NC General Statutes

N.C. Gen. Stat. § 66-108 (2026)

Bond or trust account required

✓ current as of July 2026

Find cases: SyfertCases citing this section NCLEGncleg.gov (official) JustiaChapter 66 CornellLII Search CasesGoogle Scholar

(a) Every loan broker must obtain a surety bond issued by a surety company authorized to do business in this State, or establish a trust account with a licensed and insured bank or savings institution located in the State of North Carolina. The amount of the bond or trust account shall be ten thousand dollars ($10,000). The bond or trust account shall be in favor of the State of North Carolina. Any person damaged by the loan broker's breach of contract or of any obligation arising therefrom, or by any violation of this Article, may bring an action against the bond or trust account to recover damages suffered. The aggregate liability of the surety or trustee shall be only for actual damages and in no event shall exceed the amount of the bond or trust account.

(b) Failure to comply with subsection (a) shall be a Class 1 misdemeanor.

(c) No loan broker shall collect any advance fee or other valuable consideration from a borrower prior to the closing of the loan. This prohibition shall not preclude the loan broker from collecting reasonable and necessary fees payable to third parties for appraisal, property survey, title examination, and credit reports. (1979, c. 705, s. 1; 1993, c. 339, s. 3, c. 539, s. 522; 1994, Ex. Sess., c. 24, s. 14(c).)

Notes of Decisions

Cited in 3 cases, 2005–2006 · leading case: Printing Servs. of Greensboro, Inc. v. Am. Capital Grp., Inc., 637 S.E.2d 230 (N.C. Ct. App. 2006).

Sort: Relevance Newest Treatment

Printing Servs. of Greensboro, Inc. v. Am. Capital Grp., Inc., 637 S.E.2d 230 (N.C. Ct. App. 2006). · cites it 4× “The trial court in the instant case found the following as fact: defendant willfully collected an advance fee in violation of section 66-108(c); defendant refused to fully resolve the matter; and the attorney's fees were reasonable.”

Johnson v. Wornom, 606 S.E.2d 372 (N.C. Ct. App. 2005). · cites it 2× “§ 66-107 (2003)), obtain a surety bond or establish a trust account ( N.C. Gen. Stat. § 66-108 (2003)), and file various materials with the Secretary of State ( N.”

Zander v. Greater Emmanuel Pentecostal Temple of Durham, 606 S.E.2d 459 (N.C. Ct. App. 2005). · cites it 2× “66-107, and either a copy of the bond required by G.S. 66-108, or a copy of the formal notification by the depository that the trust account required by G.”

— N.C. Gen. Stat. § 66-108(c) — 1 case

Printing Servs. of Greensboro, Inc. v. Am. Capital Grp., Inc., 637 S.E.2d 230 (N.C. Ct. App. 2006). “The trial court in the instant case found the following as fact: defendant willfully collected an advance fee in violation of section 66-108(c); defendant refused to fully resolve the matter; and the attorney's fees were reasonable.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.