NC General Statutes

N.C. Gen. Stat. § 117-16 (2026)

Corporate purpose; terms and conditions of membership

✓ current as of July 2026

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The corporate purpose of each corporation formed hereunder shall be to render service to its members only, and no person shall become or remain a member unless such person shall use energy supplied by such corporation and shall have complied with the terms and conditions in respect to membership contained in the bylaws of such corporation: Provided, that such terms and conditions of membership shall be reasonable; and provided further, that no bona fide applicant for membership, who is able and willing to satisfy and abide by all such terms and conditions of membership, shall be denied arbitrarily, or capriciously, or without good cause. With respect to the members of an electric membership corporation whose principal purpose is to furnish or cause to be furnished bulk electric supplies at wholesale, the word "use" as used in this section shall also mean either "use and purchase" or "purchase" solely, as the case may be, and the words "supplied by" shall also mean "supplied for the account of". With respect to an electric membership corporation whose principal purpose is to furnish or cause to be furnished bulk electric supplies at wholesale, it shall be lawful for such corporation to enter into joint arrangements with other power supply entities, including but not limited to investor-owned public utilities and bodies politic, for the purchase and sale of bulk power supplies and bulk power services and for the joint ownership of bulk power supply properties. (1935, c. 291, s. 11; 1959, c. 387, s. 2; 1979, c. 285, s. 3.)

Notes of Decisions

Cited in 8 cases, 1961–2015 · leading case: Hammonds v. Lumbee River Elec. M'ship Corp., 631 S.E.2d 1 (N.C. Ct. App. 2006).

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Hammonds v. Lumbee River Elec. M'ship Corp., 631 S.E.2d 1 (N.C. Ct. App. 2006). · cites it 2× “]" N.C. Gen.Stat. § 117-16 (2005). LREMC serves members residing in parts of Cumberland, Hoke, Robeson, and Scotland counties.”

Pee Dee Elec. Membership Corp. v. Carolina Power & Light Co., 117 S.E.2d 764 (N.C. 1961). · cites it 4× “G.S. 117-16 provides that the corporate purpose of such membership corporation is "to render service to its members only," and "no person shall become or remain a member unless such person shall use energy supplied by such corporation and shall have complied with the terms and…”

Duke Power Co. v. Blue Ridge Elec. Membership Corp., 117 S.E.2d 812 (N.C. 1961). · cites it 3× “G.S. § 117-16. Membership is not terminated by a change in the character of the community from rural to urban.”

Hammonds v. Lumbee River Elec. Membership Corp., 178 N.C. App. 1 (N.C. Ct. App. 2006). · cites it 2× “]” N.C. Gen. Stat. § 117-16 (2005). LREMC serves members residing in parts of Cumberland, Hoke, Robeson, and Scotland counties.”

Duke Power Co. v. Blue Ridge Elec. Membership Corp., 122 S.E.2d 782 (N.C. 1961). “G.S. 117-16. Membership is not terminated by a change in the character of the community from rural to urban.”

Dennis v. Duke Power Co., 442 S.E.2d 104 (N.C. Ct. App. 1994). “It is clear that the economic effect on an electric supplier of a transfer of its customers to another electric supplier is not one of the expressly delineated grounds for transfer under G.”

Time Warner Ent.-Advance/Newhouse P'ship v. Carteret-Craven Elec. Membership Corp., 451 F. Supp. 2d 736 (E.D.N.C. 2006). · cites it 8× “] N.C. Gen.Stat. § 117-16 (emphasis added).”

Cape Hatteras Elec. Membership Corp. v. Stevenson, 2015 NCBC 34 (N.C. Bus. Ct. 2015). · cites it 6× “" G.S. § 117-16. 2 A court does not make findings of fact in ruling upon a motion for summary judgment.”

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