION 12.14.

MORTGAGE NOTICE REQUIREMENTS SECTION 13.15.

Page 6 House Bill 462*-First Edition General Assembly Of North Carolina Session 2017 1.

Page 6 House Bill 462*-Second Edition General Assembly Of North Carolina Session 2017 I.

CREDITEFFECTIVE UNIONSDATE SECTION 14.16.

G.S.

54-109.57A(a) reads as rewritten:

"§ 54-109.57A.

Payable on Death (POD) accounts.

(a) Shares may be issued to and deposits received from any natural person or natural persons establishing an account who shall execute a written agreement with the credit union containing a statement that it is executed pursuant to the provisions of this section and providing for the account to be held in the name of the natural person or natural persons as owner or owners for one or more beneficiaries.

Such account and any balance thereof shall be held as a Payable on Death account.

The account shall have the following incidents:

… (8) A pledge of a Payable on Death account by any owner, unless otherwise specifically agreed between the credit union and all owners in writing, is a valid pledge and transfer of the account or of the pledged amount, is binding upon all owners and beneficiaries, does not operate to sever or terminate the joint ownership of all or any part of the account, and survives the death of any owner or any beneficiary.

The natural person or natural persons establishing an account under this subsection shall sign a statement containing language set forth in a conspicuous manner and substantially similar to the language set out below;