§ 54-109.11. Duties of Administrator.
§54‑109.11. Duties of Administrator.
The duties of theAdministrator of Credit Unions shall be as follows:
(1) To organize andconduct in the State Department of Commerce, a bureau of information in regardto cooperative associations and rural and industrial credits.
(2) Upon request, tofurnish, without cost, such printed information and blank forms as, in hisdiscretion, may be necessary for the formation and establishment of any localcredit union in the State.
(3) To maintain aneducational campaign in the State looking to the promotion and organization ofcredit unions. Upon the written request of 12 bona fide residents of anyparticular locality in this State expressing a desire to form a local creditunion at or in such locality, the Administrator of Credit Unions, or one of hisassistants, shall proceed as promptly as may be convenient to such locality andmake an investigation in order that the Administrator may determine whether ornot a local credit union should be established according to the standards setforth and provided in this Article. The Administrator shall notify theapplicants of his decision within 30 days after receipt of the written request.Before refusing the establishment of a credit union, the Administrator shallafford the applicants an opportunity to be heard therewith in person or bycounsel and at least 60 days prior to the date set for a hearing on any suchmatter shall notify in writing the applicants of the date of said hearing andassign therein the grounds for the action contemplated to be taken and as towhich inquiry shall be made on the date of such hearing. The determination ofthe Administrator shall be subject to judicial review in all respects accordingto the provisions and procedures set forth in Chapter 150B of the GeneralStatutes of North Carolina, as amended.
(4) To examine at leastonce a year, and oftener if such examination be deemed necessary by theAdministrator or his assistant, the credit unions formed under this Article. Areport of such examination shall be filed with the State Department ofCommerce, and a copy mailed to the credit union at its proper address.
(5) The Administrator ofCredit Unions is authorized, empowered, and directed to fix the amount of ablanket surety bond which shall be required of each credit union official,committee member and employee, irrespective of whether such official, committeemember and employee receives, pays or has custody of money or other personalproperty owned by a credit union or in the custody or control of the creditunion as collateral or otherwise. The surety on the bond shall be a suretycompany authorized to do business in North Carolina. Any such bond or bondsshall be in a form approved by the Administrator of Credit Unions with a viewto providing surety coverage to the credit union with reference to loss byreason of acts of fraud or dishonesty including forgery, theft, embezzlement,wrongful abstraction or misapplication on the part of the person, directly orthrough connivance with others, and such other surety coverages as theAdministrator of Credit Unions may determine to be reasonably appropriate or aselsewhere required by the Chapter. Any such bond or bonds shall be in an amountin relation to the money or other personal property involved or in relation tothe assets of the credit union as the Administrator may from time to timeprescribe by regulation for the purpose of requiring reasonable coverage. TheAdministrator may also approve the use of a form of excess coverage bondwhereby a credit union may obtain an amount of coverage in excess of the basicsurety coverage. No agreement, compromise or settlement of any claim or claimsfiled by a credit union with any surety or any surety company for less than thefull amount of said claim or claims shall be entered into or made by the boardof directors of any credit union unless and until the said claim or claimsshall have been submitted to the Administrator of Credit Unions and his advicethereon given or transmitted to the board of directors of said credit union.The following schedule shall be deemed as the minimum fidelity and faithfulperformance bond requirements only:
Assets MinimumCoverage
$ 0,000to $ 5,000 $ 1,000
5,001to 10,000 2,000
10,001to 20,000 4,000
20,001to 30,000 6,000
30,001to 40,000 8,000
40,001to 50,000 10,000
50,001to 75,000 15,000
75,001to 100,000 20,000
100,001to 200,000 30,000
200,001to 300,000 40,000
300,001to 400,000 50,000
400,001to 500,000 70,000
500,001to 750,000 85,000
750,001to 1,000,000 100,000
1,000,001to 50,000,000 $100,000 plus $50,000
foreach million or frac‑
tionthereof of assets
over$1,000,000
$50,000,001to $150,000,000 $ 2,500,000 plus $25,000
foreach million or frac‑
tionthereof of assets
over$50,000,000
Over $150,000,000 $5,000,000
It shall be the duty of theboard of directors of each credit union to provide proper protection to meetany circumstances by obtaining adequate bond (an insurance) coverage in excessof the above minimum schedule. The treasurer and all other persons handlingcredit union funds or records before entering upon his or their duties shallgive a proper bond with good and sufficient surety, in an amount and characterto be determined by the board in compliance with regulations conditioned upon thefaithful performance of his or their trust.
The Administrator may requireadditional coverage for any credit union when, in his opinion, the surety bondsin force are insufficient to provide adequate surety coverage, and it shall bethe duty of the board of directors of any credit union to obtain suchadditional coverage within 60 days after the date of written notice by theAdministrator to such board of directors. For good cause shown, theAdministrator may extend the time to obtain additional coverage. (1915,c. 115, s. 1; C.S., s. 5209; 1925, c. 73, ss. 2, 3, 5, 6; 1935, c. 87; 1957, c.989, s. 1; 1965, c. 956, ss. 1‑3; 1971, c. 864, s. 17; 1973, c. 199, ss.1‑3; c. 1331, s. 3; 1975, c. 538, s. 1; 1977, c. 559, s. 1; 1987, c. 827,s. 1; 1989, c. 751, s. 7(2); 1991 (Reg. Sess., 1992), c. 959, ss. 4, 4.1.)