(a)        With the approval of the Commissioner, the organizers may file articles of incorporation for the proposed bank with the Secretary of State. The Commissioner shall authorize the organization of the proposed bank if the Commissioner is satisfied that each of the following conditions is met:

(1)        The application is complete.

(2)        The Commissioner’s examination as provided for in N.C. Gen. Stat. § 53C-3-1 indicates that the requirements for the issuance of a charter to the applicant are reasonably probable of satisfaction.

(3)        The proposed name of the proposed bank is not likely to mislead the public as to its character or purpose and is not the same as a name already adopted by an existing depository institution or trust institution operating in this State.

(b)        If the Commissioner approves the organization of the proposed bank, the Commissioner shall issue a certificate to the Secretary of State. The Secretary of State shall transmit to the Commissioner a certified copy of the filed articles of incorporation of the proposed bank.

(c)        Unless and until the Commissioner issues a charter to the proposed bank:

(1)        The proposed bank shall not transact any business except such as is incidental and necessary to its organization or the application for a charter or preparation for commencing the business of banking.

(2)        All funds paid for shares of the proposed bank shall be placed in escrow under a written escrow with a third-party escrow agent satisfactory to the Commissioner.

(3)        All funds for shares placed into escrow, and all dividends or interest on such funds, may be removed from escrow only with the Commissioner’s approval except to the extent that such funds are refunded to subscribers or as otherwise required by law.

(d)       A proposed bank is subject to the jurisdiction of the Commissioner. ?(2012-56, s. 4.)

Terms Used In North Carolina General Statutes 53C-3-2

  • Bank: Any corporation, other than a credit union, savings institution, or trust company, that is organized under the laws of this State and is engaged in the business of receiving deposits (other than trust funds), paying monies, and making loans. See North Carolina General Statutes 53C-1-4
  • Charter: A document issued by the Commissioner in accordance with Article 3 of this Chapter permitting a bank to conduct banking business. See North Carolina General Statutes 53C-1-4
  • Commissioner: The Commissioner of Banks provided for in N. See North Carolina General Statutes 53C-1-4
  • Depository institution: A bank, out-of-state bank, savings institution, or federally chartered institution, the deposits of which are insured by the FDIC. See North Carolina General Statutes 53C-1-4
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Examination: A supervisory inspection of a bank, a proposed bank, a holding company, or a branch of an out-of-state bank operating in this State that may include inspection of all relevant information, including information of or about the subsidiaries and affiliates of the bank, proposed bank holding company, or branch. See North Carolina General Statutes 53C-1-4
  • following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Organizers: One or more individuals who are the organizers of a proposed bank responsible for the business of the proposed bank from the filing of the application to the Commission's final decision on the application. See North Carolina General Statutes 53C-1-4
  • Shares: The units into which the equity ownership interests of a corporation are divided. See North Carolina General Statutes 53C-1-4
  • State: Any state of the United States, the District of Columbia, or any territory of the United States other than this State. See North Carolina General Statutes 53C-1-4
  • Trust institution: Any company lawfully acting as a fiduciary in a state or in a foreign country. See North Carolina General Statutes 53C-1-4
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