§ 54B-62. Relationship of savings and loan associations with the Savings Institutions Division. - North Carolina Statutes

§ 54B‑62.  Relationshipof savings and loan associations with the Savings Institutions Division.

(a)        Except as providedby subsection (b) of this section, a savings and loan association or anydirector, officer, employee, or representative thereof shall not grant or giveto any employee of the Savings Institutions Division, or to their spouses, anyloan or gratuity, directly or indirectly.

(b)        No person on thestaff of the Savings Institutions Division shall:

(1)        Hold an office orposition in any State association or exercise any right to vote on any Stateassociation matter by reason of being a member of the association;

(2)        Be interested,directly or indirectly in any savings and loan association organized under thelaws of this State; or

(3)        Undertake anyindebtedness, as a borrower directly or indirectly or endorser, surety orguarantor, or sell or otherwise dispose of any loan or investment to anysavings and loan association organized under the laws of this State.

(c)        Notwithstandingsubsection (b) of this section, any person employed in or by the SavingsInstitutions Division may be a withdrawable account holder and receive earningson such account.

(d)        Any employee of theSavings Institutions Division shall dispose of any right or interest in asavings and loan association, held either directly or indirectly, that isprohibited under subsection (b) of this section, within 60 days after the dateof the employee's appointment or employment. If that person is indebted asborrower directly or indirectly, or is an endorser, surety or guarantor on anote, at the time of his appointment or employment, he may continue in suchcapacity until such loan is paid off.

(e)        If any employee ofthe Division has a loan or other note acquired by a State savings and loan associationthrough the secondary market, he may continue with the debt until such loan ornote is paid off. (1981,c. 282, s. 3; 1989, c. 76, s. 20; 1991, c. 707, s. 3; 2001‑193, s. 6.)