State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-62

§ 53‑62.  Establishmentof branches; limited service facilities; and off‑premises customer‑bankcommunications terminals.

(a)        The word"capital" as used in this section means capital stock and unimpairedsurplus.

(b)        A bank doingbusiness under this Chapter may establish branches or limited servicefacilities within this State after having first obtained the written approvalof the Commissioner of Banks, which approval may be given or withheld by theCommissioner of Banks, in his discretion. The Commissioner of Banks, inexercising such discretion, shall take into account, but not by way oflimitation, such factors as the financial history and condition of theapplicant bank, the adequacy of its capital structure, its future earningsprospects, and the general character of its management. Such approval shall notbe given until he shall find (i) that the establishment of such branch orlimited service facility will meet the needs and promote the convenience of thecommunity to be served by the bank, and (ii) that the probable volume ofbusiness and reasonable public demand in such community are sufficient toassure and maintain the solvency of said branch or limited service facility andof the existing bank or banks in said community.

(c)       (1)        Abranch or limited service facility of a bank shall be operated as a branch oroffice of and under the name of the bank, and under the control and directionof the board of directors and executive officers of the bank. The board ofdirectors of the bank shall elect such officers as may be required to properlyconduct the business of any branch or limited service facility.

(2)        The Commissioner ofBanks shall not authorize the establishment of a branch until he is satisfiedthat the applicant bank has sufficient capital to maintain a minimum capital toasset ratio as the Commissioner of Banks, in his discretion, may require. Indetermining such ratio the Commissioner of Banks shall give due considerationto (i) the amount of capital required to support the bank's projected growth,(ii) the bank's earnings history and projected earnings, (iii) the quality ofthe bank's assets, (iv) compliance with the fixed asset limitation contained inG.S. 53‑43(3), and (v) the business experience and reputation of bankmanagement.

(3)        The Commissioner ofBanks may, on written application by a bank, in his discretion authorize thebank to establish a limited service facility after considering the criteria andmaking the findings required in subsection (b).

(d)        A limited servicefacility, upon written request to the Commissioner of Banks, and after meetingthe requirements of subsection (c) may convert to a branch. If branch status isgranted then the branch shall be subject to all of the conditions andrequirements of that type of banking office.

Upon 30 days written notice tothe Commissioner of Banks, a bank may discontinue any limited service facilityoperation; provided, however, if a limited service facility has within fiveyears preceding the proposed closing date been a branch of any bank, it shallcomply with the requirements of subsection (e) below before closing.

(d1)      Subject to suchrules and regulations as may be prescribed by the State Banking Commission withregard to their use, maintenance and supervision, any bank may establish offthe premises of any principal office, branch or limited service facility acustomer‑bank communications terminal, point‑of‑saleterminal, automated teller machine, automated banking facility or other director remote information‑processing device or machine, whether manned orunmanned, through or by means of which information relating to any financialservice or transaction rendered to the public is stored and transmitted,instantaneously or otherwise, to or from a bank or other nonbank terminal; andthe establishment and use of such a device or machine shall not be deemed abranch or limited service facility, and the capital requirements and standardsfor approval of a branch or limited service facility, all as set forth insubsections (b) and (c) of this section, shall not be applicable to theestablishment of any such off‑premises terminal device or machine.

(e)        A bank may, uponresolution by the board of directors, discontinue a branch office subject tothe following:

(1)        The bank shallnotify the Commissioner in writing of its intent to close a branch not laterthan 90 days prior to the proposed closing date. Such notice shall include adetailed statement of the reasons for the decision to close a branch andstatistical or other information in support of such reasons.

(2)        The bank shallprovide a notice of its intent to close a branch to its customers. Such noticeshall be posted in a conspicuous manner on the branch premises for a period of30 days prior to the proposed closing date, and shall either be included in atleast one of any regular account statements mailed to customers of such branch,or in a separate mailing to such customers. The later notice shall be given atleast 90 days prior to the proposed closing date.

Nobranch shall be closed until approved by the Commissioner of Banks, provided,however, the consolidation of two or more branches into a single location inthe same vicinity shall not be considered a closure subject to the provisionsof this subsection.

(f)         Any action takenby the Commissioner of Banks pursuant to this section shall be subject toreview by the State Banking Commission which shall have the authority toapprove, modify or disapprove any action taken or recommended by theCommissioner of Banks. (1921, c. 4, s. 43; Ex. Sess. 1921, c. 56, s. 2; C.S., s. 220(r); 1927,c. 47, s. 8; 1931, c. 243, s. 5; 1933, c. 451, s. 1; 1935, c. 139; 1947, c.990; 1953, c. 1209, ss. 2, 5; 1963, c. 793, s. 3; 1967, c. 789, s. 11; 1975,cc. 553, 850; 1983, c. 214, s. 5; 1989, c. 187, s. 7; 1995, c. 129, s. 13; 2002‑29,s. 1.)