§ 53-37. Conditions under which banks may reopen. - North Carolina Statutes

Article4.

Reopening of ClosedBanks.

§ 53‑37.  Conditionsunder which banks may reopen.

Whenever the Commissioner ofBanks has taken in possession any bank, such bank may, with the consent of theCommissioner of Banks, resume business upon such terms and conditions as may beapproved by the State Banking Commission. When such banks have been taken inpossession under the provisions of G.S. 53‑20, subsections (a) or (b),such conditions shall be fully stated in writing and a copy thereof shall befiled with the clerk of the superior court in the action required to becommenced in such cases against said bank under the provisions of G.S. 53‑20,subsection (c): Provided, however, no bank or banking institution which hasbeen taken in possession by the Commissioner of Banks under the provisions ofthe State banking laws shall be reopened to receive deposits or for thetransaction of a banking business unless and until:

(1)        The bank has beencompletely restored to solvency;

(2)        The capital stock,if impaired, has been entirely restored in cash; or

(3)        It shall clearlyappear to the Commissioner of Banks that such bank may be reopened with safetyto the public and such reopening is necessary to serve the business interestsof the community. (1921, c. 4, s. 16; C.S., s. 218(q); 1927, c. 113, s.1; 1931, c. 243, s. 5; c. 388, s. 1; 1939, c. 91, s. 2; 1995, c. 129, s. 7.)