N.D. Cent. Code § 13-10-14 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-14
13-10-14. Minimum net worth required
Status: in_force

13-10-14. Minimum net worth required

A minimum net worth must be continuously maintained for mortgage loan originators in

accordance with this section. If the mortgage loan originator is an employee or exclusive agent

of a person subject to this chapter, the net worth of such person subject to this chapter may be

used in lieu of the mortgage loan originator's minimum net worth requirement.

1. Minimum net worth must be maintained in the amount of twenty-five thousand dollars.

However, the commissioner may increase the amount of minimum net worth if the

commissioner determines that such an increase is necessary to protect the public

interest.

2. The commissioner may promulgate rules or regulations with respect to the

requirements for minimum net worth as are necessary to accomplish the purposes of

this chapter.
N.D. Cent. Code § 13-13-06 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-06
13-13-06. Fee to accompany application for residential mortgage loan servicer license
Status: in_force

13-13-06. Fee to accompany application for residential mortgage loan servicer

license.

The application for license must be in writing, under oath, and in the form prescribed by the

commissioner. The application must give the location or locations where the business is to be

conducted and must contain any further information the commissioner requires, including the

names and addresses of the partners, officers, directors, trustees, and the principal owners or

members, and will provide the basis for the investigation and findings contemplated under

section 13-13-05. At the time of making an application, the applicant shall include payment in

the sum of four hundred dollars, which is not subject to refund, as a fee for investigating the

application, and the sum of four hundred dollars for a license fee.
N.D. Cent. Code § 13-02.1-09 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-09
13-02.1-09. Extinguishment of claim for relief
Status: in_force

13-02.1-09. Extinguishment of claim for relief

A claim for relief with respect to a transfer or obligation under this chapter is extinguished

unless action is brought:

1. Under subdivision a of subsection 1 of section 13-02.1-04, not later than four years

after the transfer was made or the obligation was incurred or, if later, not later than one

year after the transfer or obligation was or could reasonably have been discovered by

the claimant;

2. Under subdivision b of subsection 1 of section 13-02.1-04 or subsection 1 of section

13-02.1-05, not later than four years after the transfer was made or the obligation was

incurred; or

3. Under subsection 2 of section 13-02.1-05, not later than one year after the transfer

was made.
N.D. Cent. Code § 13-09.1-47 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-47
13-09.1-47. Required disclosures
Status: in_force

13-09.1-47. Required disclosures

1. A licensee that engages in virtual-currency business activity shall provide to a person

who uses the licensee's products or services the disclosures required by subsection 2

and any additional disclosure the commissioner by rule or order determines

reasonably necessary for the protection of persons. The commissioner shall determine

by rule or order the time and form required for disclosure. A disclosure required by this

section must be made separately from any other information provided by the licensee

and in a clear and conspicuous manner in a record the person may keep. A licensee

may propose for the commissioner's approval alternate disclosure as appropriate for

the licensee's virtual-currency business activity with or on behalf of a person.

2. Before establishing a relationship with a person, a licensee shall disclose, to the extent

applicable to the virtual-currency business activity the licensee will undertake with the

person, including:

a. A schedule of fees and charges the licensee may assess, the manner by which

fees and charges will be calculated if they are not set in advance and disclosed,

and the timing of the fees and charges;

b. Whether the product or service provided by the licensee is covered by:

(1) A form of insurance or is otherwise guaranteed against loss by an agency of

the United States:

(a) Up to the full United States dollar equivalent of virtual currency

purchased from the licensee or for control of virtual currency by the

licensee as of the date of the placement or purchase, including the

maximum amount provided by insurance under the federal deposit

insurance corporation, the national credit union administration, or

otherwise available from the securities investor protection corporation;

or

(b) If not provided at the full United States dollar equivalent of virtual

currency purchased from the licensee or for control of virtual currency

by the licensee, the maximum amount of coverage for each person

expressed in the United States dollar equivalent of the virtual

currency; or

(2) Private insurance against theft or loss, including cyber theft or theft by other

means;

c. The irrevocability of a transfer or exchange and any exception to irrevocability;

d. A description of:

(1) Liability for an unauthorized, mistaken, or accidental transfer or exchange;

(2) The person's responsibility to provide notice to the licensee of the transfer or

exchange;

(3) The basis for any recovery by the person from the licensee;

(4) General error-resolution rights applicable to the transfer or exchange; and

(5) The method for the person to update the person's contact information with

the licensee;

e. That the date or time when the transfer or exchange is made and the person's

account is debited may differ from the date or time when the person initiates the

instruction to make the transfer or exchange;

f. Whether the person has a right to stop a preauthorized payment or revoke

authorization for a transfer and the procedure to initiate a stop-payment order or

revoke authorization for a subsequent transfer;

g. The person's right to receive a receipt, trade ticket, or other evidence of the

transfer or exchange;

h. The person's right to at least thirty days' notice of a change in the licensee's fee

schedule, other terms and conditions of operating its virtual-currency business

activity with the person and the policies applicable to the person's account; and

i. That virtual currency is not money.

3. Except as otherwise provided in subsection 4, at the conclusion of a virtual-currency

transaction with or on behalf of a person, a licensee shall provide the person a

confirmation in a record which contains:

a. The name and contact information of the licensee, including information the

person may need to ask a question or file a complaint;

b. The type, value, date, precise time, and amount of the transaction; and

c. The fee charged for the transaction, including any charge for conversion of virtual

currency to money, bank credit, or other virtual currency.

4. If a licensee discloses it will provide a daily confirmation in the initial disclosure under

subsection 3, the licensee may elect to provide a single, daily confirmation for all

transactions with or on behalf of a person on that day instead of a per-transaction

confirmation.
N.D. Cent. Code § 13-12-07 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-07
13-12-07. Surety bond required
Status: in_force

13-12-07. Surety bond required

1. Each licensee shall maintain a surety bond in an amount not less than fifty thousand

dollars. The surety bond must be in a form prescribed by the commissioner.

2. When an action is commenced on a licensee's bond, the commissioner may require

the filing of a new bond.

3. Immediately upon recovery of any action on the bond, the licensee shall file a new

bond.
N.D. Cent. Code § 13-09.1-43 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-43
13-09.1-43. Transition period
Status: in_force

13-09.1-43. Transition period

This chapter goes into effect August 1, 2023. For current licensees, the effective date is

upon license renewal, but no later than December 31, 2023.
N.D. Cent. Code § 13-13-10 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-10
13-13-10. Expiration and renewal of license
Status: in_force

13-13-10. Expiration and renewal of license

All licenses required under this chapter expire on December thirty-first of each year and

may be renewed. Renewals are effective the succeeding January first. Applications for renewal

must be submitted no later than thirty days before the expiration of the license and must be

accompanied by the required annual renewal fee, which is not subject to refund. The renewal

fee must equal five hundred dollars or two dollars and forty cents per one hundred thousand

dollars of North Dakota mortgage loans serviced, whichever is greater. The renewal fee shall be

based on the average mortgage loans serviced over the previous four quarters ending June

thirtieth of the current year as reported on the mortgage call report. The renewal fee may not

exceed one hundred thousand dollars. Fees must be paid to the department of financial

institutions and be deposited in the financial institutions regulatory fund. The form and content of

renewal applications must be determined by the department of financial institutions, and a

renewal application may be denied upon the same grounds as would justify denial of an initial

application. When a licensee has been delinquent in renewing its license, the department of

financial institutions may charge an additional fee of fifty dollars for the renewal of the license. A

residential mortgage loan servicer license is not transferable. If the commissioner determines

that an ownership change has occurred in a sole proprietorship, partnership, limited liability

partnership, corporation, or limited liability corporation that was previously granted a residential

mortgage loan servicer license, the commissioner may require a new application from the

purchaser. The application must be filed within forty-five days from the date change of

ownership is consummated. The residential mortgage loan servicer license granted to the

previous owner continues in effect to the new purchaser until the application is either granted or

denied.
N.D. Cent. Code § 13-05-09 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-09
13-05-09. Remedies not exclusive
Status: in_force

13-05-09. Remedies not exclusive

The remedies provided for in this chapter are in addition to and not exclusive of any other

remedies provided by law.
N.D. Cent. Code § 13-04.1-05.1 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-05.1
13-04.1-05.1. Automatic six-month extension of license during 2009 calendar year
Status: repealed

13-04.1-05.1. Automatic six-month extension of license during 2009 calendar year

Repealed by S.L. 2019, ch. 123, § 10.
N.D. Cent. Code § 13-09.1-49 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-49
13-09.1-49. Additional requirement and clarifications for virtual-currency business activities
Status: in_force

13-09.1-49. Additional requirement and clarifications for virtual-currency business

activities.

1. A licensee engaged in virtual-currency business activities must comply with all

provisions of this chapter to the extent applicable to the licensee's activities.

2. A licensee engaged in virtual-currency business activities may include in its calculation

of tangible net worth virtual currency, measured by the average value of the virtual

currency in United States dollar equivalent over the prior six months, excluding control

of virtual currency for a person entitled to the protections pursuant to section

13-09.1-48.

3. A licensee shall maintain, for all virtual-currency business activity with or on behalf of a

person five years after the date of the activity, a record of:

a. Each transaction of the licensee with or on behalf of the person or for the

licensee's account in this state, including:

(1) The identity of the person;

(2) The form of the transaction;

(3) The amount, date, and payment instructions given by the person; and

(4) The account number, name, and United States postal service address of the

person, and, to the extent feasible, other parties to the transaction;

b. The aggregate number of transactions and aggregate value of transactions by the

licensee with or on behalf of the person and for the licensee's account in this

state, expressed in United States dollar equivalent of virtual currency for the

previous twelve calendar months;

c. Each transaction in which the licensee exchanges one form of virtual currency for

money or another form of virtual currency with or on behalf of the person;

d. A general ledger posted at least monthly that lists all assets, liabilities, capital,

income, and expenses of the licensee;

e. Each business-call report the licensee is required to create or provide to the

department of financial institutions or the nationwide system;

f. Bank statements and bank reconciliation records for the licensee and the name,

account number, and United States postal service address of each bank the

licensee uses in the conduct of its virtual-currency business activity with or on

behalf of the person;

g. A report of any dispute with the person; and

h. A report of any virtual-currency business activity transaction with or on behalf of a

person which the licensee was unable to complete.

4. A licensee shall maintain records required by subsection 3 in a form that enables the

commissioner to determine whether the licensee is in compliance with this chapter,

any court order, and law of this state other than this chapter.
N.D. Cent. Code § 13-01-05 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-05
13-01-05. Transfers with intent to defraud or delay creditors are void
Status: repealed

13-01-05. Transfers with intent to defraud or delay creditors are void

Repealed by S.L. 1985, ch. 186, § 12.
N.D. Cent. Code § 13-11-29 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-29
13-11-29. Private enforcement
Status: in_force

13-11-29. Private enforcement

Any person that is aggrieved by a violation of this chapter may bring an action to enjoin the

violation, or for restitution, or both. The court may award the plaintiff the plaintiff's actual

restitution or a sum up to two thousand dollars, whichever is greater. The court may award the

plaintiff costs, expenses, and reasonable attorney's fees. This section does not limit any other

claims the person may have against the debt-settlement provider or any third party subject to

this chapter.
N.D. Cent. Code § 13-09.1-10 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-10
13-09.1-10. Consistent state licensing
Status: in_force

13-09.1-10. Consistent state licensing

1. To establish consistent licensing between North Dakota and other states, the

commissioner may:

a. Implement all licensing provisions of this chapter in a manner that is consistent

with other states that have adopted this chapter or multistate licensing processes;

and

b. Participate in nationwide protocols for licensing cooperation and coordination

among state regulators provided that the protocols are consistent with this

chapter.

2. In order to fulfill the purposes of this chapter, the commissioner may establish

relationships or contracts with the nationwide system or other entities designated by

the nationwide system to enable the commissioner to:

a. Collect and maintain records;

b. Coordinate multistate licensing processes and supervision processes;

c. Process fees; and

d. Facilitate communication between North Dakota and licensees or other persons

subject to this chapter.

3. The commissioner may utilize the nationwide system for all aspects of licensing in

accordance with this chapter, including license applications, applications for

acquisitions of control, surety bonds, reporting, criminal history background checks,

credit checks, fee processing, and examinations. The commissioner may utilize the

nationwide system forms, processes, and functionalities in accordance with this

chapter. In the event the nationwide system does not provide functionality, forms, or

processes for a provision of this chapter, the commissioner may strive to implement

the requirements in a manner that facilitates uniformity with respect to licensing,

supervision, reporting, and regulation of licensees which are licensed in multiple

jurisdictions.

4. For the purpose of participating in the nationwide system, the commissioner may

waive or modify, in whole or in part, by rule, regulation, or order, any or all of the

requirements and to establish new requirements as reasonably necessary to

participate in the nationwide system.
N.D. Cent. Code § 13-13-02 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-02
13-13-02. Administration
Status: in_force

13-13-02. Administration

The department of financial institutions shall administer and enforce this chapter. The

department has the power to promulgate rules and regulations having the force and effect of

law, reasonably necessary to carry out the provisions of this chapter, in accordance with chapter
N.D. Cent. Code § 13-13-25 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-25
13-13-25. Disclosure of customer information
Status: in_force

13-13-25. Disclosure of customer information

Except for provisions of chapter 6-08.1 which are inconsistent with this chapter, chapter

6-08.1 applies to all residential mortgage loan servicers licensed under this chapter.
N.D. Cent. Code § 13-04.1-08 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-08
13-04.1-08. Revocation of license - Suspension of license - Surrender of license
Status: in_force

13-04.1-08. Revocation of license - Suspension of license - Surrender of license

1. The commissioner may issue upon any licensee an order suspending or revoking a

licensee's license if the commissioner finds that:

a. The licensee has failed to pay the annual license fee under this chapter or any

examination fee imposed by the commissioner under the authority of this chapter.

b. The licensee, either knowingly or without the exercise of due care to prevent the

same, has violated any provision of this chapter or any regulation or order lawfully

made pursuant to and within the authority of this chapter.

c. Any fact or condition existing at the time of the original application for such

license which clearly would have warranted the department of financial

institutions in refusing originally to issue such license.

d. The licensee has failed to maintain the required bond.

e. The licensee has failed to maintain registration with the secretary of state if so

required.

2. The order must contain a notice of opportunity for hearing pursuant to chapter 28-32.

3. If no hearing is requested within twenty days of the date the order is served upon the

licensee the order is final. If a hearing is held and the commissioner finds that the

record so warrants, the commissioner may enter a final order. The final order shall be

final suspending or revoking the license.

4. If the commissioner finds that probable cause for revocation of any license exists and

that enforcement of the chapter requires immediate suspension of such license

pending investigation, it may, enter an order suspending such license for a period not

exceeding the time required to serve upon the licensee written notice plus sixty days,

pending the holding of a hearing as prescribed in this chapter.

5. Any licensee may surrender the licensee's license by providing the department of

financial institutions with written notice of its surrender, but such surrender does not

affect the licensee's civil or criminal liability for acts committed prior thereto.
N.D. Cent. Code § 13-01-09 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-09
13-01-09. Preference by special partnership or by member thereof - When void
Status: repealed

13-01-09. Preference by special partnership or by member thereof - When void

Repealed by S.L. 1985, ch. 186, § 12.
N.D. Cent. Code § 13-01-11 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-11
13-01-11. Fraudulent conveyance - Penalty
Status: in_force

13-01-11. Fraudulent conveyance - Penalty

Any person who is a party to any conveyance or assignment of any interest in real or

personal property entered into with intent to defraud prior or subsequent purchasers, creditors,

or other persons except those with security interest in the property involved, who knowingly

participates in such a conveyance or assignment, is guilty of a class A misdemeanor.
N.D. Cent. Code § 13-09.1-37 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-37
13-09.1-37. Suspension and revocation of authorized delegates
Status: in_force

13-09.1-37. Suspension and revocation of authorized delegates

1. The commissioner may issue an order suspending or revoking the designation of an

authorized delegate, if the commissioner finds that:

a. The authorized delegate violated this chapter or a rule adopted or an order issued

under this chapter;

b. The authorized delegate did not cooperate with an examination or investigation

by the commissioner;

c. The authorized delegate engaged in fraud, intentional misrepresentation, or gross

negligence;

d. The authorized delegate is convicted of a violation of a state or federal

anti-money laundering statute;

e. The competence, experience, character, or general fitness of the authorized

delegate or a person in control of the authorized delegate indicates that it is not in

the public interest to permit the authorized delegate to provide money

transmission; or

f. The authorized delegate is engaging in an unsafe or unsound practice.

2. In determining whether an authorized delegate is engaging in an unsafe or unsound

practice, the commissioner may consider the size and condition of the authorized

delegate's provision of money transmission, the magnitude of the loss, the gravity of

the violation of this chapter or a rule adopted or order issued under this chapter, and

the previous conduct of the authorized delegate.

3. An authorized delegate may apply for relief from a suspension or revocation of

designation as an authorized delegate according to procedures prescribed by the

commissioner.
N.D. Cent. Code § 13-12-21 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-21
13-12-21. Penalty
Status: in_force

13-12-21. Penalty

A person or company violating any of the provisions of this chapter or any rule or order of

the department of financial institutions made pursuant to the provisions of this chapter or who

engages in any act, practice, or transaction declared by any provision of this chapter to be

unlawful is guilty of a class C felony. The commissioner may impose a civil money penalty not to

exceed one hundred thousand dollars for each occurrence and one thousand dollars per day for

each day the violation continues after issuance of the order against any person or company who

violates a law, rule, written agreement, or order under this chapter. An interested party may

appeal the assessment of a civil money penalty under the provisions of chapter 28-32 by filing a

written notice of appeal within twenty days after service of the assessment of civil money

penalties. A civil money penalty collected under this section must be paid to the department of

financial institutions and deposited in the financial institutions regulatory fund.
N.D. Cent. Code § 13-07-02 — ND Code / Title 13 / Chapter 13-07 / Section 13-07-02
13-07-02. Consumer credit counseling service - Contract requirements
Status: in_force

13-07-02. Consumer credit counseling service - Contract requirements

Any agreement between a consumer credit counseling service and a debtor for counseling

and assistance must be in writing and signed by both parties. The consumer credit counseling

service shall give the debtor a copy of the signed agreement. The agreement must disclose the

total amount that may be retained by the consumer credit counseling service if the contract is

fully performed, the terms upon which the debtor may cancel the contract, and all debts that are

to be managed by the counseling service, including the name of each creditor and the amount

of each debt. A consumer credit counseling service may not enter an agreement with a debtor

unless a thorough written budget analysis indicates that the debtor can reasonably meet the

requirements of the financial adjustment plan and that the debtor will be benefited by the plan.
N.D. Cent. Code § 13-05-07.1 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-07.1
13-05-07.1. Response to department requests
Status: in_force

13-05-07.1. Response to department requests

An applicant, licensee, or other person subject to the provisions of this chapter shall comply

with requests for information, documents, or other requests from the department of financial

institutions within the time specified in the request, which must be a minimum of ten days, or, if

no time is specified, within thirty days of the request by the department of financial institutions. If

the request for information is in regard to a new application or renewal of an existing application

and is not received within the time specified in the request, the department may deny the

application.
N.D. Cent. Code § 13-08-11.2 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-11.2
13-08-11.2. Confidentiality
Status: in_force

13-08-11.2. Confidentiality

To promote more effective regulation and reduce regulatory burden through supervisory

information sharing, the commissioner or commissioner's designee may furnish information to or

receive information from a nationwide multistate licensing system for the purpose of regulation

of the financial services industry. Information furnished by the commissioner to any third party

which is confidential or privileged in the commissioner's possession remains confidential or

privileged in the possession of the third party. Information received by the commissioner from

any third party which is confidential or privileged in the third-party's possession remains

confidential or privileged in the commissioner's possession.
N.D. Cent. Code § 13-11-06 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-06
13-11-06. Expiration and renewal of license
Status: in_force

13-11-06. Expiration and renewal of license

All licenses required under this chapter expire on December thirty-first of each year and

may be renewed. Renewals are effective the succeeding January first. Applications for renewal

must be submitted at least thirty days before the expiration of the license and must be

accompanied by the required annual fees, which are not subject to refund. The form and

content of renewal applications must be determined by the commissioner, and a renewal

application may be denied upon the same grounds as would justify denial of an initial

application. If a licensee has been delinquent in renewing the licensee's license, the

commissioner may charge an additional fee of fifty dollars for the renewal of the license. A

debt-settlement provider license is not transferable. If the commissioner determines that an

ownership change has occurred in a sole proprietorship, partnership, limited liability partnership,

corporation, or limited liability corporation that was previously granted a debt-settlement provider

license, the commissioner may require a new application from the purchaser. The application

must be filed at least thirty days before the date on which the change of ownership is

consummated.
N.D. Cent. Code § 13-11-19 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-19
13-11-19. Debt-settlement contract
Status: in_force

13-11-19. Debt-settlement contract

1. A debt-settlement provider may not provide debt-settlement service to a consumer

without a written contract signed and dated by both the consumer and the

debt-settlement provider.

2. Any contract for the provision of debt-settlement service entered in violation of this

section is voidable.

3. A contract between a debt-settlement provider and a consumer for the provision of

debt-settlement service must disclose all of the following clearly and conspicuously:

a. The name and address of the consumer.

b. The date of execution of the contract.

c. The legal name of the debt-settlement provider, including any other business

names used by the debt-settlement provider.

d. The corporate address and regular business address, including a street address,

of the debt-settlement provider.

e. The telephone number at which the consumer may speak with a representative of

the debt-settlement provider during normal business hours.

f. A complete list of the consumer's accounts, debts, and obligations to be included

in the provision of debt-settlement service, including the name of each creditor

and principal amount of each debt.

g. A description of the services to be provided by the debt-settlement provider,

including the expected time frame for settlement for each account, debt, or

obligation included in subdivision f.

h. An itemized list of all fees to be paid by the consumer to the debt-settlement

provider, and the date, approximate date, or circumstances under which each fee

will become due.

i. A good-faith estimate of the total amount of all fees and compensation, not to

exceed the amounts specified in section 13-11-21, to be collected by the

debt-settlement provider from the consumer for the provision of debt-settlement

service contemplated by the contract.

j. A statement of the proposed savings goals for the consumer, stating the amount

to be saved per month or other period, time period over which savings goals

extend, and the total amount of the savings expected to be paid by the consumer

pursuant to the terms of the contract.

k. The amount of money or the percentage of debt the consumer must accumulate

before a settlement offer will be made to each of the consumer's creditors.

I. The written individualized financial analysis required by section 13-11-18.

m. The contents of the "Consumer Notice and Rights Form" provided in section

13-11-17.

n. A written notice to the consumer that the consumer may cancel the contract at

any time until after the debt-settlement provider has fully performed each service

the debt-settlement provider contracted to perform or represented that the

debt-settlement provider would perform, and upon that event:

(1) The consumer is entitled to a full refund of all unearned fees and

compensation paid by the consumer to the debt-settlement provider, and a

full refund of all funds provided by the consumer to the debt-settlement

provider for a consumer settlement account, except for funds actually paid

to a creditor on behalf of the consumer, under the terms of the contract for

debt-settlement service; and

(2) All powers of attorney granted to the debt-settlement provider by the

consumer must be considered revoked and voided.

o. A form the consumer may use to cancel the contract pursuant to the provisions of

section 13-11-20. The form must include the name and mailing address of the

debt-settlement provider and shall disclose clearly and conspicuously how the

consumer can cancel the contract, including applicable addresses, telephone

numbers, facsimile numbers, and electronic mail addresses the consumer can

use to cancel the contract.

4. If a debt-settlement provider communicates with a consumer primarily in a language

other than English, then the debt-settlement provider shall furnish to the consumer a

translation of all the disclosures and documents required by this chapter in that other

language.
N.D. Cent. Code § 13-10-16 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-16
13-10-16. Investigation and examination authority
Status: in_force

13-10-16. Investigation and examination authority

In addition to any authority allowed under this chapter, the commissioner may conduct

investigations and examinations as follows:

1. For purposes of initial licensing, license renewal, license suspension, license

conditioning, license revocation or termination, or general or specific inquiry or

investigation to determine compliance with this chapter, the commissioner may

access, receive, and use any books, accounts, records, files, documents, information,

or evidence, including:

a. Criminal, civil, and administrative history information, including nonconviction

data;

b. Personal history and experience information, including independent credit reports

obtained from a consumer reporting agency described in section 603(p) of the

Fair Credit Reporting Act; and

c. Any other documents, information, or evidence the commissioner deems relevant

to the inquiry or investigation regardless of the location, possession, control, or

custody of such documents, information, or evidence.

2. For the purposes of investigating violations or complaints arising under this chapter, or

for the purposes of examination, the commissioner may review, investigate, or

examine any licensee, individual, or person subject to this chapter, as often as

necessary in order to carry out the purposes of this chapter. The commissioner may

direct, subpoena, or order the attendance of and examine under oath all persons

whose testimony may be required about the loans or the business or subject matter of

any such examination or investigation, and may direct, subpoena, or order such

person to produce books, accounts, records, files, and any other documents the

commissioner deems relevant to the inquiry.

3. Each licensee, individual, or person subject to this chapter shall make available to the

commissioner upon request the books and records relating to the operations of such

licensee, individual, or person subject to this chapter. The commissioner shall have

access to such books and records and interview the officers, principals, mortgage loan

originators, employees, independent contractors, agents, and customers of the

licensee, individual, or person subject to this chapter concerning their business.

4. Each licensee, individual, or person subject to this chapter shall make or compile

reports or prepare other information as directed by the commissioner in order to carry

out the purposes of this section, including:

a. Accounting compilations;

b. Information lists and data concerning loan transactions in a format prescribed by

the commissioner; or

c. Such other information deemed necessary to carry out the purposes of this

section.

5. In making any examination or investigation authorized by this chapter, the

commissioner may control access to any documents and records of the licensee or

person under examination or investigation. The commissioner may take possession of

the documents and records or place a person in exclusive charge of the documents

and records in the place where they are usually kept. During the period of control, no

individual or person shall remove or attempt to remove any of the documents and

records except pursuant to a court order or with the consent of the commissioner.

Unless the commissioner has reasonable grounds to believe the documents or records

of the licensee have been, or are at risk of being altered or destroyed for purposes of

concealing a violation of this chapter, the licensee or owner of the documents and

records shall have access to the documents or records as necessary to conduct its

ordinary business affairs.

6. In order to carry out the purposes of this section, the commissioner may:

a. Retain accountants or other professionals and specialists as examiners, auditors,

or investigators to conduct or assist in the conduct of examinations or

investigations;

b. Enter into agreements or relationships with other government officials or

regulatory associations in order to improve efficiencies and reduce regulatory

burden by sharing resources, standardized or uniform methods or procedures,

and documents, records, information, or evidence obtained under this section;

c. Use, hire, contract, or employ publicly or privately available analytical systems,

methods, or software to examine or investigate the licensee, individual, or person

subject to this chapter;

d. Accept and rely on examination or investigation reports made by other

government officials, within or without this state; or

e. Accept audit reports made by an independent certified public accountant for the

licensee, individual, or person subject to this chapter in the course of that part of

the examination covering the same general subject matter as the audit and may

incorporate the audit report in the report of the examination, report of

investigation, or other writing of the commissioner.

7. The authority of this section remains in effect, whether such a licensee, individual, or

person subject to this chapter acts or claims to act under any licensing or registration

law of this state or claims to act without such authority.

8. No licensee, individual, or person subject to investigation or examination under this

section may knowingly withhold, abstract, remove, mutilate, destroy, or secrete any

books, records, computer records, or other information.
N.D. Cent. Code § 13-10-21 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-21
13-10-21. Unique identifier shown
Status: in_force

13-10-21. Unique identifier shown

The unique identifier of any person originating a residential mortgage loan shall be clearly

shown on all residential mortgage loan application forms, solicitations, or advertisements,

including business cards or websites, and any other documents as established by rule,

regulation, or order of the commissioner.
N.D. Cent. Code § 13-13-07 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-07
13-13-07. Financial condition
Status: in_force

13-13-07. Financial condition

This section applies to large servicers as defined in subsection 9 of section 13-13-01.

1. A large servicer must maintain capital and liquidity in compliance with this section.

2. For the purposes of complying with the capital and liquidity requirements of this

section, all financial data must be determined in accordance with generally accepted

accounting principles.

3. A large servicer that meets the federal housing finance agency eligibility requirements

for enterprise single-family seller or servicers for capital, net worth ratio, and liquidity,

regardless of whether the servicer is approved for government-sponsored enterprises

servicing, meets the requirements of subsections 1 and 2. Large servicers shall

maintain written policies and procedures implementing the capital and servicing

liquidity requirements of this section. Such policies and procedures must include a

sustainable written methodology for satisfying the requirements of this subsection and

be available to the commissioner upon request.

4. Large servicers shall maintain sufficient allowable assets for liquidity in addition to the

amounts required for servicing liquidity to cover normal business operations. Large

servicers shall have sound cash management and business operating plans that

match the size and sophistication of the institution to ensure normal business

operations. Management must develop, establish, and implement plans, policies, and

procedures for maintaining operating liquidity sufficient for the ongoing needs of the

institution. The plans, policies, and procedures must contain sustainable, written

methodologies for maintaining sufficient operating liquidity and be available to the

commissioner upon request.
N.D. Cent. Code § 13-08-05.2 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-05.2
13-08-05.2. Automatic six-month extension of license during 2014 calendar year
Status: repealed

13-08-05.2. Automatic six-month extension of license during 2014 calendar year

Repealed by S.L. 2019, ch. 123, § 10.
N.D. Cent. Code § 13-08-07 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-07
13-08-07. Nontransferability - Change in control of license
Status: in_force

13-08-07. Nontransferability - Change in control of license

A license issued under this chapter is not transferable or assignable. The prior written

approval of the commissioner is required for the continued operation of a deferred presentment

service business if a change in control of a licensee occurs. Control in the case of a corporation

means direct or indirect ownership; the right to control twenty-five percent or more of the voting

shares of the corporation; or the ability of any person to elect a majority of the directors or

otherwise affect a change in policy. Control in the case of any other entity means the ability to

exchange the principals of the organization, whether active or passive. In the case of a change

of control request, the commissioner may require information the commissioner deems

necessary to determine whether a new application is required. A licensee shall notify the

commissioner fifteen days before any proposed change in the licensee's business location or

name.
N.D. Cent. Code § 13-13-01 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-01
13-13-01. Definitions
Status: in_force

13-13-01. Definitions

As used in this chapter, unless the context or subject matter otherwise requires:

1. "Allowable assets for liquidity" means those assets that may be used to satisfy the

liquidity requirements in this chapter, including unrestricted cash and cash equivalents

and unencumbered investment-grade assets held for sale or trade, which include

mortgage-backed securities, obligations of government-sponsored enterprises, and

United States treasury obligations.

2. "Board of directors" means the formal body established by an applicant or licensee

that is responsible for corporate governance and compliance with this chapter.

3. "Commissioner" means the commissioner of the department of financial institutions.

4. "Corporate governance" means the structure of the institution and how it is managed,

including the corporate rules, policies, processes, and practices used to oversee and

manage the institution.

5. "Government-sponsored enterprises" means the federal national mortgage association

(fannie mae), the government national mortgage association (ginnie mae), and the

federal home loan mortgage corporation (freddie mac).

6. "Interim mortgage servicing" means the activity of collecting a limited number of

contractual mortgage payments immediately after origination on loans held for sale but

prior to the loans being sold into the secondary market.

7. "Internal audit" means the internal activity of performing independent, objective

assurance and consulting to evaluate and improve the effectiveness of company

operations, risk management, internal controls, and governance processes.

8. "Large servicer" means a residential mortgage servicer with servicing portfolios of

two thousand or more one-to-four unit residential mortgage loans serviced or

subserviced for others, excluding whole loans owned, and loans being "interim"

serviced prior to sale as of the most recent calendar year end, reported in the

nationwide multistate licensing system and registry mortgage call report, and that

operates in two or more states, districts, or territories of the United States either

currently or as of the prior calendar year end. For entities within a holding company or

affiliated group of companies' applicability must be at the large servicer level. This

definition excludes servicers solely owning or conducting reverse mortgage servicing,

or both, or the reverse mortgage portfolio administered by the large servicer.

9. "Lender" means any person that extends money to a borrower with the expectation of

being repaid.

10. "Liquidity risk" means the potential that the servicer will be unable to meet its

obligations as they come due because of an inability to liquidate assets or obtain

adequate funding or that it cannot easily unwind or offset specific exposures.

11. "Mortgage call report" means the quarterly or annual report of residential real estate

loan origination, servicing, and financial information completed by companies licensed

in the nationwide multistate licensing system and registry.

12. "Mortgage servicing rights" refers to the contractual right to service residential

mortgage loans on behalf of the owner of the associated mortgage in exchange for

specified compensation in accordance with the servicing contract.

13. "Mortgage servicing rights investor" means entities that invest in and own mortgage

servicing rights and rely on subservicers to administer the loans on their behalf.

Mortgage servicing rights investors are often referred to as master servicers.

14. "Nationwide multistate licensing system and registry" means the registry developed by

the conference of state bank supervisors and the American association of residential

mortgage regulators and owned and operated by the state regulatory registry, LLC, or

any successor or affiliated entity, for the licensing and registration of persons in

financial services industries.

15. "Operating liquidity" means the funds necessary to perform normal business

operations, such as payment of rent, salaries, interest expense, and other typical

expenses associated with operating the entity.

16. "Records" means books, accounts, papers, records, and files, no matter in what format

they are kept, which are used in conducting business under this chapter.

17. "Residential mortgage loan servicing" means receiving any scheduled periodic

payments from a borrower pursuant to the terms of any federally related mortgage

loan, including amounts for escrow accounts under section 10 of the Real Estate

Settlement Procedures Act [12 U.S.C. 2609], and making the payments to the owner

of the loan or other third parties of principal and interest and such other payments with

respect to the amounts received from the borrower as may be required pursuant to the

terms of the mortgage servicing loan documents or servicing contract. In the case of a

home equity conversion mortgage or reverse mortgage as referenced in this section,

servicing includes making payments to the borrower.

18. "Reverse mortgage" means a loan collateralized by real estate, typically made to

borrowers over fifty-five years of age, which does not require contractual monthly

payments and is typically repaid upon the death of the borrower through the sale of the

home or refinance by the heirs.

19. "Risk management assessment" means the functional evaluations performed under

the risk management program and reports provided to the board of directors under the

relevant governance protocol.

20. "Risk management program" means the policies and procedures designed to identify,

measure, monitor, and mitigate risk sufficient for the level of sophistication of the

residential mortgage loan servicer.

21. "Service or servicing a loan" means:

a. Collecting or receiving payments on existing obligations due and owing to the

lender or investor, including payments of principal, interest, escrow amounts, and

other amounts due;

b. Collecting fees due to the servicer;

c. Working with the borrower and the licensed lender or servicer to collect data and

make decisions necessary to modify certain terms of those obligations either

temporarily or permanently;

d. Otherwise finalizing collection through the foreclosure process; or

e. Servicing a reverse mortgage loan.

22. "Servicer" means the entity performing the routine administration of residential

mortgage.

23. "Servicing liquidity or liquidity" means the financial resources necessary to manage

liquidity risk arising from servicing functions required in acquiring and financing

mortgage servicing rights, hedging costs, including margin calls, associated with the

mortgage servicing rights asset and financing facilities, and advances or costs of

advance financing for principal, interest, taxes, insurance, and any other servicing-

related advances.

24. "Subservicer" means the entity performing the routine administration of residential

mortgage loans as agent of a servicer or mortgage servicing rights investor under the

terms of a subservicing contract.

25. "Tangible net worth" means total equity less receivables due from related entities, less

goodwill, and other intangibles less pledged assets.

26. "Whole loans" means loans where a mortgage and the underlying credit risk is owned

and held on the balance sheet of the entity with all ownership rights.
N.D. Cent. Code § 13-10-01 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-01
13-10-01. Purpose
Status: in_force

13-10-01. Purpose

The purpose of this chapter is to protect consumers seeking mortgage loans and to ensure

that the mortgage lending industry is operating without unfair, deceptive, and fraudulent

practices on the part of mortgage loan originators.
N.D. Cent. Code § 13-05-06.4 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-06.4
13-05-06.4. Confidentiality
Status: in_force

13-05-06.4. Confidentiality

To promote more effective regulation and reduce regulatory burden through supervisory

information sharing, the commissioner or commissioner's designee may furnish information to or

receive information from a nationwide multistate licensing system for the purpose of regulation

of the financial services industry. Information furnished by the commissioner to any third party

which is confidential or privileged in the commissioner's possession remains confidential or

privileged in the possession of the third party. Information received by the commissioner from

any third party which is confidential or privileged in the third-party's possession remains

confidential or privileged in the commissioner's possession.
N.D. Cent. Code § 13-05-02.2 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-02.2
13-05-02.2. Child support collection agencies
Status: in_force

13-05-02.2. Child support collection agencies

1. Notwithstanding sections 13-05-02 and 13-05-02.3, a collection agency attempting in

any manner to collect child support as defined in section 14-09-09.10 must be licensed

under this chapter if either the child support debtor or creditor reside within this state, if

the child support debt arises under an order issued by a court of this state, or if a

record of the child support debt is being maintained on the statewide automated data

processing system under section 50-09-02.1.

2. A collection agency licensed under this section may not:

a. Impose a fee or charge for any child support collected primarily through the

efforts of a governmental agency;

b. Impose a fee or charge for collection of a current child support payment; or

c. Designate a current child support payment as past-due support or other amount

owed.

3. If the child support debt arises under an order issued by a court of this state, or if a

record of the child support debt is being maintained on the statewide automated data

processing system under section 50-09-02.1, all child support payments collected by a

collection agency must be paid to the department of health and human services within

five business days for disbursement under section 14-09-25. Child support payments

disbursed under section 14-09-25 may not be redirected to a collection agency unless

specifically permitted by rules adopted by the department of health and human

services.

4. A collection agency failing to pay child support payments to the department of health

and human services as required in this section is liable to the obligor for three times

the amount improperly withheld by the collection agency or five hundred dollars,

whichever is greater, in addition to any other remedy or damages permitted by law.

The department of health and human services is not required to give credit for

payments withheld by a collection agency in violation of this section.

5. Any person contracting for services with a collection agency for the collection of child

support may cancel the contract without a fee or charge upon thirty days' written

notice.
N.D. Cent. Code § 13-07-04 — ND Code / Title 13 / Chapter 13-07 / Section 13-07-04
13-07-04. Consumer credit counseling service - Trust accounts
Status: in_force

13-07-04. Consumer credit counseling service - Trust accounts

A consumer credit counseling service shall deposit in a trust account in a financial

institution, within one business day of receipt, any payments received from or on behalf of a

debtor. A debtor's payments must be identifiable in the trust account. Funds in the trust account

may not be commingled with any other funds. The consumer credit counseling service shall

credit any interest accrued as a result of payments deposited in a trust account to debt

management education programs.
N.D. Cent. Code § 13-09.1-48 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-48
13-09.1-48. Property interests and entitlement to virtual currency
Status: in_force

13-09.1-48. Property interests and entitlement to virtual currency

1. A licensee that has control of virtual currency for one or more persons shall maintain

control of virtual currency in each type of virtual currency sufficient to satisfy the

aggregate entitlements of the persons to the type of virtual currency.

2. If a licensee violates subsection 1, the property interests of the persons in the virtual

currency are pro rata property interests in the type of virtual currency to which the

persons are entitled, without regard to the time the persons became entitled to the

virtual currency or the licensee obtained control of the virtual currency.

3. The virtual currency referred to in this section is:

a. Held for the persons entitled to the virtual currency;

b. Not property of the licensee;

c. Not subject to the claims of creditors of the licensee; and

d. Deemed a permissible investment under this chapter.
N.D. Cent. Code § 13-13-12 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-12
13-13-12. Manner in which records to be kept
Status: in_force

13-13-12. Manner in which records to be kept

Every residential mortgage loan servicer licensed under this chapter shall keep a record of

all sums collected and all loans serviced by the residential mortgage loan servicer for a period of

six years from the date of last entry. If the records can be reproduced upon request by the

department of financial institutions within the required statutory time period provided in this

section, the records of a licensee may be maintained electronically. When a licensee ceases

operations for any reason, the licensee shall inform the department of the location of the

records. In addition, the licensee shall provide the name of the individual responsible for

maintenance of the records. The licensee shall notify the department within ten business days

of the change of the location of the records or the change of the individual responsible for

maintenance of the records.
N.D. Cent. Code § 13-05-08.1 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-08.1
13-05-08.1. Biennial report
Status: in_force

13-05-08.1. Biennial report

The commissioner of financial institutions shall submit a biennial report to the governor and

the secretary of state in accordance with section 54-06-04.
N.D. Cent. Code § 13-05-04.1 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-04.1
13-05-04.1. Surety bond required
Status: in_force

13-05-04.1. Surety bond required

1. Each licensee shall maintain a surety bond in the amount of fifty thousand dollars.

2. The surety bond must be in a form as prescribed by the commissioner.

3. When an action is commenced on a licensee's bond, the commissioner may require

the filing of a new bond.

4. Immediately upon recovery upon any action on the bond, the licensee shall file a new

bond.
N.D. Cent. Code § 13-05-03 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-03
13-05-03. Application for a collection agency license
Status: in_force

13-05-03. Application for a collection agency license

1. Each application for a collection agency license, or for a renewal thereof, must be in

the form prescribed by the commissioner and must contain the following information:

a. The full name and proposed business name of the applicant.

b. The address where the business is to be conducted.

c. The names and addresses of the applicant and those associated with the

applicant. If the applicant is a corporation, the application must contain the names

of the officers of the corporation. If the applicant is a limited liability company, the

application must contain the names of the managers of the limited liability

company. The applicant must register with the North Dakota secretary of state if

so required.

d. Such additional information which the department of financial institutions shall

require.

2. To fulfill the purposes of this chapter, the commissioner may establish relationships or

contracts with a nationwide multistate licensing system and registry or other entities

designated by a nationwide multistate licensing system and registry to collect and

maintain records and process transaction fees or other fees related to licensees or

other persons subject to the chapter. The applicant shall pay directly to such

nationwide multistate licensing system any additional fee relating to participation in

such nationwide multistate licensing system.

3. In connection with an application for licensing as a collection agency, or any license

renewals, the applicant shall furnish to the nationwide multistate licensing system

information concerning the applicant's identity, which may include:

a. Fingerprints for submission to the federal bureau of investigation, and any

governmental agency or entity authorized to receive such information for a state,

national, and international criminal history background check;

b. Personal history and experience in a form prescribed by the nationwide multistate

licensing system, including the submission of authorization for the nationwide

multistate licensing system and the commissioner to obtain:

(1) An independent credit report obtained from a consumer reporting agency

described in section 603(p) of the Fair Credit Reporting Act; and

(2) Information related to any administrative, civil, or criminal findings by any

governmental jurisdiction; and

c. Any other documents, information, or evidence the commissioner deems relevant

to the application regardless of the location, possession, control, or custody of

such documents, information, or evidence.

4. For the purposes of this section and in order to reduce the points of contact which the

federal bureau of investigation may have to maintain for purposes of subsection 3, the

commissioner may use the nationwide multistate licensing system and registry as a

channeling agent for requesting information from and distributing information to the

department of justice or any governmental agency.

5. For the purposes of this section and in order to reduce the points of contact which the

commissioner may have to maintain for purposes of subsection 3, the commissioner

may use the nationwide multistate licensing system and registry as a channeling agent

for requesting and distributing information to and from any source so directed by the

commissioner.
N.D. Cent. Code § 13-12-08 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-08
13-12-08. Minimum net worth required
Status: in_force

13-12-08. Minimum net worth required

A minimum net worth must be continuously maintained by every licensee in accordance

with this section.

1. Minimum net worth must be maintained in the amount of twenty-five thousand dollars.

2. If the net worth of a licensee falls below the minimum net worth set forth in this section,

the licensee shall provide a plan, subject to the approval of the commissioner, to

increase the licensee's net worth to an amount in conformance with this section.

Submission of a plan under this section must be made within twenty business days of

a notice from the commissioner which states the licensee is not in compliance with

subsection 1. If the licensee does not submit a plan under this section, fails to comply

with an approved plan, or has repeated violations of subsection 1, the commissioner

may revoke the license.
N.D. Cent. Code § 13-09.1-33 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-33
13-09.1-33. Surety bond
Status: in_force

13-09.1-33. Surety bond

1. An applicant for a money transmission license must provide, and a licensee at all

times must maintain, security consisting of a surety bond in a form satisfactory to the

commissioner or, with the commissioner's approval, a deposit instead of a bond in

accordance with this section.

2. The amount of the required security must be:

a. The greater of one hundred thousand dollars or an amount equal to one hundred

percent of the licensee's average daily money transmission liability in this state

calculated for the most recently completed three-month period, up to a maximum

of five hundred thousand dollars; or

b. In the event that the licensee's tangible net worth exceeds ten percent of total

assets, the licensee shall maintain a surety bond of one hundred thousand

dollars.

3. A licensee that maintains the maximum bond amount provided for in subdivision a of

subsection 2 may not be required to calculate its average daily money transmission

liability in this state for purposes of this section.

4. A licensee may exceed the maximum required bond amount pursuant to subdivision e

of subsection 1 of section 13-09.1-35.
N.D. Cent. Code § 13-12-01 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-01
13-12-01. Definitions
Status: in_force

13-12-01. Definitions

As used in this chapter, unless the context or subject matter otherwise requires:

1. "Borrower" means an individual who seeks out, or is solicited by a residential

mortgage lender for the purpose of residential mortgage lending.

2. "Commissioner" means the commissioner of the department of financial institutions.

3. "Net branch" means an office at which a licensed residential mortgage lender allows a

separate person that does not hold a valid North Dakota residential mortgage lender

license to originate loans under the license of the residential mortgage lender.

4. "Net branch arrangement" means an arrangement under which a licensed residential

mortgage lender enters an agreement whereby its designated branch manager has

the appearance of ownership of the licensee by, among other things, sharing in the

profits or losses; establishing, leasing, or renting the branch premises; entering other

contractual relationships with vendors such as for telephones, utilities, and advertising;

having control of a corporate checkbook; or exercising control of personnel through the

power to hire or fire such individuals. A person may be considered to be utilizing a net

branch if the net branch agreement requires the branch manager to indemnify the

licensee for damages from any apparent, express, or implied agency representation by

or through the branch's actions or if the agreement requires the branch manager to

issue a personal check to cover operating expenses whether or not funds are available

from an operating account of the licensee.

5. "Precomputed loan" means a loan that is expressed as a sum comprising the principal

and the amount of the loan finance charge computed in advance.

6. "Residential mortgage lender" means a person that, in the ordinary course of

business, engages in residential mortgage lending.

7. "Residential mortgage lending" means the act of arranging or providing residential

mortgage loans as a form of financing, or advertising or soliciting either in print, by

letter, in person, or otherwise, the right to find lenders or provide residential mortgage

loans for a person.

8. "Residential mortgage loan" means residential mortgage loan as defined in

subsection 12 of section 13-10-02.

9. "Residential real estate" means residential real estate as defined in subsection 13 of

section 13-10-02.
N.D. Cent. Code § 13-09.1-29 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-29
13-09.1-29. Receipts
Status: in_force

13-09.1-29. Receipts

1. This section does not apply to:

a. Money received for transmission subject to the federal remittance rule [title 12,

Code of Federal Regulations, part 1005, subpart B];

b. Money received for transmission that is not primarily for personal, family, or

household purposes;

c. Money received for transmission pursuant to a written agreement between the

licensee and payee to process payments for goods or services provided by the

payee; or

d. Payroll processing services.

2. For purposes of this section, "receipt" means a paper receipt, electronic record, or

other written confirmation. For a transaction conducted in person, the receipt may be

provided electronically if the sender requests or agrees to receive an electronic

receipt. For a transaction conducted electronically or by phone, a receipt may be

provided electronically. All electronic receipts must be provided in a retainable form.

3. Every licensee or its authorized delegate shall provide the sender a receipt for money

received for transmission.

a. The receipt must contain the following information, as applicable:

(1) The name of the sender;

(2) The name of the designated recipient;

(3) The date of the transaction;

(4) The unique transaction or identification number;

(5) The name of the licensee, the nationwide system unique identification

number, the licensee's business address, and the licensee's customer

service telephone number;

(6) The amount of the transaction in United States dollars;

(7) Any fee charged by the licensee to the sender for the transaction; and

(8) Any taxes collected by the licensee from the sender for the transaction.

b. The receipt required by this section must be in English and in the language

principally used by the licensee or authorized delegate to advertise, solicit, or

negotiate, either orally or in writing, for a transaction conducted in person,

electronically, or by phone, if other than English.
N.D. Cent. Code § 13-11-15 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-15
13-11-15. Requirement of good faith
Status: in_force

13-11-15. Requirement of good faith

A provider shall act in good faith in all matters under this chapter.
N.D. Cent. Code § 13-08-04 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-04
13-08-04. Application for license
Status: in_force

13-08-04. Application for license

1. Each application for a license must be in the form prescribed by the commissioner and

must include:

a. The legal name of the applicant, residence of the applicant, business address of

the applicant, and address at which deferred presentment service is provided if

different from the business address and, if the applicant is a partnership,

association, or corporation, the name and address of every member, officer, and

director;

b. The location at which the registered office of the applicant is located; and

c. Other data and information the commissioner may require with respect to the

applicant and the applicant's directors, officers, members, and shareholders.

2. To fulfill the purposes of this chapter, the commissioner may establish relationships or

contracts with a nationwide multistate licensing system and registry or other entities

designated by a nationwide multistate licensing system and registry to collect and

maintain records and process transaction fees or other fees related to licensees or

other persons subject to the chapter. The applicant shall pay directly to such

nationwide multistate licensing system any additional fee relating to participation in

such nationwide multistate licensing system.

3. In connection with an application for licensing as a deferred presentment service

provider, or any license renewals, the applicant shall furnish to the nationwide

multistate licensing system information concerning the applicant's identity, which may

include:

a. Fingerprints for submission to the federal bureau of investigation and any

governmental agency or entity authorized to receive such information for a state,

national, and international criminal history background check;

b. Personal history and experience in a form prescribed by the nationwide multistate

licensing system, including the submission of authorization for the nationwide

multistate licensing system and the commissioner to obtain:

(1) An independent credit report obtained from a consumer reporting agency

described in section 603(p) of the Fair Credit Reporting Act; and

(2) Information related to any administrative, civil, or criminal findings by any

governmental jurisdiction; and

c. Any other documents, information, or evidence the commissioner deems relevant

to the application regardless of the location, possession, control, or custody of

such documents, information, or evidence.

4. For the purposes of this section and in order to reduce the points of contact which the

federal bureau of investigation may have to maintain for purposes of subsection 3, the

commissioner may use the nationwide multistate licensing system and registry as a

channeling agent for requesting information from and distributing information to the

department of justice or any governmental agency.

5. For the purposes of this section and in order to reduce the points of contact which the

commissioner may have to maintain for purposes of subsection 3, the commissioner

may use the nationwide multistate licensing system and registry as a channeling agent

for requesting and distributing information to and from any source so directed by the

commissioner.
N.D. Cent. Code § 13-09.1-54 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-54
13-09.1-54. Customer service
Status: in_force

13-09.1-54. Customer service

A virtual-currency kiosk operator performing business in this state shall provide live

customer service at a minimum on Monday through Friday between eight a.m. central time and

ten p.m. central time. The customer service toll-free number must be displayed on the virtual-

currency kiosk or the virtual-currency kiosk screens.
N.D. Cent. Code § 13-05-02.3 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-02.3
13-05-02.3. Entities exempt from licensing requirements
Status: in_force

13-05-02.3. Entities exempt from licensing requirements

This chapter does not apply to:

1. Attorneys at law who are licensed to practice in the state of North Dakota. This

exemption is limited to the actions of the licensed attorney and does not extend to

persons either employed by the attorney or acting on behalf of the attorney;

2. Licensed real estate brokers if the engaged activity is regulated as part of that

individual's professional license;

3. Banks;

4. Trust companies;

5. Building and loan associations;

6. Credit unions;

7. Agencies of a state or of the federal government and employees of state or federal

agencies solely pursuant to the individual's official duties as an employee of the state

or federal agency;

8. Abstract companies doing an escrow business;

9. Creditors collecting their own debts;

10. Mortgage servicing company;

11. Individuals or firms who purchase or take accounts receivable for collateral purposes;

12. Individuals employed in the capacity of creditmen upon the staff of an employer not

engaged in the business of a collection agency; or

13. A public officer, receiver, or trustee acting under the order of a court.
N.D. Cent. Code § 13-05-02.1 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-02.1
13-05-02.1. Branch offices
Status: in_force

13-05-02.1. Branch offices

The commissioner may grant approval for each branch office which must be submitted by

an application. When used in this chapter, "branch office" means a physical location where

collection activity is carried out, other than the location where the collection agency license was

granted, but does not include a virtual office. As used in this chapter, "virtual office" means a

remote location from which employees can work under the full control and monitoring of the

collection agency through telecommunications and computer links. Records may not be

maintained at a virtual office and a virtual office may not be held open to the public as a place of

business.
N.D. Cent. Code § 13-09.1-50 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-50
13-09.1-50. Virtual-currency kiosks
Status: in_force

13-09.1-50. Virtual-currency kiosks

1. A kiosk operator may not engage in virtual-currency business activity or hold itself out

as being able to engage in virtual-currency business activity with or on behalf of

another person unless the kiosk operator is licensed in this state as a money

transmitter.

2. A virtual-currency kiosk operator shall comply with all requirements of a money

transmitter under this chapter.

3. A virtual-currency kiosk operator may not locate, or allow a third party to locate, a

virtual-currency kiosk in this state unless the virtual-currency kiosk:

a. Is placed in a commercially accessible area;

b. Is accessible to users with sufficient space to account for mobility limitations of

users; and

c. Is subject to security features, including sufficient lighting and surveillance.

4. Each virtual-currency kiosk operator shall submit a quarterly report of the location of

each virtual-currency kiosk located within the state to the commissioner within

forty-five days of the end of the calendar quarter. The location report must include:

a. The company's legal name;

b. Any fictitious or trade name;

c. The physical address;

d. The start date of operation of the virtual-currency kiosk at the location;

e. The end date of operation of the virtual-currency kiosk at the location, if

applicable; and

f. The virtual-currency addresses associated with the virtual-currency kiosk.
N.D. Cent. Code § 13-01.2-03 — ND Code / Title 13 / Chapter 13-01.2 / Section 13-01.2-03
13-01.2-03. Elements of a security program
Status: in_force

13-01.2-03. Elements of a security program

1. A financial corporation's information security program must denote a designation of a

qualified individual responsible for overseeing and implementing the financial

corporation's information security program and enforcing the financial corporation's

information security program. The qualified individual may be employed by the

financial corporation, an affiliate, or a service provider.

2. If a financial corporation designates an individual employed by an affiliate or service

provider as the qualified individual, the financial corporation shall:

a. Retain responsibility for compliance with this chapter;

b. Designate a senior member of the financial corporation's personnel to be

responsible for directing and overseeing the qualified individual; and

c. Require the service provider or affiliate to maintain an information security

program that protects the financial corporation in accordance with the

requirements of this chapter.

3. A financial corporation shall base the financial corporation's information security

program on a risk assessment that:

a. Identifies reasonably foreseeable internal and external risks to the security,

confidentiality, and integrity of customer information that could result in the

unauthorized disclosure, misuse, alteration, destruction or other compromise of

customer information;

b. Assesses the sufficiency of any safeguards in place to control the risks in

subdivision a; and

c. Includes additional periodic risk assessments that:

(1) Re-examine the reasonably foreseeable internal and external risks to the

security, confidentiality, and integrity of customer information that could

result in the unauthorized disclosure, misuse, alteration, destruction or other

compromise of such information; and

(2) Reassess the sufficiency of any safeguards in place to control these risks.

4. The risk assessment must be in writing and include:

a. Criteria to evaluate and categorize identified security risks or threats the financial

corporation faces;

b. Criteria for the assessment of the confidentiality, integrity, and availability of the

financial corporation's information systems and customer information, including

the adequacy of the existing controls in the context of the identified risks or

threats the financial corporation faces; and

c. Requirements describing how:

(1) Identified risks will be mitigated or accepted based on the risk assessment;

and

(2) The information security program will address the risks.

5. A financial corporation shall design and implement safeguards to control the risks the

financial corporation identifies through the risk assessment in subsection 4, which

include:

a. Implementing and periodically reviewing access controls, including technical and

as appropriate, physical controls to:

(1) Authenticate and permit access only to authorized users to protect against

the unauthorized acquisition of customer information; and

(2) Limit an authorized user's access to only customer information the

authorized user needs to perform the authorized user's duties and functions,

or in the case of a customer, to access the customer's own information.

b. Identifying and managing data, personnel, devices, systems, and facilities that

enable the financial corporation to achieve business purposes in accordance with

the business purpose's relative importance to business objectives and the

financial corporation's risk strategy.

c. Protecting by encryption all customer information held or transmitted by the

financial corporation both in transit over external networks and at rest. To the

extent a financial corporation determines that encryption of customer information,

either in transit over external networks or at rest, is infeasible, the financial

corporation may secure customer information using effective alternative

compensating controls reviewed and approved by the financial corporation's

qualified individual.

d. Adopting secure development practices for in-house developed applications

utilized by the financial corporation for transmitting, accessing, or storing

customer information and procedures for evaluating, assessing, or testing the

security of externally developed applications the financial corporation utilizes to

transmit, access, or store customer information.

e. Implementing multifactor authentication for any individual accessing any

information system, unless the financial corporation's qualified individual has

approved in writing the use of a reasonably equivalent or more secure access

control.

f. Developing, implementing, and maintaining procedures to securely dispose of

customer information, in any format, no later than two years after the last date the

information is used in connection with providing a product or service to the

customer which it relates, unless:

(1) The information is necessary for business operations or for other legitimate

business purposes;

(2) Is otherwise required to be retained by law or regulation; or

(3) Where targeted disposal is not reasonably feasible due to the manner in

which the information is maintained.

g. Periodically reviewing the financial corporation's data retention policy to minimize

unnecessary retention of data.

h. Adopting procedures for change management.

i. Implementing policies, procedures and controls designed to:

(1) Monitor and log the activity of authorized users; and

(2) Detect unauthorized access to, use of, or tampering with customer

information by authorized users.

6. a. A financial corporation shall regularly test or otherwise monitor the effectiveness

of the safeguards' key controls, systems, and procedures, including the controls,

systems, and procedures to detect actual and attempted attacks on, or intrusions

into, information systems.

b. Information systems monitoring and testing must include continuous monitoring

or periodic penetration testing, and vulnerability assessments. Without effective

continuous monitoring or other systems to detect, on an ongoing basis, changes

in information systems that may create vulnerabilities, a financial corporation shall

conduct:

(1) Annual penetration testing of the financial corporation's information systems

based on relevant identified risks in accordance with the risk assessment;

and

(2) Vulnerability assessments, including systemic scans or information systems

reviews that are reasonably designed to identify publicly known security

vulnerabilities in the financial corporation's information systems based on

the risk assessment, at least every six months; whenever there are material

changes to the financial corporation's operations or business arrangements;

and whenever there are circumstances the financial corporation knows or

has reason to know may have a material impact on the financial

corporation's information security program.

7. A financial corporation shall implement policies and procedures to ensure the financial

corporation's personnel are able to enact the financial corporation's information

security program by:

a. Providing the financial corporation's personnel with security awareness training

that is updated as necessary to reflect risks identified by the risk assessment;

b. Utilizing qualified information security personnel employed by the financial

corporation or an affiliate or service provider sufficient to manage the financial

corporation's information security risks and to perform or oversee the information

security program;

c. Providing information security personnel with security updates and training

sufficient to address relevant security risks; and

d. Verifying that key information security personnel take steps to maintain current

knowledge of changing information security threats and countermeasures.

8. A financial corporation shall oversee service providers by:

a. Taking reasonable steps to select and retain service providers capable of

maintaining appropriate safeguards for customer information;

b. Requiring, by contract, the financial corporation's service providers implement

and maintain appropriate safeguards; and

c. Periodically assessing the financial corporation's service providers based on the

risk they present, and the continued adequacy of the service providers'

safeguards.

9. A financial corporation shall evaluate and adjust the financial corporation's information

security program by incorporating:

a. The results of the testing and monitoring required under subsection 5;

b. Any material changes to the financial corporation's operations or business

arrangements;

c. The results of risk assessments performed under subsection 3; or

d. Any other circumstances that the financial corporation knows or has reason to

know may have a material impact on the financial corporation's information

security program.

10. A financial corporation shall establish a written incident response plan designed to

promptly respond to, and recover from, any security event materially affecting the

confidentiality, integrity, or availability of customer information the financial corporation

controls. The plan must address:

a. The goals of the incident response plan;

b. The internal processes for responding to a security event;

c. Clear roles, responsibilities, and levels of decisionmaking authority;

d. External and internal communications and information sharing;

e. Requirements for the remediation of any identified weaknesses in information

systems and associated controls;

f. Documentation and reporting regarding security events and related incident

response activities; and

g. The evaluation and revision of the incident response plan, as necessary, after a

security event.

11. A financial corporation shall require the financial corporation's qualified individual to

report in writing, at least annually, to the financial corporation's board of directors or

equivalent governing body. If no board of directors or equivalent governing body exists,

the report shall be timely presented to a senior officer responsible for the financial

corporation's information security program. The report must include:

a. The overall status of the information security program, and the financial

corporation's compliance with this chapter and associated rules; and

b. Material matters related to the information security program, addressing issues

including risk assessment, risk management and control decisions, service

provider arrangements, results of testing, security events or violations and

management's responses thereto, and recommendations for changes in the

information security program.

12. a. A financial corporation shall notify the commissioner about notification events.

b. After discovery of a notification event described in subdivision c, if the notification

event involves the information of at least five hundred consumers, the financial

corporation shall notify the commissioner as soon as possible, and no later than

forty-five days after the event is discovered. The notice must be made in a format

specified by the commissioner and include:

(1) The name and contact information of the reporting financial corporation;

(2) A description of the types of information involved in the notification event;

(3) The date or date range of the notification event, if the information is possible

to determine;

(4) The number of consumers affected or potentially affected by the notification

event;

(5) A general description of the notification event; and

(6) A statement whether any law enforcement official has provided the financial

corporation with a written determination that notifying the public of the

breach would impede a criminal investigation or cause damage to national

security, and a means for the commissioner to contact the law enforcement

official. A law enforcement official may request an initial delay of up to

forty-five days following the date when notice was provided to the

commissioner. The delay may be extended for an additional period of up to

sixty days if the law enforcement official seeks an extension in writing.

c. A notification event must be treated as discovered on the first day when the event

is known to the financial corporation. A financial corporation is deemed to have

knowledge of a notification event if the event is known to any employee, officer, or

other agent of the financial corporation, other than the person committing the

breach.

13. A financial corporation shall establish a written plan addressing business continuity

and disaster recovery.
N.D. Cent. Code § 13-02.1-01 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-01
13-02.1-01. Definitions
Status: in_force

13-02.1-01. Definitions

As used in this chapter:

1. "Affiliate" means:

a. A person that directly or indirectly owns, controls, or holds with power to vote,

twenty percent or more of the outstanding voting securities of the debtor, other

than a person that holds the securities;

(1) As a fiduciary or agent without sole discretionary power to vote the

securities; or

(2) Solely to secure a debt, if the person has not in fact exercised the power to

vote;

b. A corporation or a limited liability company twenty percent or more of whose

outstanding voting securities are directly or indirectly owned, controlled, or held

with power to vote, by the debtor, or by a person that directly or indirectly owns,

controls, or holds with power to vote, twenty percent or more of the outstanding

voting securities of the debtor, other than a person that holds the securities:

(1) As a fiduciary or agent without sole discretionary power to vote the

securities; or

(2) Solely to secure a debt, if the person has not in fact exercised the power to

vote;

c. A person whose business is operated by the debtor under a lease or other

agreement, or a person substantially all of whose assets are controlled by the

debtor; or

d. A person that operates the debtor's business under a lease or other agreement or

controls substantially all of the debtor's assets.

2. "Asset" means property of a debtor, excluding property to the extent it is encumbered

by a valid lien, property to the extent it is generally exempt under nonbankruptcy law,

or an interest in property held in tenancy by the entireties to the extent it is not subject

to process by a creditor holding a claim against only one tenant.

3. "Claim", except as used in "claim for relief", means a right to payment, whether or not

the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,

unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.

4. "Creditor" means a person that has a claim.

5. "Debt" means liability on a claim.

6. "Debtor" means a person that is liable on a claim.

7. "Electronic" means relating to technology having electrical, digital, magnetic, wireless,

optical, electromagnetic, or similar capabilities.

8. "Insider" includes:

a. If the debtor is an individual:

(1) A relative of the debtor or of a general partner of the debtor;

(2) A partnership in which the debtor is a general partner;

(3) A general partner in a partnership described in paragraph 2; or

(4) A corporation of which the debtor is a director, officer, or person in control, or

a limited liability company of which the debtor is a governor, manager, or

person in control;

b. If the debtor is a corporation:

(1) A director of the debtor;

(2) An officer of the debtor;

(3) A person in control of the debtor;

(4) A partnership in which the debtor is a general partner;

(5) A general partner in a partnership described in paragraph 4; or

(6) A relative of a general partner, director, officer, or person in control of the

debtor;

c. If the debtor is a partnership:

(1) A general partner in the debtor;

(2) A relative of a general partner in, of a general partner of, or of a person in

control of the debtor;

(3) Another partnership in which the debtor is a general partner;

(4) A general partner in a partnership described in paragraph 3; or

(5) A person in control of the debtor;

d. If the debtor is a limited liability company:

(1) A governor of the debtor;

(2) A manager of the debtor;

(3) A person in control of the debtor;

(4) A partnership in which the debtor is a general partner;

(5) A general partner described in paragraph 4; or

(6) A relative of a general partner, governor, manager, or person in control of

the debtor; and

e. An "insider" also includes an affiliate, or an insider of an affiliate as if the affiliate

were the debtor, and a managing agent of the debtor.

9. "Lien" means a charge against or an interest in property to secure payment of a debt

or performance of an obligation, and includes a security interest created by

agreement, a judicial lien, a common-law lien, or a statutory lien.

10. "Organization" means a person other than an individual.

11. "Person" means an individual, estate, business or nonprofit entity, public corporation,

government or governmental subdivision, agency, or instrumentality, or other legal

entity.

12. "Property" means anything that may be the subject of ownership.

13. "Record" means information that is inscribed on a tangible medium or that is stored in

an electronic or other medium and is retrievable in perceivable form.

14. "Relative" means an individual related by consanguinity within the third degree as

determined by the common law, a spouse, or an individual related to a spouse within

the third degree as so determined, and includes an individual in an adoptive

relationship within the third degree.

15. "Sign" means, with present intent to authenticate or adopt a record:

a. To execute or adopt a tangible symbol; or

b. To attach to or logically associate with the record an electronic symbol, sound, or

process.

16. "Transfer" means every mode, direct or indirect, absolute or conditional, voluntary or

involuntary, of disposing of or parting with an asset or an interest in an asset, and

includes payment of money, release, lease, license, and creation of a lien or other

encumbrance.

17. "Valid lien" means a lien that is effective against the holder of a judicial lien

subsequently obtained by legal process or proceedings.
N.D. Cent. Code § 13-11-13 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-13
13-11-13. Contracts, books, and records
Status: in_force

13-11-13. Contracts, books, and records

1. Upon request, each debt-settlement provider shall furnish to the commissioner a copy

of the contract entered between the debt-settlement provider and the debtor. The

debt-settlement provider shall furnish the debtor with a copy of the written contract at

the time of execution which sets forth the charges, if any, agreed upon for the services

of the debt-settlement provider.

2. Each debt-settlement provider shall maintain records and accounts that will enable any

debtor contracting with the debt-settlement provider, at any reasonable time, to

ascertain the status of all the debtor's accounts with the debt-settlement service

provider, including the amount of any fees paid by the debtor, amount held in trust, if

applicable, settlement offers made and received on each of the debtor's accounts, and

legally enforceable settlements reached with the debtor's creditors. Within seven days

after a request for that information by the debtor, the debt-settlement provider shall

furnish a statement showing the total amount received and the total disbursements to

each creditor to any individual. Each debt-settlement provider shall issue a receipt for

each payment made by the debtor at a debt-settlement provider office. Each

debt-settlement provider shall prepare and retain in the file of each debtor a written

analysis of the debtor's income and expenses to substantiate that the plan of payment

is feasible and practical.
N.D. Cent. Code § 13-12-22 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-22
13-12-22. Confidentiality
Status: in_force

13-12-22. Confidentiality

To promote more effective regulation and reduce regulatory burden through supervisory

information sharing:

1. Except as otherwise provided in the Secure and Fair Enforcement for Mortgage

Licensing Act [Public Law 110-289, section 1512, 12 U.S.C. 5111, et seq.], the

requirements under any federal law, chapter 44-04, or section 6-01-07.1, regarding the

privacy or confidentiality of any information or material provided to the nationwide

multistate licensing system and registry, and any privilege arising under federal or

state law, including the rules of any federal or state court, with respect to the

information or material, continue to apply to the information or material after the

information or material has been disclosed to the nationwide multistate licensing

system and registry. The information and material may be shared with all state and

federal regulatory officials with mortgage industry oversight authority without the loss

of privilege or the loss of confidentiality protections provided by federal law, chapter

44-04, or section 6-01-07.1.

2. For these purposes, the commissioner may enter agreements or sharing

arrangements with other governmental agencies, the conference of state bank

supervisors, the American association of residential mortgage regulators, or other

associations representing governmental agencies.

3. Information or material that is subject to a privilege or confidentiality under

subsection 1 is not subject to:

a. Disclosure under any federal or state law governing the disclosure to the public of

information held by an officer or an agency of the federal government or the

respective state; or

b. Subpoena or discovery, or admission into evidence, in any administrative

process, unless with respect to any privilege held by the nationwide multistate

licensing system and registry with respect to such information or material, the

person to whom the information or material pertains waives, in whole or in part, in

the discretion of the person, that privilege.

4. The commissioner shall take all necessary steps, under any applicable law or rule, to

protect the disclosure of information or material that is subject to a privilege or

confidentiality under subsection 1. Records subject to a privilege or confidentiality

under subsection 1 may be required to be disclosed only pursuant to an order of the

court. The court ordering the disclosure shall issue a protective order to protect the

confidential nature of the records.

5. Application of chapter 44-04 or section 6-01-07.1, relating to the disclosure of

confidential supervisory information or any information or material described in

subsection 1 which is inconsistent with subsection 1, is superseded by the

requirements of this section.
N.D. Cent. Code § 13-12-11 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-11
13-12-11. Manner in which records to be kept
Status: in_force

13-12-11. Manner in which records to be kept

Every residential mortgage lender licensed under this chapter shall keep a record of all

sums collected by the residential mortgage lender and of all loans completed as a result of the

lender's efforts for a period of six years from the date of last entry. The records of a licensee

may be maintained electronically provided they can be reproduced upon request by the

department of financial institutions and within the required statutory time period provided in this

section. When a licensee ceases operations for any reason, the licensee shall inform the

department of the location of the records. In addition, the licensee shall provide the name of the

individual responsible for maintenance of the records. The licensee shall notify the department

within ten business days of the change of the location of the records or the change of the

individual responsible for maintenance of the records.
N.D. Cent. Code § 13-01-04 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-04
13-01-04. Marshalling funds - Rights of creditors
Status: in_force

13-01-04. Marshalling funds - Rights of creditors

When a creditor is entitled to resort to each of several funds for the satisfaction of the

creditor's claim and another person has an interest in, or is entitled as a creditor to resort to,

some but not all of them, the latter may require the former to seek satisfaction from those funds

to which the latter has no such claim so far as it can be done without impairing the right of the

former to complete satisfaction and without doing injustice to third persons. This section does

not apply to execution sales of real estate mortgage foreclosures.
N.D. Cent. Code § 13-04.1-09.2 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-09.2
13-04.1-09.2. Maximum charges permitted for loans not in excess of one thousand dollars - Refund - Installment payments - Permitted charges
Status: repealed

13-04.1-09.2. Maximum charges permitted for loans not in excess of one thousand

dollars - Refund - Installment payments - Permitted charges.

Repealed by S.L. 2021, ch. 112, § 5.
N.D. Cent. Code § 13-10-03 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-03
13-10-03. License and registration required
Status: in_force

13-10-03. License and registration required

1. An individual, unless specifically exempted from this chapter under subsection 2, shall

not engage in the business of a mortgage loan originator with respect to any dwelling

located in this state without first obtaining and maintaining annually a license under

this chapter. Each licensed mortgage loan originator must register with and maintain a

valid unique identifier issued by the nationwide mortgage licensing system and

registry.

2. The following are exempt from this chapter:

a. Registered mortgage loan originators, when acting for an entity described in

subdivision a of subsection 11 of section 13-10-02 are exempt from this chapter.

b. Any individual who offers or negotiates terms of a residential mortgage loan with

or on behalf of an immediate family member of the individual.

c. Any individual who offers or negotiates terms of a residential mortgage loan

secured by a dwelling that served as the individual's residence.

d. A licensed attorney who negotiates the terms of a residential mortgage loan on

behalf of a client as an ancillary matter to the attorney's representation of the

client, unless the attorney is compensated by a lender, a mortgage broker, or

other mortgage loan originator or by any agent of such lender, mortgage broker,

or other mortgage loan originator.

e. An individual who is an employee of a federal, state, or local government agency

or housing finance agency and who acts as a loan originator solely pursuant to

that individual's official duties as an employee of the federal, state, or local

government agency or housing finance agency in compliance with title 12, Code

of Federal Regulations, part 1008, section 1008.103(e)(6).

f. An individual who is an employee of a bona fide nonprofit organization who acts

as a loan originator solely with respect to that individual's work duties to the

bona fide nonprofit organization, and who acts as a loan originator solely with

respect to residential mortgage loans with terms that are favorable to the

borrower in compliance with title 12, Code of Federal Regulations, part 1008,

section 1008.103(e)(7).

3. A loan processor or underwriter who is an independent contractor may not engage in

the activities of a loan processor or underwriter unless such independent contractor

loan processor or underwriter obtains and maintains a license under subsection 1.

Each independent contractor loan processor or underwriter licensed as a mortgage

loan originator must have and maintain a valid unique identifier issued by the

nationwide mortgage licensing system and registry.

4. To implement an orderly and efficient licensing process, the commissioner may

establish licensing rules or regulations and interim procedures for licensing and

acceptance of applications. For previously registered or licensed individuals, the

commissioner may establish expedited review and licensing procedures.
N.D. Cent. Code § 13-11-16 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-16
13-11-16. Customer service
Status: in_force

13-11-16. Customer service

A provider that is required to be registered under this chapter shall maintain a toll-free

communication system, staffed at a level that reasonably permits an individual to speak to a

certified counselor or customer service representative, as appropriate, during ordinary business

hours.
N.D. Cent. Code § 13-11-31 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-31
13-11-31. Disclosure of customer information
Status: in_force

13-11-31. Disclosure of customer information

Except for provisions of chapter 6-08.1 which are inconsistent with this chapter, chapter

6-08.1 applies to all debt-settlement providers licensed under this chapter.
N.D. Cent. Code § 13-11-04 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-04
13-11-04. Fee and bond to accompany application for debt-settlement license
Status: in_force

13-11-04. Fee and bond to accompany application for debt-settlement license

The application for license must be in writing, under oath, and in the form prescribed by the

commissioner. The application must give the location where the business is to be conducted

and must contain any further information the commissioner requires, including the names and

addresses of the partners, officers, directors, trustees, and the principal owners or members, as

will provide the basis for the investigation and findings contemplated by section 13-11-03. At the

time of making the application, the applicant shall include payment in the sum of four hundred

dollars, which is not subject to refund, as a fee for investigating the application; the sum of four

hundred dollars for the annual license fee; and provide a surety bond in the sum of fifty

thousand dollars or an additional amount as required by the commissioner by rule. In addition,

the applicant shall pay a fifty dollar annual fee for each branch location. Fees must be deposited

in the financial institutions regulatory fund as provided under section 6-01-01.1.
N.D. Cent. Code § 13-05-05.2 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-05.2
13-05-05.2. Automatic six-month extension of license during 2014 calendar year
Status: repealed

13-05-05.2. Automatic six-month extension of license during 2014 calendar year

Repealed by S.L. 2019, ch. 123, § 10.
N.D. Cent. Code § 13-02.1-07 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-07
13-02.1-07. Remedies of creditor
Status: in_force

13-02.1-07. Remedies of creditor

1. In an action for relief against a transfer or obligation under this chapter, a creditor,

subject to the limitations in section 13-02.1-08, may obtain:

a. Avoidance of the transfer or obligation to the extent necessary to satisfy the

creditor's claim;

b. Attachment or other provisional remedy against the asset transferred or other

property of the transferee if available under applicable law; or

c. Subject to applicable principles of equity and in accordance with applicable rules

of civil procedure:

(1) An injunction against further disposition by the debtor or a transferee, or

both, of the asset transferred or of other property;

(2) Appointment of a receiver to take charge of the asset transferred or of other

property of the transferee; or

(3) Any other relief the circumstances may require.

2. If a creditor has obtained a judgment on a claim against the debtor, the creditor, if the

court so orders, may levy execution on the asset transferred or its proceeds.
N.D. Cent. Code § 13-11-21 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-21
13-11-21. Fees
Status: in_force

13-11-21. Fees

1. A debt-settlement provider may not charge fees of any type or receive compensation

from a consumer in a type, amount, or timing other than fees or compensation

permitted in this section.

2. A debt-settlement provider may not charge or receive from a consumer any enrollment

fee, setup fee, upfront fee of any kind, or any maintenance fee.

3. A debt-settlement provider may charge a settlement fee that may not exceed an

amount greater than thirty percent of the savings. If the amount paid by the

debt-settlement provider to the creditor or negotiated by the debt-settlement provider

and paid by the consumer to the creditor pursuant to a settlement negotiated by the

debt-settlement provider on behalf of the consumer as full and complete satisfaction of

the creditor's claim with regard to that debt is greater than the principal amount of the

debt, the debt-settlement provider is not entitled to any settlement fee.

4. A debt-settlement provider may not collect any settlement fee from a consumer until a

creditor enters into a legally enforceable agreement to accept funds in a specific dollar

amount as full and complete satisfaction of the creditor's claim with regard to that debt

and those funds are provided by the debt-settlement provider on behalf of the

consumer or are provided directly by the consumer to the creditor pursuant to a

settlement negotiated by the debt-settlement provider.
N.D. Cent. Code § 13-09.1-53 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-53
13-09.1-53. Daily transaction limit
Status: in_force

13-09.1-53. Daily transaction limit

A virtual-currency kiosk operator may not accept transactions of more than two thousand

dollars of cash or the equivalent in virtual currency per calendar day with a single customer in

this state via one or more virtual-currency kiosks operated by the same virtual-currency

operator.
N.D. Cent. Code § 13-04.1-03 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-03
13-04.1-03. Application for money broker license
Status: in_force

13-04.1-03. Application for money broker license

Every application for a money broker license or branch registration, or for a renewal thereof,

must be made upon forms designed and furnished by the department of financial institutions

and must contain any information which the department shall deem necessary and proper. A

branch registration that constitutes a net branch or net branching arrangement is prohibited. The

department may further require any applicant to provide additional information which is not

requested on the application form. The applicant must register with the North Dakota secretary

of state if so required.
N.D. Cent. Code § 13-09.1-36 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-36
13-09.1-36. Suspension and revocation
Status: in_force

13-09.1-36. Suspension and revocation

1. The commissioner may suspend or revoke a license or order a licensee to revoke the

designation of an authorized delegate if:

a. The licensee violates this chapter or a rule adopted or an order issued under this

chapter;

b. The licensee does not cooperate with an examination or investigation by the

commissioner;

c. The licensee engages in fraud, intentional misrepresentation, or gross

negligence;

d. An authorized delegate is convicted of a violation of a state or federal anti-money

laundering statute, or violates a rule adopted or an order issued under this

chapter, as a result of the licensee's willful misconduct or willful blindness;

e. The competence, experience, character, or general fitness of the licensee,

authorized delegate, person in control of a licensee, key individual, or responsible

person of the authorized delegate indicates that it is not in the public interest to

permit the person to provide money transmission;

f. The licensee engages in an unsafe or unsound practice;

g. The licensee is insolvent, suspends payment of its obligations, or makes a

general assignment for the benefit of its creditors; or

h. The licensee does not remove an authorized delegate after the commissioner

issues and serves upon the licensee a final order, including a finding that the

authorized delegate has violated this chapter.

2. In determining whether a licensee is engaging in an unsafe or unsound practice, the

commissioner may consider the size and condition of the licensee's money

transmission, the magnitude of the loss, the gravity of the violation of this chapter, and

the previous conduct of the person involved.
N.D. Cent. Code § 13-12-02 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-02
13-12-02. Administration
Status: in_force

13-12-02. Administration

The department of financial institutions shall administer and enforce this chapter. The

department may promulgate rules and regulations having the force and effect of law, reasonably

necessary to carry out the provisions of this chapter, in accordance with chapter 28-32. Any

hearing held and any orders issued pursuant to this chapter must be in accordance with chapter
N.D. Cent. Code § 13-11-24 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-24
13-11-24. Notice of litigation
Status: in_force

13-11-24. Notice of litigation

Within thirty days after a provider has been served with notice of a civil action for violation of

this chapter by or on behalf of an individual who resides in this state at either the time of a

contract or the time the notice is served, the provider shall notify the commissioner in a record

that it has been sued.
N.D. Cent. Code § 13-11-20 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-20
13-11-20. Cancellation of contract and right to fee and settlement fund refunds
Status: in_force

13-11-20. Cancellation of contract and right to fee and settlement fund refunds

1. A consumer may cancel a contract with a debt-settlement provider at any time before

the debt-settlement provider has performed fully each service the debt-settlement

provider contracted to perform or represented that the debt-settlement provider would

perform.

2. If a consumer cancels a contract with a debt-settlement provider, or at any time upon a

material violation of this chapter on the part of the debt-settlement provider, the

debt-settlement provider shall refund all fees and compensation, with the exception of

the application fee and any earned settlement fee, as well as all funds paid by the

consumer to the debt-settlement provider that have accumulated in a consumer

settlement account and that the debt-settlement provider has not disbursed to

creditors. Upon cancellation, all powers of attorney and direct debit authorizations

granted to the debt-settlement provider by the consumer are considered revoked and

voided.

3. A debt-settlement provider shall make any refund required under this section within

seven days after the notice of cancellation and shall include with the refund a full

statement of account showing fees received, fees refunded, savings held, payments to

creditors, settlement fees earned, if any, and savings refunded.

4. Upon the cancellation of a contract under this section, the debt-settlement provider

shall provide timely notice of the cancellation of the contract to each of the creditors

with whom the debt-settlement provider has had any prior communication on behalf of

the consumer in connection with the provision of any debt-settlement service.
N.D. Cent. Code § 13-01-13 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-13
13-01-13. Unlawfully preferring creditors - Penalty
Status: in_force

13-01-13. Unlawfully preferring creditors - Penalty

Every person who, knowing that the person's property is insufficient for the payment of all of

the person's lawful debts, shall assign, transfer, or deliver any property for the benefit of any

creditor or creditors upon any trust or condition that any creditor shall receive a preference or

priority over any other creditor, or with intent to create such a preference or priority, is guilty of a

class A misdemeanor. This section does not apply to the giving or creating of preferences

expressly allowed by law.
N.D. Cent. Code § 13-13-08 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-08
13-13-08. Financial condition for applicant or licensee not subject to section 13-13-07
Status: in_force

13-13-08. Financial condition for applicant or licensee not subject to section 13-13-07

1. An applicant or licensee not subject to section 13-13-07 which is operating as an

approved servicer by one or more government-sponsored enterprises must maintain

liquidity to include operating reserves, and tangible net worth that meet the standards

set by the entity. If approved by more than one entity, the applicant or licensee must

meet the highest standard of the entities for which they are approved. Applicants or

licensees with a combined portfolio are subject to this standard.

2. An applicant or licensee with a portfolio of loans not subject to any government-

sponsored enterprises requirements must maintain liquidity to include operating

reserves of 0.00035 times the unpaid principal balance of the portfolio and maintain a

minimum tangible net worth as set forth in paragraph a of this subsection or, in lieu of

the tangible net worth, maintain a one million dollar surety bond.

a. Minimum tangible net worth, based on nationwide portfolio:

0-199 loans $100,000

200-299 loans $200,000

300-399 loans $300,000

400-499 loans $400,000

500-599 loans $500,000

600-699 loans $600,000

700-799 loans $700,000

800-899 loans $800,000

900-999 loans $900,000

1,000 plus loans $1,000,000

b. An applicant or licensee servicing North Dakota residential mortgage accounts

may apply to the commissioner to waive or adjust one or more of these capital or

liquidity requirements. In considering such a request, the commissioner will

consider the number and types of loans being serviced and whether the licensee

has a positive net worth and adequate operating reserves. For purposes of this

section, "operating reserves" are funds set aside in anticipation of future

payments or obligations and are included in liquidity.

c. Licensees subject to this section must annually or more frequently report, as

prescribed by the commissioner, on liquidity, including operating reserves, and

tangible net worth.
N.D. Cent. Code § 13-10-19 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-19
13-10-19. Report to nationwide mortgage licensing system and registry
Status: in_force

13-10-19. Report to nationwide mortgage licensing system and registry

Notwithstanding state privacy law, the commissioner is required to report regularly violations

of this chapter, as well as enforcement actions and other relevant information, to the nationwide

mortgage licensing system and registry subject to the provisions contained in section 13-10-15.
N.D. Cent. Code § 13-13-09 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-09
13-13-09. Corporate governance
Status: in_force

13-13-09. Corporate governance

This section applies to large servicers as defined in section 13-13-01.

1. Large servicers shall establish and maintain a board of directors responsible for its

oversight. For large servicers that are not approved to service loans by a government-

sponsored enterprise, or where these federal agencies have granted approval for a

board alternative, an institution may establish a similar body constituted to exercise

oversight and fulfill the board of directors' responsibilities in subsection 2.

2. The board of directors shall be responsible for:

a. Establishing a written corporate governance framework, including appropriate

internal controls designed to monitor corporate governance and assess

compliance with the corporate governance framework.

b. Monitoring and ensuring institution compliance with the corporate governance

framework and this chapter.

c. Reporting, accurately and timely, regulatory reports, including the requirements

for filing the mortgage call report as required by section 13-13-23.

d. Establishing internal audit requirements that are appropriate for the size,

complexity, and risk profile of the servicer, with appropriate independence to

provide a reliable evaluation of the servicer's internal control structure, risk

management, and governance.

3. Licensees subject to this section shall obtain an external opinion audit, including

audited financial statements and audit reports conducted by an independent public

accountant annually, including at a minimum:

a. Annual financial statements, including balance sheet, statement of operations or

income statement, cashflows, notes, and supplemental schedules prepared in

accordance with generally accepted accounting principles.

b. Assessment of the internal control structure.

c. Computation of tangible net worth.

d. Validation of mortgage servicing rights valuation and reserve methodology, if

applicable.

e. Verification of adequate fidelity and errors and omissions insurance.

f. Testing of controls related to risk management activities, including compliance

and stress testing, where applicable.

4. Licensees subject to this section shall establish a risk management program under the

oversight of the board of directors that identifies, measures, monitors, and controls risk

sufficient for the level of sophistication of the servicer. The risk management program

must:

a. Have appropriate processes and models in place to measure, monitor, and

mitigate financial risk and changes to the risk profile of the servicer and assets

being serviced.

b. Be scaled to the complexity of the organization, but be sufficiently robust to

manage risks in several areas, including:

(1) Credit risk. The potential that a borrower or counterparty will fail to perform

on an obligation.

(2) Liquidity risk. The potential that the servicer will be unable to meet its

obligations as they come due because of an inability to liquidate assets or

obtain adequate funding or that it cannot easily unwind or offset specific

exposures.

(3) Operational risk. The risk resulting from inadequate or failed internal

processes, people, and systems or from external events.

(4) Market risk. The risk to the servicer's condition resulting from adverse

movements in market rates or prices.

(5) Compliance risk. The risk of regulatory sanctions, fines, penalties, or losses

resulting from failure to comply with laws, rules, regulations, or other

supervisory requirements applicable to the servicer.

(6) Legal risk. The potential that actions against the institution that result in

unenforceable contracts, lawsuits, legal sanctions, or adverse judgments

can disrupt or otherwise negatively affect the operations or condition of the

servicer.

(7) Reputation risk. The risk to earnings and capital arising from negative

publicity regarding the servicer's business practices.

5. Licensees subject to this section shall conduct a risk management assessment on an

annual basis, concluding with a formal report to the board of directors. Evidence of risk

management activities throughout the year must be maintained and made part of the

report, including findings of issues and the response to address those findings.

6. Licensees subject to this section must maintain the audits, policies and procedures,

and assessment results as part of their books and records available to the

commissioner upon request.
N.D. Cent. Code § 13-13-04 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-04
13-13-04. Entities exempted from licensing requirements
Status: in_force

13-13-04. Entities exempted from licensing requirements

This chapter does not apply to:

1. Banks;

2. Credit unions;

3. Savings and loan associations;

4. State or federal housing finance agencies;

5. Institutions chartered by the farm credit administration;

6. Not-for-profit mortgage servicers; or

7. Entities solely performing interim mortgage servicing.
N.D. Cent. Code § 13-08-14.1 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-14.1
13-08-14.1. Suspension and removal of deferred presentment service provider officers and employees
Status: in_force

13-08-14.1. Suspension and removal of deferred presentment service provider

officers and employees.

1. The commissioner of financial institutions may issue and serve upon any current or

former deferred presentment service provider officer or employee and upon the

licensee involved an order stating:

a. That the current or former officer or employee is willfully engaging or has willfully

engaged in any of the following conduct:

(1) Violating a law, rule, order, or written agreement with the commissioner.

(2) Engaging in harassment or abuse, the making of false or misleading

representations, or engaging in unfair practices involving lending activity.

(3) Performing an act of commission or omission or practice, which is a breach

of trust or a breach of fiduciary duty.

b. The term of suspension or removal from employment and participation within the

conduct or the affairs of a deferred presentment service provider.

2. The order must contain a notice of opportunity for hearing pursuant to chapter 28-32.

3. If a hearing is not requested within twenty business days of the date the order is

served, or if a hearing is held and the commissioner finds that the record so warrants,

the commissioner may enter a final order suspending or removing the current or

former employee or officer from office. The current or former officer or employee may

request a termination of the final order after a period of no less than three years.

4. A contested or default suspension or removal order is effective immediately upon

service of the final order on the current or former officer or employee and upon the

licensee. A consent order is effective as agreed. Any current or former officer or

employee suspended or removed from employment and participation within the

conduct or the affairs of a deferred presentment service provider pursuant to this

section is not eligible, while under suspension or removal, to be employed or otherwise

participate in the affairs of any financial corporation, financial institution, credit union,

or any other entity licensed by the department of financial institutions.

5. When any current or former officer or employee or other person participating in the

conduct of the affairs of a licensee is charged with a felony in state or federal court

which involves dishonesty or breach of trust, the commissioner may immediately

suspend the person from office or prohibit the person from further participation in the

deferred presentment service provider affairs, or both. The order is effective

immediately upon service of the order on the licensee and the person charged and

remains in effect until the criminal charge is finally disposed of or until modified by the

commissioner. If a judgment of conviction, federal pretrial diversion, or similar state

order or judgment is entered, the commissioner may order that the suspension or

prohibition be made permanent. A finding of not guilty or other disposition of the

charge does not preclude the commissioner from pursuing administrative or civil

remedies.

6. Under this section, a person engages in conduct "willfully" if the person acted

intentionally in the sense that the person was aware of what the person was doing.
N.D. Cent. Code § 13-07-01 — ND Code / Title 13 / Chapter 13-07 / Section 13-07-01
13-07-01. Consumer credit counseling service - Definition
Status: in_force

13-07-01. Consumer credit counseling service - Definition

As used in this chapter, "consumer credit counseling service" means a person whose

agreements contemplate that a debtor will liquidate the debtor's debts by structured installments

or that a creditor will reduce finance charges or fees for late payments, default, or delinquency.
N.D. Cent. Code § 13-05-10 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-10
13-05-10. Penalty
Status: in_force

13-05-10. Penalty

Any person violating any of the provisions of this chapter is guilty of a class C felony. The

commissioner may impose a civil money penalty not to exceed five thousand dollars per

violation upon a person or agency who willfully violates a law, rule, written agreement, or order

under this chapter. An interested party may appeal the assessment of a civil money penalty

under the provisions of chapter 28-32 by filing a written notice of appeal within twenty days after

service of the assessment of civil money penalties. A civil money penalty collected under this

section must be paid to the state treasurer and deposited in the financial institutions regulatory

fund.
N.D. Cent. Code § 13-01.2-02 — ND Code / Title 13 / Chapter 13-01.2 / Section 13-01.2-02
13-01.2-02. Standards for safeguarding customer information
Status: in_force

13-01.2-02. Standards for safeguarding customer information

1. A financial corporation shall develop, implement, and maintain a comprehensive

information security program.

2. The information security program must:

a. Be written in one or more readily accessible parts; and

b. Maintain administrative, technical, and physical safeguards that are appropriate

to the financial corporation's size and complexity, the nature and scope of the

financial corporation's activities, and the sensitivity of any customer information at

issue.

3. The financial corporation shall develop a security program that:

a. Ensures the security and confidentiality of customer information;

b. Protects against any anticipated threats or hazards to the security or integrity of

such information; and

c. Protects against unauthorized access to or use of such information that could

result in substantial harm or inconvenience to any customer.
N.D. Cent. Code § 13-09.1-21 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-21
13-09.1-21. Reports of certain events
Status: in_force

13-09.1-21. Reports of certain events

1. A licensee shall file a report with the commissioner within one business day after the

licensee has reason to know of the occurrence of any of the following events:

a. The filing of a petition by or against the licensee under the federal bankruptcy

code [11 U.S.C. Section 101-110], for bankruptcy or reorganization;

b. The filing of a petition by or against the licensee for receivership, the

commencement of any other judicial or administrative proceeding for its

dissolution or reorganization, or the making of a general assignment for the

benefit of its creditors; or

c. The commencement of a proceeding to revoke or suspend its license in a state or

country in which the licensee engages in business or is licensed.

2. A licensee shall file a report with the commissioner within three business days after the

licensee has reason to know of the occurrence of any of the following events:

a. A charge or conviction of the licensee or of a key individual or person in control of

the licensee for a felony; or

b. A charge or conviction of an authorized delegate for a felony.
N.D. Cent. Code § 13-02.1-13 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-13
13-02.1-13. Relation to Electronic Signatures in Global and National Commerce Act
Status: in_force

13-02.1-13. Relation to Electronic Signatures in Global and National Commerce Act

This chapter modified, limits, or supersedes the federal Electronic Signatures in Global and

National Commerce Act [Pub. L. 106-229; 114 Stat. 464; 15 U.S.C. 7001 et seq.], but does not

modify, limit, or supersede section 101(c) of that Act [15 U.S.C. 7001(c)], or authorize electronic

delivery of any of the notices described in section 103(b) of that Act [15 U.S.C. 7003(b)].
N.D. Cent. Code § 13-09.1-11 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-11
13-09.1-11. Application for license
Status: in_force

13-09.1-11. Application for license

1. Applicants for a license shall apply in a form and in a medium as prescribed by the

commissioner. Each form must contain content as set forth by rule, regulation,

instruction, or procedure of the commissioner and may be changed or updated by the

commissioner in accordance with applicable law in order to carry out the purposes of

this chapter and maintain consistency with the nationwide system licensing standards

and practices. The application must state or contain, as applicable:

a. The legal name and residential and business addresses of the applicant and any

fictitious or trade name used by the applicant in conducting its business;

b. A list of any criminal convictions of the applicant and any material litigation in

which the applicant has been involved in the ten-year period next preceding the

submission of the application;

c. A description of any money transmission previously provided by the applicant and

the money transmission that the applicant seeks to provide in this state;

d. A list of the applicant's proposed authorized delegates and the locations in this

state where the applicant and its authorized delegates propose to engage in

money transmission;

e. A list of other states in which the applicant is licensed to engage in money

transmission and any license revocations, suspensions, or other disciplinary

action taken against the applicant in another state;

f. Information concerning any bankruptcy or receivership proceedings affecting the

licensee or a person in control of a licensee;

g. A sample form of contract for authorized delegates, if applicable;

h. A sample form of payment instrument or stored value, as applicable;

i. The name and address of any federally insured depository financial institution

through which the applicant plans to conduct money transmission; and

j. Any other information the commissioner or the nationwide system reasonably

requires with respect to the applicant.

2. If an applicant is a corporation, limited liability company, partnership, or other legal

entity, the applicant shall also provide:

a. The date of the applicant's incorporation or formation and state or country of

incorporation or formation;

b. If applicable, a certificate of good standing from the state or country in which the

applicant is incorporated or formed;

c. A brief description of the structure or organization of the applicant, including any

parents or subsidiaries of the applicant, and whether any parents or subsidiaries

are publicly traded;

d. The legal name, any fictitious or trade name, all business and residential

addresses, and the employment, as applicable, in the ten-year period next

preceding the submission of the application of each key individual and person in

control of the applicant;

e. A list of any criminal convictions and material litigation in which a person in

control of the applicant that is not an individual has been involved in the ten-year

period preceding the submission of the application;

f. A copy of audited financial statements of the applicant for the most recent fiscal

year and for the two-year period next preceding the submission of the application

or, if determined to be acceptable to the commissioner, certified unaudited

financial statements for the most recent fiscal year or other period acceptable to

the commissioner;

g. A certified copy of unaudited financial statements of the applicant for the most

recent fiscal quarter;

h. If the applicant is a publicly traded corporation, a copy of the most recent report

filed with the United States securities and exchange commission under section 13

of the federal Securities Exchange Act of 1934 [15 U.S.C. Section 78m];

i. If the applicant is a wholly owned subsidiary of:

(1) A corporation publicly traded in the United States, a copy of audited financial

statements for the parent corporation for the most recent fiscal year or a

copy of the parent corporation's most recent report filed under section 13 of

the federal Securities Exchange Act of 1934 [15 U.S.C. Section 78m]; or

(2) A corporation publicly traded outside the United States, a copy of similar

documentation filed with the regulator of the parent corporation's domicile

outside the United States;

j. The name and address of the applicant's registered agent in this state; and

k. Any other information the commissioner reasonably requires with respect to the

applicant.

3. A nonrefundable application fee of four hundred fifty dollars and a license fee of four

hundred dollars must accompany an application for a license under this section. The

license fee must be refunded if the application is denied.

4. The commissioner may waive one or more requirements of subsections 1 and 2 or

permit an applicant to submit other information in lieu of the required information.
N.D. Cent. Code § 13-09.1-31 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-31
13-09.1-31. Disclosures for payroll processing services
Status: in_force

13-09.1-31. Disclosures for payroll processing services

1. A licensee that provides payroll processing services shall:

a. Issue reports to clients detailing client payroll obligations in advance of the payroll

funds being deducted from an account; and

b. Make available worker paystubs or an equivalent statement to workers.

2. Subsection 1 does not apply to a licensee providing payroll processing services where

the licensee's client designates the intended recipients to the licensee and is

responsible for providing the disclosures required by subdivision b of subsection 1.
N.D. Cent. Code § 13-04.1-10 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-10
13-04.1-10. Orders and injunctions
Status: in_force

13-04.1-10. Orders and injunctions

Whenever it appears to the department of financial institutions either upon complaint or

otherwise, that any person has engaged in, is engaging in, or is about to engage in any act or

practice or transaction which is prohibited by this chapter, or by any order of the department

issued pursuant to any section of this chapter or which is declared to be illegal in this chapter,

the department may, in its discretion:

1. Issue any order which is effective upon issuance, including cease and desist, stop,

and suspension orders, which it deems necessary or appropriate in the public interest

or for the protection of the public; provided, however, that any person aggrieved by an

order issued pursuant to this subsection may request a hearing before the department

if such request is made within ten days after receipt of the order. Such hearing must be

held in accordance with chapter 28-32 as must any appeal therefrom.

2. Apply to the district court of Burleigh County, for an injunction restraining such person

and the agents, employees, partners, officers, and directors of such person from

continuing such act, practice, or transaction of engaging therein or doing any acts in

furtherance thereof, and for such other and further relief as the facts may warrant. In

any proceeding for an injunction, the department may apply for and on due showing be

entitled to have issued the court's subpoena requiring the appearance forthwith of any

defendants and their agents, employees, partners, officers, or directors, and the

production of such documents, books, and records as may appear necessary for the

hearing upon the petition for an injunction. Upon proof of any of the offenses described

in this section, the court may grant such injunction as the facts may warrant. The court

may not require the department to post a bond.
N.D. Cent. Code § 13-10-08 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-08
13-10-08. Standards for license renewal
Status: in_force

13-10-08. Standards for license renewal

1. The minimum standards for license renewal for mortgage loan originators include the

following:

a. The mortgage loan originator continues to meet the minimum standards for

license issuance under section 13-10-05.

b. The mortgage loan originator has satisfied the annual continuing education

requirements described in section 13-10-09.

c. The mortgage loan originator has paid all required fees for renewal of the license.

2. The license of a mortgage loan originator failing to satisfy the minimum standards for

license renewal shall expire. The commissioner may adopt procedures for the

reinstatement of expired licenses consistent with the standards established by the

nationwide mortgage licensing system and registry.
N.D. Cent. Code § 13-04.1-02.1 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-02.1
13-04.1-02.1. Entities exempted from licensing requirements
Status: in_force

13-04.1-02.1. Entities exempted from licensing requirements

This chapter does not apply to:

1. Banks;

2. Credit unions;

3. Savings and loan associations;

4. Insurance companies;

5. Residential mortgage lenders licensed under chapter 13-12;

6. Individuals licensed under chapter 13-10 solely pursuant to the individual's official

duties as a mortgage loan originator;

7. State or federal agencies and employees of state or federal agencies solely pursuant

to the individual's official duties as an employee of the state or federal agency;

8. Institutions chartered by the farm credit administration;

9. Trust companies;

10. Any other person or business regulated and licensed to lend money by the state of

North Dakota;

11. A real estate broker, broker, or a real estate salesperson as defined in section

43-23-06.1 in the brokering of loans to assist a person in obtaining financing for real

estate sold by the real estate broker, broker, or real estate salesperson;

12. Any person, retail seller, or manufacturer providing or arranging financing for its own

property or inventory held as a normal course of business, or to leases on any real

property;

13. A bona fide pawnbrokering transaction made by a pawnbroker licensed by a North

Dakota county or municipality;

14. A certified development corporation that qualifies as a nonprofit entity under section

501(c)(3) of the federal Internal Revenue Code [26 U.S.C. 501(c)(3)] in the offers of:

a. Loan products primarily limited to the small business administration, United

States department of agriculture, or other government loan products; or

b. Nongovernmental loan products that are limited to loans to promote community

development or home ownership, and these loans are offered with favorable

terms including an interest rate at or below the wall street journal prime rate and

loan fees of less than a quarter percent of the loan origination balance; or

15. A nonprofit corporation that qualifies as a nonprofit entity under section 501(c)(3) of the

Internal Revenue Code [26 U.S.C. 501(c)(3)] which is not primarily in the business of

soliciting or brokering loans, if the nonprofit corporation makes five or fewer loans in a

given calendar year, makes these loans to promote community development or home

ownership, and offers these loans on favorable terms, including an interest rate at or

below the wall street journal prime rate and loan fees of less than a quarter percent of

the loan origination balance.
N.D. Cent. Code § 13-11-22 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-22
13-11-22. Voluntary contributions
Status: in_force

13-11-22. Voluntary contributions

A provider may not solicit a voluntary contribution from an individual or an affiliate of the

individual for any service provided to the individual.
N.D. Cent. Code § 13-11-18 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-18
13-11-18. Individualized financial analysis
Status: in_force

13-11-18. Individualized financial analysis

1. Before entering a written contract with a consumer, a debt-settlement provider shall

prepare and provide to the consumer in writing and retain a copy of:

a. An individualized financial analysis, including the individual's income, expenses,

and debts; and

b. A statement containing a good-faith estimate of the length of time it will take to

complete the debt-settlement program, the total amount of debt owed to each

creditor included in the debt-settlement program, the total savings estimated to be

necessary to complete the debt-settlement program, and the monthly targeted

savings amount estimated to be necessary to complete the debt-settlement

program.

2. A debt-settlement provider may not enter a written contract with a consumer unless the

debt-settlement provider makes written determinations, supported by the financial

analysis, that:

a. The consumer can reasonably meet the requirements of the proposed

debt-settlement program, including the fees and the periodic savings amounts set

forth in the savings goals; and

b. The debt-settlement program is suitable for the consumer at the time the contract

is to be signed.
N.D. Cent. Code § 13-12-26 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-26
13-12-26. Disclosure of customer information
Status: in_force

13-12-26. Disclosure of customer information

Except for provisions of chapter 6-08.1 which are inconsistent with this chapter, chapter

6-08.1 applies to all residential mortgage lenders licensed under this chapter.
N.D. Cent. Code § 13-04.1-04 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-04
13-04.1-04. Fee to accompany application for money broker license
Status: in_force

13-04.1-04. Fee to accompany application for money broker license

The application for license must be in writing, under oath, and in the form prescribed by the

commissioner. The application must give the location where the business is to be conducted

and must contain any further information the commissioner requires, including the names and

addresses of the partners, officers, directors, trustees, and the principal owners or members, as

will provide the basis for the investigation and findings contemplated by section 13-04.1-03. At

the time of making such application, the applicant shall include payment in the sum of four

hundred dollars, which is not subject to refund, as a fee for investigating the application, and the

sum of four hundred dollars for the annual license fee. In addition, the applicant must pay a fifty

dollar annual fee for each branch location registered to engage in money brokering in this state.

Fees must be deposited in the financial institutions regulatory fund.
N.D. Cent. Code § 13-13-21 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-21
13-13-21. Confidentiality
Status: in_force

13-13-21. Confidentiality

To promote more effective regulation and reduce regulatory burden through supervisory

information sharing:

1. Except as otherwise provided in Public Law 110-289, section 1512, the requirements

under any federal law, chapter 44-04, or section 6-01-07.1, regarding the privacy or

confidentiality of any information or material provided to the nationwide multistate

licensing system and registry, and any privilege arising under federal or state law,

including the rules of any federal or state court, with respect to information or material,

continue to apply to information or material after the information or material has been

disclosed to the nationwide multistate licensing system and registry. Information and

material may be shared with all state and federal regulatory officials with mortgage

industry oversight authority without the loss of privilege or the loss of confidentiality

protections provided by federal law, chapter 44-04, or section 6-01-07.1.

2. For these purposes, the commissioner may enter agreements or sharing

arrangements with other governmental agencies, the conference of state bank

supervisors, the American association of residential mortgage regulators, or other

associations representing governmental agencies.

3. Information or material that is subject to a privilege or confidentiality under

subsection 1 is not subject to:

a. Disclosure under any federal or state law governing the disclosure to the public of

information held by an officer or an agency of the federal government or the

respective state; or

b. Subpoena or discovery, or admission into evidence, in any administrative

process, unless with respect to any privilege held by the nationwide multistate

licensing system and registry with respect to such information or material, the

person to whom the information or material pertains waives, in whole or in part, in

the discretion of the person, that privilege.

4. The commissioner shall take all necessary steps, under any applicable law or rule, to

protect the disclosure of information or material that is subject to a privilege or

confidentiality under subsection 1. Records subject to a privilege or confidentiality

under subsection 1 may be required to be disclosed only pursuant to an order of the

court. The court ordering the disclosure shall issue a protective order to protect the

confidential nature of the records.

5. Application of chapter 44-04 or section 6-01-07.1, relating to the disclosure of

confidential supervisory information or any information or material described in

subsection 1 which is inconsistent with subsection 1, is superseded by the

requirements of this section.
N.D. Cent. Code § 13-10-09 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-09
13-10-09. Continuing education for mortgage loan originators
Status: in_force

13-10-09. Continuing education for mortgage loan originators

1. To meet the annual continuing education requirements referred to in section 13-10-08,

a licensed mortgage loan originator shall complete at least eight hours of education

approved in accordance with subsection 2, which must include at least:

a. Three hours of federal law and regulations;

b. Two hours of ethics, which shall include instruction on fraud, consumer

protection, and fair lending issues; and

c. Two hours of training related to lending standards for the nontraditional mortgage

product marketplace.

2. For purposes of subsection 1, continuing education courses shall be reviewed and

approved by the nationwide mortgage licensing system and registry based upon

reasonable standards. Review and approval of a continuing education course must

include review and approval of the course provider.

3. Nothing in this section precludes any education course, as approved by the nationwide

mortgage licensing system and registry, which is provided by the employer of the

mortgage loan originator or an entity that is affiliated with the mortgage loan originator

by an agency contract or any subsidiary or affiliate of such employer or entity.

4. Continuing education may be offered in a classroom, online, or by any other means

approved by the nationwide mortgage licensing system and registry.

5. For a licensed mortgage loan originator:

a. Except as allowed by subsection 2 of section 13-10-08 and subsection 9 of this

section, an individual may only receive credit for a continuing education course in

the year in which the course is taken; and

b. An individual may not take the same approved course in the same or successive

years to meet the annual requirements for continuing education.

6. A licensed mortgage loan originator who is an approved instructor of an approved

continuing education course may receive credit for the licensed mortgage loan

originator's own annual continuing education requirement at the rate of two hours

credit for every one hour taught.

7. A person having successfully completed the education requirements approved by the

nationwide mortgage licensing system and registry in subsection 1 for any state shall

be accepted as credit toward completion of continuing education requirements in North

Dakota.

8. A licensed mortgage loan originator who subsequently becomes unlicensed must

complete the continuing education requirements for the last year in which the license

was held prior to issuance of a new or renewed license.

9. A person meeting the requirements of subdivisions a and c of subsection 1 of section

13-10-08 may make up any deficiency in continuing education as established by rule

or regulation of the commissioner.
N.D. Cent. Code § 13-10-10 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-10
13-10-10. Authority to require license
Status: in_force

13-10-10. Authority to require license

In addition to any other duties imposed upon the commissioner by law, the commissioner

shall require mortgage loan originators to be licensed and registered through the nationwide

mortgage licensing system and registry. To carry out this requirement, the commissioner may

participate in the nationwide mortgage licensing system and registry. For this purpose, the

commissioner may establish by rule requirements as necessary, including:

1. Background checks for:

a. Criminal history through fingerprint or other databases;

b. Civil or administrative records;

c. Credit history; or

d. Any other information as deemed necessary by the nationwide mortgage

licensing system and registry;

2. The payment of fees to apply for or renew licenses through the nationwide mortgage

licensing system and registry;

3. The setting or resetting as necessary of renewal or reporting dates; and

4. Requirements for amending or surrendering a license or any other such activities as

the commissioner deems necessary for participation in the nationwide mortgage

licensing system and registry.
N.D. Cent. Code § 13-07-03 — ND Code / Title 13 / Chapter 13-07 / Section 13-07-03
13-07-03. Consumer credit counseling service - Surety bond or other security
Status: in_force

13-07-03. Consumer credit counseling service - Surety bond or other security

A consumer credit counseling service entering an agreement with a debtor who resides in

this state shall file with the attorney general a surety bond or other security in an amount equal

to the largest sum accrued in the service's trust account during the prior year, or five thousand

dollars, whichever is greater. The bond or other security must be payable to the state of North

Dakota and must be acceptable to the attorney general for the use and benefit of debtors

making payments to a consumer credit counseling service and suffering damages caused by

the consumer credit counseling service.
N.D. Cent. Code § 13-08-16 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-16
13-08-16. Disclosure of customer information
Status: in_force

13-08-16. Disclosure of customer information

Except for provisions of chapter 6-08.1 which are inconsistent with this chapter, chapter

6-08.1 applies to all persons licensed under this chapter.
N.D. Cent. Code § 13-10-05 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-05
13-10-05. Issuance of license
Status: in_force

13-10-05. Issuance of license

The commissioner shall not issue a mortgage loan originator license unless the

commissioner makes at a minimum the following findings:

1. The applicant has never had a mortgage loan originator license revoked in any

governmental jurisdiction, except that a subsequent formal vacation of such revocation

shall not be deemed a revocation.

2. The applicant has not been charged pending trial, convicted, pled guilty, pled to lesser

charges, or pled nolo contendere to, a felony in a domestic, foreign, or military court:

a. During the seven-year period preceding the date of the application for licensing

and registration; or

b. At any time preceding such date of application, if such felony involved an act of

fraud, dishonesty, or a breach of trust, or money laundering;

c. Provided that any pardon of a conviction shall not be a conviction for purposes of

this subsection.

3. a. The applicant has demonstrated financial responsibility, character, and general

fitness such as to command the confidence of the community and to warrant a

determination that the mortgage loan originator will operate honestly, fairly, and

efficiently within the purposes of this chapter.

b. For purposes of this subsection, a person has shown that that person is not

financially responsible when that person has shown a disregard in the

management of that person's own financial condition. A determination that an

individual has not shown financial responsibility may include:

(1) Current outstanding judgments, except judgments solely as a result of

medical expenses;

(2) Current outstanding tax liens or other government liens and filings;

(3) Foreclosures within the past three years; and

(4) A pattern of seriously delinquent accounts within the past three years.

4. The applicant has completed the prelicensing education requirement described in

section 13-10-06.

5. The applicant has passed a written test that meets the test requirement described in

section 13-10-07.

6. The applicant has met the net worth and surety bond requirements under section

13-10-13.
N.D. Cent. Code § 13-12-17 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-17
13-12-17. Orders and injunctions
Status: in_force

13-12-17. Orders and injunctions

Whenever it appears to the department of financial institutions either upon complaint or

otherwise, that any person has engaged in, is engaging in, or is about to engage in any act or

practice or transaction which is prohibited by this chapter, or by any order of the department

issued pursuant to any section of this chapter or which is declared to be illegal in this chapter,

the department may, in its discretion:

1. Issue any order which is effective upon issuance, including cease and desist, stop, and

suspension orders, which it deems necessary or appropriate in the public interest or

for the protection of the public, provided that any person aggrieved by an order issued

pursuant to this subsection may request a hearing before the department if a request

is made within ten days after receipt of the order. A hearing to appeal must be held in

accordance with chapter 28-32.

2. Apply to the district court of Burleigh County for an injunction restraining the person

and the agents, employees, partners, officers, and directors of the person from

continuing the act, practice, or transaction of engaging or doing any acts in furtherance

thereof, and for such other and further relief as the facts may warrant. In any

proceeding for an injunction, the department may apply for and on due showing be

entitled to have issued the court's subpoena requiring the appearance forthwith of any

defendants and their agents, employees, partners, officers, or directors, and the

production of such documents, books, and records as may appear necessary for the

hearing upon the petition for an injunction. Upon proof of any of the offenses described

in this section, the court may grant such injunction as the facts may warrant. The court

may not require the department to post a bond.
N.D. Cent. Code § 13-01-07 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-07
13-01-07. Instruments affecting realty void when made with intent to defraud - Good-faith purchaser protected
Status: repealed

13-01-07. Instruments affecting realty void when made with intent to defraud -

Good-faith purchaser protected.

Repealed by S.L. 1985, ch. 186, § 12.
N.D. Cent. Code § 13-11-02 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-02
13-11-02. License required
Status: in_force

13-11-02. License required

It is unlawful for any person to act as a debt-settlement provider except as authorized by

this chapter and without first having obtained a license under this chapter. A person that

engages in debt settlement is deemed to engage in debt settlement in this state if the debtor

resides in this state.
N.D. Cent. Code § 13-13-22 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-22
13-13-22. Change of name or address
Status: in_force

13-13-22. Change of name or address

A licensee is required to submit within twenty business days of the date of change

notification of a change of name or change of address. The notification must be in the form

prescribed by the commissioner.
N.D. Cent. Code § 13-04.1-11.1 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-11.1
13-04.1-11.1. Response to department requests
Status: in_force

13-04.1-11.1. Response to department requests

An applicant, licensee, or other person subject to the provisions of this chapter shall comply

with requests for information, documents, or other requests from the department of financial

institutions within the time specified in the request, which must be a minimum of ten days, or, if

no time is specified, within thirty days of the request by the department of financial institutions. If

the request for information is in regard to a new application or renewal of an existing application

and is not received within the time specified in the request, the department may deny the

application.
N.D. Cent. Code § 13-09.1-41 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-41
13-09.1-41. Civil penalties
Status: in_force

13-09.1-41. Civil penalties

The commissioner may assess a civil penalty against a person that violates this chapter or

a rule adopted or an order issued under this chapter in an amount not to exceed one thousand

dollars per day for each day that the violation is outstanding, plus this state's costs and

expenses for the investigation and prosecution of the matter, including reasonable attorney's

fees. Each transaction in violation of this chapter and each day that a violation continues is a

separate violation. A civil money penalty collected under this section must be paid to the

department of financial institutions and deposited in the financial institutions regulatory fund.
N.D. Cent. Code § 13-13-15 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-15
13-13-15. Prohibited acts and practices
Status: in_force

13-13-15. Prohibited acts and practices

It is a violation of this chapter for a person subject to this chapter to:

1. Make or cause to be made any materially false statement or representation in any

document or statement required to be filed under any provision of this chapter, or to

omit any material statement or fact necessary in order to make the statements made,

in light of the circumstances under which they are made, not misleading.

2. Directly or indirectly, employ any device, scheme, or artifice to defraud or mislead

borrowers or lenders to defraud any person.

3. Directly or indirectly, make any untrue statement of a material fact or to omit a material

fact necessary in order to make the statements made, in light of the circumstances

under which they are made, not misleading in connection with the procurement or

promise of procurement of any lender or loan funds.

4. Engage in any unfair or deceptive practice toward any person.

5. Obtain property by fraud or misrepresentation.

6. Conduct any business covered by this chapter without holding a valid license as

required under this chapter or assist or aid and abet any person in the conduct of

business under this chapter without a valid license as required under this chapter.

7. Fail to make disclosures as required by this chapter and any other applicable state or

federal law and regulations.

8. Fail to comply with this chapter or rules adopted under this chapter or fail to comply

with any other state or federal law, including the rules and regulations, applicable to

any business authorized or conducted under this chapter.

9. Negligently make any false statement or make any omission of material fact in

connection with any information or reports filed with a governmental agency, the

nationwide multistate licensing system and registry, or in connection with any

investigation conducted by the commissioner or another governmental agency.

10. Collect, charge, attempt to collect or charge, or use or propose any agreement

purporting to collect or charge any fee prohibited by this chapter.

11. Cause or require a borrower to obtain property insurance coverage in an amount that

exceeds the replacement cost of the improvements as established by the property

insurer.

12. Fail to truthfully account for moneys belonging to a party to a loan transaction.

13. Conduct another business within the same office, suite, room, or place of business at

which the licensee engages in residential mortgage loan servicer business unless the

commissioner provides written authorization after a determination the other business is

not contrary to the best interests of any borrower.

14. Enter any agreement that constitutes a precomputed loan.
N.D. Cent. Code § 13-02.1-06 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-06
13-02.1-06. When transfer is made or obligation is incurred
Status: in_force

13-02.1-06. When transfer is made or obligation is incurred

For the purposes of this chapter:

1. A transfer is made with respect to an asset that is real property other than a fixture, but

including the interest of a seller or purchaser under a contract for the sale of the asset,

when the transfer is so far perfected that a good-faith purchaser of the asset from the

debtor against which applicable law permits the transfer to be perfected cannot

acquire an interest in the asset that is superior to the interest of the transferee. A

transfer is made with respect to an asset that is not real property or that is a fixture,

when the transfer is so far perfected that a creditor on a simple contract cannot

acquire a judicial lien otherwise than under this chapter that is superior to the interest

of the transferee.

2. If applicable law permits the transfer to be perfected as provided in subsection 1 and

the transfer is not so perfected before the commencement of an action for relief under

this chapter, the transfer is deemed to have been made immediately before the

commencement of the action.

3. If applicable law does not permit the transfer to be perfected as provided in

subsection 1, the transfer is made when it becomes effective between the debtor and

the transferee.

4. A transfer is not made until the debtor has acquired rights in the asset transferred.

5. An oral obligation is incurred when it becomes effective between the parties. An

obligation evidenced by a record is incurred when the record signed by the obligor is

delivered to or for the benefit of the obligee.
N.D. Cent. Code § 13-01.1-03 — ND Code / Title 13 / Chapter 13-01.1 / Section 13-01.1-03
13-01.1-03. Interest must compound
Status: in_force

13-01.1-03. Interest must compound

Any interest which remains unpaid at the end of any forty-five-day period or which remains

unpaid at the end of any specified period provided by contract must be added to the principal

amount of the debt and must thereafter accumulate interest.
N.D. Cent. Code § 13-04.1-05 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-05
13-04.1-05. Expiration and renewal of license
Status: in_force

13-04.1-05. Expiration and renewal of license

All licenses required herein expire on December thirty-first of each year and may be

renewed. Renewals are effective the succeeding January first. Applications for renewal must be

submitted thirty days before the expiration of the license and must be accompanied by the

required annual fees, which are not subject to refund. The form and content of renewal

applications must be determined by the department of financial institutions, and a renewal

application may be denied upon the same grounds as would justify denial of an initial

application. When a licensee has been delinquent in renewing the licensee's license, the

department may charge an additional fee of fifty dollars for the renewal of such license. A money

broker license is not transferable. If the commissioner determines that an ownership change has

occurred in a sole proprietorship, partnership, limited liability partnership, corporation, or limited

liability corporation that was previously granted a money broker license, the commissioner may

require a new application from the purchaser. The application must be filed within forty-five days

from the date change of ownership is consummated. The department shall act on the

application within sixty days from the date the application is received but may extend the review

period for good cause. The money broker license granted to the previous owner continues in

effect to the new purchaser until the application is either granted or denied.
N.D. Cent. Code § 13-02.1-04 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-04
13-02.1-04. Transfer or obligation voidable as to present or future creditor
Status: in_force

13-02.1-04. Transfer or obligation voidable as to present or future creditor

1. A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether

the creditor's claim arose before or after the transfer was made or the obligation was

incurred, if the debtor made the transfer or incurred the obligation:

a. With actual intent to hinder, delay, or defraud any creditor of the debtor; or

b. Without receiving a reasonably equivalent value in exchange for the transfer or

obligation, and the debtor was engaged or was about to engage in a business or

a transaction for which the remaining assets of the debtor were unreasonably

small in relation to the business or transaction or the debtor intended to incur, or

believed or reasonably should have believed that the debtor would incur, debts

beyond the debtor's ability to pay as they became due.

2. In determining actual intent under subdivision a of subsection 1, consideration may be

given, among other factors, to whether:

a. The transfer or obligation was to an insider;

b. The debtor retained possession or control of the property transferred after the

transfer;

c. The transfer or obligation was disclosed or concealed;

d. Before the transfer was made or obligation was incurred, the debtor had been

sued or threatened with suit;

e. The transfer was of substantially all the debtor's assets;

f. The debtor absconded;

g. The debtor removed or concealed assets;

h. The value of the consideration received by the debtor was reasonably equivalent

to the value of the asset transferred or the amount of the obligation incurred;

i. The debtor was insolvent or became insolvent shortly after the transfer was made

or the obligation was incurred;

j. The transfer occurred shortly before or shortly after a substantial debt was

incurred; and

k. The debtor transferred the essential assets of the business to a lienor that

transferred the assets to an insider of the debtor.

3. A creditor making a claim for relief under subsection 1 has the burden of proving the

elements of the claim for relief by a preponderance of the evidence.
N.D. Cent. Code § 13-11-28 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-28
13-11-28. Void contracts
Status: in_force

13-11-28. Void contracts

1. If a provider imposes a fee or other charge or receives money or other payments not

authorized by sections 13-11-21 and 13-11-22, the contract is void and the individual

may recover as provided in section 13-11-20.

2. If a provider is not licensed as required by this chapter when an individual assents to a

contract, the contract is void.

3. For a void contract under subsection 2, the provider does not have a claim against the

individual for breach of contract or for restitution.
N.D. Cent. Code § 13-08-11 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-11
13-08-11. Retention of records
Status: in_force

13-08-11. Retention of records

Each licensee shall keep and use in the licensee's business any books, accounts, and

records the commissioner may require to carry into effect the provisions of this chapter and the

rules issued under this chapter. Every licensee shall preserve required books, accounts, and

records for at least six years. The records of a licensee may be maintained electronically

provided they can be reproduced upon request by the department of financial institutions and

within the required statutory time period provided in this section. When a licensee ceases

operations for any reason, the licensee shall inform the department of the location of the

records. In addition, the licensee shall provide the name of the individual responsible for

maintenance of the records. The licensee shall notify the department within ten business days

of the change of the location of the records or the change of the individual responsible for

maintenance of the records.
N.D. Cent. Code § 13-09.1-20 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-20
13-09.1-20. Authorized delegate reporting
Status: in_force

13-09.1-20. Authorized delegate reporting

1. Each licensee shall submit a report of authorized delegates within forty-five days of the

end of the calendar quarter. The commissioner may utilize the nationwide system for

the submission of the report required by this subsection provided that such

functionality is consistent with the requirements of this section.

2. The authorized delegate report must include, at a minimum, each authorized

delegate's:

a. Company legal name;

b. Taxpayer employer identification number;

c. Principal provider identifier;

d. Physical address;

e. Mailing address;

f. Any business conducted in other states;

g. Any fictitious or trade name;

h. Contact person name, phone number, and electronic mail;

i. Start date as licensee's authorized delegate;

j. End date acting as licensee's authorized delegate, if applicable;

k. Court orders pursuant to section 13-09.1-26; and

l. Any other information the commissioner reasonably requires with respect to the

authorized delegate.
N.D. Cent. Code § 13-09.1-44 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-44
13-09.1-44. Definitions
Status: in_force

13-09.1-44. Definitions

For the purposes of sections 13-09.1-44 through 13-09.1-54, the following definitions apply:

1. "Blockchain analytics" means the analysis of data from blockchains or publicly

distributed ledgers, including associated transaction information to provide risk-specific

information about virtual-currency transactions and virtual currency addresses.

2. "Control of virtual currency", when used in reference to a transaction or relationship

involving virtual currency, means the power to execute unilaterally or prevent

indefinitely a virtual-currency transaction.

3. "Exchange", used as a verb, means to assume control of virtual currency from or on

behalf of a person, at least momentarily, to sell, trade, or convert:

a. Virtual currency for money, bank credit, or one or more forms of virtual currency;

or

b. Money or bank credit for one or more forms of virtual currency.

4. "Transaction hash" means a unique identifier made up of a string of characters that act

as a record and provide proof the transaction was verified and added to the

blockchain.

5. "Transfer" means to assume control of virtual currency from or on behalf of a person

and to:

a. Credit the virtual currency to the account of another person;

b. Move the virtual currency from one account of a person to another account of the

same person; or

c. Relinquish control of virtual currency to another person.

6. "United States dollar equivalent of virtual currency" means the equivalent value of a

particular virtual currency in United States dollars shown on a virtual-currency

exchange based in the United States for a particular date or period specified in this

chapter.

7. "Virtual currency":

a. Means a digital representation of value that:

(1) Is used as a medium of exchange, unit of account, or store of value; and

(2) Is not money, whether or not denominated in money; and

b. Does not include:

(1) A transaction in which a merchant grants, as part of an affinity or rewards

program, value that cannot be taken from or exchanged with the merchant

for money, bank credit, or virtual currency; or

(2) A digital representation of value issued by or on behalf of a publisher and

used solely within an online game, game platform, or family of games sold

by the same publisher or offered on the same game platform.

8. "Virtual-currency address" means an alphanumeric identifier associated with a

virtual-currency wallet identifying the location to which a virtual-currency transaction

may be sent.

9. "Virtual-currency administration" means issuing virtual currency with the authority to

redeem the currency for money, bank credit, or other virtual currency.

10. "Virtual-currency business activity" means:

a. Exchanging, transferring, or storing virtual currency or engaging in virtual-

currency administration, whether directly or through an agreement with a virtual-

currency control-services vendor;

b. Holding electronic precious metals or electronic certificates representing interests

in precious metals on behalf of another person or issuing shares or electronic

certificates representing interests in precious metals; or

c. Exchanging one or more digital representations of value used within one or more

online games, game platforms, or family of games for:

(1) Virtual currency offered by or on behalf of the same publisher from which the

original digital representation of value was received; or

(2) Money or bank credit outside the online game, game platform, or family of

games offered by or on behalf of the same publisher from which the original

digital representation of value was received.

11. "Virtual-currency control-services vendor" means a person that has control of virtual

currency solely under an agreement with a person that, on behalf of another person,

assumes control of virtual currency.

12. "Virtual-currency kiosk" means an electronic terminal acting as a mechanical agent of

the virtual-currency kiosk operator to enable the virtual-currency kiosk operator to

facilitate the exchange of virtual currency for money, bank credit, or other virtual

currency, including by:

a. Connecting directly to a separate virtual-currency exchange that performs the

actual virtual-currency transmission; or

b. Drawing upon the virtual currency in the possession of the electronic terminal's

operator.

13. "Virtual-currency kiosk operator" means a person that operates a virtual currency kiosk

in this state.

14. "Virtual-currency kiosk transaction" means:

a. A transaction conducted or performed, in whole or in part, by electronic means via

a virtual-currency kiosk.

b. A transaction made at a virtual-currency kiosk to purchase virtual currency with

fiat currency or to sell virtual currency for fiat currency.

15. "Virtual-currency wallet" means a software application or other mechanism providing a

means to hold, store, or transfer virtual currency.
N.D. Cent. Code § 13-11-07 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-07
13-11-07. Applicant's obligation to update information
Status: in_force

13-11-07. Applicant's obligation to update information

An applicant or licensed provider shall notify the commissioner within ten days after a

change in the information provided within the application.
N.D. Cent. Code § 13-10-06 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-06
13-10-06. Prelicensing and relicensing education of loan originators
Status: in_force

13-10-06. Prelicensing and relicensing education of loan originators

1. To meet the prelicensing education requirement referred to in subsection 4 of section

13-10-05, a person shall complete at least twenty hours of education approved in

accordance with subsection 2, which must include at least:

a. Three hours of federal law and regulations;

b. Three hours of ethics, which shall include instruction on fraud, consumer

protection, and fair lending issues; and

c. Two hours of training related to lending standards for the nontraditional mortgage

product marketplace.

2. For purposes of subsection 1, prelicensing education courses must be reviewed and

approved by the nationwide mortgage licensing system and registry based upon

reasonable standards. Review and approval of a prelicensing education course must

include review and approval of the course provider.

3. Nothing in this section precludes any prelicensing education course, as approved by

the nationwide mortgage licensing system and registry, which is provided by the

employer of the applicant or an entity that is affiliated with the applicant by an agency

contract or any subsidiary or affiliate of such employer or entity.

4. Prelicensing education may be offered in a classroom, online, or by any other means

approved by the nationwide mortgage licensing system and registry.

5. The prelicensing education requirements approved by the nationwide mortgage

licensing system and registry in subsection 1 for any state shall be accepted as credit

toward completion of prelicensing education requirements in North Dakota.

6. A person previously licensed under this chapter after the effective date of this chapter

applying to be licensed again must prove that that person has completed all of the

continuing education requirements for the year in which the license was last held.
N.D. Cent. Code § 13-12-09 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-09
13-12-09. Expiration and renewal of license
Status: in_force

13-12-09. Expiration and renewal of license

All licenses expire on December thirty-first of each year and may be renewed. Renewals are

effective the succeeding January first. Applications for renewal must be submitted thirty days

before the expiration of the license and must be accompanied by the required annual fees,

which are not subject to refund. The form and content of renewal applications must be

determined by the department of financial institutions, and a renewal application may be denied

upon the same grounds as would justify denial of an initial application. When a licensee has

been delinquent in renewing the license, the department may charge an additional fee of fifty

dollars for the renewal of the license. A residential mortgage lender license is not transferable. If

the commissioner determines that an ownership change has occurred in a sole proprietorship,

partnership, limited liability partnership, corporation, or limited liability corporation that was

previously granted a residential mortgage lender license, the commissioner may require a new

application from the purchaser. The application must be filed within forty-five days from the date

change of ownership is consummated. The department shall act on the application within sixty

days from the date the application is received but may extend the review period for good cause.

The residential mortgage lender license granted to the previous owner continues in effect to the

new purchaser until the application is either granted or denied.
N.D. Cent. Code § 13-09.1-22 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-22
13-09.1-22. Anti-money laundering - Countering the financing of terrorism reports
Status: in_force

13-09.1-22. Anti-money laundering - Countering the financing of terrorism reports

A licensee and an authorized delegate shall file all reports required by federal currency

reporting, recordkeeping, and suspicious activity reporting requirements as set forth in the

federal Anti-Money Laundering Act of 2020 and other federal and state laws pertaining to money

laundering. The timely filing of a complete and accurate report required under this section with

the appropriate federal agency is deemed compliant with the requirements of this section.
N.D. Cent. Code § 13-12-23 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-23
13-12-23. Change of name or address
Status: in_force

13-12-23. Change of name or address

A licensee is required to submit within twenty business days of the date of change

notification of a change of name or change of address. The notification must be in the form

prescribed by the commissioner.
N.D. Cent. Code § 13-02.1-03 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-03
13-02.1-03. Value
Status: in_force

13-02.1-03. Value

1. Value is given for a transfer or an obligation if, in exchange for the transfer or

obligation, property is transferred or an antecedent debt is secured or satisfied, but

value does not include an unperformed promise made otherwise than in the ordinary

course of the promisor's business to furnish support to the debtor or another person.

2. For the purposes of subdivision b of subsection 1 of section 13-02.1-04 and section

13-02.1-05, a person gives a reasonably equivalent value if the person acquires an

interest of the debtor in an asset pursuant to a regularly conducted, noncollusive

foreclosure sale or execution of a power of sale for the acquisition or disposition of the

interest of the debtor upon default under a mortgage, deed of trust, or security

agreement.

3. A transfer is made for present value if the exchange between the debtor and the

transferee is intended by them to be contemporaneous and is in fact substantially

contemporaneous.
N.D. Cent. Code § 13-05-07 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-07
13-05-07. Manner in which records and funds to be kept by collection agency
Status: in_force

13-05-07. Manner in which records and funds to be kept by collection agency

1. Every collection agency licensed under this chapter shall keep a record of all sums

collected by it and of all disbursements made by it for a period of six years from the

date of last entry thereon. The records of a licensee may be maintained electronically

provided they can be reproduced upon request of the department of financial

institutions and within the required statutory time period provided in this section.

2. When a licensee ceases operations for any reason, the licensee shall be required to

inform the department of the location of the records required to be maintained in

accordance with section 13-05-07. In addition, the licensee shall provide the name of

the individual responsible for maintenance of the records. The licensee shall notify the

department within ten business days of the change of the location of the records or the

change of the individual responsible for maintenance of the records.

3. No licensee, individual, or person subject to investigation or examination under this

section may intentionally make any false entry in any such collection agency record or

knowingly withhold, abstract, secrete, remove, mutilate, destroy, or otherwise dispose

of any books, records, computer records, or other information within the time limit

provided in this section.

4. No licensee under this chapter may commingle the money of collection agency

customers with other than collection funds and shall maintain a separate bank account

for such customer's funds and shall keep such funds in the bank account until

disbursed to the customer.
N.D. Cent. Code § 13-01-14 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-14
13-01-14. Late payment charge on accounts receivable - Exceptions
Status: in_force

13-01-14. Late payment charge on accounts receivable - Exceptions

1. A creditor may charge, receive, and collect a late payment charge on all money due on

account from thirty days after the obligation of the debtor to pay has been incurred. A

creditor may assign an account receivable that is subject to this section. An assignee

of an account receivable has the same right to charge a late payment charge as does

an original creditor for the assigned account receivable.

2. The late payment charge allowed under this section may not exceed one and

three-fourths percent per month.

3. The late payment charge allowed under this section may not be charged unless, when

the obligation was incurred, the creditor did not intend to extend any credit beyond

thirty days and any late payment of the obligation was unanticipated.

4. This section does not apply to:

a. Money due on retail installment contracts, as defined in chapter 51-13.

b. Money due on revolving charge accounts, as defined in chapter 51-14.

c. Money due a medical services provider on accounts receivable for medical bills.
N.D. Cent. Code § 13-01-15 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-15
13-01-15. Late payment on accounts receivable - Periodic statement to be furnished to debtor
Status: in_force

13-01-15. Late payment on accounts receivable - Periodic statement to be furnished

to debtor.

1. A creditor may not charge the account receivable late payment charge provided for

under section 13-01-14 or 13-01-14.1 unless the creditor promptly supplies the debtor

with a statement as of the end of each monthly period, or other regular period agreed

upon by the creditor and the debtor, in which there is any unpaid balance.

2. Such statement must state, in any order, the following:

a. The percentage amount of the late payment charge which will be charged

beginning thirty days after the obligation is incurred for purposes of section

13-01-14, or beginning after the billed medical services become delinquent for

purposes of section 13-01-14.1.

b. The unpaid balance at the end of the period.

c. An identification of any amount debited to the debtor's account during the period.

d. The payments made by or for the debtor to the creditor during the period.

e. The amount of the late payment charge.

3. Additional items may be included in the statement to explain the computations made in

determining the amount to be paid by the debtor.
N.D. Cent. Code § 13-08-01 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-01
13-08-01. Definitions
Status: in_force

13-08-01. Definitions

As used in this chapter, unless the context otherwise requires:

1. "Check" means a personal check signed by the maker and made payable to a

licensee.

2. "Commissioner" means the commissioner of financial institutions.

3. "Completed deferred presentment service transaction" means a transaction that is

completed when a check is redeemed by the maker by payment in full to the licensee

in cash, money order, or certified check or by negotiation or deposit by the licensee, or

when an electronic funds transfer or other transfer of money has taken place to repay

the contracted debt.

4. "Customer" means a person to which funds are advanced under a deferred

presentment service transaction.

5. "Deferred presentment service transaction" means a transaction by which a person:

a. Pays to a customer the amount of a check, less the fees permitted under this

chapter, and accepts a check from the customer dated on the date of the

transaction and agrees to hold the check for a period of time before negotiation or

presentment;

b. Accepts a check dated after the date of the transaction and agrees to hold the

check for deposit until the date written on the check; or

c. Pays to the customer an agreed-upon amount, and obtains the customer's

authorization to transfer or withdraw, electronically or otherwise, funds from a

customer's account in repayment at some future, agreed-upon date.

6. "Licensee" means a person licensed under this chapter to provide deferred

presentment services.
N.D. Cent. Code § 13-04.1-09 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-09
13-04.1-09. Prohibited acts and practices
Status: in_force

13-04.1-09. Prohibited acts and practices

It is a violation of this chapter for a person subject to this chapter to:

1. Make or cause to be made any material false statement or representation in any

application or other document or statement required to be filed under any provision of

this chapter, or to omit to state any material statement or fact necessary in order to

make the statements made, in light of the circumstances under which they are made,

not misleading.

2. Directly or indirectly, employ any device, scheme, or artifice to defraud or mislead

borrowers or lenders to defraud any person.

3. Directly or indirectly, make any untrue statement of a material fact or to omit to state a

material fact necessary in order to make the statements made, in the light of the

circumstances under which they are made, not misleading in connection with the

procurement or promise of procurement of any lender or loan funds.

4. Engage in any unfair or deceptive practice toward any person.

5. Obtain property by fraud or misrepresentation.

6. Solicit, advertise, or enter into a contract for specific interest rates, points, or other

financing terms unless the terms are actually available at the time of soliciting,

advertising, or contracting.

7. Conduct any business covered by this chapter without holding a valid license as

required under this chapter, or assist or aid and abet any person in the conduct of

business under this chapter without a valid license as required under this chapter.

8. Fail to make disclosures as required by this chapter and any other applicable state or

federal law and regulations.

9. Fail to comply with this chapter or rules adopted under this chapter, or fail to comply

with any other state or federal law, including the rules and regulations thereunder,

applicable to any business authorized or conducted under this chapter.

10. Make, in any manner, any false or deceptive statement or representation, including,

with regard to the rates, points, or other financing terms or conditions for a loan or

engage in bait and switch advertising.

11. Negligently make any false statement or make any omission of material fact in

connection with any information or reports filed with a governmental agency or the

nationwide multistate licensing system and registry or in connection with any

investigation conducted by the commissioner or another governmental agency.

12. Make any payment, threat, or promise, directly or indirectly, to any person for the

purposes of influencing the independent judgment of the person in connection with a

loan or make any payment, threat, or promise, directly or indirectly, to any appraiser of

a property, for the purposes of influencing the independent judgment of the appraiser

with respect to the value of the property.

13. Collect, charge, attempt to collect or charge, or use or propose any agreement

purporting to collect or charge any fee prohibited by this chapter.

14. Cause or require a borrower to obtain property insurance coverage in an amount that

exceeds the replacement cost of the improvements as established by the property

insurer.

15. Fail to truthfully account for moneys belonging to a party to a loan transaction.

16. Conduct another business within the same office, suite, room, or place of business at

which the licensee engages in money broker business unless the commissioner

provides written authorization after a determination the other business is not contrary

to the best interests of any borrower or potential borrower.

17. Enter any agreement that constitutes a precomputed loan.
N.D. Cent. Code § 13-09.1-52 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-52
13-09.1-52. Prevention of fraudulent activity
Status: in_force

13-09.1-52. Prevention of fraudulent activity

1. A virtual-currency kiosk operator shall use blockchain analytics software to assist in

the detection and prevention of suspicious activity, including sending purchased virtual

currency from a virtual-currency kiosk operator to a virtual-currency wallet known to be

affiliated with fraudulent activity at the time of a transaction and identifying patterns

that reflect money laundering or other illicit activity. The commissioner may request

evidence from any virtual-currency kiosk operator of use of blockchain analytics.

2. A virtual-currency kiosk operator shall take reasonable steps to detect and prevent

fraud, including establishing and maintaining a written antifraud policy. The antifraud

policy must include:

a. The identification and assessment of fraud-related risk areas;

b. Procedures and controls to protect against identified risks;

c. Allocation of responsibility for monitoring risks; and

d. Procedures for the periodic evaluation and revision of the antifraud procedures,

controls, and monitoring mechanisms.

3. Each virtual-currency kiosk operator shall designate and employ a compliance officer

with the following requirements:

a. The individual must be qualified to coordinate and monitor compliance with this

chapter and all other applicable federal and state laws and rules;

b. The individual must be employed full-time by the virtual-currency kiosk operator;

and

c. The designated compliance officer may not be an individual who owns more than

twenty percent of the virtual-currency kiosk operator by whom the individual is

employed.

4. Compliance responsibilities required under federal and state laws and rules must be

completed by full-time employees of the virtual-currency kiosk operator.

5. A virtual-currency kiosk operator shall maintain, implement, and enforce a written

enhanced due diligence policy. The policy must be reviewed and approved by the

virtual-currency kiosk operator's board of directors or equivalent governing body.

6. A virtual-currency kiosk operator shall designate and employ a consumer protection

officer. The consumer protection officer:

a. Must be qualified to coordinate and monitor compliance with state and federal

law;

b. Must be employed full-time by the virtual-currency kiosk operator; and

c. May not own more than twenty percent of the virtual-currency kiosk operator.
N.D. Cent. Code § 13-04.1-09.1 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-09.1
13-04.1-09.1. Advance fees prohibited - Exception
Status: in_force

13-04.1-09.1. Advance fees prohibited - Exception

A money broker may not take any type of fee in advance before the funding of the loan or

lease, unless the money broker is licensed under this chapter.
N.D. Cent. Code § 13-01-02 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-02
13-01-02. Debtor's contract valid in absence of fraud
Status: in_force

13-01-02. Debtor's contract valid in absence of fraud

In the absence of fraud, every contract of a debtor is valid against all of the debtor's

creditors, existing or subsequent, who have not acquired a lien on the property affected by the

contract.