North Carolina HB 187: Credit Union Update.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 187
Committee Substitute Favorable 3/25/25

Short Title: Credit Union Update. (Public)
Sponsors:
Referred to:
February 26, 2025
*H187-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO UPDATE THE CREDIT UNION STATUTES. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. G.S. 54-109.1 reads as rewritten: 4
"§ 54-109.1. Definition and purposes.Definitions. 5
The following definitions apply in Articles 14A to 15A of this Chapter: 6
(1) Administrator. – Administrator of Credit Unions. 7
(2) Commission. – Credit Union Commission. 8
(3) Credit union. – A credit union is a cooperative, nonprofit association, 9
incorporated under Articles 14A to 14L of this Chapter, for the purposes of 10
encouraging thrift among its members, creating a source of credit at a fair and 11
reasonable rate of interest, and providing an opportunity for its members to 12
use and control their own money in order to improve their economic and social 13
condition. 14
(4) Division. – Credit Union Division of the Department of Commerce." 15
SECTION 2. Article 14B of Chapter 54 of the General Statutes reads as rewritten: 16
"Article 14B. 17
"Supervision and Regulation. 18
... 19
"§ 54-109.14. Fees.Fees and penalties. 20
(a) Each credit union subject to supervision and examination by the Administrator of 21
Credit Unions, Administrator, including credit unions in process of voluntary liquidation, shall 22
pay into the office of the Administrator of Credit Unions twice each year, in the months of 23
January and July, supervision fees, except those credit unions which liquidate or convert fees. A 24
credit union that liquidates or converts its charter shall pay into the office of the Administrator 25
of Credit Unions, Administrator, to the date of dissolution, pro rata supervision fees. Examination 26
fees shall be paid promptly upon receipt of the examination report and invoice. 27
The Administrator of Credit Unions, Administrator, subject to the advice and consent of the 28
Credit Union Commission, shall, on or before December 1 of each year, determine and fix the 29
scale of supervisory and examination fees to be assessed during the next calendar year. 30
No credit union shall be required to pay any supervisory fee until the expiration of 12 months 31
from the date of the issuance of a certificate of incorporation to such the credit union. 32
(b) The Administrator may charge other fees for service and supervision as approved by 33
the Commission. Moneys collected under this section shall be deposited with the State Treasurer 34
of North Carolina and expended, under the terms of the Executive Budget Act, to defray expenses 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 187-Second Edition
incurred by the office of the Administrator of Credit Unions in carrying out its supervisory and 1
auditing functions. 2
(c) All revenue derived from fees will be placed into a special account to be administered 3
solely for the operation of the Credit Union Division. 4
(d) The Administrator may waive any fee, in whole or in part, for any credit union or 5
group of credit unions at the Administrator's discretion. 6
(e) The Administrator may assess a civil penalty not to exceed five hundred dollars 7
($500.00) for the violation of any section of Articles 14A to 15A of this Chapter or any rule 8
adopted by the Administrator. The clear proceeds of any civil penalty assessed under this 9
subsection or pursuant to any other authority in Articles 14A to 15A of this Chapter shall be 10
remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 11
"§ 54-109.15. Reports. 12
(a) Credit The Administrator shall cause credit unions organized under Articles 14A to 13
14L 15A of this Chapter shall, in January and in July of each year, make to make a report of 14
condition to the Administrator of Credit Unions on forms supplied for that purpose. Additional 15
reports may be required.in a manner and on a schedule as adopted by the Administrator. The 16
Administrator may also require that additional reports be filed. 17
(b) Any The Administrator may cause any credit union that neglects to make semiannual 18
reports as provided in subsection (a) of this section, or any of the other reports required by the 19
Administrator of Credit Unions at the time fixed by the Administrator, shall pay to pay a late 20
penalty to the Administrator of Credit Unions of not less than seventy-five dollars ($75.00) 21
($75.00), nor more than seven hundred fifty dollars ($750.00) for each day the neglect continues. 22
The Administrator of Credit Unions may revoke the certificate of incorporation and take 23
possession of the assets and business of any credit union failing to pay a penalty imposed under 24
this section after serving notice of at least 15 days upon the credit union of the proposed action. 25
The clear proceeds of penalties collected pursuant to this subsection shall be remitte