NORTH CAROLINA GENERAL ASSEMBLY
1971 SESSION

CHAPTER 632
SENATE BILL 398

AN ACT TO PROVIDE THAT STATE SAVINGS AND LOAN ASSOCIATIONS HAVE CERTAIN POWERS WHICH HAVE BEEN GRANTED TO FEDERAL SAVINGS AND LOAN ASSOCIATIONS.

The General Assembly of North Carolina do enact:

Section 1.  Chapter 54 of the General Statutes is hereby amended by inserting a new section immediately following G.S. 54-33.2 to be designated as G.S. 54-33.3 and to read as follows:
"§ 54-33.3.  Same powers as federal savings and loan associations. — In addition to all the powers granted under this subchapter, any savings and loan association incorporated under the laws of this State and operating under the provisions of this subchapter is herein authorized to:
(1)	Invest in the capital stock, obligations or other securities of any service corporation organized under the laws of the State of North Carolina when the entire capital stock of such corporation is owned or is to be owned by one or more, but less than five, associations; but no association may make any investment in such corporation if its aggregate investment as determined by the Commissioner of Insurance of North Carolina would exceed one percent (1%) of its assets. Such service corporations shall be subject to audit by the Commissioner of Insurance of North Carolina, and the cost of such audit shall be borne by such corporation, and such corporation may engage in such activities which are approved as of the date of enactment of this bill, by the Federal Home Loan Bank Board for service corporations for federal savings and loan associations whose principal office is in the State of North Carolina, provided that such activities are also approved by the Commissioner of Insurance of North Carolina.
(2)	Act as trustee of any trust created or organized in the United States and forming part of a stock bonus, pension or profit-sharing plan which qualifies or qualified for specific tax treatment under Section 401 (d) of the Internal Revenue Code of 1954, as amended, if the funds of such trusts are invested only in savings accounts or deposits in such association or of obligations or securities issued by such association. All funds held in such fiduciary capacity by any such association may be commingled for appropriate purposes of investment, but individual records shall be kept by the fiduciary of each participant and shall show in proper detail all transactions engaged in under the authority of this section.
(3)	Negotiate dividend rates on an individual basis with members of such association."
Sec. 2.  This act shall become effective upon ratification.
In the General Assembly read three times and ratified, this the 21st day of June, 1971.