04 NCAC 03C .1702          ESTABLISHMENT OF A LOAN PRODUCTION OFFICE (LPO)

A nonresident bank may establish a LPO in North Carolina under written agreement with the Commissioner which provides that:

(1)        The LPO may be used to solicit loans, assemble credit information, make property inspections and appraisals, complete loan applications, and perform other preliminary paper work in preparation for the making of loans;

(2)        Loans may not be approved nor loan proceeds disbursed through the LPO;

(3)        The LPO may not be used to solicit or accept deposits;

(4)        The LPO may be inspected by the Commissioner of Banks for compliance with the written agreement, the cost of which inspection shall be borne by the nonresident bank;

(5)        The nonresident bank will complete and keep current a Loan Production Office Registration with the Commissioner of Banks; and

(6)        If required by the Secretary of State, the LPO will obtain a certificate of authority to do business in North Carolina.

History Note:        Authority G.S. 53‑104; 53‑115; 53‑127;

Eff. June 1, 1995.