§ 54C-179. Forced retirement of deposit accounts. - North Carolina Statutes

§54C‑179.  Forced retirement of deposit accounts.

(a)        A savings bank may,at any time that funds are on hand and available for this purpose, force theretirement of and redeem all or any portion of its deposit accounts that havenot been pledged as security for loans. A savings bank may not redeem any fixedterm deposit accounts that have not matured. The board of directors of thesavings bank shall determine the number of and total amount of the depositaccounts to be retired.

(b)        A savings bankshall give at least 30 days' notice by certified mail to the last address ofeach holder of an affected deposit account. The redemption price of depositaccounts so retired is the full withdrawal value of the account, as determinedon the last interest date, plus all interest on deposit accounts credited orpaid as of the effective retirement date. Interest continues to accrue and bepaid or credited by the savings bank to the deposit accounts to be retiredthrough the effective retirement date.

(c)        Interest on the depositaccounts called for forced retirement ceases to accrue after the effectiveretirement date, if the required notice has been given properly, and if on theretirement date the funds necessary for payment have been set aside so as to beavailable. All rights with respect to those deposit accounts terminate afterthe effective retirement date, except for the right of the holder of theretired deposit account to receive the full redemption price.

(d)        A savings bankshall not redeem deposit accounts by forced retirement whenever it has on fileapplications for withdrawal or maturities that have not yet been acted upon andpaid. (1991 (Reg. Sess., 1992), c. 829, s. 12.)