04 NCAC 16F .0103. DEBT LIMITATION FOR WHOLLY‑OWNED SERVICE CORPORATIONS

The aggregate amount of secured and unsecured debt which a wholly‑owned service corporation may have outstanding at any one time to the savings institution and to non‑stockholders shall not exceed:

(1)           ten times the total of the service corporation's net worth and unsecured debt to the savings institution; or

(2)           twenty times such total if the service corporation engages solely in originating, investing in, selling, purchasing, servicing, or otherwise dealing in (including brokerage or warehousing) loans, and participations in loans, on a prudent basis and secured by real estate or liens on mobile homes.

 

History Note:        Filed as a Temporary Amendment Eff. October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑194; 54C‑53; 54C‑144;

Eff. August 31, 1981;

Amended Eff. May 11, 1992.