§ 54-63. Preference prohibited; association borrowing money. - North Carolina Statutes

§54‑63.  Preference prohibited; association borrowing money.

No land mortgage association,and no officer or agent thereof, shall give any preference to any creditor bypledging any of the assets of such association as collateral security, exceptthat any such association may borrow money for temporary purposes, and maypledge assets of the association as collateral security therefor. Whenever itshall appear that any land mortgage association has borrowed habitually for thepurpose of reloaning, the Commissioner of  Banks may require such associationto pay off such amount so borrowed. (1925, c. 223, s. 15; 1931,c. 243, s. 5.)