§ 54C-59. Relationship of savings banks with the Savings Institutions Division.
§ 54C‑59. Relationshipof savings banks with the Savings Institutions Division.
(a) Except as providedby subsection (b) of this section, a savings bank or any director, officer,employee, or representative thereof shall not grant or give to any employee ofthe Savings Institutions Division or to their spouses, any loan or gratuity,directly or indirectly.
(b) No employee of theSavings Institutions Division shall:
(1) Hold an office orposition in any State savings bank or exercise any right to vote on any Statesavings bank matter by reason of being a member of the savings bank;
(2) Be interested,directly or indirectly, in any savings bank organized under the laws of thisState; or
(3) Undertake anyindebtedness as a borrower, directly or indirectly, or act as endorser, surety,or guarantor, or sell or otherwise dispose of any loan or investment to anysavings bank organized under the laws of this State.
(c) Notwithstandingsubsection (b) of this section, any employee of the Savings InstitutionsDivision may be a deposit account holder and receive earnings on a depositaccount.
(d) Any employee of theSavings Institutions Division shall dispose of any right or interest in asavings bank, held either directly or indirectly, that is prohibited undersubsection (b) of this section, within 60 days after the date of the employee'sappointment or employment. If any employee of the Division is indebted asborrower, directly or indirectly, or is an endorser, surety, or guarantor on anote, at the time of appointment or employment, the employee may continue inthat capacity until the loan is paid off.
(e) If any employee ofthe Savings Institutions Division has a loan or other note acquired by a Statesavings bank through the secondary market, the employee may continue with thedebt until the loan or note is paid off. (1991, c. 680, s. 1; 2001‑193, s. 9.)