State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-77_3

§53‑77.3.  Banks suspending business during an emergency.

(a)        As used in thissection, unless the context otherwise requires:

(1)        "Bank"includes commercial banks, industrial banks, trust companies, any branch oragency of a foreign banking organization, any person or association of personslawfully carrying on the business of banking, whether incorporated or not, and,to the extent that the provisions hereof are not inconsistent with and do notinfringe upon paramount federal law, also includes national banks.

(2)        "Emergency"means any condition or occurrence, which may interfere physically with theconduct of normal business operations at one or more or all of the offices of abank, or which poses an imminent or existing threat to the safety or security ofpersons or property, or both. Without limiting the generality of the foregoing,an emergency may arise as a result of any one or more of the following: fire;flood; earthquake; hurricanes; wind, rain, or snow storms; labor disputes andstrikes; power failures; transportation failures; interruption of communicationfacilities; shortages of fuel, housing, food, transportation or labor; robberyor attempted robbery; actual or threatened enemy attack; epidemics or othercatastrophes; riots, civil commotions, and other acts of lawlessness orviolence, actual or threatened.

(3)        "Office"means any place at which a bank transacts its business or conducts operationsrelated to its business.

(4)        "Officers"means the person or persons designated by the board of directors, board oftrustees, or other governing body of a bank, to act for the bank in carryingout the provisions of this section or, in the absence of any such designationor of the officer or officers so designated, the president or any other officercurrently in charge of the bank or of the office or offices in question.

(b)        Whenever theCommissioner of Banks is of the opinion that an emergency exists, or isimpending, in this State or in any part or parts of this State, he mayauthorize banks located in the affected area or areas to close any or all oftheir offices. In addition, if the Commissioner is of the opinion that anemergency exists, or is impending, which affects, or may affect, a particularbank or banks, or a particular office or offices thereof, but not banks locatedin the area generally, he may authorize the particular bank or banks, or officeor offices so affected, to close.  In addition, the Commissioner of Banks mayin the interest of national defense authorize any bank, or any of its offices,to open or close, for the transaction of business. The office or offices soclosed shall remain closed until the Commissioner declares that the emergencyhas ended, or until such earlier time as the officers of the bank determinethat one or more offices, previously closed because of the emergency, shouldreopen, and, in either event, for such further time thereafter as mayreasonably be required to reopen.

In the event communicationssystems should be so disrupted as to make it impossible or impractical for abank official to communicate with the Commissioner of Banks, the bank officeror manager or other person in charge of any such bank or branch bank may closesaid office without prior approval of the Commissioner of Banks provided hegives prompt notice thereof to the Commissioner as soon as communications havebeen restored.

(c)        Any day on which abank, or any one or more of its offices, is closed during all or any part ofits normal banking hours pursuant to the authorization granted under this sectionshall be, with respect to such bank or, if not all of its offices are closed,then with respect to any office or offices which are closed, a legal holidayfor all purposes with respect to any banking business of any character. Noliability, or loss of rights of any kind, on the part of any bank, or director,officer, or employee thereof, shall accrue or result by virtue of any closingauthorized by this section.

(d)        The provisions ofthis section shall be construed and applied as being in addition to, and not insubstitution for or limitation of, any other law of this State or of the UnitedStates authorizing the closing of a bank or excusing the delay by a bank in theperformance of its duties and obligations because of emergencies or conditionsbeyond the bank's control, or otherwise. (1971, c. 465; 1985, c. 677,s. 5; 1989, c. 187, s. 12.)