North Carolina Statutes

§ 54-63 — Preference prohibited; association borrowing money

North Carolina·Ch. 54 Cooperative Organizations·Art. 8 Organization and Powers·Subch. II LAND AND LOAN ASSOCIATIONS
No land mortgage association, and no officer or agent thereof, shall give any preference to any creditor by pledging any of the assets of such association as collateral security, except that any such association may borrow money for temporary purposes, and may pledge assets of the association as collateral security therefor. Whenever it shall appear that any land mortgage association has borrowed habitually for the purpose of reloaning, the Commissioner of Banks may require such association to pay off such amount so borrowed. (1925, c. 223, s. 15; 1931, c. 243, s. 5.)

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