GENERAL ASSEMBLY OF NORTH CAROLINA
HOUSE BILL 511
Short Title: Credit Unions/Statutory Changes.
Representatives Ross, J. Bell, Bradford, and Glazier (Primary Sponsors).
For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site.
April 2, 2015
A BILL TO BE ENTITLED
AN ACT to make various statutory changes related to credit unions.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 47C‑4‑110(a) reads as rewritten:
"§ 47C‑4‑110. Escrow of deposits.
(a) Any deposit made in connection with the purchase
or reservation of a unit from a person required to deliver a public offering
statement pursuant to G.S. 47C‑4‑102(c) shall be immediately
deposited in a trust or escrow account in
an insured bank or savings and
loan association in North Carolina a federally insured depository
institution lawfully doing business in this State and shall remain in such
account for such period of time as a purchaser is entitled to cancel pursuant
to G.S. 47C‑4‑108 or cancellation by the purchaser thereunder
whichever occurs first. Payments held in such trust or escrow accounts shall be
deemed to belong to the purchaser and not the seller."
SECTION 2. G.S. 42‑50 reads as rewritten:
"§ 42‑50. Deposits from the tenant.
Security deposits from the tenant in residential dwelling
units shall be deposited in a trust account with a licensed and
or savings institution located in the State of North Carolina federally
insured depository institution lawfully doing business in this State or the
landlord may, at his option, furnish a bond from an insurance company licensed
to do business in North Carolina. The security deposits from the tenant may be
held in a trust account outside of the State of North Carolina only if the
landlord provides the tenant with an adequate bond in the amount of said
deposits. The landlord or his agent shall notify the tenant within 30 days
after the beginning of the lease term of the name and address of the bank or
institution where his deposit is currently located or the name of the insurance
company providing the bond."
SECTION 3. G.S. 42A‑15 reads as rewritten:
"§ 42A‑15. Trust account uses.
A landlord or real estate broker may require a tenant to pay
all or part of any required rent, security deposit, or other fees permitted by
law in advance of the commencement of a tenancy under this Chapter if these
payments are expressly authorized in the vacation rental agreement. If the
tenant is required to make any advance payments, other than a security deposit,
whether the payment is denominated as rent or otherwise, the landlord or real
estate broker shall deposit these payments in a trust account in
bank or savings and loan association in North Carolina a federally
insured depository institution lawfully doing business in this State no
later than three banking days after the receipt of these payments. These
payments deposited in a trust account shall not earn interest unless the
landlord and tenant agree in the vacation rental agreement that the payments
may be deposited in an interest‑bearing account. The landlord and tenant
shall also provide in the agreement to whom the accrued interest shall be
SECTION 4. G.S. 54‑109.82 reads as rewritten:
"§ 54‑109.82. Investment of funds.
The capital, deposits, undivided profits and reserve fund of the corporation may be invested only in any of the following ways:
(13) In higher education bonds permissible under G.S. 116D‑2, provided that such bonds pledge the faith, credit, and taxing power of the State for the payment of the principal of and interest on bonds and notes."
SECTION 5. G.S. 54‑109.38 reads as rewritten:
"§ 54‑109.38. Compensation of officials.
No member of the board of directors or of the credit committee or supervisory committee shall be compensated for his service in this position, but providing reasonable life, health, accident and similar insurance protection for a director or committee member shall not be considered compensation. Directors and committee members, while on official business of the credit union, may be reimbursed for necessary and reasonable expenses incidental to the performance of the business. Such reimbursement may include the payment of expenses for one guest."
SECTION 6. This act is effective when it becomes law.