§ 54-110.7. Right of set-off; security interest. - North Carolina Statutes

§54‑110.7.  Right of set‑off; security interest.

(a)        The corporatecredit union shall have a right of immediate set‑off against the balancesof the share and deposit accounts of each member for any amounts due from themember to the corporate credit union.

(b)        The corporatecredit union shall have a lien on all share and deposit accounts of each memberin the amount of the total indebtedness of the member to the corporate creditunion. The lien created herein shall attach to such accounts and be effective wheneverthe member is indebted to the corporate credit union. The lien shall havepriority over any interests of all members and unsecured creditors of themember credit unions of the corporate credit union.

(c)        The board ofdirectors or credit committee may require and accept additional security forloans to a member in the form of a pledge, assignment, hypothecation ormortgage of any assets of the member or a guarantor. (1983,c. 470.)