State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-43

Article6.

Powers and Duties.

§ 53‑43.  Generalpowers.

In addition to the powersconferred by law upon private corporations, banks shall have the power:

(1)        To exercise by itsboard of directors, or duly authorized officers and agents, subject to law, allsuch powers as shall be necessary to carry on the business of banking, bydiscounting and negotiating promissory notes, drafts, bills of exchange, andother evidences of indebtedness, by receiving deposits, by buying and sellingexchange, coin, and bullion, and by loaning money on personal security or realand personal property. Such corporation at the time of making loans may nottake and receive interest or discounts in advance where the effective rates ofinterest or discounts collected shall exceed the maximum rates of interestprovided under this section, G.S. 24‑1.1 and 24‑1.2 if suchinterest or discount had not been collected in advance.

(2)        To adopt regulationsfor the government of the corporation not inconsistent with the Constitutionand laws of this State.

(3)        To purchase, hold,and convey real estate for the following purposes:

a.         Such as shall benecessary for the convenient transaction of its business, including furnitureand fixtures, with its banking offices and other spaces to rent as a source ofincome, which investment shall not exceed fifty percent (50%) of its unimpairedcapital fund: Provided, that this fifty percent (50%) limitation shall notapply to banking houses, furniture and fixtures leased for the purposes setforth in this subdivision. Provided, further, that if any bank shalldemonstrate to the satisfaction of the Commissioner of Banks that an investmentof more than fifty percent (50%) of its unimpaired capital fund in its bankinghouses, furniture and fixtures, would promote the convenience of the generalpublic in transacting its banking business and would not adversely affect thefinancial stability of the bank, the Commissioner of Banks may, in hisdiscretion, authorize any bank to invest more than fifty percent (50%) of itsunimpaired capital fund in its banking houses, furniture and fixtures.

b.         Such as is mortgagedto it in good faith by way of security for loans made or moneys due to suchbanks.

c.         Such as has beenpurchased at sales upon foreclosures of mortgages and deeds of trust held orowned by it, or on judgments or decrees obtained and rendered for debts due toit, or in settlements affecting security of such debts. All real propertyreferred to in this subdivision shall be sold by such bank within five years afterit is acquired unless, upon application by the board of directors, theCommissioner of Banks extends the time within which such sale shall be made.Any and all powers and privileges heretofore granted and given to any person,firm, or corporation doing a banking business in connection with a fiduciaryand insurance business, or the right to deal to any extent in real estate,inconsistent with this Chapter, are hereby repealed.

(4)        Nothing contained inthis section shall be deemed to authorize banking corporations to engage in thebusiness of dealing in investment securities: Provided, however, that the term"dealing in investment securities" as used herein, shall not bedeemed to include the purchasing and selling of securities without recourse,solely upon order, and for the account of, customers; and provided further,that "investment securities," as used herein, shall not be deemed toinclude obligations of the United States, or general obligations of any stateor of any political subdivision thereof, or of cities, towns, or othercorporate municipalities of any state or obligations issued under authority ofthe Federal Farm Loan Act, as amended, or issued by the federal home loan banksor the Home Owner's Loan Corporation.

Anyprovision in conflict with this subdivision contained in the articles ofincorporation heretofore issued to any banking corporation is hereby revoked.

(5)        Repealed by SessionLaws 1989, c. 187, s. 5.

(6)        Maintain separatedepartments and deposit in its commercial department to the credit of its trustdepartment all uninvested fiduciary funds of cash and secure, under rules andregulations of the State Banking Commission, all such deposits in the name ofthe trust department whether in consolidated deposits or for separate fiduciaryaccounts, by segregating and delivering to the trust department such securitiesas may be eligible for the investment of the sinking funds of the State ofNorth Carolina, equal in market value to such deposited funds, or readilymarketable commercial bonds having not less than a recognized "A"rating equal to one hundred and twenty‑five per centum (125%) of suchdeposits. Such securities shall be held by the trust department as security forthe full payment or repayment of all such deposits, and shall be kept separateand apart from other assets of the trust department. Until all of such depositsshall have been accounted for to the trust department or to the individualfiduciary accounts, no creditor of the bank shall have any claim or right tosuch security. When fiduciary funds are deposited by the trust department inthe commercial department of the bank, the deposit thereof shall not be deemedto constitute a use of such funds in the general business of the bank and thebank in such instance shall not be liable for interest on such funds. To theextent and in the amount such deposits may be insured by the Federal DepositInsurance Corporation, the amount of security required for such deposits bythis section may be reduced.

                  The BankingCommission shall have power to make such rules and regulations as it may deemnecessary for the enforcement of the provisions of the preceding paragraph, andsuch authority shall exist and is hereby conferred under the general authorityheretofore conferred upon said Commission as well as by this paragraph.

(7)        To issue, advise andconfirm letters of credit authorizing the beneficiaries thereof to draw uponthe institution or its correspondents.

(8)        To receive money fortransmission.

(9)        To become a memberof a clearinghouse association and to pledge assets required for itsqualification.

(10)      To provide for theperformance of bank service corporation services, such as data processingservices and bookkeeping, subject to such rules and regulations as may beadopted by the State Banking Commission. (1921, c. 4, s. 26; 1923, c.148, s. 5; C.S., s. 220(a); Ex. Sess. 1924, c. 67; 1925, c. 279; 1927, c. 47,s. 5; 1931, c. 243, s. 5; 1933, c. 303; 1935, c. 81, s. 1; c. 82; 1937, c. 154;1941, c. 77; 1943, c. 234; 1955, c. 590; 1961, c. 954; 1967, c. 789, s. 6;1969, c. 541, s. 8; c. 1303, ss. 8, 9; 1979, c. 483, s. 4; 1981, c. 671, s. 7;1983, c. 214, s. 2; 1989, c. 187, s. 5; 1995, c. 129, s. 9.)