04 NCAC 03M .0502        FORM AND LOCATION of records

(a)  Except for samples of advertising materials retained pursuant to 4 NCAC 03M .0501(f), all records required by this Section shall be kept for a period of at least three years, and shall be available for inspection and copying upon request by the Commissioner.

(b)  The records may be maintained in the form of magnetic tape, magnetic disk or other form of computer, electronic or microfilm media available for examination on the basis of computer printed reproduction, video display or other medium that is easily convertible by the Commissioner into legible, tangible documents.

(c)  All records required by this Rule shall be prepared in accordance with generally accepted accounting principles, where applicable.

(d)  All records required to be maintained shall be secured against unauthorized access and damage in a location within the State of North Carolina accessible to the Commissioner.  However, a mortgage banking licensee which maintains a centralized out-of-state storage facility for the records from multiple states may request the Commissioner to approve its storage of such records in such out-of-state location.  The requests will be approved provided that:

(1)           The Commissioner determines that the proposed storage will ensure that the records are secured against unauthorized access and damage; and

(2)           The licensee agrees in writing to make available at its expense for inspection and copying upon request by the Commissioner copies of all requested records in a form which satisfies the requirements of Paragraph (b) of this Rule.

(e)  If the Commissioner subsequently has reason to believe that records are not or will not be adequately secured against unauthorized access or damage, the Commissioner shall summarily revoke any approval previously granted under Paragraph (d) of this Rule.

(f)  A licensee shall notify the Commissioner of any change in the location of its books and records within 10 days following such change.


History Note:        Authority G.S. 53-244.105; 53-244.115; 53-244.118;

Eff. April 1, 2003;

Amended Eff. May 1, 2010.