04 NCAC 16D .0504. NEGOTIABLE ORDER OF WITHDRAWAL ACCOUNTS

(a)  An association may accept deposits to withdrawable accounts which may be withdrawn or transferred by negotiable or transferable instruments for the purpose of making transfers to third parties.  These negotiable order of withdrawal accounts will be referred to in this Rule as NOW accounts.

(b)  NOW accounts shall consist solely of funds in which the entire beneficial interest is held by one or more individuals or by an organization which is operated primarily for religious, philanthropic, charitable, educational, fraternal or other similar purposes and which is not operated for profit.  NOW accounts may also consist of the funds of federal, state, or local governments, and public authorities, or any other depositor permitted by federal law.

(c)  An association may extend secured or unsecured credit in the form of overdraft privileges specifically related to NOW accounts.

(d)  An association may charge a reasonable fee for making any payment or transfer, or for maintaining a NOW account under this Rule.

(e)  An association may establish a minimum balance below which no interest will be earned on a NOW account and shall inform any depositor opening such an account of the minimum required to receive earnings.

(f)  The requirements of G.S. 54B‑122(3) shall not apply to NOW accounts.

 

History Note:        Authority G.S. 54B‑55; 54B‑127;

Eff. August 31, 1981;

Amended Eff. February 1, 1983.