§ 54C-169. Right of setoff on deposit accounts. - North Carolina Statutes

§54C‑169.  Right of setoff on deposit accounts.

(a)        A savings bankshall have a right of setoff, without further agreement or pledge, upon alldeposit accounts owned by any member or customer to whom or upon whose behalfthe savings bank has made an unsecured advance of money by loan.  Upon defaultin the repayment or satisfaction thereof, the savings bank may cancel on itsbooks all or any part of the deposit accounts owned by the member or customer,and apply the value of the accounts in payment of the obligation.

(b)        A savings bank thatexercises the right of setoff provided in this section shall first give 30days' notice to the member or customer that the right will be exercised.  Theaccounts may be held or frozen, with no withdrawals permitted, during the 30‑daynotice period.  The accounts may not be canceled and the value of the accountsmay not be applied to pay the obligation until the 30‑day period hasexpired without the member or customer having cured the default on theobligation.  The amount of any member's or customer's interest in a jointaccount or other account held in the names of more than one person is subjectto the right of setoff provided in this section.

(c)        This section is notexclusive, but shall be in addition to contract, common law, and other rightsof setoff.  Any other rights are not governed in any fashion by this section. (1991,c. 680, s. 1.)