GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 187
Committee Substitute Favorable 3/25/25
Short Title: Credit Union Update. (Public)
Sponsors:
Referred to:
February 26, 2025
*H187 -v-2*
A BILL TO BE ENTITLED 1
AN ACT TO UPDATE THE CREDIT UNION STATUTES. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. G.S. 54-109.1 reads as rewritten: 4
"§ 54-109.1. Definition and purposes.Definitions. 5
The following definitions apply in Articles 14A to 15A of this Chapter: 6
(1) Administrator. – Administrator of Credit Unions. 7
(2) Commission. – Credit Union Commission. 8
(3) Credit union. – A credit union is a cooperative, nonprofit association, 9
incorporated under Articles 14A to 14L of this Chapter, for the purposes of 10
encouraging thrift among its members, creating a source of credit at a fair and 11
reasonable rate of interest, and providing an opportunity for its members to 12
use and control their own money in order to improve their economic and social 13
condition. 14
(4) Division. – Credit Union Division of the Department of Commerce." 15
SECTION 2. Article 14B of Chapter 54 of the General Statutes reads as rewritten: 16
"Article 14B. 17
"Supervision and Regulation. 18
… 19
"§ 54-109.14. Fees.Fees and penalties. 20
(a) Each credit union subject to supervision and examination by the Administrator of 21
Credit Unions, Administrator, including credit unions in process of voluntary liquidation, shall 22
pay into the office of the Administrator of Credit Unions twice each year, in the months of 23
January and July, supervision fees, except those credit unions which liquidate or convert fees. A 24
credit union that liquidates or converts its charter shall pay into the office of the Administrator 25
of Credit Unions, Administrator, to the date of dissolution, pro rata supervision fees. Examination 26
fees shall be paid promptly upon receipt of the examination report and invoice. 27
The Administrator of Credit Unions, Administrator, subject to the advice and consent of the 28
Credit Union Commission, shall, on or before December 1 of each year, determine and fix the 29
scale of supervisory and examination fees to be assessed during the next calendar year. 30
No credit union shall be required to pay any supervisory fee until the expiration of 12 months 31
from the date of the issuance of a certificate of incorporation to such the credit union. 32
(b) The Administrator may charge other fees for service and supervision as approved by 33
the Commission. Moneys collected under this section shall be deposited with the State Treasurer 34
of North Carolina and expended, under the terms of the Executive Budget Act, to defray expenses 35 General Assembly Of North Carolina Session 2025
Page 2 House Bill 187-Second Edition
incurred by the office of the Administrator of Credit Unions in carrying out its supervisory and 1
auditing functions. 2
(c) All revenue derived from fees will be placed into a special account to be administered 3
solely for the operation of the Credit Union Division. 4
(d) The Administrator may waive any fee, in whole or in part, for any credit union or 5
group of credit unions at the Administrator's discretion. 6
(e) The Administrator may assess a civil penalty not to exceed five hundred dollars 7
($500.00) for the violation of any section of Articles 14A to 15A of this Chapter or any rule 8
adopted by the Administrator. The clear proceeds of any civil penalty assessed under this 9
subsection or pursuant to any other authority in Articles 14A to 15A of this Chapter shall be 10
remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 11
"§ 54-109.15. Reports. 12
(a) Credit The Administrator shall cause credit unions organized under Articles 14A to 13
14L 15A of this Chapter shall, in January and in July of each year, make to make a report of 14
condition to the Administrator of Credit Unions on forms supplied for that purpose. Additional 15
reports may be required.in a manner and on a schedule as adopted by the Administrator. The 16
Administrator may also require that additional reports be filed. 17
(b) Any The Administrator may cause any credit union that neglects to make semiannual 18
reports as provided in subsection (a) of this section, or any of the other reports required by the 19
Administrator of Credit Unions at the time fixed by the Administrator, shall pay to pay a late 20
penalty to the Administrator of Credit Unions of not less than seventy-five dollars ($75.00) 21
($75.00), nor more than seven hundred fifty dollars ($750.00) for each day the neglect continues. 22
The Administrator of Credit Unions may revoke the certificate of incorporation and take 23
possession of the assets and business of any credit union failing to pay a penalty imposed under 24
this section after serving notice of at least 15 days upon the credit union of the proposed action. 25
The clear proceeds of penalties collected pursuant to this subsection shall be remitted to the Civil 26
Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. The Administrator shall 27
publish the late penalty amount annually by rule. 28
"§ 54-109.16. Examinations required; payment of cost. 29
The Administrator of Credit Unions shall cause examine every credit union formed under 30
Article Articles 14A and 15A of this Chapter to be examined once every 18 months or whenever 31
the Administrator deems it necessary. more frequently if deemed necessary by the Administrator. 32
The examiners appointed by the Administrator shall be given free access to all books, papers, 33
securities, and electronic or digital records, and other sources of information in with respect to 34
the credit union; for the purpose of the examination, the Administrator may subpoena and 35
examine personally, or by one of the Administrator's deputies or examiners, witnesses on oath 36
and documents, whether the witnesses are members of the credit union or not, and whether the 37
documents are documents of the credit union or not. The Administrator may designate an 38
independent auditing firm to do the work conduct the examinations under the Administrator's 39
direction and supervision, with the cost to be paid by the credit union involved. 40
"§ 54-109.17. Records. 41
(a) A credit union shall maintain all books, records, accounting systems and procedures 42
in accordance with such rules as the Administrator from time to time prescribes. adopted by the 43
Administrator. In prescribing such adopting these rules, the Administrator shall consider the 44
relative size of a credit union and its reasonable capability of compliance. 45
(b) A credit union is not liable for destroying records after the expiration of the record 46
retention time prescribed adopted by the Administrator. 47
(c) A photostatic or photographic reproduction of any credit union records shall be 48
admissible as evidence of transactions with the credit union.A credit union may cause any or all 49
records kept by it to be recorded, copied, or reproduced by any photographic, reproduction, 50
electronic, or digital process or method, or by any other records retention technology approved 51 General Assembly Of North Carolina Session 2025
House Bill 187-Second Edition Page 3
by rule or order of the Administrator, of a kind that is capable of accurately converting the records 1
into tangible form within a reasonable time. Each converted tangible form of record also is 2
deemed a record. 3
"§ 54-109.18. Selection of attorneys to handle loan-closing proceedings. 4
The Administrator of Credit Unions shall establish rules and regulations relating to selection 5
of attorneys-at-law to handle credit union loan closing proceedings. 6
"§ 54-109.18A. Hearings and appeals. 7
(a) Unless otherwise stated in this Chapter, administrative hearings required or permitted 8
to be held by the Administrator shall be conducted in accordance with Article 3A of Chapter 9
150B of the General Statutes. 10
(b) After a hearing under subsection (a) of this section, a party aggrieved may appeal the 11
decision or order of the Administrator or designee of the Administrator to the Commission for 12
appellate review by filing with the Administrator a written notice of appeal no later than 30 days 13
after the day that the Administrator's decision or order is served. Upon receipt of a notice of 14
appeal, the Administrator shall, within 30 days of the notice, certify to the Commission the record 15
on appeal. The notice of appeal shall state the grounds for the appeal and set forth in numbered 16
order the assignments of error for review by the Commission. Failure to state the grounds for the 17
appeal and assignments of error constitutes grounds to dismiss the appeal. Failure to comply with 18
the briefing schedule provided by the Commission also constitutes grounds to dismiss the appeal. 19
The Commission shall review the record on appeal, hear oral arguments by the parties, and make 20
a written final decision or order no later than 60 days after the date of oral arguments. 21
(c) A party to a proceeding before the Commission under subsection (b) of this section is 22
entitled to judicial review of the decision or order in accordance with Article 4 of Chapter 150B 23
of the General Statutes. 24
(d) Notwithstanding any other provision of law, the hearing officer at administrative 25
hearings conducted under subsection (a) of this section may be the Administrator or a designee 26
of the Administrator. 27
"§ 54-109.19. Removal of officers. 28
(a) The Administrator of Credit Unions shall have the right and is hereby empowered to 29
serve a written notice of his intention to remove from office any If the Administrator finds that 30
an officer, director, committeeman committee member, or employee of any credit union doing 31
business under Articles 14A through to 15A of this Chapter who shall be found to be dishonest, 32
incompetent, is deceitful, incompetent, grossly negligent, or reckless in the management of the 33
affairs of the credit union, has been convicted of a felony, has been convicted of a misdemeanor 34
involving fraud or dishonesty, has breached the trust of the members, or who has persistently 35
violates violated the laws of this State or the lawful orders, instructions and regulations issued 36
orders issued or rules adopted by the Administrator and/or the State Credit Union Commission.or 37
the Commission, the Administrator may take one or both of the following actions: 38
(1) Remove the director, officer, committee member, or employee from office. 39
(2) Prohibit the director, officer, committee member, or employee from 40
participating in the conduct of the affairs of a credit union or credit union 41
service organization. 42
(b) A notice of intention to remove removal of a director, officer, committee member or 43
employee from office shall contain a statement of the alleged facts constituting the grounds 44
therefor for it and shall fix a time and place at which a hearing before the Credit Union 45
Commission will be held thereon. Such hearing shall be fixed for a date not earlier than 30 days 46
nor later than 60 days after the date of service of such notice unless an earlier or a later date is 47
set by the Commission at the request of such director, officer, committee member or employee 48
and for good cause shown. Pending this hearing, the Administrator may remove the alleged 49
violator if he finds that it is essential to the continued well-being of the credit union or the public 50
to do so. Unless, of course, such director, officer, committee member or employee shall appear 51 General Assembly Of North Carolina Session 2025
Page 4 House Bill 187-Second Edition
at the hearing in person or by a duly authorized representative, he shall be deemed to have 1
consented to the issuance of an order of such removal. In the event of such consent, or if upon 2
the record made at any such hearing the Credit Union Commission shall find that any of the 3
grounds specified in such notice has been determined by the greater weight of the evidence, the 4
Commission may issue such orders of removal from office as it may deem appropriate. Any such 5
order shall become effective at the expiration of 30 days after service upon such credit union and 6
the director, officer, committee member or employee concerned (except in the case of an order 7
issued upon consent, which shall become effective at the time specified therein). Such order shall 8
remain effective and enforceable except to such extent as it is stayed, modified, terminated or set 9
aside by action of the Credit Union Commission or a reviewing court.information on how the 10
removed party may appeal the removal to the Commission, including contact information to 11
initiate an appeal. The removal is effective immediately upon service of the notice of removal. 12
(c) A director, officer, committee member, or employee served written notice of removal 13
has the right to a hearing before the Commission and shall request a hearing within 30 days of 14
the service of the notice of removal. 15
(d) The hearing shall be fixed for a date no later than 30 days after service of the notice 16
for request for hearing unless a later date is set by the Commission at the request of the removed 17
party and for good cause shown. If the removed party does not seek a hearing within the 30-day 18
time frame, the removed party is deemed to have consented to the removal and the removal is 19
deemed final. 20
(e) Upon a request for hearing, or upon scheduling a discretionary hearing on its own 21
initiative, the Commission shall review the facts of the case and hear from the Administrator and 22
the removed party. The Commission shall determine whether the preponderance of the evidence 23
supports removal. Upon completion of the hearing, the Commission shall issue an order that does 24
one of the following: 25
(1) Overturns the removal and reinstates the removed party. 26
(2) Upholds the removal in full. 27
(3) Modifies the removal into a suspension of a defined period. The order remains 28
effective and enforceable except to the extent that it is stayed, modified, 29
terminated, or set aside by a later action of the Commission or a reviewing 30
court. 31
"§ 54-109.20. Additional authorities of the Administrator. 32
(a) In the event of a natural disaster or other national, regional, State, or local emergency, 33
the Administrator may temporarily waive or suspend requirements for compliance by one or 34
more credit unions with any provisions of this Chapter or with any rules if the Administrator 35
deems it in the public interest. 36
(b) The Administrator may issue and serve upon a credit union an order to cease and 37
desist from one or more unsafe or unsound practices or violations if, in the opinion of the 38
Administrator, a credit union is engaging or has engaged, or there is reasonable cause to believe 39
a credit union is about to engage, in an unsafe or unsound practice, or is violating or has violated, 40
or there is reasonable cause to believe a credit union is about to violate, this Chapter or any other 41
applicable statute, rule, regulation, or order. An order to cease and desist shall contain a statement 42
of the facts constituting the alleged violations or unsafe or unsound practices, and the order may 43
require, in terms that may be mandatory or otherwise, a credit union, its officers, directors, 44
employees, or agents to cease and desist from the practices or violations. The order shall specify 45
its effective date and shall contain a notice to the credit union of its right to a hearing on the order 46
in accordance with rules adopted by the Administrator. 47
(c) The Administrator may conduct an investigation, including conducting background 48
checks, of any credit union employee, officer, director, or committee member when considering 49
applications for new charters, changes to those positions in credit unions in a troubled condition, 50
a managing agent or manager in a conserved credit union, or when the Administrator has reason 51 General Assembly Of North Carolina Session 2025
House Bill 187-Second Edition Page 5
to believe the credit union employee, director, or committee member affected or is likely to affect 1
the safety or soundness of the credit union." 2
SECTION 3. Article 14C of Chapter 54 of the General Statutes reads as rewritten: 3
"Article 14C. 4
"Powers of Credit Union. 5
"§ 54-109.21. General powers. 6
(a) A credit union may: 7
(1) Make contracts;contracts. 8
(2) Sue and be sued;sued. 9
(3) Adopt and use a common seal and alter the seal;seal. 10
(4) Acquire, lease, hold and dispose of property, either in whole or in part, 11
necessary or incidental to its operations;present and future operations. 12
(5) At the discretion of the board of directors, require the payment of an entrance 13
fee or annual membership fee, or both, of any person admitted to 14
membership;membership. 15
(6) Receive savings from its members funds from persons in the form of shares, 16
deposits, or special-purpose thrift accounts;accounts. 17
(7) Lend its funds to its members members, other credit unions, and any cities, as 18
defined in G.S. 160A-1, as provided in Articles 14A to 14L 15A of this 19
Chapter;Chapter. 20
(8) Borrow from any source in accordance with policy established by the board 21
of directors;directors. 22
(9) Discount and sell any eligible obligations, subject to rules adopted by the 23
Administrator;Administrator. 24
(10) Sell all or substantially all of its assets or purchase all or substantially all of 25
the assets of another financial institution, subject to the approval of the 26
Administrator of Credit Unions;Administrator. 27
(11) Invest surplus funds its funds as provided in Articles 14A to 14L 15A of this 28
Chapter;Chapter. 29
(12) Make deposits in legally chartered banks, savings institutions, trust companies 30
and central-type credit union organizations;corporate credit unions. 31
(13) Assess charges to members in accordance with the bylaws for failure to meet 32
properly their obligations to the credit union;union. 33
(14) Hold membership in other credit unions organized under Articles 14A to 14L 34
of this Chapter or other acts, and in other associations and organizations 35
composed of credit unions;unions, and in organizations or associations 36
fostering the interests of credit unions or providing services to credit unions. 37
(15) Declare dividends; dividends, pay interest on deposits deposits, and pay 38
interest refunds to borrowers as provided in Articles 14A to 14L 15A of this 39
Chapter;Chapter. 40
(16) Sell travelers checks and money orders and charge a reasonable fee for such 41
services, provided the travelers checks are payable at institutions other than a 42
credit union;Offer related financial services, including travelers checks, 43
money orders, other negotiable instruments, electronic transfer of funds, safe 44
deposit boxes, custodial services, and correspondent services and charge a 45
reasonable fee for these services. 46
(17) Perform tasks and missions requested by the federal government or this State 47
or any agency or political subdivision thereof, when approved by the board of 48
directors and not inconsistent with Articles 14A to 14L 15A of this 49
Chapter;Chapter. 50 General Assembly Of North Carolina Session 2025
Page 6 House Bill 187-Second Edition
(18) Act as fiscal agent for and receive deposits from the federal government, this 1
State, or any agency or political subdivision thereof;thereof. 2
(19) Contribute to, support, or participate in any nonprofit service facility whose 3
services will benefit the credit union or its membership subject to rules 4
adopted by the Administrator;Administrator. 5
(20) Make donations or contributions to any civic, charitable or community 6
organization as authorized by the board of directors, subject to such 7
regulations as are prescribed by the Administrator;rules adopted by the 8
Administrator. 9
(21) Act as a custodian of qualified pension funds if permitted by federal law;law. 10
(22) Purchase or make available insurance for its directors, officers, agents, 11
employees, and members; insurance members. Insurance may be provided 12
through any insurance company or through any subsidiary insurance company 13
owned by the credit union; andunion. 14
(23) Facilitate its members' purchase of goods and services in a manner which that 15
promotes the purposes of the credit union. 16
(24) The board of directors may expel from the corporation any member who has 17
not carried out the engagement the member made with the corporation, has 18
been convicted of a felony or crime involving moral turpitude, or neglects or 19
refuses to comply with the provisions of this Article or of the bylaws. The 20
Board may, after notice and hearing as provided in this subdivision, expel 21
from the corporation any member who because of the member's intemperance 22
disrupts the activities of the credit union or who because of the member's 23
habitual neglect of financial obligations reflects discredit upon the credit 24
union. No member shall be expelled until informed in writing of the charges 25
made and given an opportunity, after reasonable notice, to be heard.Expel any 26
member or reduce services for cause. A member expelled for cause may 27
appeal in writing to the board of directors. Upon consideration of the member's 28
appeal, the board may reinstate the member or uphold the expulsion. No 29
member shall be expelled until informed in writing of the expulsion. 30
(25) Engage in activity permitted under this subdivision. Notwithstanding any 31
other provision of this Chapter, the Administrator of Credit Unions, subject to 32
the advice and consent of the Credit Union Commission, and upon a finding 33
that action is necessary to preserve and protect the welfare of credit unions 34
and to promote the general economy of the State, may adopt rules allowing 35
State-chartered credit unions to engage in any activity in which they could 36
engage if they were federally chartered credit unions.of Articles 14C to 14J of 37
this Chapter, upon 45-day written notice to the Administrator and subject to 38
the Administrator's written disapproval during the 45-day period if the 39
Administrator concludes the credit union is not well-capitalized or 40
well-managed as demonstrated by the supervisory rating it received during its 41
most recent safety and soundness examination, engage in any activity or 42
exercise any power in which it could engage or exercise if it were a federally 43
chartered credit union, subject to similar approval provisions, if any, 44
applicable to federally chartered credit unions with respect to the activity or 45
power. 46
(26) Subject to rules adopted by the Administrator, act as trustee or custodian, and 47
receive reasonable compensation for so acting, under any written trust 48
instrument or custodial agreement created or organized and forming a part of 49
a deferred compensation plan for its members or groups or organizations of 50
its members, provided members so long as the funds of the plans are invested 51 General Assembly Of North Carolina Session 2025
House Bill 187-Second Edition Page 7
in savings or deposits of the credit union. All funds held may be commingled 1
for the purpose of investment, but individual records shall be kept by the credit 2
union for each participant and shall show in proper detail all transactions 3
engaged in under authority of this subdivision. 4
(b) A member may withdraw from a credit union by filing a written notice of intent to 5
withdraw. The 6
The amounts paid in on shares or deposits by an expelled or withdrawing member, with any 7
dividends credited to the shares and any interest accrued on the deposits to the date of expulsion 8
or withdrawal withdrawal, shall be paid to the member, but member in the order of expulsion or 9
withdrawal, after deducting any amounts due to the credit union by the member and only as funds 10
therefor become available, after deducting any amounts due to the credit union by the member. 11
available. The member shall have has no other or further right in the credit union or to any of its 12
benefits, but the expulsion or withdrawal shall does not operate to relieve the member from any 13
remaining liability to the credit union. 14
…." 15
SECTION 4. Article 14D of Chapter 54 of the General Statutes reads as rewritten: 16
"Article 14D. 17
"Membership. 18
"§ 54-109.26. "Membership" defined. 19
(a) The membership of a credit union shall be limited to and consist of the subscribers to 20
the articles of incorporation and such other persons within the common bond bonds set forth in 21
the bylaws as that have been duly admitted members, have paid any required entrance fee or 22
membership fee, or both, have subscribed for one or more shares, and have paid the initial 23
installment thereon, admitted members and have complied with such other requirements as the 24
articles of incorporation or bylaws specify.specified by the articles of incorporation or bylaws. 25
(b) Credit union membership may include groups the following: 26
(1) Persons having a common bond of similar occupation, association association, 27
or interest, or groups interest. 28
(2) who Persons that reside within an identifiable neighborhood, community, or 29
rural district, or employees district. 30
(3) Employees of a common employer, and members of the immediate family of 31
such persons.employer. 32
(4) Members of the immediate family of persons described in subdivisions (1) 33
through (3) of this subsection. 34
"§ 54-109.27. Societies and other associations.Societies, corporations, and other entities. 35
Societies, and copartnerships Societies and partnerships composed primarily of individuals 36
who are eligible to membership, and corporations whose stockholders are composed of or 37
controlled primarily by individuals eligible for membership, corporations owned or controlled 38
primarily of such individuals, by eligible individuals, and other business entities owned or 39
controlled primarily by eligible individuals may be admitted to membership in the same manner 40
and under the same conditions as individuals, but may not borrow in excess of their 41
shareholdings. Provided, however, secured loans in excess of shareholdings may be made to 42
nonprofit societies, copartnerships, and corporations who are members.individuals. 43
"§ 54-109.28. Other credit unions.unions and specially designated common bonds. 44
Any A credit union organized under Articles 14A to 14L of this Chapter may permit 45
membership of any other credit union organized under Articles 14A to 14L of this Chapter or 46
other acts.law. To facilitate the provision of financial services to underserved populations and 47
communities, a credit union organized under Articles 14A to 14L of this Chapter may also permit 48
membership of the following located in this State: 49
(1) Individuals and families that earn income at or below the federal poverty 50
threshold. 51 General Assembly Of North Carolina Session 2025
Page 8 House Bill 187-Second Edition
(2) Persons residing in census tracts in North Carolina where the center of 1
population, as defined by the United States Census Bureau, is more than 8 2
miles from a bank branch, as defined in G.S. 53C-1-4. 3
"§ 54-109.29. Members who that leave field. 4
Members who that leave the field of membership may be permitted to retain their membership 5
in the a credit union as a matter of general policy of the board of directors. 6
"§ 54-109.30. Liability of shareholders. 7
A shareholder of any such corporation, a credit union, unless the bylaws so provide, shall not 8
be is not individually liable for the payment of its the credit union's debts for an amount in excess 9
of the par value of the shares which he owns or for which he has subscribed.owned by the 10
individual or for which the individual has subscribed. 11
"§ 54-109.31. Meetings of members. 12
(a) The annual meeting and any special meetings of the members of the credit union shall 13
be held at the time, place, time and in the manner indicated by the bylaws.bylaws or 14
G.S. 55A-7-01. 15
(b) At all such these meetings, a member shall have but one vote, irrespective of his the 16
member's shareholdings. No member may shall vote by proxy, but a member may vote by 17
absentee ballot if the bylaws of the credit union so provide. 18
(c) A society, association, copartnership or corporation A business or other entity having 19
membership in the credit union may be represented and have its vote cast by one of its members 20
or shareholders, provided such shareholders so long as the person has been fully authorized by 21
the organization's entity's governing body. 22
(d) The board of directors may establish a minimum age of 16 years of age as a 23
qualification to vote at meetings of the members. 24
(e) The board of directors may establish a minimum age of 18 years of age as a 25
qualification to hold office." 26
SECTION 5. Article 14I of Chapter 54 of the General Statutes reads as rewritten: 27
"Article 14I. 28
"Investments. 29
"§ 54-109.82. Investment of funds. 30
(a) The capital, deposits, undivided profits profits, and reserve fund of the corporation 31
credit union may be invested only in any of the following ways: 32
(1) They may be lent to the members of the corporation credit union in accordance 33
with the provisions of this Chapter. 34
(2) In capital shares, obligations, or preferred stock issues of any agency, 35
company, or association organized either as a stock company, mutual 36
association, or membership corporation, provided corporation so long as the 37
membership or stockholdings, as the case may be, of the agency, company, or 38
association are confined or restricted to credit unions or organizations of credit 39
unions, or provided unions or the purpose for which the agency, company, or 40
association is organized or designed is to service or otherwise assist credit 41
union operations. 42
(3) In obligations of the State of North Carolina or any subdivision thereof. 43
(4) In obligations of the United States, including bonds and securities upon which 44
payment of principal and interest is fully guaranteed by the United States. 45
(5) They may be deposited to the credit of the corporation credit union in savings 46
institutions, credit unions, or State banks or banks, trust companies 47
incorporated under the laws of the State, or in national banks located in the 48
State. 49
(6) In loans to other credit unions in any amount not to exceed twenty-five percent 50
(25%) of the shares and unimpaired surplus of the lending credit union. 51 General Assembly Of North Carolina Session 2025
House Bill 187-Second Edition Page 9
(7) In an aggregate amount not to exceed twenty-five percent (25%) of the 1
allocations to the reserve fund in any agency, company, or association twelve 2
and one-half percent (12.5%) of the credit union's net worth, in agencies, 3
companies, or associations of the type described in subdivision (2) of this 4
section provided so long as the purposes of the agency, company, or 5
association are designed to assist in establishing and maintaining liquidity, 6
solvency, and security in credit union operations. 7
(8) In the North Carolina Savings Guaranty Corporation. 8
(9) In any form of investment allowed by law to the State Treasurer under 9
G.S. 147-69.1. In addition, investment in corporate bonds that bear a 10
minimum rating of A+ by at least one nationally recognized rating service is 11
permissible. Credit unions shall monitor overall credit exposure by setting 12
corporate bond investment limits as a percentage of assets. 13
(10) Debentures In debentures issued by an agency of the United States 14
government. 15
(11) In the College Foundation Foundation, in any amount not to exceed ten 16
percent (10%) of the shares and unimpaired surplus of the investing credit 17
union. 18
(12) They may be deposited in any bank or savings institution insured by the 19
federal government or any of its agencies. 20
(13) In higher education bonds permissible under G.S. 116D-2, provided that such 21
G.S. 116D-2 so long as the bonds pledge the faith, credit, and taxing power of 22
the State for the payment of the principal of and interest on bonds and notes. 23
(14) In an aggregate amount not to exceed one percent (1%) of the credit union's 24
net worth in a small business formed under the laws of the United States, or a 25
state, district, or territory of the United States, that meets the appropriate 26
United States Small Business Administration definition of small business 27
under Part 121 of Chapter I of Title 13 of the Code of Federal Regulations and 28
that is principally engaged in the development or exploitation of inventions, 29
technological improvements, new processes, or other fintech products. 30
(15) In common trust or mutual funds whose investment portfolios consist of 31
securities otherwise permitted for credit unions. 32
(16) In stock, securities, obligations, or other instruments that are approved by the 33
Administrator. 34
(b) If the status or form of a credit union's investment changes during the life of the 35
investment, the credit union may continue to hold and maintain the investment regardless of the 36
change. 37
(c) Subject to rules of the Administrator, a credit union may make an otherwise 38
impermissible investment to fund the credit union's employee benefit plan. A credit union's 39
investment to fund an employee benefit plan obligation is not subject to the investment 40
limitations of this section if the investment is directly related to the credit union's obligation under 41
the employee benefit plan and the credit union holds the investment only for so long as it has an 42
actual or potential obligation under the plan." 43
SECTION 6. G.S. 54-109.92(k) reads as rewritten: 44
"(k) If, after a hearing under this section, the board of directors of the credit union is 45
dissatisfied with the decision of the Administrator of Credit Unions, the board may appeal to the 46
Credit Union Commission by filing with the Administrator a written appeal, including a duly 47
certified resolution of the board, not later than 10 days after the day that the Administrator's order 48
is served. If the appeal is duly filed, the Administrator shall set a date for a hearing on the appeal 49
not more than 30 days after the date on which the appeal is filed. The Administrator shall 50
promptly give notice of the date, time, and place of the hearing to the credit union and any other 51 General Assembly Of North Carolina Session 2025
Page 10 House Bill 187-Second Edition
interested party. pursuant to G.S. 54-109.18A. The filing of an appeal does not suspend the effect 1
of the an order of the conservation conservation, and this the order remains in force pending final 2
disposition of the appeal by the Commission. At the conclusion of the hearing, the Commission 3
may reverse the order of the Administrator and adopt and approve the credit union's plan to 4
continue operations, affirm the Administrator's order of conservation, or order that other 5
appropriate action be taken." 6
SECTION 7. This act becomes effective January 1, 2026. 7