NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

 

 

CHAPTER 780

SENATE BILL 133

 

 

AN ACT RELATING TO CERTAIN CONTRACTS OF MINOR CHILDREN.

 

The General Assembly of North Carolina do enact:

 

Section 1.  All minors in North Carolina of the age of 17 years and upwards shall have full power and authority to enter into written contracts of indebtedness with persons, North Carolina firms and corporations and to execute notes evidencing such indebtedness, which notes shall bear interest, if any, at no greater than six per cent (6%) per annum. Such loans shall be:

(1)        unsecured by the conveyance of any property as security, whether real, personal or mixed;

(2)        for the sole purpose of borrowing money to obtain a higher education at a North Carolina college, university, junior college, or industrial education center; provided, however that none of the proceeds of any such loans shall be used to pay for any correspondence courses;

(3)        the proceeds of the loan shall be disbursed either directly to a college, university, junior college, or industrial education center for the benefit of the borrower, or jointly to the borrower and the college, university, junior college, or industrial center.

Sec. 2.  All laws and clauses of laws in conflict herewith are hereby repealed.

Sec. 3.  This Act shall be effective upon its ratification.

In the General Assembly read three times and ratified, this the 11th day of June, 1963.