04 NCAC 16E .0301. GENERAL POLICIES

(a)  Records to be Kept at Principal Office.  Every savings bank shall keep at the principal office correct and complete books of account and minutes of the proceedings of members, shareholders, directors and committees.  Complete records of all business transacted at the principal office shall be maintained at the principal office.  Everything relating to the business of a savings bank shall be examined and investigated by the Commissioner of Banks on a regular and periodic basis determined by the size and complexity and current expected condition and recent performance of the institution, the availability of examiners, coordination of state and federal schedules, the convenience of the institution, and any other requirements or constraints.  Every savings bank and service corporation thereof shall be audited at least once in each calendar year by independent auditors.  The audit shall be done on the basis of generally accepted accounting principles, unless otherwise provided by this Chapter.  The savings bank shall file with the Commissioner of Banks one copy of the audit report along with one copy of the auditor's management letter and any other letters regarding the audit within 90 days after the end of its fiscal year, unless extended in writing by the Commissioner of Banks.  Such extension by the Commissioner of Banks shall be granted upon a showing by the savings bank that the failure to file within 90 days of the close of its fiscal year was due to circumstances beyond its control or that compliance with the time period would have resulted in a substantial increase in audit costs.  The savings bank shall also submit to the Commissioner of Banks a copy of the savings bank's written response to the auditor's management letter at the time such response is provided to the appropriate federal regulatory authority.

(b)  Records to be Prepared at Branch Office.  Each branch office shall prepare records of all business transacted at such branch office, and shall furnish full control records to the principal office.

(c)  Closing Date for Books.  Every savings bank shall close its books at the close of business on December 31 of each year, or shall obtain the approval of the Commissioner of Banks to designate any other closing date.  When determining whether to designate a different closing date, the Commissioner shall consider what is in the best interest of depositors, borrowers, other customers, the institution's owners, employees, creditors, and the community in general.

(d)  Bonds and Other Obligations to be Carried at Actual Costs.  The bonds or other investments of a savings bank shall not be carried on its books at more than the actual costs thereof.

(e)  Real Estate to be Carried at Amount Invested in Same.  A savings bank shall not carry any real estate on its books at a sum in excess of the total amount invested by such savings bank on account of such real estate, including advances, costs, and improvements, but excluding accrued, uncollected interest.

(f)  Appraisal of Real Estate Owned.  Every savings bank shall appraise each parcel of real estate at the time of acquisition thereof.  The report of each such appraisal shall be submitted in writing to the Board of Directors and shall be kept in the records of the savings bank.

(g)  Maintenance of Membership Records.  Every mutual savings bank shall maintain membership records, that shall show the name and address of the member, the status of member, status of the member as a deposit account holder, or an obligor, or a deposit account holder and obligor, and the date of the membership thereof.

(h)  Maintenance of Stockholder Records.  Every stock savings bank shall keep at its principal office or at the office of its transfer agent or register, a record of its stockholders that contains the names and addresses of all stockholders, and the number, class and series of shares held by each.  Whenever called upon by the Commissioner of Banks, a stock savings bank shall file in the office of the Commissioner of Banks a correct list of all its stockholders, the resident address of each, the number of shares of stock held by each, and the dates of issue.  When a savings bank has reason to believe ten percent or more of the outstanding capital stock of the savings bank is controlled by one owner, a savings bank shall notify the Commissioner of Banks in writing, and shall include the resident address and number of shares held by the shareholder.

 

History Note:        Authority G.S. 54B-2; 54B-9; 54B-52; 54B-55; 54C-2; 54C-22; 54C-52; 54C-53;

Temporary Adoption Eff. October 2, 1991 for a period of 180 days to expire on March 31, 1992;

Eff. February 15, 1992;

Amended Eff. December 1, 2011.