§ 54B-244. Purposes and powers of mutual deposit guaranty associations.
§ 54B‑244. Purposes andpowers of mutual deposit guaranty associations.
(a) The purposes of amutual deposit guaranty association incorporated in accordance with theprovisions of this Article are to:
(1) Assure the liquidityof a member institution;
(2) Guarantee thewithdrawable accounts, shares of deposits of member institutions;
(3) Serve, whenappointed, as receiver of a member institution.
(b) A mutual depositguaranty association incorporated in accordance with the provisions of thisArticle may:
(1) Lend money to amember institution for the purpose of assuring its liquidity and withdrawableaccounts, shares or deposits therein;
(2) Purchase any assetsowned by a member institution for the purpose of assuring its liquidity andwithdrawable accounts, shares or deposits therein;
(3) Invest any of itsfunds in:
a. Bonds or interest‑bearingobligations of the United States or for which the faith and credit of theUnited States are pledged for the payment of principal and interest;
b. Bonds or interest‑bearingobligations of this State;
c. Farm loans issuedunder the Federal Farm Loan Act and amendments thereto;
d. Notes, debentures,and bonds of a federal home loan bank issued under the Federal Home Loan BankAct and any amendments thereto;
e. Bonds or othersecurities issued under the Home Owners' Loan Act of 1933 and any amendmentsthereto;
f. Securitiesacceptable to the United States to secure government deposits in nationalbanks;
g. Deposits in anyfinancial institution that is subject to examination and supervision by theUnited States or by this State;
h. Bonds or otherevidences of indebtedness of counties and municipalities of the State of NorthCarolina, provided, that said bonds or other evidences of indebtedness of thecounties and municipalities shall have a rating by Moody's Investors Services,Inc., of not less than AA, and a rating by the North Carolina MunicipalCouncil, Inc., of not less than 90 points out of 100 points;
i. Stock in bankinginstitutions licensed to do business in this State;
j. Securities andother investments authorized as liquid investments for any financialinstitution that is subject to examination and supervision by the United Statesor by this State;
k. Notes, bonds,debentures or securities rated in one of the four highest grades by anationally recognized investment rating service.
l . Stock in bankinginstitutions not licensed to do business in this State provided such investmentis made in conjunction with any merger or other fundamental change approved bythe Commissioner of Banks under the provisions of G.S. 54B‑44.
(4) Issue its capitalnotes or debentures to member institutions, provided the holders of thesecapital notes or debentures shall not be individually responsible for anydebts, contracts, or engagements of the guaranty association issuing the notesor debentures;
(5) Borrow money;
(6) Exercise anycorporate power or powers not inconsistent with, and which may be necessary orconvenient to, the accomplishment of its purposes of assuring liquidity of memberinstitutions and guaranteeing withdrawable accounts, shares or depositstherein;
(7) Serve as receiver ofa member institution;
(8) Make or cause to bemade examinations or audits or member institutions. (1981, c. 282, s. 3; 1983, c.144, s. 24; 2001‑193, s. 16.)