SB 675: Charitable Orgs. Privacy Protection Act. - North Carolina

Edition 3 → Edition 4 · 4 edits

MODERATE

The bill was revised to expand eligibility for charitable organizations by allowing out-of-state entities with valid North Carolina authority to participate, while tightening the required proof of death to a certified death certificate. Additionally, a new exemption was added to protect financial institutions from liability if complying with the bill would force them to violate federal securities laws.

Scope change

The bill now applies to charitable organizations incorporated in other states that have obtained a valid certificate of authority in North Carolina, in addition to those incorporated in North Carolina.

ELIGIBILITY

Charitable organizations must now be incorporated in North Carolina or another state with a valid certificate of authority in North Carolina to use the affidavit process.

REQUIREMENT

The required proof of death was changed from a flexible list of documents to specifically requiring a 'certified copy of the death certificate.'

EXEMPTIONS

A new provision exempts holders of property from compliance if doing so would cause them to violate federal or state law, such as securities regulations.

DEFINITION

Minor formatting adjustments were made to the list of nonprobate assets included in the definition of beneficiary designation.

Edition 2 → Edition 3 · 5 edits

MODERATE

The bill was completely rewritten to change its purpose from regulating fees on second mortgages to protecting charitable organizations when they are named as beneficiaries of non-probate assets. The new version allows charities to request property transfers or information by submitting a sworn affidavit with specific supporting documents, while shielding them from liability if they act in good faith.

Scope change

The scope shifted entirely from consumer lending regulations to estate administration and property transfer procedures involving charitable organizations.

SCOPE

Removed all provisions regarding maximum fees and discounts that lenders can charge on second or junior lien real estate loans.

DEFINITION

Added a new definition for 'beneficiary designation' to include annuities, insurance policies, payable-on-death accounts, and other non-probate transfers.

REQUIREMENT

Established a new affidavit process requiring charities to submit proof of tax-exempt status, good standing, death verification, and internal authorization to claim property.

ENFORCEMENT

Created a legal mechanism allowing charities to sue for property delivery if a holder refuses to comply within 30 days, with potential court-awarded damages.

TIMELINE

Changed the effective date context from immediate enactment upon signing to a specific legislative session timeline (Session 2025 vs 2026).

Edition 1 → Edition 2 · 2 edits

MINOR

This bill amends the Second Mortgage Fee Alignment Act to clarify how the maximum allowable fee (3% of the loan amount) is calculated. The change adds a specific legal definition for 'total loan amount' to ensure consistency with other state laws.

Scope change

The bill's scope remains focused on second mortgages, but the applicability of the fee cap is now explicitly tied to a defined legal term.

DEFINITION

Added a reference to G.S. 24-1.1E(a)(7) to define 'total loan amount,' ensuring the 3% fee cap is calculated using a consistent legal standard.

TECHNICAL

Removed the names of the primary sponsors (Senators Craven, Overcash, and Blue) and the committee referral status, likely due to procedural updates in the bill's text.

Filed → Edition 1 · 3 edits

MINOR

The document underwent a transition from a filing status to an official edition, updating the bill number to S675-v-1 and changing the referral from an unspecified body to the Rules and Operations of the Senate. The effective date was updated to March 26, 2025, while the core policy content regarding second mortgage fees remains unchanged.

Scope change

The bill's scope is unchanged; only the procedural status and administrative metadata were updated.

TECHNICAL

Updated the bill identifier from a draft code (DRS15265-NN-48A) to the official edition code (S675-v-1).

Changed the referral information to specify the Rules and Operations of the Senate with a date of March 26, 2025.

Updated the filing date in the header to reflect the official edition date.

Charitable Orgs. Privacy Protection Act.

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