§ 54B-131. Right of setoff on withdrawable accounts. - North Carolina Statutes

§54B‑131.  Right of setoff on withdrawable accounts.

(a)        Every associationshall have a right of setoff, without further agreement or pledge, upon allwithdrawable accounts owned by any member or customer to whom or upon whosebehalf the association has made an unsecured advance of money by loan; and uponthe default in the repayment or satisfaction thereof the association may cancelon its books all or any part of the withdrawable accounts owned by such memberor customer, and apply the value of such accounts in payment on account of suchobligation.

     (b)  An association whichexercises the right of setoff provided in this section shall first give 30days' notice to the member or customer that such right will be exercised.  Suchaccounts may be held or frozen, with no withdrawals permitted, during the 30‑daynotice period.  Such accounts may not be canceled and the value thereof may notbe applied to pay such obligation until the 30‑day period has expiredwithout the member or customer having cured the default on the obligation.  Theamount of any member's or customer's interest in a joint account or otheraccount held in the names of more than one person shall be subject to the rightof setoff provided in this section.

     (c)  This section is notexclusive, but shall be in addition to contract, common law and other rights ofsetoff.  Such other rights shall not be governed in any fashion by thissection. (1981, c. 282, s. 3; 1991, c. 707, s. 5.)