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House | May 22, 2014 | Committee Room | Common Banking

Full MP3 Audio File

Testing. One, two, three, testing. One, two, three, testing. One, two, three. [SPEAKER CHANGES] Our bill sponsor is here, so I’m going to call our first, and ya’ll, this might be our only, banking meeting. I think we might have… I think I’ve heard there might be one more bill coming our way, but we’ll see. For our Sergeant-At-Arms, we’ve got Charles Goodwin. Godwin. Excuse me, sorry about that. [SPEAKER CHANGES] That’s okay. [SPEAKER CHANGES] P.H. Powell, Patrick Mason and Billy Jones. [SPEAKER CHANGES] ?? [SPEAKER CHANGES] Pardon? [SPEAKER CHANGES] We don’t have the bill. [SPEAKER CHANGES] They didn’t bring the bill? Staff’s not here yet. Well then we can finish… For some reason staff’s not here yet, so we’ll get them here. Let me go ahead and introduce our pages. Do you want to just make quick copies? How many pages is it? [SPEAKER CHANGES] Motion to adjourn. [SPEAKER CHANGES] Does staff know they’re supposed to be here now? Are they on their way? [SPEAKER CHANGES] Motion to adjourn. [SPEAKER CHANGES] While we’re here, let me introduce our pages. Angelica Brice. Angelica, are you here? Way back there. She’s sponsored by Tillis, from Gaston County. Toller Dixon. Where’s Toller? There you are, Toller. New Hanover. Davis Junior? A Ted Davis. I’ve never seen this Ted Davis Junior. Simone Weeks? Is Simone here? Is it Simone? [SPEAKER CHANGES] Yes but Meeks. [SPEAKER CHANGES] Meeks. Ya’ll, I’m sorry. Wake County, from Representative Gill. Anthony Sinopoli? Did I get that right? [SPEAKER CHANGES] ?? That’s the one you get right? [SPEAKER CHANGES] From Davie County with Representative Tillis. You know what it is, while we’re waiting? Any of ya’ll wear reading glasses? Have any of ya’ll started using the mono-vision contact lens? It does – you have to get a little used to because one eye reads better than the other, and so I have noticed, things like this, I actually need to focus a little better, so I apologize for that. This is actually a pretty simple bill. We’re going to get staff to make copies. Would you all want to just wait for staff to make the copies? [SPEAKER CHANGES] No. [SPEAKER CHANGES] Thank you, that’s what I thought. Then we will recognize Representative Blust to go over and explain it, and if we can get the copies in time, that’ll be great. [SPEAKER CHANGES] Thank you, Madam Chairman and members of the committee. I‘m honored to be before you today. Great group. This is a very simple bill. If you’ll remember, a few years ago we had a comprehensive reform of the banking laws. This bill is just bringing one minute provision that was changed in the banking law; we are by this bill bringing the law into – the law concerning savings banks, savings and loan associations and credit unions – into conformity. And it’s very arcane when you pledge as collateral on a loan a joint account. This law is going to be changed to where all of those people on the joint account are liable, and it survives the death of one of the people on the joint account. [SPEAKER CHANGES] So a joint account’s just going to be like a joint account. [SPEAKER CHANGES] Yes, same as banking. The only way the other joint tenants on the joint account – I don’t know if “tenants” is the right word – can escape that surviving after death is if there is a riding written agreement with the financial institution signed by all of the joint tenants. This is the law now for banks, and this bill’s attempting to bring the law for the other financial institutions into compliance with the law for banks. It’s highly technical. It was given a thorough, thorough discussion in the General Statutes Commission. Law professors there can see every nuance and possible outcome, and it’s been thoroughly vetted and I recommend it to you. [SPEAKER CHANGES] Before I go to questions, part of the reason we are going ahead and doing it now is because it’s got to go to Judiciary, and the only meeting of Judiciary’s next Wednesday, which would be before our Thursday. Actually I saw Representative Jeter first, then Hardister, then Carney. [SPEAKER CHANGES] For a question, Madam Chair. [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] Representative Blust, just to confirm, on the original loan on the joint account holder, would both people have to signature? In other words, if I had a joint account with my wife…

Let’s say my wife happened to sign something and not tell me, can I be ?? [SPEAKER CHANGES] No, and that’s an important point. One joint tenant can pledge it as collateral, and that binds the other joint tenant, so be warned if you have a joint bank account, one tenant can make that as collateral for a loan to the one joint tenant. And if that’s wrong Ms. Whatley, please chime in, but I believe… I think that’s right, and that’s one reason joint accounts can be tricky. [SPEAKER CHANGES] I think ?? was next. John? [SPEAKER CHANGES] Thank you, Madam Chair. I think this is a good bill and the time’s right. I’d like to make a motion. [SPEAKER CHANGES] Representative Carney. [SPEAKER CHANGES] ?? ask my question. [SPEAKER CHANGES] Representative Brawley. [SPEAKER CHANGES] In that case, is there a requirement in the bill that the other joint tenant be notified if there is just one signed? [SPEAKER CHANGES] I don’t believe that’s in the bill, but just like a partnership – just like on a partnership – one partner can bind the others on debts that the one partner runs up, and I think that’s there. I don’t think… I don’t believe one of the people on the joint account has to notify the others that they’re pledging in a security. I don’t think that’s required. [SPEAKER CHANGES] I think our banking rep back here was agreeing with that, and Representative ?? also has ?? [SPEAKER CHANGES] If I can make a comment on that, being in the mortgage industry, we’re talking about collateralized loans, which are mortgages. Mortgages will not close a loan if there’s a joint account being used unless all account holders sign a statement that says “I know that this is being used as collateral for the loan,” so I think that addresses the points we were discussing. [SPEAKER CHANGES] Representative B. Brawley. [SPEAKER CHANGES] Thank you, Madam Chair. I just want to clarify, when you talk about the other members of the joint account are liable, are they liable beyond the contents of the joint account or only the contents of the joint account? [SPEAKER CHANGES] I’m sure it’s only the contents of the joint account as far as it’s collateral. [SPEAKER CHANGES] Right, that’s correct. [SPEAKER CHANGES] Name and… [SPEAKER CHANGES] Lauren Langley with the Credit Union League. Yes, that’s correct. It’s just only the collateral that was pledged. [SPEAKER CHANGES] And other questions? If not, Representative Hardister, you’re recognized for a motion. [SPEAKER CHANGES] Thank you, Madam Chair. I move for a favorable report on House Bill 1117 with a referral to Judiciary Subcommittee A. Or is it B? [SPEAKER CHANGES] Is there a second? [SPEAKER CHANGES] Second. [SPEAKER CHANGES] Motion’s been made and seconded. All those in favor say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed, nay. Ayes have it. The meeting is adjourned. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] And ya’ll, as you know, this meeting will always happen at odd times, so we’ll work around it.