State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_54C > GS_54C-124

§ 54C‑124.  Loansconditioned on certain transactions prohibited.

(a)        No savings bank orservice corporation thereof shall require, as a condition of making a loan,that the borrower contract with any specific person or organization forparticular services.

(b)        A savings bank orservice corporation thereof shall notify borrowers before the loan commitmentof their right to select the attorney or law firm rendering legal services inconnection with the loan, and the person or organization rendering insuranceservices in connection with the loan. These persons or organizations shall beapproved by the savings bank's board of directors, under any rules as theCommissioner of Banks may prescribe.

(c)        A savings bank orservice corporation thereof may require borrowers to reimburse the savings bankfor legal services rendered to it by its own attorney only when the fee islimited to legal services required by the making of the loan. (1991, c. 680, s. 1; 2001‑193,s. 16.)