NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

 

 

CHAPTER 393

SENATE BILL 105

 

 

AN ACT TO AMEND CHAPTER 53A-2 OF THE GENERAL STATUTES RELATING TO BUSINESS DEVELOPMENT CORPORATIONS SO AS TO RE-DEFINE PAID-IN CAPITAL FOR THE PURPOSE OF THE BASE FOR CAPITAL TO DEBT RATIO AND TO CHANGE THE REQUIREMENTS FOR MEMBERSHIP.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 53A-6(2) is hereby amended by deleting same in its entirety and substituting the following therefor:

"(2)      No loan to the corporation shall be made if immediately thereafter the total amount of the obligations of the corporation would exceed ten times the capital of the corporation. For the purposes of this paragraph, the capital of the corporation shall include the amount of the outstanding capital stock of the corporation, whether common or preferred, the earned or paid-in surplus of the corporation, and the amount of any outstanding debentures of the corporation, the payment of which is subordinated to all obligations of the corporation other than the obligations of the corporation to the holders of its capital stock."

Sec. 2.  G.S. 53A-6(3)b is hereby amended by deleting same in its entirety and substituting the following therefor:

"b.        The following limit, to be determined as of the time such member becomes a member or at any time requested by a member on the basis of the audited balance sheet of such member at the close of its fiscal year immediately preceding its application for membership, or, in the case of an insurance company, its last annual statement to the Commissioner of Insurance: A minimum of two per cent (2%) to a maximum of four per cent (4%) of the capital and surplus of commercial banks and trust companies, the percentage within such limits to be determined by such member; a minimum of one-half of one per cent (.5 of 1%) to a maximum of one per cent (1%) of the total outstanding loans made by a building and loan or savings and loan association, the percentage within such limits to be determined by such member; a minimum of one per cent (1%) to a maximum of two per cent (2%) of the capital and unassigned surplus of stock insurance companies, except fire insurance companies, the percentage within such limits to be determined by such member; a minimum of one per cent (1%) to a maximum of two per cent (2%) of the unassigned surplus of mutual insurance companies, except fire insurance companies, the percentage within such limits to be determined by such member; one-tenth of one per cent (.1 of 1%) of the assets of fire insurance companies; and such limits as may be approved by the board of directors of the corporation for other financial institutions."

Sec. 3.  Nothing contained in Sections 1 and 2 hereof shall change or affect in any way the provisions of the certificate of incorporation of any existing corporation organized under Chapter 1146 of the Session Laws of 1955 unless and until such certificate of incorporation shall be amended as provided in Section 9 of Chapter 1146 of the Session Laws of 1955.

Sec. 3 1/2.  G.S. 53A-9 is hereby amended by striking out the word "thirty" immediately following the word "within" in the first line of the second paragraph and inserting in lieu thereof the words and figures "one hundred and twenty (120)".

Sec. 4.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 5.  This Act shall be in full force and effect on and after January 1, 1963.

In the General Assembly read three times and ratified, this the 8th day of May, 1963.