North Carolina General Statutes Chapter 54 Cooperative Organizations

Article 1 - Organization.

N.C. Gen. Stat. § 54-1 through 54-12.1. Repealed by Session Laws 1981, c. 282, s. 1

Article 2 - Shares and Shareholders.

N.C. Gen. Stat. § 54-13 through 54-18.2. Repealed by Session Laws 1981, c. 282, s. 1

Article 2A - Savings Accounts.

N.C. Gen. Stat. § 54-18.3 through 54-18.6. Repealed by Session Laws 1981, c. 282, s. 1

Article 3 - Loans.

N.C. Gen. Stat. § 54-19 through 54-23. Repealed by Session Laws 1981, c. 282, s. 1

Article 4 - Under Control of Administrator of the Savings and Loan Division.

N.C. Gen. Stat. § 54-24 through 54-33.3. Repealed by Session Laws 1981, c. 282, s. 1

Article 5 - Foreign Associations.

N.C. Gen. Stat. § 54-34 through 54-41. Repealed by Session Laws 1981, c. 282, s. 1

Article 5A - Reserves.

N.C. Gen. Stat. § 54-41.1. Repealed by Session Laws 1981, c. 282, s. 1

Article 6 - Withdrawals.

N.C. Gen. Stat. § 54-42 through 54-43. Repealed by Session Laws 1981, c. 282, s. 1

Article 7 - Statements of Financial Condition of Associations.

N.C. Gen. Stat. § 54-44. Repealed by Session Laws 1981, c. 282, s. 1

Article 7A - Mutual Deposit Guaranty Associations.

N.C. Gen. Stat. § 54-44.1 through 54-44.14. Repealed by Session Laws 1981, c. 282, s. 1

Article 8 - Organization and Powers.

N.C. Gen. Stat. § 54-45. Application of term
The term "land and loan associations" shall apply to and include all corporations, companies, societies or associations organized for the purpose of making loans...
N.C. Gen. Stat. § 54-46. Incorporation and powers
Land and loan associations shall be incorporated, supervised, and be subject to such regulations and have such privileges as are prescribed for building and...
N.C. Gen. Stat. § 54-47. Loans
The board of directors of land and loan associations may contract for loans to the amount of seventy-five percent (75%) of the securities used...
N.C. Gen. Stat. § 54-48. Reserve associations
Associations to be known as "reserve land and loan associations" may be chartered and licensed as provided in this Article, when they are organized...
N.C. Gen. Stat. § 54-49. Land Conservation and Development Bureau; land mortgage associations
Recognizing that agriculture is the most fundamental wealth-producing occupation of the State and that land is the basis of agriculture, the General Assembly of...
N.C. Gen. Stat. § 54-50. Number of incorporators; capital stock
Any number of persons, resident freeholders of the State, not less than 15, may associate to establish an association on the terms and conditions...
N.C. Gen. Stat. § 54-51. Incorporation
The articles of incorporation shall be in writing, signed and acknowledged by the incorporators and shall contain the following: (1) The declaration that they...
N.C. Gen. Stat. § 54-52. Organization
The incorporators at their first annual meeting shall elect by ballot from their number a board of trustees of not less than six members...
N.C. Gen. Stat. § 54-53. Corporate powers
Said land mortgage association shall have power: (1) To make loans, the conditions of which shall be approved by the Commissioner of Banks if...
N.C. Gen. Stat. § 54-54. Restrictions
All mortgage obligations acquired by the company shall be subject to the following restrictions: (1) Each such mortgage shall be a first and valid...
N.C. Gen. Stat. § 54-55. Mortgage forms; approval
The mortgages to be given to the association, the bonds to be issued and the trust deed executed to secure the bonds shall be...
N.C. Gen. Stat. § 54-56. Repayment of loan and interest
The prospective borrower may be required to pay all expenses incidental to the examination of title and appraisal of the property. The total amount...
N.C. Gen. Stat. § 54-57. Terms of payment
A borrower may repay his loan by installments of such frequency and amounts as may be agreed upon: Provided, that not less than one...
N.C. Gen. Stat. § 54-58. Transfer of mortgaged lands
The acquirer of any lands mortgaged to a land mortgage association shall enter at once, on the acquisition of the land, into a written...
N.C. Gen. Stat. § 54-59. Calling in loans before due
Every land mortgage association shall have the power to call in loans upon 60 days' notice: (1) When the person acquiring the lands upon...
N.C. Gen. Stat. § 54-60. Partial recall of debt
The association may require a suitable partial repayment of the debt if the mortgaged premises may have at any time become depreciated in value...
N.C. Gen. Stat. § 54-61. Foreclosure
Whenever any loan is called in and the borrower shall fail to pay the principal and interest due to the association as required by...
N.C. Gen. Stat. § 54-62. Appraisal of lands
Upon application for a loan the land mortgage association shall cause the lands which it is proposed to mortgage to the association to be...
N.C. Gen. Stat. § 54-63. Preference prohibited; association borrowing money
No land mortgage association, and no officer or agent thereof, shall give any preference to any creditor by pledging any of the assets of...
N.C. Gen. Stat. § 54-64. Bond issues
(a) The bonds to be issued by any land mortgage association may be issued for such amounts, bearing such serial number, and date or...
N.C. Gen. Stat. § 54-65. Deed of trust
(a) To secure the payment of such bonds, the land mortgage association shall issue a collateral deed of trust to the State Treasurer, pledging...
N.C. Gen. Stat. § 54-66. Collaterals deposited with State Treasurer
All mortgages pledged to secure the payment of the bonds issued hereunder shall be deposited and left with the State Treasurer. The land mortgage...
N.C. Gen. Stat. § 54-67. Redemption of bonds
(a) Notice of redemption of bonds may on no account be given on the part of the holder thereof, but may be given by...
N.C. Gen. Stat. § 54-68. Validity of bonds after maturity
In case the holder of any bond outstanding shall not have presented the same for payment within the period of two years after its...
N.C. Gen. Stat. § 54-69. Bonds as payment
If the association gives notice to a debtor for repayment of the mortgage loan the latter must pay to the association in cash or...
N.C. Gen. Stat. § 54-70. Bonds as investments
The bonds of a land mortgage association shall be a legal investment for savings associations, trust companies, or other financial institutions chartered under the...
N.C. Gen. Stat. § 54-71. Application of earnings; reserve fund
The gross earnings of the association shall be ascertained annually, and there shall first be deducted therefrom the expenses incurred by the association for...
N.C. Gen. Stat. § 54-72. Restriction on holding real estate
No land mortgage association shall acquire real estate (other than for the occupation of its offices) except to protect its interest in case any...
N.C. Gen. Stat. § 54-73. Banking laws applicable
The banking laws as defined in G.S. 53C-1-4(5), insofar as applicable and not in conflict with the provisions hereof shall apply to land mortgage...

Article 9 - Credit Union Division; Administrator of Credit Unions.

N.C. Gen. Stat. § 54-74 through 54-75.1. Repealed by Session Laws 1975, c. 538, s. 1

Article 10 - Incorporation of Credit Unions.

N.C. Gen. Stat. § 54-76 through 54-81. Repealed by Session Laws 1975, c. 538, s. 1

Article 11 - Powers of Credit Unions.

N.C. Gen. Stat. § 54-82 through 54-93. Repealed by Session Laws 1975, c. 538, s. 1

Article 12 - Shares in the Corporation.

N.C. Gen. Stat. § 54-94 through 54-97. Repealed by Session Laws 1975, c. 538, s. 1

Article 13 - Members and Officers.

N.C. Gen. Stat. § 54-98 through 54-104. Repealed by Session Laws 1975, c. 538, s. 1

Article 14 - Supervision and Control.

N.C. Gen. Stat. § 54-105 through 54-109. Repealed by Session Laws 1975, c. 538, s. 1

Article 14A - Formation of Credit Union.

N.C. Gen. Stat. § 54-109.1. Definition and purposes
A credit union is a cooperative, nonprofit association, incorporated under Articles 14A to 14L of this Chapter, for the purposes of encouraging thrift among...
N.C. Gen. Stat. § 54-109.2. Organization procedure
(a) Any 12 or more residents of this State, of legal age, who have a common bond referred to in G.S. 54-109.26 may make...
N.C. Gen. Stat. § 54-109.3. Form of articles and bylaws
In order to simplify the organization of credit unions, the Administrator of Credit Unions shall cause to be prepared a form of articles of...
N.C. Gen. Stat. § 54-109.4. Amendments
(a) The articles of incorporation or the bylaws may be amended as provided in the bylaws. Amendments to the articles of incorporation or bylaws...
N.C. Gen. Stat. § 54-109.5. Use of name exclusive
With the exception of a credit union organized under the provisions of Articles 14A to 14L of this Chapter or of any other credit...
N.C. Gen. Stat. § 54-109.6. Office facilities
(a) A credit union may maintain service facilities at locations other than its main office if the maintenance of such offices is reasonably necessary...
N.C. Gen. Stat. § 54-109.7. Conducting business outside this State
A credit union incorporated under this Subchapter may conduct business outside of this State in any state where it is permitted to conduct business...
N.C. Gen. Stat. § 54-109.8. Reserved for future codification purposes
N.C. Gen. Stat. § 54-109.9. Reserved for future codification purposes

Article 14B - Supervision and Regulation.

N.C. Gen. Stat. § 54-109.10. Creation and supervision of Division
There shall be established in the North Carolina Department of Commerce a Credit Union Division which shall be under the supervision of the Administrator...
N.C. Gen. Stat. § 54-109.11. Duties of Administrator
The duties of the Administrator of Credit Unions shall be as follows: (1) To organize and conduct in the State Department of Commerce, a...
N.C. Gen. Stat. § 54-109.12. Corporations organized hereunder subject to Administrator of Credit Unions; rules and regulations
In addition to any and all other powers, duties and functions vested in the Administrator of Credit Unions under the provisions of this Article,...
N.C. Gen. Stat. § 54-109.13. Revocation of certificate; liquidation
If any such corporation shall neglect to make its annual report, as provided in this Article, or any other report required by the Administrator...
N.C. Gen. Stat. § 54-109.14. Fees
(a) Each credit union subject to supervision and examination by the Administrator of Credit Unions, including credit unions in process of voluntary liquidation, shall...
N.C. Gen. Stat. § 54-109.15. Reports
(a) Credit unions organized under Articles 14A to 14L of this Chapter shall, in January and in July of each year, make a report...
N.C. Gen. Stat. § 54-109.16. Annual examinations required; payment of cost
The Administrator of Credit Unions shall cause every such corporation to be examined once a year and whenever he deems it necessary. The examiners...
N.C. Gen. Stat. § 54-109.17. Records
(a) A credit union shall maintain all books, records, accounting systems and procedures in accordance with such rules as the Administrator from time to...
N.C. Gen. Stat. § 54-109.18. Selection of attorneys to handle loan-closing proceedings
The Administrator of Credit Unions shall establish rules and regulations relating to selection of attorneys-at-law to handle credit union loan closing proceedings. (1977, c....
N.C. Gen. Stat. § 54-109.19. Removal of officers
(a) The Administrator of Credit Unions shall have the right and is hereby empowered to serve a written notice of his intention to remove...
N.C. Gen. Stat. § 54-109.20. Reserved for future codification purposes

Article 14C - Powers of Credit Union.

N.C. Gen. Stat. § 54-109.21. General powers
A credit union may: (1) Make contracts; (2) Sue and be sued; (3) Adopt and use a common seal and alter the seal; (4)...
N.C. Gen. Stat. § 54-109.22. Incidental powers
A credit union may exercise such incidental powers such as are necessary or requisite to enable it to promote and carry on most effectively...
N.C. Gen. Stat. § 54-109.23 through 54-109.25. Reserved for future codification purposes

Article 14D - Membership.

N.C. Gen. Stat. § 54-109.26. "Membership" defined
(a) The membership of a credit union shall be limited to and consist of the subscribers to the articles of incorporation and such other...
N.C. Gen. Stat. § 54-109.27. Societies and other associations
Societies, and copartnerships composed primarily of individuals who are eligible to membership, and corporations whose stockholders are composed primarily of such individuals, may be...
N.C. Gen. Stat. § 54-109.28. Other credit unions
Any credit union organized under Articles 14A to 14L of this Chapter may permit membership of any other credit union organized under Articles 14A...
N.C. Gen. Stat. § 54-109.29. Members who leave field
Members who leave the field of membership may be permitted to retain their membership in the credit union as a matter of general policy...
N.C. Gen. Stat. § 54-109.30. Liability of shareholders
A shareholder of any such corporation, unless the bylaws so provide, shall not be individually liable for the payment of its debts for an...
N.C. Gen. Stat. § 54-109.31. Meetings of members
(a) The annual meeting and any special meetings of the members of the credit union shall be held at the time, place, and in...
N.C. Gen. Stat. § 54-109.32 through 54-109.34. Reserved for future codification purposes

Article 14E - Direction of Affairs.

N.C. Gen. Stat. § 54-109.35. Election or appointment of officials
(a) The credit union shall be directed by a board of directors, at least five in number, to be elected at the annual members'...
N.C. Gen. Stat. § 54-109.36. Record of board and committee members
Within 15 days following the board of directors' initial or annual organization meeting, a record of the names and addresses of the members of...
N.C. Gen. Stat. § 54-109.37. Vacancies
The board of directors shall fill any vacancies occurring in the board until successors elected at the next annual meeting have qualified. The board...
N.C. Gen. Stat. § 54-109.38. Compensation of officials
No member of the board of directors or of the credit committee or supervisory committee shall be compensated for his service in this position,...
N.C. Gen. Stat. § 54-109.39. Conflicts of interest
No director, committee member, officer, agent or employee of the credit union shall in any manner, directly or indirectly, participate in the deliberation upon...
N.C. Gen. Stat. § 54-109.40. Executive officers
(a) At their organization meeting and within 30 days following each annual meeting of the members, the directors shall elect from their own number...
N.C. Gen. Stat. § 54-109.41. Authority of directors
The board of directors shall have the general direction of the business affairs, funds, and records of the credit union. (1975, c. 538, s.
N.C. Gen. Stat. § 54-109.42. Executive committee
From the persons elected to the board, the board may appoint an executive committee of not less than three directors who may be authorized...
N.C. Gen. Stat. § 54-109.43. Meetings of directors
The board of directors and the executive committee shall meet as often as the bylaws prescribe. (1915, c. 115, s. 8; C.S., s. 5232;...
N.C. Gen. Stat. § 54-109.44. Duties of directors
It shall be the duty of the directors to: (1) Act upon applications for membership or to appoint one or more membership officers to...
N.C. Gen. Stat. § 54-109.45. Authority of credit committee
The credit committee shall have the general supervision of all loans to members. (1915, c. 115, s. 11; C.S., s. 5235; 1961, c. 1187,...
N.C. Gen. Stat. § 54-109.46. Meetings of credit committee
The credit committee shall meet as often as the business of the credit union requires and not less frequently than once a month to...
N.C. Gen. Stat. § 54-109.47. Loan officers
(a) The credit committee may appoint one or more loan officers and delegate the power to approve loans, subject to such limitations or conditions...
N.C. Gen. Stat. § 54-109.48. When credit committee dispensed with
The credit committee may be dispensed with, and loan officer(s) empowered to approve or disapprove loans under conditions prescribed by the board of directors....
N.C. Gen. Stat. § 54-109.49. Duties of supervisory committee
The supervisory committee shall make or cause to be made an annual audit, in accordance with rules and regulations promulgated by the Administrator of...
N.C. Gen. Stat. § 54-109.50 through 54-109.52. Reserved for future codification purposes

Article 14F - Savings Accounts.

N.C. Gen. Stat. § 54-109.53. Shares
(a) The capital of a credit union consists of the payments made by members on shares, undivided surplus, and reserves. (b) Shares may be...
N.C. Gen. Stat. § 54-109.54. Dividends
The board of directors of any credit union may declare dividends as its bylaws provide. (1915, c. 115, s. 22; C.S., s. 5223; 1925,...
N.C. Gen. Stat. § 54-109.55. Deposits
A credit union may receive on deposit the savings of its members and also nonmembers in such amounts and upon such terms as the...
N.C. Gen. Stat. § 54-109.56. Thrift accounts
Christmas clubs, vacation clubs, and other thrift accounts may be operated under conditions established by the board of directors. (1975, c. 538, s. 1.)
N.C. Gen. Stat. § 54-109.57. Repealed by Session Laws 2011-236, s. 4, effective October 1, 2011
N.C. Gen. Stat. § 54-109.57A. Payable on Death (POD) accounts
(a) Shares may be issued to and deposits received from any natural person or natural persons establishing an account who shall execute a written...
N.C. Gen. Stat. § 54-109.58. Joint accounts
(a) Shares may be issued to and deposits received from any two or more persons opening or holding an account or accounts, but no...
N.C. Gen. Stat. § 54-109.59. Liens
The credit union shall have a lien on the shares, deposits and accumulated dividends or interest of a member in his individual, joint or...
N.C. Gen. Stat. § 54-109.60. Repealed by Session Laws 1977, c. 559, s. 6
N.C. Gen. Stat. § 54-109.60A. Minors
(a) A credit union may issue and operate a share or deposit account in the name of (i) a minor or (ii) the names...
N.C. Gen. Stat. § 54-109.60B. Accounts opened by adults for minors
(a) One or more adults may open and maintain a custodial share account for or in the name of a minor and using the...
N.C. Gen. Stat. § 54-109.61. Reduction in shares
(a) Whenever the losses of any credit union, resulting from a depreciation in value of its loans or investments or otherwise, exceed its undivided...
N.C. Gen. Stat. § 54-109.62. Payment of balance of deceased person or person under disability to personal representative or guardian
(a) A credit union may pay any balance on deposit to the credit of any deceased individual to the duly qualified personal representative, collector,...
N.C. Gen. Stat. § 54-109.62A. Powers of attorney; notice of revocation; payment after notice
(a) Any credit union may continue to recognize any act of an attorney-in-fact or other agent until the credit union receives actual notice of...
N.C. Gen. Stat. § 54-109.63. Personal agency accounts
(a) A person may open a personal agency account by written contract containing a statement that it is executed pursuant to the provisions of...
N.C. Gen. Stat. § 54-109.64. Savings promotion raffles
A credit union may offer a savings promotion raffle in which the sole consideration required for a chance of winning designated prizes is the...

Article 14G - Loans.

N.C. Gen. Stat. § 54-109.65. Purposes, terms and interest rate
A credit union may loan to its members for such purpose and upon such security and terms as the board of directors prescribes at...
N.C. Gen. Stat. § 54-109.66. Application
Every application for a loan shall be made in writing upon a form, which the board of directors prescribe. The application shall state the...
N.C. Gen. Stat. § 54-109.67. Loan limit
No loan shall be made to any member in an aggregate amount in excess of ten percent (10%) of the credit union's unimpaired capital...
N.C. Gen. Stat. § 54-109.68. Security
In addition to generally accepted types of security, the endorsement of a note by a surety, comaker or guarantor, or assignment of shares, in...
N.C. Gen. Stat. § 54-109.69. Installments
A member may receive a loan in installments, or in one sum, and may pay the whole or any part of his loan on...
N.C. Gen. Stat. § 54-109.70. Line of credit
A line of credit and advances may be granted to each member within guidelines established by the board of directors. Where a line of...
N.C. Gen. Stat. § 54-109.71. Other loan programs
(a) A credit union may participate in loans to credit union members jointly with other credit unions, corporations, or financial organizations. (b) A credit...
N.C. Gen. Stat. § 54-109.72 through 54-109.74. Reserved for future codification purposes

Article 14H - Insurance and Group Purchasing.

N.C. Gen. Stat. § 54-109.75. Insurance for members
(a) A credit union may purchase or make available insurance for its members in amounts related to their respective ages, shares, deposits or loan...
N.C. Gen. Stat. § 54-109.76. Liability insurance for officers
A credit union may purchase and maintain liability insurance on behalf of any person who is or was a director, officer, employee, or agent...
N.C. Gen. Stat. § 54-109.77. Group purchasing
A credit union may enter into cooperative marketing arrangements to facilitate its members' voluntary purchase of such goods and services as are in the...
N.C. Gen. Stat. § 54-109.78. Share and deposit insurance
(a) All credit unions established under this Chapter shall, no later than July 1, 1976, apply for insurance of member share and deposit accounts...
N.C. Gen. Stat. § 54-109.79 through 54-109.81. Reserved for future codification purposes

Article 14I - Investments.

N.C. Gen. Stat. § 54-109.82. Investment of funds
The capital, deposits, undivided profits and reserve fund of the corporation may be invested only in any of the following ways: (1) They may...
N.C. Gen. Stat. § 54-109.83 through 54-109.85. Reserved for future codification purposes

Article 14J - Reserve Allocations.

N.C. Gen. Stat. § 54-109.86. Transfers to regular reserve
(a) At the end of each accounting period the gross income shall be determined. From this amount, there shall be set aside, as a...
N.C. Gen. Stat. § 54-109.87. Use of regular reserve
The regular reserve shall belong to the credit union and shall be used to meet losses except those resulting from an excess of expenses...
N.C. Gen. Stat. § 54-109.88. "Risk assets" defined
For the purpose of establishing the reserves required by G.S. 54-109.86, all assets except the following shall be considered risk assets: (1) Cash on...
N.C. Gen. Stat. § 54-109.89 through 54-109.91. Reserved for future codification purposes

Article 14K - Change in Corporate Status.

N.C. Gen. Stat. § 54-109.92. Suspension and conservation
(a) The Administrator of Credit Unions may determine in the performance of his duties under this Subchapter that a credit union is insolvent or...
N.C. Gen. Stat. § 54-109.93. Liquidation
(a) A credit union may elect to dissolve voluntarily and liquidate its affairs in the manner prescribed in this section. (b) The board of...
N.C. Gen. Stat. § 54-109.94. Merger
Any credit union may, with the approval of the Administrator of Credit Unions, merge with another credit union subject to the rules and regulations...
N.C. Gen. Stat. § 54-109.95. Conversion of charter
(a) A credit union chartered under the laws of this State may be converted to a credit union chartered under the laws of any...
N.C. Gen. Stat. § 54-109.96 through 54-109.98. Reserved for future codification purposes

Article 14L - Taxation.

N.C. Gen. Stat. § 54-109.99. Restriction of taxation
The corporation shall be deemed an institution for savings, and together with all accumulations therein shall not be taxable under any law which shall...
N.C. Gen. Stat. § 54-109.100 through 54-109.104. Reserved for future codification purposes

Article 14M - Confidential Information.

N.C. Gen. Stat. § 54-109.105. What information deemed confidential; disclosure; certain information deemed public; exchange of information
(a) The following records of information of the credit union division, the Administrator or the agent(s) of either shall be confidential and shall not...

Article 14N - Foreign Credit Unions.

N.C. Gen. Stat. § 54-109.106. Foreign Credit Unions
(a) A credit union organized under the laws of another state or territory of the United States may conduct business as a credit union...

Article 15 - Central Associations.

N.C. Gen. Stat. § 54-110. Recodified as �� 54-110.1 through 54-110.10

Article 15A - Corporate Credit Union.

N.C. Gen. Stat. § 54-110.1. Definition and purposes
(a) A corporate credit union may be incorporated under this Article and shall be subject to all parts of this Chapter not inconsistent with...
N.C. Gen. Stat. § 54-110.2. Membership
(a) Membership in the corporate credit union shall be institutional and be limited to the subscribers to the articles of incorporation, credit unions organized...
N.C. Gen. Stat. § 54-110.3. Charter and name exclusive
Only one corporate credit union shall be incorporated under this Article; and no other credit union may use the term "corporate credit union" as...
N.C. Gen. Stat. § 54-110.4. Organization
(a) Application to form a corporate credit union shall be made in writing to the Administrator of Credit Unions. The application shall contain the...
N.C. Gen. Stat. § 54-110.5. Powers and privileges
(a) A corporate credit union shall enjoy the powers and privileges of any other credit union incorporated under Chapter 54 of the General Statutes...
N.C. Gen. Stat. § 54-110.6. Participation in central system
The corporate credit union may enter into agreements for the purpose of participation in any state or federal central liquidity facility or central financial...
N.C. Gen. Stat. § 54-110.7. Right of set-off; security interest
(a) The corporate credit union shall have a right of immediate set-off against the balances of the share and deposit accounts of each member...
N.C. Gen. Stat. § 54-110.8. Fees
The operating fees established by the Administrator of Credit Unions shall make allowances for the special purposes and operations of a corporate credit union....
N.C. Gen. Stat. § 54-110.9. Reserves
A corporate credit union shall be exempt from the regular reserve requirements of Article 14J, but shall be required to establish and maintain an...
N.C. Gen. Stat. § 54-110.10. Applicability of Article
Nothing in this Article shall be construed as affecting the status of a central association formed prior to the enactment of this Article pursuant...

Article 16 - Organization of Associations.

N.C. Gen. Stat. § 54-111. Nature of the association
Any number of persons, not less than five, may associate themselves as a mutual association, society, company, or exchange, for the purpose of conducting...
N.C. Gen. Stat. § 54-111.1. Repealed by Session Laws 1959, c. 991
N.C. Gen. Stat. § 54-112. Use of term restricted
No corporation or association hereafter organized or doing business for profit in this State shall be entitled to use the term "mutual" as part...
N.C. Gen. Stat. § 54-113. Articles of agreement
The persons desiring to organize such association shall sign and acknowledge written articles which shall contain the name of the association and the names...
N.C. Gen. Stat. § 54-114. Certificate of incorporation
The original articles of incorporation of corporations organized under this Subchapter, or a true copy thereof, verified as such by the affidavits of two...
N.C. Gen. Stat. § 54-115. Fees for incorporation
For filing the articles of incorporation of corporations organized under this Subchapter, there shall be paid the Secretary of State ten dollars ($10.00) and...
N.C. Gen. Stat. § 54-116. Bylaws adopted
At the time of making the articles of incorporation the incorporators shall make bylaws which shall provide: (1) The name of the corporation. (2)...
N.C. Gen. Stat. § 54-117. General corporation law or general nonprofit corporation law applied; dealing in products of, or renting to, nonmembers
All mutual associations shall be maintained in accordance with the general corporation law or general nonprofit corporation law, except as otherwise provided for in...
N.C. Gen. Stat. § 54-118. Other corporations admitted
All mutual corporations, companies, or associations heretofore organized and doing business under other incorporation statutes, or which have attempted to so organize and do...
N.C. Gen. Stat. § 54-118.1. License taxes
On and after June 1, 1955, the provisions of Article 2, Subchapter I of Chapter 105 of the General Statutes of North Carolina shall...
N.C. Gen. Stat. § 54-118.2. Franchise taxes
On and after July 1, 1955, the provisions of Article 3, Subchapter I of Chapter 105 of the General Statutes of North Carolina shall...

Article 17 - Stockholders and Officers.

N.C. Gen. Stat. § 54-119. Certificate for stock fully paid
Certificates of stock shall not be issued to any subscriber until fully paid, but the bylaws of the association may allow subscribers to vote...
N.C. Gen. Stat. § 54-120. Ownership of shares limited
No shareholder in any such association shall own shares of a greater aggregate par value than twenty percent (20%) of the paid-in capital stock,...
N.C. Gen. Stat. § 54-121. Shares issued on purchase of business
Whenever an association, created under this Subchapter, shall purchase the business of another association or person, it may pay for the same in whole...
N.C. Gen. Stat. § 54-122. Absent members voting
At any regularly called general or special meeting of the shareholders a written vote received by mail from any absent shareholder, and signed by...
N.C. Gen. Stat. § 54-123. Directors and other officers
Every such association shall be managed by a board of not less than five directors. The directors shall be elected by and from the...

Article 18 - Powers and Duties.

N.C. Gen. Stat. § 54-124. Nature of business authorized
An association created under this Subchapter shall have power to conduct any agricultural, housing, horticultural, forestry, dairy, mercantile, mining, manufacturing, telephone, electric light, power,...
N.C. Gen. Stat. § 54-125. Amendment of articles
The association may amend its articles of incorporation by a majority vote of its shareholders at any regular shareholders' meeting, or any special shareholders'...
N.C. Gen. Stat. § 54-126. Apportionment of earnings
The net earnings or losses shall be apportioned among the members in accordance with the ratio which each member's patronage during the period involved...
N.C. Gen. Stat. § 54-127. Time of allocation
The profits or net earnings of such association shall be allocated to those entitled thereto, at such times as the bylaws shall prescribe, which...
N.C. Gen. Stat. § 54-128. Annual reports
Every association organized under the provisions of this Subchapter shall annually, on or before the first day of March of each year, make a...

Article 19 - Purpose and Organization.

N.C. Gen. Stat. § 54-129. Declaration of policy
In order to promote, foster, and encourage the intelligent and orderly producing and marketing of agricultural products through cooperation, and to eliminate speculation and...
N.C. Gen. Stat. § 54-130. Definitions and nature
As used in this Subchapter- (1) Agricultural Products. - The term "agricultural products" shall include horticultural, viticultural, forestry, dairy, livestock, poultry, bee, and any...
N.C. Gen. Stat. § 54-131. Who may organize
Three or more persons engaged in the production of agricultural products may form a nonprofit, cooperative association, with or without capital stock, under the...
N.C. Gen. Stat. § 54-132. Purposes
An association may be organized to engage in any activity in connection with the producing, marketing or selling of the agricultural products of its...
N.C. Gen. Stat. § 54-133. Preliminary investigation
Every group of persons contemplating the organization of an association under this Subchapter is urged to communicate with the Chief of the Division of...
N.C. Gen. Stat. § 54-134. Articles of incorporation
Each association formed under this Subchapter must prepare and file articles of incorporation, setting forth: (1) The name of the association. (2) The purposes...
N.C. Gen. Stat. § 54-135. Amendments to articles of incorporation
(a) An association may amend its charter from time to time in any and as many respects as may be desired, so long as...
N.C. Gen. Stat. § 54-136. Bylaws
Each association incorporated under this Subchapter must, within 30 days after its incorporation, adopt for its government and management a code of bylaws, not...
N.C. Gen. Stat. § 54-137. General and special meetings; how called
In its bylaws each association shall provide for one or more regular meetings annually. The board of directors shall have the right to call...
N.C. Gen. Stat. § 54-138. Conflicting laws not to apply
Any provisions of law which are in conflict with this Subchapter shall not be construed as applying to the associations herein provided for. (1921,...
N.C. Gen. Stat. § 54-140. Association heretofore organized may adopt the provisions of this Subchapter
Any corporation or association organized under previously existing statutes may, by a majority vote of its stockholders or members, be brought under the provisions...
N.C. Gen. Stat. § 54-141. Associations not in restraint of trade
No association organized hereunder shall be deemed to be a combination in restraint of trade or an illegal monopoly; or an attempt to lessen...
N.C. Gen. Stat. § 54-142. Application of North Carolina Business Corporation Act to cooperative associations with capital stock
The provisions of the North Carolina Business Corporation Act (Chapter 55 of the General Statutes) shall apply, so far as appropriate, to every cooperative...
N.C. Gen. Stat. § 54-142.1. Application of Nonprofit Corporation Act to cooperative associations without capital stock
The provisions of the Nonprofit Corporation Act (Chapter 55A of the General Statutes) shall apply, so far as appropriate, to every cooperative association without...
N.C. Gen. Stat. § 54-143. License taxes
On and after June 1, 1955, the provisions of Article 2, Subchapter I of Chapter 105 of the General Statutes of North Carolina shall...
N.C. Gen. Stat. § 54-143.1. Franchise taxes
On and after July 1, 1955, the provisions of Article 3, Subchapter I of Chapter 105 of the General Statutes of North Carolina shall...
N.C. Gen. Stat. § 54-144. Filing fees
For filing articles of incorporation, an association organized hereunder shall pay ten dollars ($10.00); and for filing an amendment to the articles, two and...

Article 20 - Members and Officers.

N.C. Gen. Stat. § 54-145. Members
(a) Under the terms and conditions prescribed in its bylaws, an association may admit as members, or issue common stock, only to persons engaged...
N.C. Gen. Stat. § 54-146. Directors; election
(a) The affairs of the association shall be managed by a board of not less than three directors, elected by the members or stockholders...
N.C. Gen. Stat. § 54-147. Election of officers
The directors shall elect a president, one or more vice-presidents, a secretary and treasurer who need not be directors, and they may combine the...
N.C. Gen. Stat. § 54-148. Stock; membership certificates; when issued; voting; liability; limitation on transfer of ownership
(a) When a member of an association established without capital stock has paid his membership fee in full, he shall receive a certificate of...
N.C. Gen. Stat. § 54-149. Removal of officer or director
Any member may bring charges against an officer or director by filing them in writing with the secretary of the association, together with a...
N.C. Gen. Stat. § 54-150. Referendum
Upon demand of one third of the entire board of directors, any matter that has been approved or passed by the board must be...

Article 21 - Powers, Duties, and Liabilities.

N.C. Gen. Stat. § 54-151. Powers
Each association incorporated under this Subchapter shall have the following powers: (1) To engage in any activity in connection with the producing, marketing, selling,...
N.C. Gen. Stat. § 54-152. Marketing contract
(a) The association and its members may make and execute marketing contracts, requiring the members to sell, for any period of time, not over...
N.C. Gen. Stat. § 54-153. Purchasing business of other associations, persons, firms, or corporations; payment; stock issued
Whenever an association organized hereunder with preferred capital stock shall purchase the stock or any property, or any interest in any property of any...
N.C. Gen. Stat. § 54-154. Annual reports
Each association formed under this Subchapter shall prepare and make out an annual report on forms furnished by the Division of Markets, containing the...
N.C. Gen. Stat. § 54-155. Interest in other corporations or associations
An association may organize, form, operate, own, control, have interest in, own stock of, or be a member of any other corporation or corporations,...
N.C. Gen. Stat. § 54-156. Contracts and agreements with other associations
Any association may, upon resolution adopted by its board of directors, enter into all necessary and proper contracts and agreements, and make all necessary...
N.C. Gen. Stat. § 54-157. Breach of marketing contract of cooperative association; spreading false reports about the finances or management thereof; misdemeanor
Any person or persons, or any corporation whose officers or employees knowingly induces or attempts to induce any member or stockholder of an association...
N.C. Gen. Stat. § 54-158. Cooperative associations may form subsidiaries
Nothing in this Subchapter shall prevent an association organizing, forming, operating, owning, controlling, having an interest in, owning stock of, or being a member...

Article 22 - Merger, Consolidation and Other Fundamental Changes.

N.C. Gen. Stat. § 54-159. Procedure for merger
(a) Any two or more domestic associations organized under this Subchapter, either with or without capital stock, may merge into any one of such...
N.C. Gen. Stat. § 54-160. Procedure for consolidation
(a) Any two or more domestic associations organized under this Subchapter, either with or without capital stock, may consolidate into a new association pursuant...
N.C. Gen. Stat. § 54-161. Approval of merger or consolidation; abandonment
(a) A plan of merger or consolidation shall be adopted in the following manner: The board of directors of each merging or consolidating association...
N.C. Gen. Stat. § 54-162. Articles of merger or consolidation
(a) Upon such approval, articles of merger or articles of consolidation shall be executed by each association and filed as provided in G.S. 55A-4,...
N.C. Gen. Stat. § 54-163. Effect of merger or consolidation
When such merger or consolidation has been effected: (1) The several associations, parties to the plan of merger or consolidation, shall be a single...
N.C. Gen. Stat. § 54-164. Merger or consolidation of domestic and foreign associations
(a) One or more domestic associations organized under this Subchapter and one or more foreign corporations engaging in any activity such as is described...
N.C. Gen. Stat. § 54-165. Sale, lease or exchange of assets; mortgage or pledge of assets
(a) A sale, lease, or exchange of all, or substantially all, the property and assets of an association organized under the provisions of this...
N.C. Gen. Stat. § 54-166. Rights of objecting members
(a) Any member of an association effecting a merger or consolidation may give to the association prior to or at the meeting of the...

Last modified: March 23, 2014