§ 66-108. Bond or trust account required. - North Carolina Statutes

§66‑108.  Bond or trust account required.

(a)        Every loan brokermust obtain a surety bond issued by a surety company authorized to do businessin this State, or establish a trust account with a licensed and insured bank orsavings institution located in the State of North Carolina.  The amount of thebond or trust account shall be ten thousand dollars ($10,000).  The bond ortrust account shall be in favor of the State of North Carolina.  Any persondamaged by the loan broker's breach of contract or of any obligation arisingtherefrom, or by any violation of this Article, may bring an action against thebond or trust account to recover damages suffered.  The aggregate liability ofthe surety or trustee shall be only for actual damages and in no event shall exceedthe amount of the bond or trust account.

(b)        Failure to complywith subsection (a) shall be a Class 1 misdemeanor.

(c)        No loan brokershall collect any advance fee or other valuable consideration from a borrowerprior to the closing of the loan.  This prohibition shall not preclude the loanbroker from collecting reasonable and necessary fees payable to third partiesfor appraisal, property survey, title examination, and credit reports. (1979,c. 705, s. 1; 1993, c. 339, s. 3, c. 539, s. 522; 1994, Ex. Sess., c. 24, s.14(c).)