§ 54B-121. Creation of withdrawable accounts.
Article 6.
Withdrawable Accounts.
§ 54B‑121. Creation ofwithdrawable accounts.
(a) Every Stateassociation shall be authorized to raise capital through the solicitation ofinvestments from any person, natural or corporate, except as restricted orlimited by law, or by such regulations as the Commissioner of Banks mayprescribe.
(b) Such funds obtainedthrough the solicitation of investments shall be held by an association inaccounts designated generally as withdrawable accounts.
(c) An association mayestablish as many classes of withdrawable accounts as may be provided for inits certificate of incorporation or bylaws, subject to such regulations andlimitations as the Commissioner of Banks may prescribe.
(1) At least one classof withdrawable accounts shall be established by which the holder, upon noticeto the association, shall be able to withdraw the entire balance of suchaccount without any penalty. The required period of notice, not to exceed 30days, shall be determined by the board of directors of each association.
(2) For any additionalclasses of withdrawable accounts that may be established, the board may requirea fixed minimum amount of money and a fixed minimum term, at the end of which,the account holder, without any notice on his part, shall be entitled topayment of the final balance of the funds in such account. Such minimum amountand minimum term and the rate of dividends on withdrawable accounts shall beagreed upon prior to the transfer to the association of any funds by the accountholder and shall be evidenced by an executed contract.
a. An association mayimpose a penalty upon the holder of such account to be assessed at the time ofany withdrawal from the account prior to the date of termination of the minimumterm for which the account holder contracted.
b. An association mayrequire that the holder of such an account provide the association with notless than 30 days' notice of an intended withdrawal prior to the date of thetermination of the account contract.
c. When the date oftermination of such an account is passed and the account is mature and payable,all payments thereon by the holder and all dividends on withdrawable accountcredits thereto by the association shall cease. However, if the holder shallnotify the association, prior to the termination date of the account, that hewishes to extend the life of the account, the association shall renew theaccount and continue to accept payments and/or make dividends on withdrawableaccount credits or cancel the account as provided under the original contract.
d. Unless theassociation receives notification within the proper time period and renews theaccount, then upon the date of termination, it shall either pay to the holderof the account the final value thereof, or mail a notice to the holder at hislast address as it appears on the records of the association to the effect thathe is entitled to receive payment for the account.
e. If the associationdoes not make payment to the holder of the account upon the date of terminationand instead mails a notice to him as provided in paragraph d above, then untilsuch time as the holder is paid, the account shall earn dividends onwithdrawable accounts at a rate not less than the rate which the association ispaying on its account or accounts established under subdivision (1) above,unless provided otherwise by the account contract.
f. Whenever anassociation has funds in an amount insufficient to make immediate payment uponthe date of termination of an account, or upon an application for withdrawal,the maturity shall be paid in accordance with the provisions of G.S. 54B‑124.Whenever such a situation arises, dividends on withdrawable accounts shall becredited to the account at a rate not less than the rate provided for in theaccount contract.
(3) An association mayestablish demand deposit accounts as a class of withdrawable accounts. Theassociation shall not permit any overdraft, including an intraday overdraft, onbehalf of an affiliate or incur any overdraft in the association's account at afederal reserve bank or federal home loan bank on behalf of an affiliate. (1981, c. 282, s. 3; 1981(Reg. Sess., 1982), c. 1238, s. 12; 1989 (Reg. Sess., 1990), c. 806, s. 9; 2001‑193,s. 16.)