NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

 

 

CHAPTER 793

SENATE BILL 426

 

 

AN ACT TO AMEND CHAPTER 53 OF THE GENERAL STATUTES RELATING TO THE ESTABLISHMENT OF BANKS, BRANCH BANKS AND TELLER'S WINDOWS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 53-4 is hereby amended by adding a new paragraph at the end thereof to read as follows:

"Notwithstanding any other provisions of this Section, the Commissioner of Banks shall not make the certification to the Secretary of State described above until he shall have ascertained to his satisfaction that the establishment of such bank will meet the needs and promote the convenience of the community to be served by the bank. Any action taken by the Commissioner of Banks pursuant to this Section shall be subject to review by the State Banking Commission which shall have the authority to approve, modify or disapprove any action taken or recommended by the Commissioner of Banks."

Sec. 2.  G.S. 53-2(4) is hereby amended by rewriting the same to read as follows:

"(4)      The amount of its authorized capital stock, the number of shares into which it is divided, the par value of each share; the amount of capital stock with which it will commence business, which shall not be less than one hundred thousand dollars ($100,000.00) in cities or towns of three thousand population and under; one hundred fifty thousand dollars ($150,000.00) in cities or towns of more than three thousand population and less than ten thousand population; two hundred thousand dollars ($200,000.00) in cities or towns of more than ten thousand population and less than twenty-five thousand population two hundred fifty thousand dollars ($250,000.00) in cities or towns of more than twenty-five thousand population and less than fifty thousand population; or three hundred thousand dollars ($300,000.00) in cities or towns of more than fifty thousand population; and in addition shall have a paid-in surplus of at least fifty per cent(50%) of the authorized capital stock, as hereinbefore set out; the population to be ascertained by the last preceding national census: Provided, that this subdivision shall not apply to banks organized and doing business prior to its adoption. Provided, further, that fractional shares may be issued for the purpose of complying with the requirements of G.S. 53-88."

Sec. 3.  G.S. 53-62 is hereby rewritten in its entirety to read as follows:

"G.S. 53-62.  Establishment of Branches or Teller's Windows. (a) The word 'capital' as used in this Section means capital stock and unimpaired surplus.

"(b)      Any bank doing business under this Chapter may establish branches or teller's windows in the cities or towns in which they are located, or elsewhere, after having first obtained the written approval of the Commissioner of Banks, which approval may be given or withheld by the Commissioner of Banks, in his discretion. The Commissioner of Banks, in exercising such discretion, shall take into account, but not by way of limitation, such factors as the financial history and condlition of the applicant bank, the adequacy of its capital structure, its future earnings prospects, and the general character of its management. Such approval shall not be given until he shall have ascertained to his satisfaction (1) that the establishment of such branch or teller's window will meet the needs and promote the convenience of the community to be served by the bank, and (2) that the probable volume of business and reasonable public demand in such community are sufficient to assure and maintain the solvency of said branch or teller's window and of the existing bank or banks in said community.

"(c)       Such branch banks shall be operated as branches of and under the name of the parent bank, and under the control and direction of the board of directors and executive officers of said parent bank. The board of directors of the parent bank shall elect a cashier and such other officers as may be required to properly conduct the business of such branch, and a board of managers or loan committee shall be responsible for the conduct and management of said branch, but not of the parent bank or of any branch save that of which they are officers, managers, or committee: Provided, that the Commissioner of Banks shall not authorize the establishment of any branch or teller's window, the capital of whose parent bank is not sufficient in an amount to provide for the capital of at least one hundred thousand dollars ($100,000.00) for the parent bank, and a capital of at least one hundred thousand dollars ($100,000.00) for each branch or teller's window which it is proposed to establish in cities or towns of three thousand population or less; at least one hundred fifty thousand dollars ($150,000.00) in cities or towns whose population exceeds three thousand, but does not exceed ten thousand; at least two hundred thousand dollars ($200,000.00) in cities or towns whose population exceeds ten thousand, but does not exceed twenty-five thousand; at least two hundred fifty thousand dollars ($250,000.00) in cities or towns whose population exceeds twenty-five thousand, but does not exceed fifty thousand; at least three hundred thousand dollars ($300,000.00) in cities or towns whose population exceeds fifty thousand. The provisions of this subsection shall not be retroactive with respect to branches or teller's windows established or approved by the State Banking Commission prior to the ratification of this Act. If a bank which hereafter proposes to establish a branch or teller's window is deficient in capital stock as measured by the above setforth formula, it shall not be necessary for such bank to provide or allocate additional capital for branches or teller's windows established or approved by the State Banking Commission prior to the ratification of this Act until such time as such bank makes application for an additional branch or teller's window. At that time sufficient capital and surplus must be allocated to bring the parent bank and all branches and teller's windows into compliance with the above requirements. The bank may, at its option, allocate capital stock and unimpaired surplus, or either, to its branches and teller's windows and may determine the proportion of each, or may allocate all capital stock or all unimpaired surplus. In applying this Section, population shall be ascertained by the last preceding national census; provided, however, with respect to any branch or teller's windows established or approved by the State Banking Commission before the ratification of this Act, population shall be ascertained by the last national census preceding the establishment of such branch.

"(d)      A teller's window within the meaning of this Section shall be considered to be a place in which no loans or investments for the bank are made and at which only the functions and duties of a bank teller are performed. Upon securing the approval provided for in subsection (b) of this Section and upon compliance with the capital requirements set forth in subsection (c) of this Section, a teller's window may be established in a small community having no other banking facilities. Notwithstanding any other provisions in this Section, a teller's window may also be established in a city or town in which the applicant bank's home office or a branch thereof is located or within two miles of the limits of such city or town without complying with the capital allocation requirements of subsection (c) of this Section with respect to said teller's window if the Commissioner shall find that the capital of said bank will not be unduly impaired by the establishment of such teller's window, and any such teller's window which has been heretofore or may hereafter be so established or approved by the Banking Commission shall not be taken into account in computing the capital allocation requirements for the parent bank and other branches and teller's windows of such bank.

"(e)       Any action taken by the Commissioner of Banks pursuant to this Section shall be subject to review by the State Banking Commission which shall have the authority to approve, modify or disapprove any action taken or recommended by the Commissioner of Banks."

Sec. 4.  Chapter 53 of the General Statutes is hereby amended by adding a new Section immediately following G.S. 53-92, to be designated as G.S. 53-92.1, and to read as follows:

"Sec. 53-92.1.  Notwithstanding any other provisions of this Chapter, the State Banking Commission, in the exercise of its authority to review the action of the Commissioner of Banks, shall be bound by the requirements, conditions and limitations imposed in this Chapter on said Commissioner as to the certification of new banks or the establishment of branch banks or teller's windows."

Sec. 5.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 6.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 11th day of June, 1963.