Removing Barriers Blog

TNC Bill Becomes Law in North Carolina
Posted August 28, 2015 by CUNA Advocacy

Last week, the North Carolina Legislature passed a measure that regulates transportation network companies (TNCs), and Governor Pat McCrory signed the measure into law.  The bill, H 541, requires TNC drivers to notify their lienholder when they begin to use a vehicle with a lien to perform TNC services. The legislation further requires TNCs to make the following disclosure to drivers:

 "If the vehicle with which you provide transportation network company services has a lien against it, you must notify the lienholder prior to providing transportation network company services of your intent to provide transportation services with the vehicle. You may disclose to the lienholder all insurance coverage information provided to you by the transportation network company. If you fail to provide the required insurance coverage under the terms of your contract with the lienholder or show evidence to the lienholder of the coverage provided by the transportation network company, you may violate the terms of your contract."

While, the bill does not require TNC drivers to have comprehensive and collision coverage, the lienholder notification provision is an important mechanism for credit unions to protect their members and collateral.