North Carolina 2025-2026 Regular Session

North Carolina House Bill H754 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 754
	3	+	H D
	4	+	HOUSE BILL DRH30315-MU-39
	5	+
5	6
6	7
7	8		Short Title: Fin. Exploit. Prevention/Savings Bank Updates. (Public)
8		-	Sponsors: Representatives Ross, Howard, N. Jackson, and Crawford (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Commerce and Economic Development, if favorable, Finance, if favorable, Rules,
11		-	Calendar, and Operations of the House
12		-	April 7, 2025
13		-	H754 -v-1
	9	+	Sponsors: Representative Ross.
	10	+	Referred to:
	11	+
	12	+	DRH30315 -MU-39
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO PROTECT DISABLED AND OLDER ADULTS FROM FINANCIAL 2
16	15		EXPLOITATION AND TO UPDATE THE SAVINGS BANK LAWS TO INCREASE 3
17	16		ALIGNMENT WITH THE COMMERCIAL BANKING LAWS . 4
18	17		The General Assembly of North Carolina enacts: 5
19	18		6
20	19		PART I. ENHANCEMENTS TO ARTICLE 6A OF CHAPTER 108A, "PROTECTION 7
21	20		OF DISABLED AND OLDER ADULTS FROM FINANCIAL EXPLOITATION " 8
22	21		SECTION 1.(a) G.S. 108A-112 reads as rewritten: 9
23	22		"§ 108A-112. Legislative intent and purpose. 10
24	23		(a) Determined to fight the growing problem of fraud and financial exploitation targeting 11
25	24		disabled adults and older adults in North Carolina, the General Assembly enacts this Article to 12
26	25		facilitate the collection of records needed to investigate and prosecute such these incidents. 13
27	26		(b) The General Assembly finds that older adults in this State are at a statistically higher 14
28	27		risk of being targeted for financial exploitation, regardless of diminished capacity or other 15
29	28		disability, because of their accumulation of substantial assets and wealth compared to younger 16
30	29		age groups. 17
31	30		(c) The General Assembly recognizes that financial institutions have duties imposed by 18
32	31		law and by contract to conduct customer-directed transactions in a timely manner and in 19
33	32		accordance with their customers' instructions. 20
34	33		(d) The General Assembly intends to provide financial institutions with the tools and 21
35	34		protections to take action based upon the reasonable belief that older adults or disabled adults 22
36	35		who have accounts with the financial institutions have been or are the subject of financial 23
37	36		exploitation and to provide financial institutions and their employees immunity from liability for 24
38	37		taking actions as authorized in this Article. 25
39	38		(e) The General Assembly intends to balance the rights of older adults and disabled adults 26
40	39		to direct and control their assets, funds, and investments and to exercise their constitutional rights 27
41	40		consistent with due process with the need to provide financial institutions the ability to place 28
42	41		narrow, 30-day limited restrictions on these rights in an effort to decrease older adults or disabled 29
43	42		adults' risk of loss due to abuse, neglect, or financial exploitation." 30
44	43		SECTION 1.(b) G.S. 108A-113 reads as rewritten: 31
45	44		"§ 108A-113. Definitions. 32
46		-	As used in this Article, the following definitions apply: 33 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 754-First Edition
48		-	(1) Customer. – A person who that is a present or former holder of an account 1
49		-	with a financial institution. 2
50		-	(2) Disabled adult. – An individual 18 years of age or older or a lawfully 3
51		-	emancipated minor who is present in the State of North Carolina this State and 4
52		-	who is physically or mentally incapacitated as defined in G.S. 108A-101(d). 5
53		-	(3) Financial exploitation. – The illegal or improper use of a disabled adult's or 6
54		-	older adult's money, assets, property, or other financial resources for another's 7
55		-	profit or pecuniary advantage.advantage, or any act or omission by a person, 8
56		-	including through the use of power of attorney, guardianship, or 9
57		-	conservatorship, to do either of the following: 10
58		-	a. Obtain control over the older adult's or disabled adult's money, assets, 11
59		-	or property through deception, intimidation, or undue influence to 12
60		-	deprive him or her of the ownership, use, benefit, or possession of the 13
61		-	money, assets, or property. 14
62		-	b. Divert the older adult's or disabled adult's money, assets, or property 15
63		-	to deprive him or her of the ownership, use, benefit, or possession of 16
64		-	the money, assets, or property. 17
65		-	(4) Financial institution. – A banking corporation, trust company, savings and 18
66		-	loan association, credit union, or other entity principally engaged in lending 19
67		-	money or receiving or soliciting money on deposit. 20
68		-	(5) Financial record. – An original of, a copy of, or information derived from a 21
69		-	record held by a financial institution pertaining to a customer's relationship 22
70		-	with the financial institution and identified with or identifiable with the 23
71		-	customer. 24
72		-	(6) Investigating entity. – A law enforcement agency investigating alleged 25
73		-	financial exploitation of a disabled adult or an older adult, or a county 26
74		-	department of social services investigating alleged financial exploitation of a 27
75		-	disabled adult. 28
76		-	(7) Law enforcement agency. – Any duly accredited State or local government 29
77		-	agency possessing authority to enforce the criminal statutes of North Carolina. 30
78		-	(8) Older adult. – An individual 65 years of age or older. 31
79		-	(9) Promptly. – As soon as practicable, with reasonable allowance to be made for 32
80		-	the time required to retrieve older data or records that are not readily or 33
81		-	immediately retrievable due to their current storage media. 34
82		-	(10) Trusted contact. – Includes any of the following: 35
83		-	a. A natural person 18 years of age or older whom the customer has 36
84		-	expressly identified pursuant to G.S. 108A-114 in a financial 37
85		-	institution's records as the person who may be contacted (i) about 38
86		-	either the account or the account owner to address possible financial 39
87		-	exploitation or to confirm the specifics of the account owner's current 40
88		-	contact information or health status; (ii) to determine the identity of 41
89		-	any conservator, executor, trustee, or agent; or (iii) to address any 42
90		-	other concern reasonably related to the administration of the account. 43
91		-	b. A joint account owner, additional authorized signatory, beneficiary of 44
92		-	the customer's account, or an agent under a power of attorney. 45
93		-	c. An attorney, trustee, conservator, guardian, or other fiduciary whom a 46
94		-	court or government agency has selected to manage some or all of the 47
95		-	financial affairs of the older adult or disabled adult. 48
96		-	d. A parent, spouse, adult child, sibling, or other family member of an 49
97		-	older adult or disabled adult whom a financial institution believes is 50
98		-	closely associated with the older adult or disabled adult." 51 General Assembly Of North Carolina Session 2025
99		-	House Bill 754-First Edition Page 3
100		-	SECTION 1.(c) G.S. 108A-115 reads as rewritten: 1
101		-	"§ 108A-115. Duty to report suspected fraud; content of report; immunity for reporting. 2
102		-	(a) Any financial institution, or officer or employee thereof, having reasonable cause to 3
103		-	believe that a disabled adult or older adult is the victim or target of financial exploitation shall 4
104		-	report such this information to the following: 5
105		-	(1) Persons on the list provided by the customer under G.S. 108A-114, if such a 6
106		-	list has been provided by the customer. provided. The financial institution may 7
107		-	choose not to contact persons on the provided list if the financial institution 8
108		-	suspects that those persons are financially exploiting the disabled adult or 9
109		-	older adult. 10
110		-	(2) The appropriate local law enforcement agency. 11
111		-	(3) The appropriate county department of social services, if the customer is a 12
112		-	disabled adult. 13
113		-	(b) The report may be made orally or in writing. The report shall include the name and 14
114		-	address of the disabled adult or older adult, the nature of the suspected financial exploitation, and 15
115		-	any other pertinent information. 16
116		-	(c) No financial institution, or officer or employee thereof, who officer, employee, or 17
117		-	agent, that acts in good faith in making a report under this section may be held liable in any action 18
118		-	for doing so. Furthermore, a financial institution, and its officers, employees, and agents, shall 19
119		-	not be compelled in any action to identify the existence of or the contents of a suspicious activity 20
120		-	report related to suspected financial abuse activity that may have been filed with the U.S. 21
121		-	Department of the Treasury's Financial Crimes Enforcement Network pursuant to requirements 22
122		-	of the Bank Secrecy Act, 31 U.S.C. § 5318(g)(2), and its implementing regulations." 23
123		-	SECTION 1.(d) Article 6A of Chapter 108A of the General Statutes is amended by 24
124		-	adding two new sections to read: 25
125		-	"§ 108A-118. Transaction delays and refusals. 26
126		-	(a) A financial institution may choose to delay or refuse a disbursement or transaction 27
127		-	from an account of a disabled adult or older adult or an account for which a disabled adult or 28
128		-	older adult is a beneficiary or beneficial owner if all of the following apply: 29
129		-	(1) The financial institution and its employees believe that financial exploitation 30
130		-	of the older adult or disabled adult may have occurred, may have been 31
131		-	attempted, or is occurring or is being attempted. 32
132		-	(2) The belief is based on individual observation or information received, 33
133		-	including information received from a government agency or law enforcement 34
134		-	agency. 35
135		-	(3) The financial institution promptly initiates an internal review of the facts and 36
136		-	circumstances that caused an employee of the financial institution to delay or 37
137		-	refuse the disbursement or transaction. 38
138		-	(b) If the conditions of subsection (a) of this section are met, a financial institution may 39
139		-	do any of the following: 40
140		-	(1) Delay or refuse one or more transactions with or involving the older adult or 41
141		-	disabled adult. 42
142		-	(2) Delay or refuse to permit the withdrawal or disbursement of funds contained 43
143		-	in the older adult or disabled adult's account. 44
144		-	(3) Prevent a change in ownership of the older adult or disabled adult's account. 45
145		-	(4) Prevent a transfer of funds from the older adult or disabled adult's account to 46
146		-	an account owned wholly or partially by another person. 47
147		-	(5) Refuse to comply with instructions given by an agent or a person acting for or 48
148		-	with an agent under a power of attorney signed or purported to have been 49
149		-	signed by the older adult or disabled adult. 50 General Assembly Of North Carolina Session 2025
150		-	Page 4 House Bill 754-First Edition
151		-	(6) Prevent the designation or change the designation of beneficiaries to receive 1
152		-	any property, benefit, or contract rights for an older adult or disabled adult at 2
153		-	death. 3
154		-	(c) A financial institution shall use discretion to determine whether or not to act under 4
155		-	subsections (a) and (b) of this section based on the information available to its staff at the time. 5
156		-	The authority to delay a transaction expires upon the earlier of the following: 6
157		-	(1) Thirty business days after the date on which the depository institution first 7
158		-	acted under the authority in this section. 8
159		-	(2) When the depository institution is satisfied in its discretion that the transaction 9
160		-	or act will not likely result in financial exploitation of the older adult or 10
	45	+	As used in this Article, the following definitions apply: 33
	46	+	(1) Customer. – A person who that is a present or former holder of an account 34
	47	+	with a financial institution. 35
	48	+	H.B. 754
	49	+	Apr 2, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH30315-MU-39
	52	+	(2) Disabled adult. – An individual 18 years of age or older or a lawfully 1
	53	+	emancipated minor who is present in the State of North Carolina this State and 2
	54	+	who is physically or mentally incapacitated as defined in G.S. 108A-101(d). 3
	55	+	(3) Financial exploitation. – The illegal or improper use of a disabled adult's or 4
	56	+	older adult's money, assets, property, or other financial resources for another's 5
	57	+	profit or pecuniary advantage.advantage, or any act or omission by a person, 6
	58	+	including through the use of power of attorney, guardianship, or 7
	59	+	conservatorship, to do either of the following: 8
	60	+	a. Obtain control over the older adult's or disabled adult's money, assets, 9
	61	+	or property through deception, intimidation, or undue influence to 10
	62	+	deprive him or her of the ownership, use, benefit, or possession of the 11
	63	+	money, assets, or property. 12
	64	+	b. Divert the older adult's or disabled adult's money, assets, or property 13
	65	+	to deprive him or her of the ownership, use, benefit, or possession of 14
	66	+	the money, assets, or property. 15
	67	+	(4) Financial institution. – A banking corporation, trust company, savings and 16
	68	+	loan association, credit union, or other entity principally engaged in lending 17
	69	+	money or receiving or soliciting money on deposit. 18
	70	+	(5) Financial record. – An original of, a copy of, or information derived from a 19
	71	+	record held by a financial institution pertaining to a customer's relationship 20
	72	+	with the financial institution and identified with or identifiable with the 21
	73	+	customer. 22
	74	+	(6) Investigating entity. – A law enforcement agency investigating alleged 23
	75	+	financial exploitation of a disabled adult or an older adult, or a county 24
	76	+	department of social services investigating alleged financial exploitation of a 25
	77	+	disabled adult. 26
	78	+	(7) Law enforcement agency. – Any duly accredited State or local government 27
	79	+	agency possessing authority to enforce the criminal statutes of North Carolina. 28
	80	+	(8) Older adult. – An individual 65 years of age or older. 29
	81	+	(9) Promptly. – As soon as practicable, with reasonable allowance to be made for 30
	82	+	the time required to retrieve older data or records that are not readily or 31
	83	+	immediately retrievable due to their current storage media. 32
	84	+	(10) Trusted contact. – Includes any of the following: 33
	85	+	a. A natural person 18 years of age or older whom the customer has 34
	86	+	expressly identified pursuant to G.S. 108A-114 in a financial 35
	87	+	institution's records as the person who may be contacted (i) about 36
	88	+	either the account or the account owner to address possible financial 37
	89	+	exploitation or to confirm the specifics of the account owner's current 38
	90	+	contact information or health status; (ii) to determine the identity of 39
	91	+	any conservator, executor, trustee, or agent; or (iii) to address any 40
	92	+	other concern reasonably related to the administration of the account. 41
	93	+	b. A joint account owner, additional authorized signatory, beneficiary of 42
	94	+	the customer's account, or an agent under a power of attorney. 43
	95	+	c. An attorney, trustee, conservator, guardian, or other fiduciary whom a 44
	96	+	court or government agency has selected to manage some or all of the 45
	97	+	financial affairs of the older adult or disabled adult. 46
	98	+	d. A parent, spouse, adult child, sibling, or other family member of an 47
	99	+	older adult or disabled adult whom a financial institution believes is 48
	100	+	closely associated with the older adult or disabled adult." 49
	101	+	SECTION 1.(c) G.S. 108A-115 reads as rewritten: 50
	102	+	"§ 108A-115. Duty to report suspected fraud; content of report; immunity for reporting. 51 General Assembly Of North Carolina Session 2025
	103	+	DRH30315-MU-39 Page 3
	104	+	(a) Any financial institution, or officer or employee thereof, having reasonable cause to 1
	105	+	believe that a disabled adult or older adult is the victim or target of financial exploitation shall 2
	106	+	report such this information to the following: 3
	107	+	(1) Persons on the list provided by the customer under G.S. 108A-114, if such a 4
	108	+	list has been provided by the customer. provided. The financial institution may 5
	109	+	choose not to contact persons on the provided list if the financial institution 6
	110	+	suspects that those persons are financially exploiting the disabled adult or 7
	111	+	older adult. 8
	112	+	(2) The appropriate local law enforcement agency. 9
	113	+	(3) The appropriate county department of social services, if the customer is a 10
161	114		disabled adult. 11
162		-	(3) Upon an order of a court directing the release of funds. 12
163		-	(d) Unless otherwise directed by order of a court, a financial institution may extend the 13
164		-	duration of a delay up to an additional 30 days based on a reasonable belief that the financial 14
165		-	exploitation of an older adult or disabled adult may continue to occur or continues to be 15
166		-	attempted. 16
167		-	(e) A financial institution shall create and maintain for at least five years from the date 17
168		-	of the delayed or refused disbursement or transaction a written or electronic record that includes, 18
169		-	at a minimum, the following information: 19
170		-	(1) The date on which the delay or refusal was first placed. 20
171		-	(2) The name and address of the older adult or disabled adult. 21
172		-	(3) The business location of the financial institution. 22
173		-	(4) The name and title of the employee who reported suspected financial 23
174		-	exploitation of the older adult or disabled adult pursuant to G.S. 108A-115. 24
175		-	(5) The facts and circumstances that caused the employee to report suspected 25
176		-	financial exploitation. 26
177		-	(f) A financial institution that acts in good faith and exercises reasonable care to comply 27
178		-	with this section is immune from any civil, criminal, or administrative liability that might 28
179		-	otherwise arise from the financial institution's action, inaction, or delay in a disbursement or 29
180		-	transaction in accordance with this section. This protection from liability also extends to 30
181		-	employees of a financial institution. This subsection does not supersede or diminish any 31
182		-	immunity granted elsewhere in this Chapter. If a financial institution or its employees make, or 32
183		-	choose not to make, a disclosure to a trusted contact or participate in a judicial proceeding, 33
184		-	administrative proceeding, or investigation arising from a notification or report, the financial 34
185		-	institution and its employees are immune from any civil, criminal, or administrative liability 35
186		-	arising from the disclosure, nondisclosure, notification, or participation, unless the financial 36
187		-	institution or its employees had actual knowledge of financial exploitation and acted with a 37
188		-	malicious purpose. For purposes of this section, a financial institution and its employees are 38
189		-	deemed to be acting with reasonable care if the financial institution has established training 39
190		-	policies, programs, and procedures for its employees consistent with the requirements of 40
191		-	subsection (g) of this section. 41
192		-	(g) Before placing a delay on a disbursement or transaction pursuant to this section, a 42
193		-	financial institution shall do all of the following: 43
194		-	(1) Develop training policies or programs reasonably designed to educate 44
195		-	employees who perform or approve transactions on behalf of customers on 45
196		-	issues pertaining to financial exploitation of older adults or disabled adults. 46
197		-	(2) With respect to an individual who begins employment with a financial 47
198		-	institution, the training shall be conducted within one year after the date on 48
199		-	which the individual becomes employed by or affiliated or associated with the 49
200		-	financial institution. 50 General Assembly Of North Carolina Session 2025
201		-	House Bill 754-First Edition Page 5
202		-	(3) Develop, maintain, and enforce written procedures regarding the manner in 1
203		-	which suspected financial exploitation is reviewed internally, including, if 2
204		-	applicable, the manner in which suspected financial exploitation is required to 3
205		-	be reported to supervisory personnel. 4
206		-	(h) Absent a reasonable belief of financial exploitation as provided in this section, this 5
207		-	section does not otherwise alter a financial institution's obligations to all parties authorized to 6
208		-	transact business on an account and any trusted contact named on the account. This section does 7
209		-	not create new rights for or impose new obligations or new duties on a financial institution under 8
210		-	other applicable law. 9
211		-	(i) Notwithstanding any other law to the contrary, the following provisions apply: 10
212		-	(1) The refusal to engage in a transaction as authorized under this section does 11
213		-	not constitute the wrongful dishonor of an item under G.S. 25-4-402. 12
214		-	(2) A reasonable belief that payment of a check will facilitate the financial 13
215		-	exploitation of an older adult or disabled adult constitutes reasonable grounds 14
216		-	to doubt the collectability of the item for purposes of the federal Check 15
217		-	Clearing for the 21st Century Act, 12 U.S.C. § 5001 et seq., the federal 16
218		-	Expedited Funds Availability Act, 12 U.S.C. § 4001 et seq., and 12 C.F.R. 17
219		-	Part 229. Nothing in this subdivision, however, requires financial institutions 18
220		-	and their employees to review the checks of older adults or disabled adults. 19
221		-	(j) A delay or refusal to complete a funds transfer request as authorized under this section 20
222		-	does not violate Article 4A of Chapter 25 of the General Statutes. Furthermore, if a transaction 21
223		-	is delayed under this section, the payment order is not deemed as received until the hold is 22
224		-	removed and the financial institution submits the payment order for processing. "Funds transfer" 23
225		-	and "payment order" have the meaning provided in Article 4A of Chapter 25 of the General 24
226		-	Statutes. 25
227		-	"§ 108A-119. Notifications to trusted contacts. 26
228		-	(a) A financial institution may notify a trusted contact, if any, if the financial institution 27
229		-	or its employees believe that financial exploitation of an older adult or disabled adult is occurring, 28
230		-	has or may have occurred, is being attempted, or has been or may have been attempted. 29
231		-	(b) A financial institution and its employees may choose not to notify a trusted contact if 30
232		-	the financial institution or its employees believe that the third party is, may be, or may have been 31
233		-	engaged in the financial exploitation of an older adult or disabled adult. 32
234		-	(c) When providing information, a financial institution or its employees may limit the 33
235		-	information provided to disclosing their suspicion that the older adult or disabled adult may be a 34
236		-	victim or target of financial exploitation. 35
237		-	(d) Any disclosure under this section is exempt from State privacy laws." 36
238		-	37
239		-	PART II. UPDATES TO CHAPTER 54C, "SAVING S BANKS," TO INCREAS E 38
240		-	ALIGNMENT WITH THE C OMMERCIAL BANKING LA WS IN CHAPTER 53C 39
241		-	SECTION 2.(a) G.S. 54C-4(b) reads as rewritten: 40
242		-	"(b) Unless the context otherwise requires, the The following definitions apply in this 41
243		-	Chapter: 42
244		-	… 43
245		-	(25a) Public notice. – A single publication in a newspaper of general circulation in 44
246		-	a community and a posting in the notices section of the Commissioner's 45
247		-	website for at least 15 days. The Commissioner may waive the publication 46
248		-	requirement and establish by rule an alternative method of publication in those 47
249		-	instances when there is not a newspaper of general circulation operating in a 48
250		-	community. 49
251		-	…." 50
252		-	SECTION 2.(b) G.S. 54C-23 reads as rewritten: 51 General Assembly Of North Carolina Session 2025
253		-	Page 6 House Bill 754-First Edition
254		-	"§ 54C-23. Branch offices.Establishment of branch offices. 1
255		-	(a) A State savings bank may apply to the Commissioner of Banks for permission to 2
256		-	establish a branch office. The application shall be in the form prescribed by the Commissioner 3
257		-	of Banks and shall be accompanied by the proper branch application fee. The Commissioner of 4
258		-	Banks shall approve or deny branch applications within 120 days of filing. 5
259		-	(b) The Commissioner of Banks shall approve a branch application when all of the 6
260		-	following criteria are met: 7
261		-	(1) The applicant has gross assets of at least ten million dollars ($10,000,000). 8
262		-	(2) The applicant has evidenced financial responsibility. 9
263		-	(3) The applicant has a net worth equal to or exceeding the amount required by 10
264		-	the insurer of deposit accounts. 11
265		-	(4) The applicant has an acceptable internal control system that includes certain 12
266		-	basic internal control requirements essential to the protection of assets and the 13
267		-	promotion of operational efficiency regardless of the size of the applicant. 14
268		-	(c) Upon receipt of a branch application, the Commissioner of Banks shall examine or 15
269		-	cause to be examined all the relevant facts connected with the establishment of the proposed 16
270		-	branch office. If it appears to the satisfaction of the Commissioner of Banks that the applicant 17
271		-	has complied with all the requirements set forth in this section and the regulations for the 18
272		-	establishment of a branch office and that the savings bank is otherwise lawfully entitled to 19
273		-	establish the branch office, then the Commissioner of Banks shall approve the branch application. 20
274		-	(d) Not more than 10 days following the filing of the branch application with the 21
275		-	Commissioner of Banks, the applicant shall cause a notice to be published in a newspaper of 22
276		-	general circulation in the area to be served by the proposed branch office. The notice shall 23
277		-	contain: 24
278		-	(1) A statement that the branch application has been filed with the Commissioner 25
279		-	of Banks; 26
280		-	(2) The proposed address of the branch office, including city or town and street; 27
281		-	and 28
282		-	(3) A statement that any interested or affected party may file a written statement 29
283		-	with the Commissioner of Banks, within 30 days of the date of the publication 30
284		-	of the notice, protesting the establishment of the proposed branch office and 31
285		-	requesting a hearing before the Commissioner of Banks on the application. 32
286		-	(e) Any interested or affected party may file a written statement with the Commissioner 33
287		-	of Banks within 30 days of the date of initial publication of the branch application notice, 34
288		-	protesting the establishment of the proposed branch office and requesting a hearing before the 35
289		-	Commissioner of Banks on the application. If a hearing is held on the branch application, the 36
290		-	Commissioner of Banks shall receive information and hear testimony only from the applicant 37
291		-	and from any interested or affected party that is relevant to the branch application and the 38
292		-	operation of the proposed branch office. The Commissioner of Banks shall issue the final 39
293		-	decision on the branch application within 30 days following the hearing. The final decision shall 40
	115	+	(b) The report may be made orally or in writing. The report shall include the name and 12
	116	+	address of the disabled adult or older adult, the nature of the suspected financial exploitation, and 13
	117	+	any other pertinent information. 14
	118	+	(c) No financial institution, or officer or employee thereof, who officer, employee, or 15
	119	+	agent, that acts in good faith in making a report under this section may be held liable in any action 16
	120	+	for doing so. Furthermore, a financial institution, and its officers, employees, and agents, shall 17
	121	+	not be compelled in any action to identify the existence of or the contents of a suspicious activity 18
	122	+	report related to suspected financial abuse activity that may have been filed with the U.S. 19
	123	+	Department of the Treasury's Financial Crimes Enforcement Network pursuant to requirements 20
	124	+	of the Bank Secrecy Act, 31 U.S.C. § 5318(g)(2), and its implementing regulations." 21
	125	+	SECTION 1.(d) Article 6A of Chapter 108A of the General Statutes is amended by 22
	126	+	adding two new sections to read: 23
	127	+	"§ 108A-118. Transaction delays and refusals. 24
	128	+	(a) A financial institution may choose to delay or refuse a disbursement or transaction 25
	129	+	from an account of a disabled adult or older adult or an account for which a disabled adult or 26
	130	+	older adult is a beneficiary or beneficial owner if all of the following apply: 27
	131	+	(1) The financial institution and its employees believe that financial exploitation 28
	132	+	of the older adult or disabled adult may have occurred, may have been 29
	133	+	attempted, or is occurring or is being attempted. 30
	134	+	(2) The belief is based on individual observation or information received, 31
	135	+	including information received from a government agency or law enforcement 32
	136	+	agency. 33
	137	+	(3) The financial institution promptly initiates an internal review of the facts and 34
	138	+	circumstances that caused an employee of the financial institution to delay or 35
	139	+	refuse the disbursement or transaction. 36
	140	+	(b) If the conditions of subsection (a) of this section are met, a financial institution may 37
	141	+	do any of the following: 38
	142	+	(1) Delay or refuse one or more transactions with or involving the older adult or 39
	143	+	disabled adult. 40
	144	+	(2) Delay or refuse to permit the withdrawal or disbursement of funds contained 41
	145	+	in the older adult or disabled adult's account. 42
	146	+	(3) Prevent a change in ownership of the older adult or disabled adult's account. 43
	147	+	(4) Prevent a transfer of funds from the older adult or disabled adult's account to 44
	148	+	an account owned wholly or partially by another person. 45
	149	+	(5) Refuse to comply with instructions given by an agent or a person acting for or 46
	150	+	with an agent under a power of attorney signed or purported to have been 47
	151	+	signed by the older adult or disabled adult. 48
	152	+	(6) Prevent the designation or change the designation of beneficiaries to receive 49
	153	+	any property, benefit, or contract rights for an older adult or disabled adult at 50
	154	+	death. 51 General Assembly Of North Carolina Session 2025
	155	+	Page 4 DRH30315-MU-39
	156	+	(c) A financial institution shall use discretion to determine whether or not to act under 1
	157	+	subsections (a) and (b) of this section based on the information available to its staff at the time. 2
	158	+	The authority to delay a transaction expires upon the earlier of the following: 3
	159	+	(1) Thirty business days after the date on which the depository institution first 4
	160	+	acted under the authority in this section. 5
	161	+	(2) When the depository institution is satisfied in its discretion that the transaction 6
	162	+	or act will not likely result in financial exploitation of the older adult or 7
	163	+	disabled adult. 8
	164	+	(3) Upon an order of a court directing the release of funds. 9
	165	+	(d) Unless otherwise directed by order of a court, a financial institution may extend the 10
	166	+	duration of a delay up to an additional 30 days based on a reasonable belief that the financial 11
	167	+	exploitation of an older adult or disabled adult may continue to occur or continues to be 12
	168	+	attempted. 13
	169	+	(e) A financial institution shall create and maintain for at least five years from the date 14
	170	+	of the delayed or refused disbursement or transaction a written or electronic record that includes, 15
	171	+	at a minimum, the following information: 16
	172	+	(1) The date on which the delay or refusal was first placed. 17
	173	+	(2) The name and address of the older adult or disabled adult. 18
	174	+	(3) The business location of the financial institution. 19
	175	+	(4) The name and title of the employee who reported suspected financial 20
	176	+	exploitation of the older adult or disabled adult pursuant to G.S. 108A-115. 21
	177	+	(5) The facts and circumstances that caused the employee to report suspected 22
	178	+	financial exploitation. 23
	179	+	(f) A financial institution that acts in good faith and exercises reasonable care to comply 24
	180	+	with this section is immune from any civil, criminal, or administrative liability that might 25
	181	+	otherwise arise from the financial institution's action, inaction, or delay in a disbursement or 26
	182	+	transaction in accordance with this section. This protection from liability also extends to 27
	183	+	employees of a financial institution. This subsection does not supersede or diminish any 28
	184	+	immunity granted elsewhere in this Chapter. If a financial institution or its employees make, or 29
	185	+	choose not to make, a disclosure to a trusted contact or participate in a judicial proceeding, 30
	186	+	administrative proceeding, or investigation arising from a notification or report, the financial 31
	187	+	institution and its employees are immune from any civil, criminal, or administrative liability 32
	188	+	arising from the disclosure, nondisclosure, notification, or participation, unless the financial 33
	189	+	institution or its employees had actual knowledge of financial exploitation and acted with a 34
	190	+	malicious purpose. For purposes of this section, a financial institution and its employees are 35
	191	+	deemed to be acting with reasonable care if the financial institution has established training 36
	192	+	policies, programs, and procedures for its employees consistent with the requirements of 37
	193	+	subsection (g) of this section. 38
	194	+	(g) Before placing a delay on a disbursement or transaction pursuant to this section, a 39
	195	+	financial institution shall do all of the following: 40
	196	+	(1) Develop training policies or programs reasonably designed to educate 41
	197	+	employees who perform or approve transactions on behalf of customers on 42
	198	+	issues pertaining to financial exploitation of older adults or disabled adults. 43
	199	+	(2) With respect to an individual who begins employment with a financial 44
	200	+	institution, the training shall be conducted within one year after the date on 45
	201	+	which the individual becomes employed by or affiliated or associated with the 46
	202	+	financial institution. 47
	203	+	(3) Develop, maintain, and enforce written procedures regarding the manner in 48
	204	+	which suspected financial exploitation is reviewed internally, including, if 49
	205	+	applicable, the manner in which suspected financial exploitation is required to 50
	206	+	be reported to supervisory personnel. 51 General Assembly Of North Carolina Session 2025
	207	+	DRH30315-MU-39 Page 5
	208	+	(h) Absent a reasonable belief of financial exploitation as provided in this section, this 1
	209	+	section does not otherwise alter a financial institution's obligations to all parties authorized to 2
	210	+	transact business on an account and any trusted contact named on the account. This section does 3
	211	+	not create new rights for or impose new obligations or new duties on a financial institution under 4
	212	+	other applicable law. 5
	213	+	(i) Notwithstanding any other law to the contrary, the following provisions apply: 6
	214	+	(1) The refusal to engage in a transaction as authorized under this section does 7
	215	+	not constitute the wrongful dishonor of an item under G.S. 25-4-402. 8
	216	+	(2) A reasonable belief that payment of a check will facilitate the financial 9
	217	+	exploitation of an older adult or disabled adult constitutes reasonable grounds 10
	218	+	to doubt the collectability of the item for purposes of the federal Check 11
	219	+	Clearing for the 21st Century Act, 12 U.S.C. § 5001 et seq., the federal 12
	220	+	Expedited Funds Availability Act, 12 U.S.C. § 4001 et seq., and 12 C.F.R. 13
	221	+	Part 229. Nothing in this subdivision, however, requires financial institutions 14
	222	+	and their employees to review the checks of older adults or disabled adults. 15
	223	+	(j) A delay or refusal to complete a funds transfer request as authorized under this section 16
	224	+	does not violate Article 4A of Chapter 25 of the General Statutes. Furthermore, if a transaction 17
	225	+	is delayed under this section, the payment order is not deemed as received until the hold is 18
	226	+	removed and the financial institution submits the payment order for processing. "Funds transfer" 19
	227	+	and "payment order" have the meaning provided in Article 4A of Chapter 25 of the General 20
	228	+	Statutes. 21
	229	+	"§ 108A-119. Notifications to trusted contacts. 22
	230	+	(a) A financial institution may notify a trusted contact, if any, if the financial institution 23
	231	+	or its employees believe that financial exploitation of an older adult or disabled adult is occurring, 24
	232	+	has or may have occurred, is being attempted, or has been or may have been attempted. 25
	233	+	(b) A financial institution and its employees may choose not to notify a trusted contact if 26
	234	+	the financial institution or its employees believe that the third party is, may be, or may have been 27
	235	+	engaged in the financial exploitation of an older adult or disabled adult. 28
	236	+	(c) When providing information, a financial institution or its employees may limit the 29
	237	+	information provided to disclosing their suspicion that the older adult or disabled adult may be a 30
	238	+	victim or target of financial exploitation. 31
	239	+	(d) Any disclosure under this section is exempt from State privacy laws." 32
	240	+	33
	241	+	PART II. UPDATES TO CHAPTER 54C, "SAVINGS BANKS," TO INCREASE 34
	242	+	ALIGNMENT WITH THE COMMERCIAL BANKING LAWS IN CHAPTER 53C 35
	243	+	SECTION 2.(a) G.S. 54C-4(b) reads as rewritten: 36
	244	+	"(b) Unless the context otherwise requires, the The following definitions apply in this 37
	245	+	Chapter: 38
	246	+	… 39
	247	+	(25a) Public notice. – A single publication in a newspaper of general circulation in 40
	248	+	a community and a posting in the notices section of the Commissioner's 41
	249	+	website for at least 15 days. The Commissioner may waive the publication 42
	250	+	requirement and establish by rule an alternative method of publication in those 43
	251	+	instances when there is not a newspaper of general circulation operating in a 44
	252	+	community. 45
	253	+	…." 46
	254	+	SECTION 2.(b) G.S. 54C-23 reads as rewritten: 47
	255	+	"§ 54C-23. Branch offices.Establishment of branch offices. 48
	256	+	(a) A State savings bank may apply to the Commissioner of Banks for permission to 49
	257	+	establish a branch office. The application shall be in the form prescribed by the Commissioner 50 General Assembly Of North Carolina Session 2025
	258	+	Page 6 DRH30315-MU-39
	259	+	of Banks and shall be accompanied by the proper branch application fee. The Commissioner of 1
	260	+	Banks shall approve or deny branch applications within 120 days of filing. 2
	261	+	(b) The Commissioner of Banks shall approve a branch application when all of the 3
	262	+	following criteria are met: 4
	263	+	(1) The applicant has gross assets of at least ten million dollars ($10,000,000). 5
	264	+	(2) The applicant has evidenced financial responsibility. 6
	265	+	(3) The applicant has a net worth equal to or exceeding the amount required by 7
	266	+	the insurer of deposit accounts. 8
	267	+	(4) The applicant has an acceptable internal control system that includes certain 9
	268	+	basic internal control requirements essential to the protection of assets and the 10
	269	+	promotion of operational efficiency regardless of the size of the applicant. 11
	270	+	(c) Upon receipt of a branch application, the Commissioner of Banks shall examine or 12
	271	+	cause to be examined all the relevant facts connected with the establishment of the proposed 13
	272	+	branch office. If it appears to the satisfaction of the Commissioner of Banks that the applicant 14
	273	+	has complied with all the requirements set forth in this section and the regulations for the 15
	274	+	establishment of a branch office and that the savings bank is otherwise lawfully entitled to 16
	275	+	establish the branch office, then the Commissioner of Banks shall approve the branch application. 17
	276	+	(d) Not more than 10 days following the filing of the branch application with the 18
	277	+	Commissioner of Banks, the applicant shall cause a notice to be published in a newspaper of 19
	278	+	general circulation in the area to be served by the proposed branch office. The notice shall 20
	279	+	contain: 21
	280	+	(1) A statement that the branch application has been filed with the Commissioner 22
	281	+	of Banks; 23
	282	+	(2) The proposed address of the branch office, including city or town and street; 24
	283	+	and 25
	284	+	(3) A statement that any interested or affected party may file a written statement 26
	285	+	with the Commissioner of Banks, within 30 days of the date of the publication 27
	286	+	of the notice, protesting the establishment of the proposed branch office and 28
	287	+	requesting a hearing before the Commissioner of Banks on the application. 29
	288	+	(e) Any interested or affected party may file a written statement with the Commissioner 30
	289	+	of Banks within 30 days of the date of initial publication of the branch application notice, 31
	290	+	protesting the establishment of the proposed branch office and requesting a hearing before the 32
	291	+	Commissioner of Banks on the application. If a hearing is held on the branch application, the 33
	292	+	Commissioner of Banks shall receive information and hear testimony only from the applicant 34
	293	+	and from any interested or affected party that is relevant to the branch application and the 35
	294	+	operation of the proposed branch office. The Commissioner of Banks shall issue the final 36
	295	+	decision on the branch application within 30 days following the hearing. The final decision shall 37
	296	+	be in accordance with Chapter 150B of the General Statutes. 38
	297	+	(f) If a hearing is not held on the branch application, the Commissioner of Banks shall 39
	298	+	issue the final decision within 120 days of the filing of the application. The final decision shall 40
294	299		be in accordance with Chapter 150B of the General Statutes. 41
295		-	(f) If a hearing is not held on the branch application, the Commissioner of Banks shall 42
296		-	issue the final decision within 120 days of the filing of the application. The final decision shall 43
297		-	be in accordance with Chapter 150B of the General Statutes. 44
298		-	(g) A party to a branch application may appeal the final decision of the Commissioner of 45
299		-	Banks to the Commission at any time after the final decision, but not later than 30 days after a 46
300		-	written copy of the final decision is served upon the party and the party's attorney of record by 47
301		-	personal service or by certified mail. Failure to file an appeal within the time stated shall operate 48
302		-	as a waiver of the right of the party to review by the Commission and by a court of competent 49
303		-	jurisdiction in accordance with Chapter 150B of the General Statutes, relating to judicial review. 50 General Assembly Of North Carolina Session 2025
304		-	House Bill 754-First Edition Page 7
305		-	(a) A State savings bank may establish one or more branches in this State, whether de 1
306		-	novo or by acquisition of existing branches of another depository institution, with the prior 2
307		-	written approval of the Commissioner. The Commissioner's approval may be given or withheld, 3
308		-	in the Commissioner's discretion after considering any comments received within 14 days of the 4
309		-	date of publication of the public notice under subsection (c) of this section. 5
310		-	(b) A State savings bank may establish branches in another state, whether de novo or by 6
311		-	acquisition of existing branches of another depository institution, in accordance with applicable 7
312		-	federal law and the laws of the other state, upon prior written approval of the Commissioner. The 8
313		-	Commissioner's approval may be given or withheld in the Commissioner's discretion after 9
314		-	considering any comments received within 14 days of the date of publication of the public notice 10
315		-	under subsection (c) of this section. 11
316		-	(c) A State savings bank seeking authority to establish a branch shall make application 12
317		-	to the Commissioner in a form acceptable to the Commissioner. Not more than 30 days before 13
318		-	nor less than 10 days after the filing of the application with the Commissioner, the applicant shall 14
319		-	publish public notice of the filing of the application. The public notice shall contain all of the 15
320		-	following: 16
321		-	(1) A statement that the application has been filed with the Commissioner. 17
322		-	(2) The physical address or location of the proposed branch, including street and 18
323		-	city or town. 19
324		-	(3) A statement that any interested person may make written comment on the 20
325		-	application to the Commissioner and that comments received by the 21
326		-	Commissioner within 14 days of the date of publication of the public notice 22
327		-	shall be considered. The public notice shall provide the current mailing 23
328		-	address of the Commissioner. 24
329		-	(d) A State savings bank may conduct any activities at a branch in another state 25
330		-	authorized under this section that are permissible for a State savings bank chartered by the other 26
331		-	state where the branch is located, except to the extent the activities are expressly prohibited by 27
332		-	the laws of this State or by any rule or order of the Commissioner applicable to the State savings 28
333		-	bank. 29
334		-	(e) Upon receipt of an application to establish a branch, the Commissioner shall conduct 30
335		-	an examination of the pertinent facts and information and may request additional information 31
336		-	that the Commissioner deems necessary to make a decision on the application. In deciding 32
337		-	whether to approve a branch application, the Commissioner shall take into account such factors 33
338		-	as the financial condition and history of the applicant; the adequacy of its capital; the applicant's 34
339		-	future earnings prospects; the character, competency, and experience of its management; the 35
340		-	probable impact of the branch on the condition of the applicant State savings bank and existing 36
341		-	depository institutions in the community to be served; and the convenience and needs of the 37
342		-	community the proposed branch is to serve." 38
343		-	SECTION 2.(c) G.S. 54C-24 reads as rewritten: 39
344		-	"§ 54C-24. Request to change Change of location of a branch or principal office. 40
345		-	The board of directors of a State savings bank may change the location of a branch office or 41
346		-	the principal office of the savings bank with the prior written approval of the Commissioner of 42
347		-	Banks. The Commissioner of Banks may request, and the savings bank shall provide, any 43
348		-	information that the Commissioner of Banks determines is necessary to evaluate the request. 44
349		-	(a) A State savings bank may change the location of its principal office or a branch with 45
350		-	the prior written approval of the Commissioner. A request to relocate the principal office or a 46
351		-	branch of a State savings bank shall be made in a form acceptable to the Commissioner and shall 47
352		-	include information regarding the reason for the proposed relocation, the distance and direction 48
353		-	of the move, and any other information that the Commissioner requires in order to reach a 49
354		-	decision in the matter. 50 General Assembly Of North Carolina Session 2025
355		-	Page 8 House Bill 754-First Edition
356		-	(b) Not more than 30 days before nor less than 10 days after filing a request to relocate 1
357		-	the principal office or a branch of a State savings bank, the applicant shall publish public notice 2
358		-	of the request. The public notice shall contain all of the following: 3
359		-	(1) A statement that the request has been filed with the Commissioner. 4
360		-	(2) The physical address of the principal office or branch to be relocated and the 5
361		-	physical address of the proposed new location. 6
362		-	(3) A statement that any interested person may make written comment on the 7
363		-	request to the Commissioner and that comments received by the 8
364		-	Commissioner within 14 days of the date of publication of the public notice 9
365		-	will be considered. The statement shall provide the current mailing address of 10
366		-	the Commissioner. 11
367		-	(c) The Commissioner shall consider any comments received within 14 days of the date 12
368		-	of publication of the public notice under subsection (b) of this section. The Commissioner shall 13
369		-	approve a request to relocate the principal office or a branch of a State savings bank if any of the 14
370		-	following applies: 15
371		-	(1) The relocation is to a site within the same vicinity as the original location. 16
372		-	(2) The relocation does not result in a material change in the primary service area 17
373		-	of the principal office or branch. 18
374		-	(3) The relocation is considered important to the economic viability of the State 19
375		-	savings bank or the branch. 20
376		-	(4) The relocation is otherwise found not to be inconsistent with the public need 21
377		-	and convenience." 22
378		-	SECTION 2.(d) G.S. 54C-60 reads as rewritten: 23
379		-	"§ 54C-60. Confidential information. 24
380		-	(a) The following records or information of the Commission, the Commissioner of 25
381		-	Banks, or the agent of either shall be confidential and shall not be disclosed: 26
382		-	(1) Information obtained or compiled in preparation of or anticipation of, or 27
383		-	during an examination, audit, or investigation of any association; 28
384		-	(2) Information reflecting the specific collateral given by a named borrower, the 29
385		-	specific amount of stock owned by a named stockholder, any stockholder list 30
386		-	supplied to the Commissioner of Banks under G.S. 54C-22, or specific deposit 31
387		-	accounts held by a named member or customer; 32
388		-	(3) Information obtained, prepared, or compiled during or as a result of an 33
389		-	examination, audit, or investigation of any savings bank by an agency of the 34
390		-	United States, if the records would be confidential under federal law or 35
391		-	regulation; 36
392		-	(4) Information and reports submitted by savings banks to federal regulatory 37
393		-	agencies, if the records or information would be confidential under federal law 38
394		-	or regulation; 39
395		-	(5) Information and records regarding complaints from the public received by the 40
396		-	Division that concern savings banks when the complaint would or could result 41
397		-	in an investigation, except to the management of those savings banks; and 42
398		-	(6) Any other letters, reports, memoranda, recordings, charts or other documents 43
399		-	or records that would disclose any information of which disclosure is 44
400		-	prohibited in this subsection. 45
401		-	(b) A court of competent jurisdiction may order the disclosure of specific information. 46
402		-	(c) The information contained in an application is deemed to be public information. 47
403		-	Disclosure shall not extend to the financial statement of the incorporators nor to any further 48
404		-	information deemed by the Commissioner of Banks to be confidential. 49
405		-	(d) Nothing in this section shall prevent the exchange of information relating to savings 50
406		-	banks and the business thereof with the representatives of the agencies of this State, other states, 51 General Assembly Of North Carolina Session 2025
407		-	House Bill 754-First Edition Page 9
408		-	or of the United States, or with reserve or insuring agencies for savings banks. The private 1
409		-	business and affairs of an individual or company shall not be disclosed by any person employed 2
410		-	by the Division, any member of the Commission, or by any person with whom information is 3
411		-	exchanged under the authority of this subsection. 4
412		-	(e) An official or employee of this State violating this section is liable to any person 5
413		-	injured by disclosure of the confidential information for all damages sustained thereby. Penalties 6
414		-	provided are not exclusive of other penalties. 7
415		-	G.S. 53C-2-7 applies to records of the Office of the Commissioner of Banks pertaining to 8
416		-	State savings banks." 9
417		-	SECTION 2.(e) G.S. 54C-101 reads as rewritten: 10
418		-	"§ 54C-101. Directors. 11
419		-	(a) The corporate powers of a State savings bank shall be exercised by, or under the 12
420		-	authority of, its board of directors, and the business and affairs of the State savings bank shall be 13
421		-	managed by, or under the direction of, its board of directors. 14
422		-	(a1) The directors of a mutual savings bank shall be elected by the members at an annual 15
423		-	meeting, held under G.S. 54C-106, for any terms as the bylaws of the savings bank may provide. 16
424		-	Director's Directors' terms may be classified in the certificate of incorporation. Voting for 17
425		-	directors by deposit account holders shall be weighted according to the total amount of deposit 18
426		-	accounts held by the members, subject to any maximum number of votes per member which that 19
427		-	a savings bank may choose to prescribe in its bylaws. Voting rights for borrowers shall be fully 20
428		-	prescribed in a detailed manner in the bylaws of the savings bank. 21
429		-	(b) The directors of a stock savings bank shall be elected by the stockholders at an annual 22
430		-	meeting, held under G.S. 54C-106, for any terms as the bylaws of the savings bank may provide. 23
431		-	Director's Directors' terms may be classified in the certificate of incorporation. 24
432		-	(c) A director of a State savings bank shall have a significant ownership interest in the 25
433		-	State savings bank. 26
434		-	(d) A State savings bank shall have no less fewer than five directors. For good cause 27
435		-	shown, the Commissioner may approve boards of directors consisting of fewer than five 28
436		-	individuals to the extent consistent with other applicable law. 29
437		-	(e) The board of directors shall meet at least quarterly, an executive committee shall meet 30
438		-	in any month in which there is no meeting of the board of directors, and a loan committee shall 31
439		-	meet monthly. 32
440		-	(f) Except to the extent this Chapter or other applicable federal or State law imposes a 33
441		-	different standard, State savings bank directors have the duties, authority, and liabilities of 34
442		-	directors of corporations organized under Chapter 55 of the General Statutes. 35
443		-	(g) The board of directors of a State savings bank may appoint advisory directors to the 36
444		-	State savings bank's branches. No advisory director is liable for acts or omissions undertaken as 37
445		-	an advisory director under the laws applicable to the performance of the duties of a director of a 38
446		-	State savings bank, unless and only to the extent the advisory director undertakes or is delegated 39
447		-	authority as a director of the State savings bank." 40
448		-	SECTION 2.(f) G.S. 54C-102 reads as rewritten: 41
449		-	"§ 54C-102. Bylaws. 42
450		-	The bylaws and any amendments shall be certified by the appropriate corporate official and 43
451		-	submitted to the Commissioner of Banks for approval before they may become effective." 44
452		-	SECTION 2.(g) The Commissioner of Banks shall review Chapter 54C (Savings 45
453		-	Banks) of the General Statutes and form a drafting group, if appropriate, to prepare updates and 46
454		-	revisions to modernize the Chapter or to make recommendations on more fully integrating the 47
455		-	supervision of savings banks into Chapter 53C (Regulation of Banks) of the General Statutes. 48
456		-	The Commissioner of Banks shall prepare and submit a report on the findings and 49
457		-	recommendations to the Joint Legislative Commission on Governmental Operations within one 50
458		-	year of the effective date of this act. 51 General Assembly Of North Carolina Session 2025
459		-	Page 10 House Bill 754-First Edition
460		-	1
461		-	PART III. EFFECTIVE DATE 2
462		-	SECTION 3. This act is effective when it becomes law. 3
	300	+	(g) A party to a branch application may appeal the final decision of the Commissioner of 42
	301	+	Banks to the Commission at any time after the final decision, but not later than 30 days after a 43
	302	+	written copy of the final decision is served upon the party and the party's attorney of record by 44
	303	+	personal service or by certified mail. Failure to file an appeal within the time stated shall operate 45
	304	+	as a waiver of the right of the party to review by the Commission and by a court of competent 46
	305	+	jurisdiction in accordance with Chapter 150B of the General Statutes, relating to judicial review. 47
	306	+	(a) A State savings bank may establish one or more branches in this State, whether de 48
	307	+	novo or by acquisition of existing branches of another depository institution, with the prior 49
	308	+	written approval of the Commissioner. The Commissioner's approval may be given or withheld, 50 General Assembly Of North Carolina Session 2025
	309	+	DRH30315-MU-39 Page 7
	310	+	in the Commissioner's discretion after considering any comments received within 14 days of the 1
	311	+	date of publication of the public notice under subsection (c) of this section. 2
	312	+	(b) A State savings bank may establish branches in another state, whether de novo or by 3
	313	+	acquisition of existing branches of another depository institution, in accordance with applicable 4
	314	+	federal law and the laws of the other state, upon prior written approval of the Commissioner. The 5
	315	+	Commissioner's approval may be given or withheld in the Commissioner's discretion after 6
	316	+	considering any comments received within 14 days of the date of publication of the public notice 7
	317	+	under subsection (c) of this section. 8
	318	+	(c) A State savings bank seeking authority to establish a branch shall make application 9
	319	+	to the Commissioner in a form acceptable to the Commissioner. Not more than 30 days before 10
	320	+	nor less than 10 days after the filing of the application with the Commissioner, the applicant shall 11
	321	+	publish public notice of the filing of the application. The public notice shall contain all of the 12
	322	+	following: 13
	323	+	(1) A statement that the application has been filed with the Commissioner. 14
	324	+	(2) The physical address or location of the proposed branch, including street and 15
	325	+	city or town. 16
	326	+	(3) A statement that any interested person may make written comment on the 17
	327	+	application to the Commissioner and that comments received by the 18
	328	+	Commissioner within 14 days of the date of publication of the public notice 19
	329	+	shall be considered. The public notice shall provide the current mailing 20
	330	+	address of the Commissioner. 21
	331	+	(d) A State savings bank may conduct any activities at a branch in another state 22
	332	+	authorized under this section that are permissible for a State savings bank chartered by the other 23
	333	+	state where the branch is located, except to the extent the activities are expressly prohibited by 24
	334	+	the laws of this State or by any rule or order of the Commissioner applicable to the State savings 25
	335	+	bank. 26
	336	+	(e) Upon receipt of an application to establish a branch, the Commissioner shall conduct 27
	337	+	an examination of the pertinent facts and information and may request additional information 28
	338	+	that the Commissioner deems necessary to make a decision on the application. In deciding 29
	339	+	whether to approve a branch application, the Commissioner shall take into account such factors 30
	340	+	as the financial condition and history of the applicant; the adequacy of its capital; the applicant's 31
	341	+	future earnings prospects; the character, competency, and experience of its management; the 32
	342	+	probable impact of the branch on the condition of the applicant State savings bank and existing 33
	343	+	depository institutions in the community to be served; and the convenience and needs of the 34
	344	+	community the proposed branch is to serve." 35
	345	+	SECTION 2.(c) G.S. 54C-24 reads as rewritten: 36
	346	+	"§ 54C-24. Request to change Change of location of a branch or principal office. 37
	347	+	The board of directors of a State savings bank may change the location of a branch office or 38
	348	+	the principal office of the savings bank with the prior written approval of the Commissioner of 39
	349	+	Banks. The Commissioner of Banks may request, and the savings bank shall provide, any 40
	350	+	information that the Commissioner of Banks determines is necessary to evaluate the request. 41
	351	+	(a) A State savings bank may change the location of its principal office or a branch with 42
	352	+	the prior written approval of the Commissioner. A request to relocate the principal office or a 43
	353	+	branch of a State savings bank shall be made in a form acceptable to the Commissioner and shall 44
	354	+	include information regarding the reason for the proposed relocation, the distance and direction 45
	355	+	of the move, and any other information that the Commissioner requires in order to reach a 46
	356	+	decision in the matter. 47
	357	+	(b) Not more than 30 days before nor less than 10 days after filing a request to relocate 48
	358	+	the principal office or a branch of a State savings bank, the applicant shall publish public notice 49
	359	+	of the request. The public notice shall contain all of the following: 50
	360	+	(1) A statement that the request has been filed with the Commissioner. 51 General Assembly Of North Carolina Session 2025
	361	+	Page 8 DRH30315-MU-39
	362	+	(2) The physical address of the principal office or branch to be relocated and the 1
	363	+	physical address of the proposed new location. 2
	364	+	(3) A statement that any interested person may make written comment on the 3
	365	+	request to the Commissioner and that comments received by the 4
	366	+	Commissioner within 14 days of the date of publication of the public notice 5
	367	+	will be considered. The statement shall provide the current mailing address of 6
	368	+	the Commissioner. 7
	369	+	(c) The Commissioner shall consider any comments received within 14 days of the date 8
	370	+	of publication of the public notice under subsection (b) of this section. The Commissioner shall 9
	371	+	approve a request to relocate the principal office or a branch of a State savings bank if any of the 10
	372	+	following applies: 11
	373	+	(1) The relocation is to a site within the same vicinity as the original location. 12
	374	+	(2) The relocation does not result in a material change in the primary service area 13
	375	+	of the principal office or branch. 14
	376	+	(3) The relocation is considered important to the economic viability of the State 15
	377	+	savings bank or the branch. 16
	378	+	(4) The relocation is otherwise found not to be inconsistent with the public need 17
	379	+	and convenience." 18
	380	+	SECTION 2.(d) G.S. 54C-60 reads as rewritten: 19
	381	+	"§ 54C-60. Confidential information. 20
	382	+	(a) The following records or information of the Commission, the Commissioner of 21
	383	+	Banks, or the agent of either shall be confidential and shall not be disclosed: 22
	384	+	(1) Information obtained or compiled in preparation of or anticipation of, or 23
	385	+	during an examination, audit, or investigation of any association; 24
	386	+	(2) Information reflecting the specific collateral given by a named borrower, the 25
	387	+	specific amount of stock owned by a named stockholder, any stockholder list 26
	388	+	supplied to the Commissioner of Banks under G.S. 54C-22, or specific deposit 27
	389	+	accounts held by a named member or customer; 28
	390	+	(3) Information obtained, prepared, or compiled during or as a result of an 29
	391	+	examination, audit, or investigation of any savings bank by an agency of the 30
	392	+	United States, if the records would be confidential under federal law or 31
	393	+	regulation; 32
	394	+	(4) Information and reports submitted by savings banks to federal regulatory 33
	395	+	agencies, if the records or information would be confidential under federal law 34
	396	+	or regulation; 35
	397	+	(5) Information and records regarding complaints from the public received by the 36
	398	+	Division that concern savings banks when the complaint would or could result 37
	399	+	in an investigation, except to the management of those savings banks; and 38
	400	+	(6) Any other letters, reports, memoranda, recordings, charts or other documents 39
	401	+	or records that would disclose any information of which disclosure is 40
	402	+	prohibited in this subsection. 41
	403	+	(b) A court of competent jurisdiction may order the disclosure of specific information. 42
	404	+	(c) The information contained in an application is deemed to be public information. 43
	405	+	Disclosure shall not extend to the financial statement of the incorporators nor to any further 44
	406	+	information deemed by the Commissioner of Banks to be confidential. 45
	407	+	(d) Nothing in this section shall prevent the exchange of information relating to savings 46
	408	+	banks and the business thereof with the representatives of the agencies of this State, other states, 47
	409	+	or of the United States, or with reserve or insuring agencies for savings banks. The private 48
	410	+	business and affairs of an individual or company shall not be disclosed by any person employed 49
	411	+	by the Division, any member of the Commission, or by any person with whom information is 50
	412	+	exchanged under the authority of this subsection. 51 General Assembly Of North Carolina Session 2025
	413	+	DRH30315-MU-39 Page 9
	414	+	(e) An official or employee of this State violating this section is liable to any person 1
	415	+	injured by disclosure of the confidential information for all damages sustained thereby. Penalties 2
	416	+	provided are not exclusive of other penalties. 3
	417	+	G.S. 53C-2-7 applies to records of the Office of the Commissioner of Banks pertaining to 4
	418	+	State savings banks." 5
	419	+	SECTION 2.(e) G.S. 54C-101 reads as rewritten: 6
	420	+	"§ 54C-101. Directors. 7
	421	+	(a) The corporate powers of a State savings bank shall be exercised by, or under the 8
	422	+	authority of, its board of directors, and the business and affairs of the State savings bank shall be 9
	423	+	managed by, or under the direction of, its board of directors. 10
	424	+	(a1) The directors of a mutual savings bank shall be elected by the members at an annual 11
	425	+	meeting, held under G.S. 54C-106, for any terms as the bylaws of the savings bank may provide. 12
	426	+	Director's Directors' terms may be classified in the certificate of incorporation. Voting for 13
	427	+	directors by deposit account holders shall be weighted according to the total amount of deposit 14
	428	+	accounts held by the members, subject to any maximum number of votes per member which that 15
	429	+	a savings bank may choose to prescribe in its bylaws. Voting rights for borrowers shall be fully 16
	430	+	prescribed in a detailed manner in the bylaws of the savings bank. 17
	431	+	(b) The directors of a stock savings bank shall be elected by the stockholders at an annual 18
	432	+	meeting, held under G.S. 54C-106, for any terms as the bylaws of the savings bank may provide. 19
	433	+	Director's Directors' terms may be classified in the certificate of incorporation. 20
	434	+	(c) A director of a State savings bank shall have a significant ownership interest in the 21
	435	+	State savings bank. 22
	436	+	(d) A State savings bank shall have no less fewer than five directors. For good cause 23
	437	+	shown, the Commissioner may approve boards of directors consisting of fewer than five 24
	438	+	individuals to the extent consistent with other applicable law. 25
	439	+	(e) The board of directors shall meet at least quarterly, an executive committee shall meet 26
	440	+	in any month in which there is no meeting of the board of directors, and a loan committee shall 27
	441	+	meet monthly. 28
	442	+	(f) Except to the extent this Chapter or other applicable federal or State law imposes a 29
	443	+	different standard, State savings bank directors have the duties, authority, and liabilities of 30
	444	+	directors of corporations organized under Chapter 55 of the General Statutes. 31
	445	+	(g) The board of directors of a State savings bank may appoint advisory directors to the 32
	446	+	State savings bank's branches. No advisory director is liable for acts or omissions undertaken as 33
	447	+	an advisory director under the laws applicable to the performance of the duties of a director of a 34
	448	+	State savings bank, unless and only to the extent the advisory director undertakes or is delegated 35
	449	+	authority as a director of the State savings bank." 36
	450	+	SECTION 2.(f) G.S. 54C-102 reads as rewritten: 37
	451	+	"§ 54C-102. Bylaws. 38
	452	+	The bylaws and any amendments shall be certified by the appropriate corporate official and 39
	453	+	submitted to the Commissioner of Banks for approval before they may become effective." 40
	454	+	SECTION 2.(g) The Commissioner of Banks shall review Chapter 54C (Savings 41
	455	+	Banks) of the General Statutes and form a drafting group, if appropriate, to prepare updates and 42
	456	+	revisions to modernize the Chapter or to make recommendations on more fully integrating the 43
	457	+	supervision of savings banks into Chapter 53C (Regulation of Banks) of the General Statutes. 44
	458	+	The Commissioner of Banks shall prepare and submit a report on the findings and 45
	459	+	recommendations to the Joint Legislative Commission on Governmental Operations within one 46
	460	+	year of the effective date of this act. 47
	461	+	48
	462	+	PART III. EFFECTIVE DATE 49
	463	+	SECTION 3. This act is effective when it becomes law. 50