N.D. Cent. Code § 13-13-24 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-24
13-13-24. Report to nationwide multistate licensing system
Status: in_force

13-13-24. Report to nationwide multistate licensing system

Notwithstanding state privacy law, the commissioner shall regularly report violations of this

chapter, as well as enforcement actions and other relevant information, to the nationwide

multistate licensing system and registry subject to the provisions contained in section 13-12-15.
N.D. Cent. Code § 13-09.1-14 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-14
13-09.1-14. Renewal of license
Status: in_force

13-09.1-14. Renewal of license

1. A license under this chapter must be renewed annually.

a. An annual nonrefundable renewal fee must be paid by December thirty-first. The

fee must equal five hundred dollars or one-fourth of one percent of the money

transmission dollar volume in North Dakota for the twelve months ending June

thirtieth, whichever is greater. For the transmission of virtual currency as defined

in section 13-09.1-44, the fee must equal five hundred dollars or one-fourth of

one percent of the average United States dollar equivalent market value of the

virtual currency transmitted in North Dakota for the twelve months ending June

thirtieth, whichever is greater. The fee may not exceed two thousand five hundred

dollars.

b. The renewal term must be for a period of one year and begins on January first of

each year after the initial license term and expires on December thirty-first of the

year the renewal term begins.

2. A licensee shall submit a renewal report with the renewal fee, in a form and in a

medium prescribed by the commissioner. The renewal report must state or contain a

description of each material change in information submitted by the licensee in its

original license application which has not been reported to the commissioner.

3. The commissioner for good cause may grant an extension of the renewal date.

4. The commissioner may utilize the nationwide system to process license renewals

provided that such functionality is consistent with this section.

5. A licensee may renew an expired license no later than January thirty-first subject to a

late fee of fifty dollars.

6. The commissioner may deny an application to renew a license if the licensee no

longer meets the criteria for licensure or otherwise fails to comply with this chapter.
N.D. Cent. Code § 13-09.1-40 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-40
13-09.1-40. Criminal penalties
Status: in_force

13-09.1-40. Criminal penalties

1. A person that intentionally makes a false statement, misrepresentation, or false

certification in a record filed or required to be maintained under this chapter or that

intentionally makes a false entry or omits a material entry in such a record is guilty of a

class C felony.

2. A person that knowingly engages in an activity for which a license is required under

this chapter without being licensed under this chapter is guilty of a class C felony.
N.D. Cent. Code § 13-04.1-12 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-12
13-04.1-12. Remedies not exclusive
Status: in_force

13-04.1-12. 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 § 13-13-03 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-03
13-13-03. Residential mortgage loan servicing license required
Status: in_force

13-13-03. Residential mortgage loan servicing license required

Except as otherwise provided, a person other than a residential mortgage loan servicer

licensed and authorized under this chapter may not engage in residential mortgage loan

servicing, either as a servicer, subservicer, or mortgage servicing rights investor, in the state

without a residential mortgage loan servicer license issued by the commissioner. A person

engages in residential mortgage loan servicing in the state if the borrower resides in North

Dakota.
N.D. Cent. Code § 13-11-17 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-17
13-11-17. Required presale consumer disclosures and warnings
Status: in_force

13-11-17. Required presale consumer disclosures and warnings

1. Before the consumer signs a contract, the debt-settlement provider shall provide an

oral and written notice to the consumer that clearly and conspicuously discloses all of

the following:

a. Debt-settlement services may not be suitable for all consumers.

b. Using a debt-settlement service likely will harm the consumer's credit history and

credit score.

c. Using a debt-settlement service does not stop creditor collection activity, including

creditor lawsuits and garnishments.

d. Not all creditors may accept a reduction in the balance, interest rate, or fees a

consumer owes.

e. The consumer should inquire about other means of dealing with debt, including

nonprofit credit counseling and bankruptcy.

f. The consumer remains obligated to make periodic or scheduled payments to

creditors while participating in a debt-settlement plan, and that the

debt-settlement provider will not make any periodic or scheduled payments to

creditors on behalf of the consumer.

g. The failure to make periodic or scheduled payments to a creditor is likely to:

(1) Harm the consumer's credit history, credit rating, or credit score;

(2) Lead the creditor to increase lawful collection activity, including litigation,

garnishment of the consumer's wages, and judgment liens on the

consumer's property; and

(3) Lead to the imposition by the creditor of interest charges, late fees, and

other penalty fees, increasing the principal amount of the debt.

h. The amount of time estimated to be necessary to achieve the represented

results.

i. The estimated 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.

j. A statement indicating that debt-settlement providers are licensed and regulated

by the North Dakota department of financial institutions and any complaints

regarding the services of a debt-settlement provider should be directed to the

North Dakota department of financial institutions, Bismarck, North Dakota.

2. The consumer shall sign and date an acknowledgment form entitled "Consumer Notice

and Rights Form" that states: "I, the debtor, have received from the debt-settlement

provider a copy of the form entitled 'Consumer Notice and Rights Form'." The debt-

settlement provider or its representative also shall sign and date the acknowledgment

form, which includes the name and address of the debt-settlement services provider.

The acknowledgment form must be in duplicate and incorporated into the "Consumer

Notice and Rights Form". The original acknowledgment form must be retained by the

debt-settlement provider, and the duplicate copy must be retained within the form by

the consumer. If the acknowledgment form is in electronic form, then the

acknowledgment form must contain the consumer disclosures required by section

101(c) of the federal Electronic Signatures in Global and National Commerce Act [15

U.S.C. 7001(c)].

3. The requirements of this section are satisfied if the provider provides the following

warning verbatim, both orally and in writing, with the caption "CONSUMER NOTICE

AND RIGHTS FORM" in at least twenty-eight-point font and the remaining portion in at

least fourteen-point font to a consumer before the consumer signs a contract for the

debt-settlement provider's services:

"CONSUMER NOTICE AND RIGHTS FORM

CAUTION

We CANNOT GUARANTEE that you successfully will reduce or eliminate your debt. If

you stop paying your creditors, there is a strong likelihood some or all of the following

may happen:

- CREDITORS MAY STILL CONTACT YOU AND TRY TO COLLECT.

- CREDITORS MAY STILL SUE YOU FOR THE MONEY YOU OWE.

- YOUR WAGES OR BANK ACCOUNTS STILL MAY BE GARNISHED.

- YOUR CREDIT RATING AND CREDIT SCORE LIKELY WILL BE HARMED.

- NOT ALL CREDITORS MAY AGREE TO ACCEPT A BALANCE REDUCTION.

- YOU SHOULD CONSIDER ALL YOUR OPTIONS FOR ADDRESSING YOUR

DEBT, SUCH AS CREDIT COUNSELING AND BANKRUPTCY FILING.

- THE AMOUNT OF MONEY YOU OWE MAY INCREASE DUE TO CREDITOR

IMPOSITION OF INTEREST CHARGES, LATE FEES, AND OTHER PENALTY FEES.

- EVEN IF WE DO SETTLE YOUR DEBT, YOU MAY STILL BE REQUIRED TO

PAY TAXES ON THE AMOUNT FORGIVEN.

YOUR RIGHT TO CANCEL

If you sign a contract with a debt-settlement provider, you have the right to cancel at

any time and receive a full refund of all unearned fees you have paid to the provider

and all funds placed in your settlement fund that have not been paid to any creditors.

IF YOU ARE DISSATISFIED

OR YOU HAVE QUESTIONS

If you are dissatisfied with a debt-settlement provider or have any questions, please

bring it to the attention of the North Dakota Department of Financial Institutions,

Bismarck, North Dakota.

I, the debtor, have received from the debt-settlement provider a copy of the form

entitled Consumer Notice and Rights Form.

Signed:____________________________

Printed name:_______________________"
N.D. Cent. Code § 13-11-27 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-27
13-11-27. Enforcement authorities, violations, and penalties
Status: in_force

13-11-27. Enforcement authorities, violations, and penalties

1. Any person that violates this chapter is guilty of a class C felony.

2. The commissioner may impose a civil money penalty not to exceed five thousand

dollars per violation upon a person or agency that 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 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.

3. The attorney general also may enforce this chapter. The attorney general, in enforcing

this chapter, has all the powers provided in this chapter or chapter 51-15 and may

seek all remedies in this chapter or chapter 51-15. A violation of this chapter is

deemed a violation of chapter 51-15. The remedies, duties, prohibitions, and penalties

of this chapter are not exclusive and are in addition to all other causes of action,

remedies, and penalties under chapter 51-15, or otherwise provided by law.
N.D. Cent. Code § 13-09.1-38 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-38
13-09.1-38. Orders to cease and desist
Status: in_force

13-09.1-38. Orders to cease and desist

1. If the commissioner determines that a violation of this chapter or of a rule adopted or

an order issued under this chapter by a licensee or authorized delegate is likely to

cause immediate and irreparable harm to the licensee, its customers, or the public as

a result of the violation, or cause insolvency or significant dissipation of assets of the

licensee, the commissioner may issue an order requiring the licensee or authorized

delegate to cease and desist from the violation. The order becomes effective upon

issuance.

2. The commissioner may issue an order against a licensee to cease and desist from

providing money transmission through an authorized delegate that is the subject of a

separate order by the commissioner.

3. An order to cease and desist must contain a notice of opportunity for a hearing

pursuant to chapter 28-32.

4. If the company or individual subject to an order to cease and desist fails to request a

hearing in writing to the commissioner within twenty days of issuance, or if a hearing is

held and the commissioner concludes the record so warrants, the order to cease and

desist becomes final.
N.D. Cent. Code § 13-01-06 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-06
13-01-06. Transfer of personalty without changing of possession or filing of instrument presumed fraudulent
Status: repealed

13-01-06. Transfer of personalty without changing of possession or filing of

instrument presumed fraudulent.

Repealed by S.L. 1985, ch. 186, § 12.
N.D. Cent. Code § 13-07-05 — ND Code / Title 13 / Chapter 13-07 / Section 13-07-05
13-07-05. Consumer credit counseling service - Accounting records - Availability of statements
Status: in_force

13-07-05. Consumer credit counseling service - Accounting records - Availability of

statements.

A consumer credit counseling service shall maintain books, records, and accounts in a

manner that allows the attorney general to determine compliance with the law. A consumer

credit counseling service shall prepare a weekly statement of all receipts and disbursements,

including payments received from or on behalf of a debtor, disbursements made on behalf of the

debtor, fees collected, and funds held in escrow. The consumer credit counseling service shall

make available to each debtor, upon request, a copy of the debtor's statement of account. All

books, records, and accounts must be retained by a consumer credit counseling service for at

least six years after the final entry of any recorded transaction.
N.D. Cent. Code § 13-10-02 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-02
13-10-02. Definitions
Status: in_force

13-10-02. Definitions

For purposes of this chapter:

1. "Depository institution" has the same meaning as is currently defined under section 3

of the Federal Deposit Insurance Act and includes any credit union.

2. "Federal banking agencies" means the board of governors of the federal reserve

system, the comptroller of the currency, the director of the office of thrift supervision,

the national credit union administration, and the federal deposit insurance corporation.

3. "Immediate family member" means a spouse, child, sibling, parent, grandparent, or

grandchild. This includes stepparents, stepchildren, stepsiblings, and adoptive

relationships.

4. "Individual" means a natural person.

5. "Loan processor or underwriter" means an individual who performs clerical or support

duties as an employee at the direction of and subject to the supervision and instruction

of a person licensed, or exempt from licensing, under this chapter.

a. For purposes of this subsection, "clerical or support duties" may include

subsequent to the receipt of an application:

(1) The receipt, collection, distribution, and analysis of information common for

the processing or underwriting of a residential mortgage loan; and

(2) Communicating with a consumer to obtain the information necessary for the

processing or underwriting of a loan, to the extent that such communication

does not include offering or negotiating loan rates or terms, or counseling

consumers about residential mortgage loan rates or terms.

b. An individual engaging solely in loan processor or underwriter activities shall not

represent to the public, through advertising or other means of communicating or

providing information, including the use of business cards, stationery, brochures,

signs, rate lists, or other promotional items, that such individual can or will

perform any of the activities of a mortgage loan originator.

6. "Mortgage loan originator":

a. Means an individual who for compensation or gain or in the expectation of

compensation or gain:

(1) Takes a residential mortgage loan application; or

(2) Offers or negotiates terms of a residential mortgage loan;

b. Does not include an individual engaged solely as a loan processor or underwriter

except as otherwise provided in subsection 4 of section 13-10-03;

c. Does not include a person or entity that only performs real estate brokerage

activities and is licensed or registered in accordance with North Dakota law,

unless the person or entity 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; and

d. Does not include a person or entity solely involved in extensions of credit relating

to timeshare plans, as that term is defined in 11 U.S.C. 101(53D).

7. "Nationwide mortgage licensing system and registry" means a mortgage licensing

system developed and maintained by the conference of state bank supervisors and

the American association of residential mortgage regulators for the licensing and

registration of licensed mortgage loan originators.

8. "Nontraditional mortgage product" means any mortgage product other than a

thirty-year fixed rate mortgage.

9. "Person" means a natural person, corporation, company, limited liability company,

partnership, or association.

10. "Real estate brokerage activity" means any activity that involves offering or providing

real estate brokerage services to the public, including:

a. Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or

lessee of real property;

b. Bringing together parties interested in the sale, purchase, lease, rental, or

exchange of real property;

c. Negotiating, on behalf of any party, any portion of a contract relating to the sale,

purchase, lease, rental, or exchange of real property, other than in connection

with providing financing with respect to any such transaction;

d. Engaging in any activity for which a person engaged in the activity is required to

be registered or licensed as a real estate agent or real estate broker under any

applicable law; and

e. Offering to engage in any activity, or act in any capacity, described in this

subsection.

11. "Registered mortgage loan originator" means any individual who:

a. Meets the definition of mortgage loan originator and is an employee of:

(1) A depository institution;

(2) A subsidiary that is:

(a) Owned and controlled by a depository institution; and

(b) Regulated by a federal banking agency; or

(3) An institution regulated by the farm credit administration; and

b. Is registered with, and maintains a unique identifier through, the nationwide

mortgage licensing system and registry.

12. "Residential mortgage loan" means any loan primarily for personal, family, or

household use that is secured by a mortgage, deed of trust, or other equivalent

consensual security interest on a dwelling, as defined in section 103(v) of the Truth in

Lending Act, or residential real estate upon which is constructed or intended to be

constructed such a dwelling.

13. "Residential real estate" means any real property located in North Dakota, upon which

is constructed or intended to be constructed a dwelling.

14. "Unique identifier" means a number or other identifier assigned by protocols

established by the nationwide mortgage licensing system and registry.
N.D. Cent. Code § 13-11-01 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-01
13-11-01. Definitions
Status: in_force

13-11-01. Definitions

For the purposes of this chapter:

1. "Affiliate":

a. With respect to an individual, means:

(1) The spouse of the individual;

(2) A sibling of the individual or the spouse of a sibling;

(3) An individual or the spouse of an individual who is a lineal ancestor or lineal

descendant of the individual or the individual's spouse;

(4) An aunt, uncle, great aunt, great uncle, first cousin, niece, nephew,

grandniece, or grandnephew, whether related by the whole or the half blood

or adoption, or the spouse of any of them; or

(5) Any other individual occupying the residence of the individual; and

b. With respect to an entity, means:

(1) A person that directly or indirectly controls, is controlled by, or is under

common control with the entity;

(2) An officer of, or an individual who performs similar functions with respect to,

the entity;

(3) A director of, or an individual who performs similar functions with respect to,

the entity;

(4) A person that receives or received more than twenty-five thousand dollars

from the entity in either the current year or the preceding year or a person

that owns more than ten percent of, or an individual who is employed by or

is a director of, a person that receives or received more than twenty-five

thousand dollars from the entity in either the current year or the preceding

year;

(5) An officer or director of, or an individual performing similar functions with

respect to, a person described in paragraph 1;

(6) The spouse of, or an individual occupying the residence of, an individual

described in paragraphs 1 through 5; or

(7) An individual who has the relationship specified in paragraph 4 of

subdivision a to an individual or the spouse of an individual described in

paragraphs 1 through 5.

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

3. "Consumer" means any person who purchases or contracts for the purchase of

debt-settlement services.

4. "Consumer settlement account" means any account or other means or device in which

payments, deposits, or other transfers from a consumer are arranged, held, or

transferred by or to a debt-settlement provider for the accumulation of the consumer's

funds in anticipation of proffering an adjustment or settlement of a debt or obligation of

the consumer to a creditor on behalf of the consumer.

5. "Contract" means a contract or other legally binding agreement between a provider

and an individual for the performance of debt-management services.

6. "Debt-settlement provider" means any person engaging in, or holding itself out as

engaging in, the business of providing debt-settlement service in exchange for any fee

or compensation, or any person who solicits for or acts on behalf of any person

engaging in, or holding itself out as engaging in, the business of providing

debt-settlement service in exchange for any fee or compensation. "Debt-settlement

provider" does not include:

a. An attorney licensed or otherwise authorized to practice in this state who is

engaged in the practice of law;

b. An escrow agent, accountant, broker-dealer in securities, or investment advisor in

securities, when acting in the ordinary practice of the person's profession and

through the entity used in the ordinary practice of the person's profession;

c. Any bank, agent of a bank, operating subsidiary of a bank, affiliate of a bank, trust

company, savings and loan association, savings bank, credit union, farm credit

system institution, crop credit association, development credit corporation,

industrial development corporation, title insurance company, title insurance agent,

independent escrowee or insurance company operating or organized under the

laws of a state or the United States, or any other person authorized to make

loans under state law while acting in the ordinary practice of that business;

d. Any person who performs credit services for that person's employer while

receiving a regular salary or wage when the employer is not engaged in the

business of offering or providing debt-settlement service;

e. A collection agency licensed pursuant to chapter 13-05 which is collecting a debt

on the collection agency's own behalf or on behalf of a third party;

f. A public officer while acting in the officer's official capacity and any person acting

under court order;

g. Any person while performing services incidental to the dissolution, winding up, or

liquidating of a partnership, corporation, or other business enterprise; or

h. Any person currently licensed under any chapter administered by the department

of financial institutions or registered with the attorney general's office when acting

in the ordinary practice of that person's profession and not holding oneself out as

a debt-settlement provider.

7. a. "Debt-settlement service" means:

(1) Offering to provide advice or service, or acting as an intermediary between

or on behalf of a consumer and one or more of a consumer's creditors,

where the primary purpose of the advice, service, or action is to obtain a

settlement, adjustment, or satisfaction of the consumer's unsecured debt to

a creditor in an amount less than the full amount of the principal amount of

the debt or in an amount less than the current outstanding balance of the

debt;

(2) Offering to provide services related to or providing services advising,

encouraging, assisting, or counseling a consumer to accumulate funds for

the primary purpose of proposing or obtaining or seeking to obtain a

settlement, adjustment, or satisfaction of the consumer's unsecured debt to

a creditor in an amount less than the full amount of the principal amount of

the debt or in an amount less than the current outstanding balance of the

debt; or

(3) Offering to provide advice or service, or acting as an intermediary between

or on behalf of a person and a state or federal government agency where

the primary purpose of the advice, service, or action is to obtain a

settlement, adjustment, or satisfaction of the person's tax obligation to the

government agency in an amount less than the current outstanding balance

of the tax obligation.

b. "Debt-settlement service" does not include:

(1) Legal services provided in an attorney-client relationship by an attorney

licensed or otherwise authorized to practice law in this state;

(2) Accounting services provided in an accountant-client relationship by a

certified public accountant licensed to provide accounting services in this

state;

(3) Financial planning services provided in a financial planner-client relationship

by a member of a financial planning profession whose members the

commissioner, by rule, determines are:

(a) Licensed by this state;

(b) Subject to a disciplinary mechanism;

(c) Subject to a code of professional responsibility; and

(d) Subject to a continuing education requirement; or

(4) A person engaged in consumer credit counseling services under chapter 13-

07.

8. "Enrollment or setup fee" means any fee, obligation, or compensation paid or to be

paid by the consumer to a debt-settlement provider in consideration of or in connection

with establishing a contract or other agreement with a consumer related to the

provision of debt-settlement service.

9. "Maintenance fee" means any fee, obligation, or compensation paid or to be paid by

the consumer on a periodic basis to a debt-settlement provider in consideration of

maintaining the relationship and services to be provided by a debt-settlement provider

in accordance with a contract with a consumer related to the provision of

debt-settlement service.

10. "Person" means an individual, corporation, limited liability company, partnership, trust,

firm, association, or other legal entity. The term does not include a public corporation,

government, or governmental subdivision, agency, or instrumentality.

11. "Principal amount of the debt" means the total amount or outstanding balance owed by

a consumer to one or more creditors for a debt that is included in a contract for

debt-settlement service at the time when the consumer enters a contract for

debt-settlement service.

12. "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.

13. "Savings" means the difference between the principal amount of the debt and 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.

14. "Settlement fee" means any fee, obligation, or compensation paid or to be paid by the

consumer to a debt-settlement provider in consideration of or in connection with a

completed agreement or other arrangement on the part of a creditor to accept less

than the principal amount of the debt as satisfaction of the creditor's claim against the

consumer.

15. "Willfully" means the person acted intentionally in the sense that the person was aware

of what the person was doing.
N.D. Cent. Code § 13-12-05 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-05
13-12-05. Application for residential mortgage lender license
Status: in_force

13-12-05. Application for residential mortgage lender license

Every application or renewal for a residential mortgage lender license or branch registration

must be made upon forms designed and furnished by the department of financial institutions

and must contain any information which the department deems 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 secretary of state, if so

required.
N.D. Cent. Code § 13-12-10 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-10
13-12-10. Powers of the department of financial institutions
Status: in_force

13-12-10. Powers of the department of financial institutions

The department of financial institutions may:

1. Determine the qualifications of all applicants based on financial responsibility, financial

condition, business experience, character, and general fitness which must reasonably

warrant the belief that the applicant's business will be conducted lawfully and fairly. In

determining whether this qualification is met, and for the purpose of investigating

compliance with the chapter, the commissioner may review and consider the relevant

business records and capital adequacy of the applicant and the competence,

experience, integrity, and financial ability of a person who is a member, partner,

director, officer, or twenty-five percent or more shareholder of the applicant.

2. Establish codes of ethical conduct for licensees.
N.D. Cent. Code § 13-11-03 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-03
13-11-03. Application for license
Status: in_force

13-11-03. Application for license

1. Every application for a debt-settlement provider license, or for a renewal thereof, must

be made in the form prescribed by the commissioner and must contain any information

which the commissioner determines necessary and proper. The commissioner may

require any applicant to provide additional information that is not requested on the

application form. The applicant must register with the secretary of state if so required.

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 debt-settlement 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 § 13-05-02 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-02
13-05-02. Collection agency license required
Status: in_force

13-05-02. Collection agency license required

Except as otherwise provided in this chapter, no person, other than a collection agency

licensed and authorized under this chapter, may engage in debt collection in the state of North

Dakota without a collection agency license issued by the commissioner. A person engages in

debt collection in North Dakota if the debtor resides in North Dakota.
N.D. Cent. Code § 13-01.1-02 — ND Code / Title 13 / Chapter 13-01.1 / Section 13-01.1-02
13-01.1-02. When interest payment required
Status: in_force

13-01.1-02. When interest payment required

Interest must accrue and be made on payments overdue under section 13-01.1-01 at the

rate of one and three-fourths percent per month, unless a different rate is specified within the

contract upon which the claim is based. Interest must accrue beginning on the day after

payment is due, if payment due date is specified by contract, or on the day of receipt of the

invoice covering the delivered goods or services, if payment is not made within forty-five days.

Interest ceases to accrue on the date payment is made.
N.D. Cent. Code § 13-01.1-04 — ND Code / Title 13 / Chapter 13-01.1 / Section 13-01.1-04
13-01.1-04. Additional appropriation prohibited
Status: in_force

13-01.1-04. Additional appropriation prohibited

An agency of the state is prohibited from seeking additional appropriations to pay interest

which accrues as a result of the agency's failure to make payments as required by section

13-01.1-01.
N.D. Cent. Code § 13-01.2-04 — ND Code / Title 13 / Chapter 13-01.2 / Section 13-01.2-04
13-01.2-04. Exemptions
Status: in_force

13-01.2-04. Exemptions

Subsection 4, subdivision b of subsection 6, and subsections 10 and 11 of section

13-01.2-03 do not apply to financial institutions that maintain customer information concerning

fewer than five thousand consumers.
N.D. Cent. Code § 13-09.1-04 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-04
13-09.1-04. Implementation
Status: in_force

13-09.1-04. Implementation

1. In order to carry out the purposes of this chapter, the commissioner may, subject to the

provisions of subsections 1 and 2 of section 13-09.1-05:

a. Enter into agreements or relationships with other government officials or federal

and state regulatory agencies and regulatory associations in order to improve

efficiencies and reduce regulatory burden by standardizing methods or

procedures, and sharing resources, records, or related information obtained

under this chapter;

b. Use, hire, contract, or employ analytical systems, methods, or software to

examine or investigate any person subject to this chapter;

c. Accept, from other state or federal government agencies or officials, licensing,

examination, or investigation reports made by other state or federal government

agencies or officials; and

d. Accept audit reports made by an independent certified public accountant or other

qualified third-party auditor for an applicant or licensee and incorporate the audit

report in any report of examination or investigation.

2. The commissioner has the broad administrative authority to administer, interpret, and

enforce this chapter; promulgate rules or regulations implementing this chapter; and to

recover the cost of administering and enforcing this chapter by imposing and collecting

proportionate and equitable fees and costs associated with applications, examinations,

investigations, and other actions required to achieve the purpose of this chapter.
N.D. Cent. Code § 13-09.1-34 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-34
13-09.1-34. Maintenance of permissible investments
Status: in_force

13-09.1-34. Maintenance of permissible investments

1. A licensee shall maintain at all times permissible investments that have a market value

computed in accordance with United States generally accepted accounting principles

of not less than the aggregate amount of all of its outstanding money transmission

obligations.

2. Except for permissible investments enumerated in subsection 1 of section 13-09.1-35,

the commissioner, with respect to any licensee, may by rule or order limit the extent to

which a specific investment maintained by a licensee within a class of permissible

investments may be considered a permissible investment, if the specific investment

represents undue risk to customers, not reflected in the market value of investments.

3. Permissible investments, even if commingled with other assets of the licensee, are

held in trust for the benefit of the purchasers and holders of the licensee's outstanding

money transmission obligations in the event of insolvency, 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, 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 in the event of an action by a creditor against the

licensee who is not a beneficiary of this statutory trust. No permissible investments

impressed with a trust pursuant to this subsection may be subject to attachment, levy

of execution, or sequestration by order of any court, except for a beneficiary of this

statutory trust.

4. Upon the establishment of a statutory trust in accordance with subsection 3 or when

any funds are drawn on a letter of credit pursuant to subdivision d of subsection 1 of

section 13-09.1-35, the commissioner shall notify the applicable regulator of each state

in which the licensee is licensed to engage in money transmission, if any, of the

establishment of the trust or the funds drawn on the letter of credit, as applicable.

Notice must be deemed satisfied if performed pursuant to a multistate agreement or

through the nationwide system. Funds drawn on a letter of credit, and any other

permissible investments held in trust for the benefit of the purchasers and holders of

the licensee's outstanding money transmission obligations, are deemed held in trust

for the benefit of the purchasers and holders on a pro rata and equitable basis in

accordance with statutes pursuant to which permissible investments are required to be

held in this state, and other states, as applicable. Any statutory trust must be

terminated upon extinguishment of all of the licensee's outstanding money

transmission obligations.

5. The commissioner by rule or by order may allow other types of investments that the

commissioner determines are of sufficient liquidity and quality to be a permissible

investment. The commissioner may participate in efforts with other state regulators to

determine that other types of investments are of sufficient liquidity and quality to be a

permissible investment.
N.D. Cent. Code § 13-09.1-35 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-35
13-09.1-35. Types of permissible investments
Status: in_force

13-09.1-35. Types of permissible investments

1. The following investments are permissible under section 13-09.1-34:

a. Cash, including demand deposits, savings deposits, and funds in such accounts

held for the benefit of the licensee's customers in a federally insured depository

financial institution, and cash equivalents including automated clearinghouse

items in transit to the licensee and automated clearinghouse items or

international wires in transit to a payee, cash in transit via armored car, cash in

smart safes, cash in licensee-owned locations, debit card or credit card-funded

transmission receivables owed by any bank, or money market mutual funds rated

"AAA" by S&P Global, or the equivalent from any eligible rating service.

b. Certificates of deposit or senior debt obligations of an insured depository

institution, as defined in section 3 of the Federal Deposit Insurance Act [12 U.S.C.

Section 1813], or as defined under the federal Credit Union Act [12 U.S.C.

Section 1781].

c. An obligation of the United States or a commission, agency, or instrumentality

thereof; an obligation that is guaranteed fully as to principal and interest by the

United States; or an obligation or instrumentality of a state or a governmental

subdivision, agency, or instrumentality thereof.

d. The full drawable amount of an irrevocable standby letter of credit for which the

stated beneficiary is the commissioner that stipulates that the beneficiary need

only draw a sight draft under the letter of credit and present it to obtain funds up

to the letter of credit amount within seven days of presentation of the items

required by paragraph 3 of subdivision d of subsection 1.

(1) The letter of credit must:

(a) Be issued by a federally insured depository financial institution, a

foreign bank that is authorized under federal law to maintain a federal

agency or federal branch office in a state or states, or a foreign bank

that is authorized under state law to maintain a branch in a state that:

[1] Bears an eligible rating or whose parent company bears an

eligible rating; and

[2] Is regulated, supervised, and examined by federal or state

authorities having regulatory authority over banks, credit unions,

and trust companies;

(b) Be irrevocable, unconditional, and indicate that it is not subject to any

condition or qualifications outside of the letter of credit;

(c) Not contain reference to any other agreements, documents, or

entities, or otherwise provide for any security interest in the licensee;

and

(d) Contain an issue date and expiration date, and expressly provide for

automatic extension, without a written amendment, for an additional

period of one year from the present or each future expiration date,

unless the issuer of the letter of credit notifies the commissioner in

writing by certified or registered mail or courier mail or other receipted

means, at least sixty days before any expiration date, that the

irrevocable letter of credit will not be extended.

(2) In the event of any notice of expiration or nonextension of a letter of credit

issued under subparagraph d of paragraph 1 of subdivision d of

subsection 1, the licensee shall be required to demonstrate to the

satisfaction of the commissioner, fifteen days prior to expiration, that the

licensee maintains and will maintain permissible investments in accordance

with subsection 1 of section 13-09.1-34 upon the expiration of the letter of

credit. If the licensee is not able to do so, the commissioner may draw on

the letter of credit in an amount up to the amount necessary to meet the

licensee's requirements to maintain permissible investments in accordance

with subsection 1 of section 13-09.1-34. Any such draw must be offset

against the licensee's outstanding money transmission obligations. The

drawn funds must be held in trust by the commissioner or the

commissioner's designated agent, to the extent authorized by law, as agent

for the benefit of the purchasers and holders of the licensee's outstanding

money transmission obligations.

(3) The letter of credit must provide that the issuer of the letter of credit will

honor, at sight, a presentation made by the beneficiary to the issuer of the

following documents on or prior to the expiration date of the letter of credit:

(a) The original letter of credit, including any amendments; and

(b) A written statement from the beneficiary stating that any of the

following events have occurred:

[1] 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;

[2] The filing of a petition by or against the licensee for receivership,

or the commencement of any other judicial or administrative

proceeding for its dissolution or reorganization;

[3] The seizure of assets of a licensee by a commissioner pursuant

to an emergency order issued in accordance with applicable law,

on the basis of an action, violation, or condition that has caused

or is likely to cause the insolvency of the licensee; or

[4] The beneficiary has received notice of expiration or nonextension

of a letter of credit and the licensee failed to demonstrate to the

satisfaction of the beneficiary that the licensee will maintain

permissible investments in accordance with subsection 1 of

section 13-09.1-34 upon the expiration or nonextension of the

letter of credit.

(4) The commissioner may designate an agent to serve on the commissioner's

behalf as beneficiary to a letter of credit so long as the agent and letter of

credit meet requirements established by the commissioner. The

commissioner's agent may serve as agent for multiple licensing authorities

for a single irrevocable letter of credit if the proceeds of the drawable

amount for the purposes of subdivision d of subsection 1 are assigned to the

commissioner.

(5) The commissioner may participate in multistate processes designed to

facilitate the issuance and administration of letters of credit, including

services provided by the nationwide system and state regulatory registry,

LLC.

e. One hundred percent of the surety bond or deposit provided for under section

13-09.1-33 that exceeds the average daily money transmission liability in this

state.

2. Unless permitted by the commissioner by rule or by order to exceed the limit as set

forth herein, the following investments are permissible under section 13-09.1-34 to the

extent specified:

a. Receivables that are payable to a licensee from its authorized delegates in the

ordinary course of business that are less than seven days old, up to fifty percent

of the aggregate value of the licensee's total permissible investments;

b. Of the receivables permissible under subdivision a of subsection 2, receivables

that are payable to a licensee from a single authorized delegate in the ordinary

course of business may not exceed ten percent of the aggregate value of the

licensee's total permissible investments; and

c. The following investments are permissible up to twenty percent per category and

combined up to fifty percent of the aggregate value of the licensee's total

permissible investments:

(1) A short-term, up to six months, investment bearing an eligible rating;

(2) Commercial paper bearing an eligible rating;

(3) A bill, note, bond, or debenture bearing an eligible rating;

(4) United States tri-party repurchase agreements collateralized at one hundred

percent or more with United States government or agency securities,

municipal bonds, or other securities bearing an eligible rating;

(5) Money market mutual funds rated less than "AAA" and equal to or higher

than "A-" by S&P Global, or the equivalent from any other eligible rating

service; and

(6) A mutual fund or other investment fund composed solely and exclusively of

one or more permissible investments listed in subdivisions a through c of

subsection 1.

d. Cash, including demand deposits, savings deposits, and funds in such accounts

held for the benefit of the licensee's customers, at foreign depository institutions

are permissible up to ten percent of the aggregate value of the licensee's total

permissible investments if the licensee has received a satisfactory rating in its

most recent examination and the foreign depository institution:

(1) Has an eligible rating;

(2) Is registered under the Foreign Account Tax Compliance Act;

(3) Is not located in any country subject to sanctions from the office of foreign

assets control; and

(4) Is not located in a high-risk or noncooperative jurisdiction as designated by

the financial action task force.
N.D. Cent. Code § 13-09.1-30 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-30
13-09.1-30. Notice
Status: in_force

13-09.1-30. Notice

Every licensee or authorized delegate shall include on a receipt or disclose on the

licensee's website or mobile application the name and phone number of the department of

financial institutions and a statement that the licensee's customers can contact the department

of financial institutions with questions or complaints about the licensee's money transmission

services.
N.D. Cent. Code § 13-04.1-13 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-13
13-04.1-13. Penalty
Status: in_force

13-04.1-13. Penalty

Any person 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 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 § 13-12-04 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-04
13-12-04. Entities exempted from licensing requirements
Status: in_force

13-12-04. 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. Individuals licensed under chapter 13-10 solely pursuant to the individual's official

duties as a mortgage loan originator;

6. 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;

7. Institutions chartered by the farm credit administration;

8. Trust companies;

9. 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;

10. 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

11. 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 § 13-09.1-51 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-51
13-09.1-51. Disclosures
Status: in_force

13-09.1-51. Disclosures

1. A virtual-currency kiosk operator shall disclose in a clear, conspicuous, and easily

readable manner in the chosen language of the customer, all relevant terms and

conditions generally associated with the products, services, and activities of the virtual-

currency kiosk operator and virtual currency.

2. The virtual-currency kiosk operator must receive acknowledgment of receipt of all

disclosures required under this section via confirmation of consent.

3. Each virtual-currency kiosk must include a warning written prominently and in bold

type, stated in substantially the following form:

a. WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM A

STRANGER WHO IS INITIATING A DISHONEST SCHEME. I UNDERSTAND

THAT CRIMINAL ACTIVITY MAY APPEAR IN MANY FORMS, INCLUDING:

(1) Claims of a frozen bank account or credit card.

(2) Fraudulent bank transactions.

(3) Claims of identity theft or job offerings in exchange for payments.

(4) Requests for payments to government agencies or companies.

(5) Requests for disaster relief donations or loans.

(6) Offers to purchase tickets for lotteries, sweepstakes, or drawings for

vehicles.

(7) Prompts to click on desktop popups, such as virus warnings or

communication from alleged familiar merchants.

(8) Communication from someone impersonating a representative of your bank

or a law enforcement officer.

(9) IF YOU BELIEVE YOU ARE BEING SCAMMED, CALL A LOCAL LAW

ENFORCEMENT OFFICER BEFORE ANY TRANSACTION.

b. WARNING: FUNDS LOST DUE TO USER ERROR OR FRAUD MAY NOT BE

RECOVERABLE. TRANSACTIONS CONDUCTED ON THIS VIRTUAL-

CURRENCY KIOSK ARE IRREVERSIBLE. I UNDERSTAND THESE RISKS AND

WISH TO CONTINUE WITH CONDUCTING MY VIRTUAL-CURRENCY KIOSK

TRANSACTION. PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY

TO SOMEONE YOU DO NOT KNOW.

4. The commissioner shall require the disclosure of material risks associated with virtual

currency and virtual-currency transactions, including:

a. The transaction may not be reversed;

b. The virtual-currency kiosk operator's liability for unauthorized virtual currency

transactions;

c. The virtual-currency kiosk customer's liability for unauthorized currency

transactions;

d. Virtual currency is not legal tender, backed or insured by the government, and

accounts and value balances are not subject to federal deposit insurance

corporation, national credit union administration, or securities investor protection

corporation protections;

e. Some virtual currency transactions are deemed to be made when recorded on a

public ledger which may not be the date or time when the individual initiates the

transaction;

f. Virtual currency's value may be derived from market participants' continued

willingness to exchange fiat currency for virtual currency, which may result in the

permanent and total loss of a particular virtual currency's value if the market for

virtual currency disappears;

g. An individual who accepts a virtual currency as payment today is not required to

accept and might not accept virtual currency in the future;

h. The volatility and unpredictability of the price of virtual currency relative to fiat

currency may result in a significant loss over a short period;

i. The nature of virtual currency means any technological difficulties experienced by

virtual-currency kiosk operators may prevent access to or use of an individual's

virtual currency; and

j. Any bond maintained by the virtual-currency kiosk operator for the benefit of an

individual may not cover all losses an individual incurs.

5. The commissioner shall require disclosure of:

a. The amount of the transaction denominated in United States dollars as well as

the applicable virtual currency.

b. Any fees or expenses charged by the virtual-currency kiosk operator.

c. Any applicable exchange rates.

d. A daily virtual-currency transaction limit of no more than two thousand dollars per

day.

e. Notice of a change in the virtual-currency kiosk operator's rules or policies.

f. The name, address, and telephone number of the owner of the kiosk and the

days, time, and means by which a consumer may contact the owner for

consumer assistance. Any relevant state and local law enforcement agency for

reporting fraud must be displayed on or at the location of the virtual-currency

kiosk or on the first screen of the kiosk.

g. Under what circumstances the virtual-currency kiosk operator, without a court or

government order, discloses a person's account information to third parties.

h. Other disclosures customarily given in connection with a virtual currency

transaction.

6. After the completion of each transaction, the virtual-currency kiosk operator shall

provide an individual with a choice of a physical or digital receipt secured with

two-factor identification in the language chosen by the customer containing the

following:

a. The virtual-currency kiosk operator's name and contact information, including a

telephone number to answer questions and register complaints;

b. The relevant state and local law enforcement or government agency for reporting

fraud;

c. The type, value, date, and precise time of the transaction, transaction hash, and

each applicable virtual-currency address;

d. A unique transaction number able to be linked to the sender during a fraud

investigation;

e. A unique transaction number able to be linked to the designated recipient during

a fraud investigation;

f. All fees charged;

g. The exchange rate of the virtual currency to United States dollars;

h. A statement of the virtual-currency kiosk operator's liability for nondelivery or

delayed delivery; and

i. A statement of the virtual-currency kiosk operator's refund policy.
N.D. Cent. Code § 13-04.1-01.1 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-01.1
13-04.1-01.1. Definitions
Status: in_force

13-04.1-01.1. Definitions

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

1. "Borrower" means a person or entity that seeks out, or is solicited by a money broker

for the purpose of money brokering.

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

3. "Loan" means a contract by which one delivers a sum of money to another and the

latter agrees to return at a future time a sum equivalent to that which the person

borrowed. This includes alternative financing products as identified by the

commissioner through the issuance of an order.

4. "Money broker" means a person or entity who, in the ordinary course of business,

engages in money brokering.

5. "Money brokering" means the act of arranging or providing loans or leases 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 loans or leases for persons or businesses desirous

of obtaining funds for any purposes.

6. "Net branch" means an office at which a licensed money broker allows a separate

person that does not hold a valid North Dakota money brokers license to originate

loans under the license of the money broker.

7. "Net branch arrangement" means an arrangement under which a licensed money

broker 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.

8. "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.
N.D. Cent. Code § 13-04.1-11 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-11
13-04.1-11. Investigations, subpoenas, and examination authority
Status: in_force

13-04.1-11. Investigations, subpoenas, and examination authority

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

investigations and examinations as follows:

1. The department of financial institutions in its discretion:

a. May make such public or private investigation or examination within or outside

this state as it deems necessary to determine whether any person has violated or

is about to violate any provision of this chapter or any rule or order hereunder, or

to aid in the enforcement of this chapter or in the prescribing of rules and forms

hereunder. The licensee shall pay an investigation or examination fee and must

be charged by the department of financial institutions at an hourly rate to be set

by the commissioner, sufficient to cover all reasonable expenses of the

department associated with the visitation provided for by this section. Fees must

be deposited in the financial institutions regulatory fund.

b. May require or permit any person to file a statement in writing, under oath or

otherwise as the department determines, as to all the facts and circumstances

concerning the matter to be investigated or examined.

c. May publish information concerning any violation of this chapter or any rule or

order hereunder.

2. For the purpose of any investigation, examination, or proceeding under this chapter,

the department of financial institutions may administer oaths and affirmations,

subpoena witnesses, compel their attendance, take evidence, and require the

production of any books, papers, correspondence, memoranda, agreements, or other

documents or records which the department deems relevant or material to the inquiry.

3. In case of contumacy by, or refusal to obey a subpoena issued to, any person, the

district court, upon application by the department of financial institutions, may issue to

the person an order requiring such person to appear before the department, there to

produce documentary evidence if so ordered or to give evidence touching the matter in

question under investigation or examination. Failure to obey the order of the court may

be punished by the court as a contempt of court.

4. No person is excused from attending and testifying or from producing any document or

record before the department of financial institutions, or in obedience to the subpoena

of the department, or in any proceeding instituted by the department, on the grounds

that the testimony or evidence, documentary or otherwise, required of such person

may tend to incriminate such person or subject such person to a penalty forfeiture; but

no individual may be prosecuted or subjected to any penalty or forfeiture for or on

account of any transaction, matter, or thing concerning which such person is

compelled, after claiming the privilege against self-incrimination, to testify or produce

evidence, documentary or otherwise, except that the individual testifying is not exempt

from prosecution and punishment for perjury or contempt committed in testifying.

5. 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.

6. For purposes of investigating violations or complaints arising under this chapter, or for

purposes of examination, the commissioner may review, investigate, or examine any

licensee or person subject to this chapter, as often as necessary in order to carry out

the purposes of this chapter.

7. Each licensee 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 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 or person subject to this chapter concerning their business.

8. Each licensee 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.

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

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

person under investigation or examination. 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, a

person may not 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 may have access to the documents or records as necessary to conduct its

ordinary business affairs.

10. 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; and

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

licensee 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.

11. The authority of this section remains in effect, whether such a licensee 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.

12. A licensee or person subject to investigation or examination under this section may not

knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records,

computer records, or other information.
N.D. Cent. Code § 13-13-05 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-05
13-13-05. Application for residential mortgage loan servicer license
Status: in_force

13-13-05. Application for residential mortgage loan servicer license

Every application for a residential mortgage loan servicer license, branch registration, or a

renewal, must be made upon forms designed and furnished by the department of financial

institutions and must contain any information which the department deems necessary and

proper. The department may further require any applicant to provide additional information that

is not requested on the application form. The applicant shall register with the North Dakota

secretary of state if so required.
N.D. Cent. Code § 13-09.1-32 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-32
13-09.1-32. Net worth
Status: in_force

13-09.1-32. Net worth

1. A licensee under this chapter shall maintain at all times a tangible net worth of the

greater of one hundred thousand dollars or three percent of total assets for the first

one hundred million dollars, two percent of additional assets for one hundred million

dollars to one billion dollars, and one-half percent of additional assets for over

one billion dollars.

2. Tangible net worth must be demonstrated at initial application by the applicant's most

recent audited or unaudited financial statements pursuant to subdivision f of

subsection 2 of section 13-09.1-11.

3. Notwithstanding the foregoing provisions of this section, the commissioner may, for

good cause shown, exempt, in part or in whole, any applicant or licensee from the

requirements of this section.
N.D. Cent. Code § 13-13-18 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-18
13-13-18. Response to department requests
Status: in_force

13-13-18. 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 § 13-09.1-16 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-16
13-09.1-16. Acquisition of control
Status: in_force

13-09.1-16. Acquisition of control

1. Any person, or group of persons acting in concert, seeking to acquire control of a

licensee shall obtain the written approval of the commissioner prior to acquiring

control. An individual is not deemed to acquire control of a licensee and is not subject

to the acquisition of control provisions when that individual becomes a key individual in

the ordinary course of business.

2. A person, or group of persons acting in concert, seeking to acquire control of a

licensee shall, in cooperation with the licensee:

a. Submit an application in a form and in a medium prescribed by the commissioner;

and

b. Submit a nonrefundable fee of four hundred fifty dollars with the request for

approval.

3. Upon request, the commissioner may permit a licensee or the person, or group of

persons acting in concert, to submit some or all information required by the

commissioner pursuant to subdivision a of subsection 2 without using the nationwide

system.

4. The application required by subdivision a of subsection 2 must include information

required by section 13-09.1-12 for any new key individuals that have not previously

completed the requirements of section 13-09.1-12 for a licensee.

5. When an application for acquisition of control under this section appears to include all

the items and address all of the matters that are required, the application must be

considered complete and the commissioner shall promptly notify the applicant in a

record of the date on which the application was determined to be complete. The

commissioner shall approve or deny the application within sixty days after the

completion date; or the commissioner may for good cause extend the application

period.

6. A determination by the commissioner that an application is complete and is accepted

for processing means only that the application, on its face, appears to include all of the

items and address all of the matters that are required, and is not an assessment of the

substance of the application or of the sufficiency of the information provided.

7. When an application is filed and considered complete under subsection 5, the

commissioner shall investigate the financial condition and responsibility, financial and

business experience, character, and general fitness of the person, or group of persons

acting in concert, seeking to acquire control. The commissioner shall approve an

acquisition of control pursuant to this section if the commissioner finds that all of the

following conditions have been fulfilled:

a. The requirements of subsections 2 and 4 have been met, as applicable; and

b. The financial condition and responsibility, financial and business experience,

competence, character, and general fitness of the person, or group of persons

acting in concert, seeking to acquire control; and the competence, experience,

character, and general fitness of the key individuals and persons that would be in

control of the licensee after the acquisition of control indicate that it is in the

interest of the public to permit the person, or group of persons acting in concert,

to control the licensee.

8. If an applicant avails itself or is otherwise subject to a multistate licensing process:

a. The commissioner may accept the investigation results of a lead investigative

state for the purpose of subsection 7 if the lead investigative state has sufficient

staffing, expertise, and minimum standards; or

b. If North Dakota is a lead investigative state, the commissioner may investigate

the applicant pursuant to subsection 7 and the time frames established by

agreement through the multistate licensing process.

9. The commissioner shall issue a formal written notice of the denial of an application to

acquire control within thirty days of the decision to deny the application. The

commissioner shall set forth in the notice of denial the specific reasons for the denial

of the application. An applicant whose application is denied by the commissioner under

this subsection may appeal within thirty days after receipt of the written notice of the

denial by requesting a hearing before the commissioner in accordance with chapter

28-32.

10. The requirements of subsections 1 and 2 do not apply to any of the following:

a. A person that acts as a proxy for the sole purpose of voting at a designated

meeting of the shareholders or holders of voting shares or voting interests of a

licensee or a person in control of a licensee;

b. A person that acquires control of a licensee by devise or descent;

c. A person that acquires control of a licensee as a personal representative,

custodian, guardian, conservator, or trustee, or as an officer appointed by a court

of competent jurisdiction or by operation of law;

d. A person that is exempt under subsection 7 of section 13-09.1-02;

e. A person that the commissioner determines is not subject to subsection 1 based

on the public interest;

f. A public offering of securities of a licensee or a person in control of a licensee; or

g. An internal reorganization of a person in control of the licensee where the

ultimate person in control of the licensee remains the same.

11. Persons in subdivisions b, c, d, f, and g of subsection 10 in cooperation with the

licensee shall notify the commissioner within fifteen days after the acquisition of

control.

12. The requirements of subsections 1 and 2 do not apply to a person that has complied

with and received approval to engage in money transmission under this chapter or was

identified as a person in control in a prior application filed with and approved by the

commissioner or by a money service business accredited state pursuant to a

multistate licensing process, provided that:

a. The person has not had a license revoked or suspended or controlled a licensee

that has had a license revoked or suspended while the person was in control of

the licensee in the previous five years;

b. If the person is a licensee, the person is well managed and has received at least

a satisfactory rating for compliance at its most recent examination by a money

service business accredited state if such rating was given;

c. The licensee to be acquired is projected to meet the requirements of sections

13-09.1-32, 13-09.1-33, and 13-09.1-34 after the acquisition of control is

completed, and if the person acquiring control is a licensee, that licensee is also

projected to meet the requirements of sections 13-09.1-32, 13-09.1-33, and

13-09.1-34 after the acquisition of control is completed;

d. The licensee to be acquired will not implement any material changes to its

business plan as a result of the acquisition of control, and if the person acquiring

control is a licensee, that licensee also will not implement any material changes

to its business plan as a result of the acquisition of control; and

e. The person provides notice of the acquisition in cooperation with the licensee and

attests to subdivisions a through d in a form and in a medium prescribed by the

commissioner.

If the notice is not disapproved within thirty days after the date on which the notice was

determined to be complete, the notice is deemed approved.

13. Before filing an application for approval to acquire control of a licensee a person may

request in writing a determination from the commissioner as to whether the person

would be considered a person in control of a licensee upon consummation of a

proposed transaction. If the commissioner determines that the person would not be a

person in control of a licensee, the proposed person and transaction is not subject to

the requirements of subsections 1 and 2.

14. If a multistate licensing process includes a determination pursuant to subsection 13

and an applicant avails itself or is otherwise subject to the multistate licensing process:

a. The commissioner may accept the control determination of a lead investigative

state with sufficient staffing, expertise, and minimum standards for the purpose of

subsection 13; or

b. If North Dakota is a lead investigative state, the commissioner may investigate

the applicant pursuant to subsection 13 and the time frames established by

agreement through the multistate licensing process.
N.D. Cent. Code § 13-09.1-01 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-01
13-09.1-01. Definitions
Status: in_force

13-09.1-01. Definitions

For purposes of this chapter, the following definitions shall apply:

1. "Acting in concert" means persons knowingly acting together with a common goal of

jointly acquiring control of a licensee whether or not pursuant to an express

agreement.

2. "Anti-Money Laundering Act of 2020" is the federal act which amended subchapter II

of chapter 53 of title 31 United States Code, the legislative framework commonly

referred to as the bank secrecy act or BSA. Anti-money laundering and countering the

financing of terrorism has the same meaning as the previously used terminology.

3. "Authorized delegate" means a person a licensee designates to engage in money

transmission on behalf of the licensee.

4. "Average daily money transmission liability" means the amount of the licensee's

outstanding money transmission obligations in North Dakota at the end of each day in

quarters ending March thirty-first, June thirtieth, September thirtieth, and December

thirty-first, added together and divided by the total number of days in each quarter.

5. "Closed loop stored value" means stored value that is redeemable by the issuer only

for goods or services provided by the issuer or its affiliate or franchisees of the issuer

or its affiliate, except to the extent required by applicable law to be redeemable in cash

for its cash value.

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

7. "Control" means:

a. (1) The power to vote, directly or indirectly, at least twenty-five percent of the

outstanding voting shares or voting interests of a licensee or person in

control of a licensee;

(2) The power to elect or appoint a majority of key individuals or executive

officers, managers, directors, trustees, or other persons exercising

managerial authority of a person in control of a licensee; or

(3) The power to exercise, directly or indirectly, a controlling influence over the

management or policies of a licensee or person in control of a licensee.

b. Rebuttable presumption of control.

(1) A person is presumed to exercise a controlling influence when the person

holds the power to vote, directly or indirectly, at least ten percent of the

outstanding voting shares or voting interests of a licensee or person in

control of a licensee.

(2) A person presumed to exercise a controlling influence as defined by

subsection 6 can rebut the presumption of control if the person is a passive

investor.

c. For purposes of determining the percentage of a person controlled by any other

person, the person's interest must be aggregated with the interest of any other

immediate family member, including the person's spouse, parents, children,

siblings, mothers- and fathers-in-law, sons- and daughters-in-law, brothers- and

sisters-in-law, and any other person who shares the person's home.

8. "Eligible rating" means a credit rating of any of the three highest rating categories

provided by an eligible rating service, whereby each category may include rating

category modifiers, such as "plus" or "minus" for S&P Global, or the equivalent for any

other eligible rating service. Long-term credit ratings are deemed eligible if the rating is

equal to A- or higher by S&P Global, or the equivalent from any other eligible rating

service. Short-term credit ratings are deemed eligible if the rating is equal to or higher

than A-2 or SP-2 by S&P Global, or the equivalent from any other eligible rating

service. In the event that ratings differ among eligible rating services, the highest rating

applies when determining whether a security bears an eligible rating.

9. "Eligible rating service" means any nationally recognized statistical rating organization

as defined by the United States securities and exchange commission, and any other

organization designated by the commissioner by rule or order.

10. "Federally insured depository financial institution" means a bank, credit union, savings

and loan association, trust company, savings association, savings bank, industrial

bank, or industrial loan company organized under the laws of the United States or any

state of the United States, when such bank, credit union, savings and loan association,

trust company, savings association, savings bank, industrial bank, or industrial loan

company has federally insured deposits.

11. "In this state" means at a physical location within North Dakota for a transaction

requested in person. For a transaction requested electronically or by phone, the

provider of money transmission may determine if the person requesting the transaction

is "in this state" by relying on other information provided by the person regarding the

location of the individual's residential address or a business entity's principal place of

business or other physical address location, and any records associated with the

person that the provider of money transmission may have that indicate the location,

including an address associated with an account.

12. "Individual" means a natural person.

13. "Key individual" means any individual ultimately responsible for establishing or

directing policies and procedures of the licensee, such as an executive officer,

manager, director, or trustee.

14. "Licensee" means a person licensed under this chapter.

15. "Material litigation" means litigation, that according to United States generally accepted

accounting principles is significant to a person's financial health and would be required

to be disclosed in the person's annual audited financial statements, report to

shareholders, or similar records.

16. "Monetary value" means a medium of exchange, whether or not redeemable in money.

17. "Money" means a medium of exchange that is authorized or adopted by the United

States or a foreign government. The term includes a monetary unit of account

established by an intergovernmental organization or by agreement between two or

more governments.

18. "Money service business accredited state" means a state agency that is accredited by

the conference of state bank supervisors and money transmitter regulators association

for money transmission licensing and supervision.

19. "Money transmission" means any of the following:

a. Selling or issuing payment instruments to a person located in this state.

b. Selling or issuing stored value to a person located in this state.

c. Receiving money for transmission from a person located in this state.

The term includes payroll processing services. The term does not include the provision

solely of online or telecommunications services or network access.

20. "Multistate licensing process" means any agreement entered by and among state

regulators relating to coordinated processing of applications for money transmission

licenses, applications for the acquisition of control of a licensee, control

determinations, or notice and information requirements for a change of key individuals.

21. "Nationwide system" means the nationwide multistate licensing system and 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.

22. "Outstanding money transmission obligations" means:

a. Any payment instrument or stored value issued or sold by the licensee to a

person located in the United States or reported as sold by an authorized delegate

of the licensee to a person that is located in the United States that has not yet

been paid or refunded by or for the licensee, or escheated in accordance with

applicable abandoned property laws; or

b. Any money received for transmission by the licensee or an authorized delegate in

the United States from a person located in the United States that has not been

received by the payee or refunded to the sender, or escheated in accordance with

applicable abandoned property laws.

For purposes of this subsection, "in the United States" includes, to the extent

applicable, a person in any state, territory, or possession of the United States; the

District of Columbia; the Commonwealth of Puerto Rico; or a United States military

installation that is located in a foreign country.

23. "Passive investor" means a person that:

a. Does not have the power to elect a majority of key individuals or executive

officers, managers, directors, trustees, or other persons exercising managerial

authority of a person in control of a licensee;

b. Is not employed by and does not have any managerial duties of the licensee or

person in control of a licensee;

c. Does not have the power to exercise, directly or indirectly, a controlling influence

over the management or policies of a licensee or person in control of a licensee;

and

d. Either:

(1) Attests to subdivisions a, b, and c, in a form and in a medium prescribed by

the commissioner; or

(2) Commits to the passivity characteristics of subdivisions a, b, and c, in a

written document.

24. "Payment instrument" means a written or electronic check, draft, money order,

traveler's check, or other written or electronic instrument for the transmission or

payment of money or monetary value, whether or not negotiable. The term does not

include stored value or any instrument that:

a. Is redeemable by the issuer only for goods or services provided by the issuer or

its affiliate or franchisees of the issuer or its affiliate, except to the extent required

by applicable law to be redeemable in cash for its cash value; or

b. Not sold to the public but issued and distributed as part of a loyalty, rewards, or

promotional program.

25. "Payroll processing services" means receiving money for transmission pursuant to a

contract with a person to deliver wages or salaries, make payment of payroll taxes to

state and federal agencies, make payments relating to employee benefit plans, or

make distributions of other authorized deductions from wages or salaries. The term

"payroll processing services" does not include an employer performing payroll

processing services on its own behalf or on behalf of its affiliate, or a professional

employment organization subject to regulation under applicable state law.

26. "Person" means any individual, general partnership, limited partnership, limited liability

company, corporation, trust, association, joint stock corporation, or other corporate

entity identified by the commissioner.

27. "Receiving money for transmission" or "money received for transmission" means

receiving money or monetary value in the United States for transmission within or

outside the United States by electronic or other means.

28. "Stored value" means monetary value representing a claim against the issuer

evidenced by an electronic or digital record, which is intended and accepted for use as

a means of redemption for money or monetary value, or payment for goods or

services. The term includes "prepaid access" as defined by title 31, Code of Federal

Regulations, Section 1010.100. The term "stored value" does not include a payment

instrument or closed loop stored value, or stored value not sold to the public but issued

and distributed as part of a loyalty, rewards, or promotional program.

29. "Tangible net worth" means the aggregate assets of a licensee excluding all intangible

assets, less liabilities, as determined in accordance with United States generally

accepted accounting principles.
N.D. Cent. Code § 13-02.1-05 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-05
13-02.1-05. Transfer or obligation voidable as to present creditor
Status: in_force

13-02.1-05. Transfer or obligation voidable as to present creditor

1. A transfer made or obligation incurred by a debtor is voidable as to a creditor whose

claim arose before the transfer was made or the obligation was incurred if the debtor

made the transfer or incurred the obligation without receiving a reasonably equivalent

value in exchange for the transfer or obligation and the debtor was insolvent at that

time or the debtor became insolvent as a result of the transfer or obligation.

2. A transfer made by a debtor is voidable as to a creditor whose claim arose before the

transfer was made if the transfer was made to an insider for an antecedent debt, the

debtor was insolvent at that time, and the insider had reasonable cause to believe that

the debtor was insolvent.

3. Subject to subsection 2 of section 13-02.1-02, a creditor making a claim for relief

under subsection 1 or 2 has the burden of proving the elements of the claim for relief

by a preponderance of the evidence.
N.D. Cent. Code § 13-11-23 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-23
13-11-23. Prohibited acts and practices
Status: in_force

13-11-23. Prohibited acts and practices

1. A provider directly or indirectly may not:

a. Misappropriate or misapply money held in trust;

b. Settle a debt on behalf of an individual for more than fifty percent of the principal

amount of the debt owed a creditor, unless the individual assents to the

settlement after the creditor has assented;

c. Take a power of attorney that authorizes the provider to settle a debt;

d. Exercise or attempt to exercise a power of attorney after an individual has

terminated a contract;

e. Initiate a transfer from an individual's account at a bank or with another person

unless the transfer is:

(1) A return of money to the individual; or

(2) Before termination of a contract, properly authorized by the contract and this

chapter, and for:

(a) Payment to one or more creditors pursuant to a plan; or

(b) Payment of a fee;

f. Offer a gift or bonus, premium, reward, or other compensation to an individual for

executing a contract;

g. Offer, pay, or give a gift or bonus, premium, reward, or other compensation to a

person for referring a prospective customer, if the person making the referral has

a financial interest in the outcome of debt-management services provided to the

customer, unless neither the provider nor the person making the referral

communicates to the prospective customer the identity of the source of the

referral;

h. Receive a bonus, commission, or other benefit for referring an individual to a

person;

i. Structure a plan in a manner that would result in a negative amortization of any of

an individual's debts, unless a creditor that is owed a negatively amortizing debt

agrees to refund or waive the finance charge upon payment of the principal

amount of the debt;

j. Compensate the provider's employees on the basis of a formula that incorporates

the number of individuals the employee induces to enter contracts;

k. Settle a debt or lead an individual to believe that a payment to a creditor is in

settlement of a debt to the creditor unless, at the time of settlement, the individual

receives a certification by the creditor that the payment is in full settlement of the

debt or is part of a payment plan, the terms of which are included in the

certification, that upon completion, will lead to full settlement of the debt;

l. Make a representation that:

(1) The provider will furnish money to pay bills or prevent attachments;

(2) Payment of a certain amount will permit satisfaction of a certain amount or

range of indebtedness; or

(3) Participation in a plan will or may prevent litigation, garnishment,

attachment, repossession, foreclosure, eviction, or loss of employment;

m. Misrepresent that the provider is authorized or competent to furnish legal advice

or perform legal services;

n. Represent that it is a not-for-profit entity unless the provider is organized and

properly operating as a not-for-profit under the law of the state in which it was

formed or that it is a tax-exempt entity unless the provider has received

certification of tax-exempt status from the internal revenue service;

o. Take a confession of judgment or power of attorney to confess judgment against

an individual; or

p. Employ an unfair, unconscionable, or deceptive act or practice, including the

knowing omission of any material information.

2. If a provider furnishes debt-management services to an individual, the provider may

not, directly or indirectly:

a. Purchase a debt or obligation of the individual;

b. Receive from or on behalf of the individual:

(1) A promissory note or other negotiable instrument other than a check or a

demand draft; or

(2) A postdated check or demand draft;

c. Lend money or provide credit to the individual, except as a deferral of a

settlement fee at no additional expense to the individual;

d. Obtain a mortgage or other security interest from any person in connection with

the services provided to the individual;

e. Except as permitted by federal law, disclose the identity or identifying information

of the individual or the identity of the individual's creditors, except to:

(1) The commissioner, upon proper demand;

(2) A creditor of the individual, to the extent necessary to secure the

cooperation of the creditor in a plan; or

(3) The extent necessary to administer the plan;

f. Except as otherwise provided in section 13-11-21, provide the individual less than

the full benefit of a compromise of a debt arranged by the provider;

g. Charge the individual for or provide credit or other insurance, coupons for goods

or services, membership in a club, access to computers or the internet, or any

other matter not directly related to debt-management services or educational

services concerning personal finance; or

h. Furnish legal advice or perform legal services, unless the person furnishing that

advice to or performing those services for the individual is licensed to practice law

in this state.

3. This chapter does not authorize any person to engage in the practice of law.

4. A provider may not receive a gift or bonus, premium, reward, or other compensation,

directly or indirectly, for advising, arranging, or assisting an individual in connection

with obtaining an extension of credit or other service from a lender or service provider,

except for educational or counseling services required in connection with a

government-sponsored program.

5. Unless a person supplies goods, services, or facilities generally and supplies them to

the provider at a cost no greater than the cost the person generally charges to others,

a provider may not purchase goods, services, or facilities from the person if an

employee or a person that the provider should reasonably know is an affiliate of the

provider:

a. Owns more than ten percent of the person; or

b. Is an employee or affiliate of the person.
N.D. Cent. Code § 13-09.1-13 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-13
13-09.1-13. Issuance of license
Status: in_force

13-09.1-13. Issuance of license

1. When an application for an original license under this chapter appears to include all

the items, addresses, all of the matters that are required, the application is complete

and the commissioner shall promptly notify the applicant in a record of the date on

which the application is determined to be complete. The commissioner shall approve

or deny the application within one hundred twenty days after the completion date. The

commissioner may for good cause extend the application period.

2. A determination by the commissioner that an application is complete and is accepted

for processing means only that the application, on its face, appears to include all of the

items, including the criminal background check response from the federal bureau of

investigation, and address all of the matters that are required, and is not an

assessment of the substance of the application or of the sufficiency of the information

provided.

3. When an application is filed and considered complete under this section, the

commissioner shall investigate the applicant's financial condition and responsibility,

financial and business experience, character, and general fitness. The commissioner

may conduct an onsite investigation of the applicant, the reasonable cost of which the

applicant must pay. The commissioner shall issue a license to an applicant under this

section if the commissioner finds that all of the following conditions have been fulfilled:

a. The applicant has complied with sections 13-09.1-11 and 13-09.1-12; and

b. The financial condition and responsibility, financial and business experience,

competence, character, and general fitness of the applicant; and the competence,

experience, character, and general fitness of the key individuals and persons in

control of the applicant indicate that it is in the interest of the public to permit the

applicant to engage in money transmission.

4. If an applicant avails itself or is otherwise subject to a multistate licensing process:

a. The commissioner may accept the investigation results of a lead investigative

state for the purpose of subsection 3 if the lead investigative state has sufficient

staffing, expertise, and minimum standards; or

b. If North Dakota is a lead investigative state, the commissioner may investigate

the applicant pursuant to subsection 3 and the time frames established by

agreement through the multistate licensing process, provided, however, that in no

case shall the time frame be noncompliant with the application period in

subdivision a of subsection 1.

5. The commissioner shall issue a formal written notice of the denial of a license

application within thirty days of the decision to deny the application. The commissioner

shall set forth in the notice of denial the specific reasons for the denial of the

application. An applicant whose application is denied by the commissioner under this

subsection may appeal within thirty days after receipt of the written notice of the denial

by requesting a hearing before the commissioner in accordance with chapter 28-32.

6. The initial license term shall begin on the day the application is approved. The license

shall expire on December thirty-first of the year in which the license term began,

unless the initial license date is between November first and December thirty-first, in

which instance the initial license term runs through December thirty-first of the

following year.
N.D. Cent. Code § 13-05-06.5 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-06.5
13-05-06.5. Credit card payment
Status: in_force

13-05-06.5. Credit card payment

A collection agency may collect or attempt to collect, in addition to the principal amount of a

claim, a transaction fee for processing a credit card payment in an amount that does not exceed

two and one-half percent of the payment amount if:

1. The transaction fee is not prohibited under section 13-05-02.2;

2. A no-cost payment option is available to the debtor; and

3. The collection agency discloses the no-cost option to the debtor at the same time and

in the same manner as the debtor's credit card information is taken.
N.D. Cent. Code § 13-08-12 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-12
13-08-12. Fees for service - Deferred presentment service transaction procedures - Penalty
Status: in_force

13-08-12. Fees for service - Deferred presentment service transaction procedures -

Penalty.

1. Before disbursing funds under a deferred presentment service transaction, a licensee

shall provide to the customer a clear and conspicuous printed notice indicating:

a. That a deferred presentment service transaction is not intended to meet

long-term financial needs.

b. That the customer should use a deferred presentment service transaction only to

meet short-term cash needs.

c. That the customer will be required to pay additional fees if the deferred

presentment service transaction is renewed rather than paid in full when due. If

the transaction is renewed, any amount paid in excess of the fee applies to the

payoff amount.

d. A schedule of fees charged for deferred presentment service.

e. Any information required under federal law.

f. No property, titles to any property, or mortgages may be received or held directly

or indirectly by the licensee as a condition of a deferred presentment service

transaction or as a method of collection on a defaulted deferred presentment

service transaction without proper civil process.

2. A licensee may charge a fee for the deferred presentment service, not to exceed

twenty percent of the amount paid to the customer by the licensee. This fee may not

be deemed interest for any purpose of law. No other fee or charge may be charged for

the deferred presentment service, except that a fee, not to exceed the cost to the

licensee, may be charged for registering a transaction on a database administered or

authorized by the commissioner. No property, titles to any property, or mortgages may

be received or held directly or indirectly by the licensee as a condition of a deferred

presentment service transaction or as a method of collection on a defaulted deferred

presentment service transaction without proper civil process.

3. A licensee may not disburse more than five hundred dollars to the customer in a

deferred presentment service transaction.

4. A licensee may not engage in a deferred presentment service transaction with a

customer who has an aggregate value of all outstanding obligations from any one

customer exceeding six hundred dollars which is payable to the same or any other

licensee. A licensee may not enter a new deferred presentment service transaction

with a customer within three business days of that customer's completion of a previous

deferred presentment service transaction. A licensee may rely on a written or

electronic representation of a customer regarding the existence of any outstanding

obligations for deferred presentment held by a licensee other than the licensee

receiving the representation until the database provided for under this subsection is in

operation, and after that time may not rely on a customer's representation but must

verify the fact using the database. However, if a licensee has multiple locations, that

licensee may not rely on the representation of a customer regarding the existence of

any outstanding obligation for deferred presentment held by that licensee, or one of

the licensee's multiple locations, unless the licensee and the licensee's multiple

locations use a point of sale registry or some other accounting system to attempt to

prevent violations of this subsection. The commissioner shall administer or authorize

the development of a database in which each transaction must be recorded for the

purpose of preventing violations of this section. The commissioner shall adopt rules

governing the creation, structure, and use of the database.

5. Before a licensee may negotiate or present a check for payment, the check must be

endorsed with the actual name under which the licensee is doing business.

6. Each deferred presentment service transaction, including a renewal, must be

documented by a written agreement signed or similarly authenticated by the customer.

The original agreement must contain the name of the licensee; the transaction date;

the amount of the obligation; a statement of the total amount of fees charged,

expressed as a dollar amount and as an annual percentage rate; the name and

signature of the individual who signs the agreement on behalf of the licensee; the

name and address of the check maker; the transaction number assigned by the

database; the date of negotiation of the check; the signature of the check maker; a

statement that a licensee may not renew a transaction more than once; a statement

that the renewal fee may not exceed twenty percent of the amount being renewed; a

statement that the maximum term of the transaction, including the renewal, may not

exceed sixty calendar days; a statement that the term of the renewal period may not

be less than fifteen calendar days; and a statement containing the right of rescission

printed immediately above the signature line of the written agreement in a minimum of

ten-point font and providing a space for the check maker to initial that the notice to the

right of rescission was received. The original agreement may not include a hold

harmless clause; a confession of judgment clause; any assignment of or order for

payment of wages or other compensation for services; a provision in which the check

maker agrees not to assert any claim or defense arising out of the agreement; a

waiver of any provision of this chapter; any representation from the check maker as to

the sufficiency of funds regarding any past deferred presentment service transactions;

or any statement regarding criminal prosecution with respect to the agreement. A

renewal agreement must be contained in a separate section, as part of the original

written agreement or in other form as approved by the commissioner. The renewal

agreement must restate the original transaction date, the renewal transaction date, the

amount of the check paid to the check maker, the fee charged in dollars, and the

maturity date. The agreement must authorize the licensee to defer presentment or

negotiation of the check, or electronic debit of the customer's account, until a specified

date. The maker of a check may redeem the check from the licensee at any time

before the negotiation or presentment of the check by making payment to the licensee.

A customer agreeing to an electronic deferred presentment service transaction may

repay the obligation at any time before the agreed-upon date. A customer may rescind

any transaction by the close of the business day following the day on which the

customer receives payment from the licensee at no cost. If a customer agreeing to an

electronic deferred presentment service transaction rescinds the transaction, the

licensee must facilitate the repayment of the funds through the same electronic means

the licensee used to deliver the funds to the customer.

7. If a check or electronic debit is returned to the licensee from a payer financial

institution due to insufficient funds, closed account, or a stop payment order, the

licensee has the right to all civil remedies available to collect the obligation. The

licensee may contract for and collect a returned check or electronic debit charge not to

exceed the collection fees and costs authorized in subdivision c of subsection 2 of

section 6-08-16. No other fee or charge may be collected as a result of a returned

check or electronic debit or as a result of default by the customer in timely payment to

the licensee.

8. A customer who has authority to make a check or authorize an electronic debit and

enters a deferred presentment service agreement is not subject to a criminal penalty

relating to the check, electronic debit, or the deferred presentment service agreement

unless the customer's account was closed on the original date of the transaction. At

the time of entering a transaction involving a written check, a licensee shall verify that

the account on which the check is written is open. A licensee may not pursue or

threaten to pursue criminal penalties against a customer for criminal penalties

prohibited by this subsection.

9. A licensee may not engage in unfair or deceptive acts, practices, or advertising in the

conduct of a deferred presentment service business.

10. The amount paid to the customer by the licensee in a deferred presentment service

transaction must be paid in the form of cash, check, or an electronic credit to the

customer's account.

11. Each licensee must conspicuously post in the licensee's licensed location a notice of

the fees imposed for the deferred presentment service. A licensee that engages in a

deferred presentment service transaction via the internet shall require its customers to

acknowledge the fees imposed using a click-through or other method that prevents

customers from completing the transaction without reviewing the licensee's fees.

12. Except as provided under subsection 13, a licensee may not renew a deferred

presentment service transaction more than once. A licensee's renewal fee may not

exceed twenty percent of the amount being renewed. The renewal fee must be paid in

cash, money order, or cashier's check. The total period of deferral, including the initial

deferral and one renewal, may not exceed sixty days. An individual renewal period

may not be less than fifteen days. After sixty days the renewed deferred presentment

service transaction must be paid off in cash, money order, electronic payment, or

cashier's check by the customer or, if a check is used, the check must be deposited by

the licensee.

13. A licensee may enter a workout agreement with the borrower if the borrower believes

financial hardship prevents the borrower from paying off the deferred presentment

service transaction at the end of the original agreement or following any renewal. The

workout agreement must outline the repayment terms in writing and must require

weekly, biweekly, or monthly even installments not to exceed twelve months. An

additional interest or fee may not be charged as part of this workout, the deferred

presentment service provider shall continue to report the transaction as an outstanding

deferred presentment service transaction on any database administered by the

commissioner, and entering a workout agreement is voluntary on the part of the

deferred presentment service provider and the borrower.

14. A licensee may not renew, repay, refinance, or consolidate a deferred presentment

service transaction with the proceeds of another deferred presentment service

transaction with that licensee by the same maker or customer. It is presumed that a

deferred presentment service transaction initiated within three business days before

completion of a deferred presentment service transaction is a violation of this

subsection.

15. A licensee may not conduct another business, other than a bona fide pawnbroking

business, within the same office, suite, room, or place of business at which the

licensee engages in deferred presentment service transactions unless the

commissioner provides written authorization after a determination the other business is

not contrary to the best interests of consumers.

16. A licensee shall provide a notice in a prominent place on each deferred presentment

service agreement in no less than ten-point type in substantially the following form:

State law prohibits this business from allowing customers to have outstanding at

any one time, deferred presentment service transactions totaling more than six

hundred dollars.

17. A licensee or any agent of a licensee who willfully violates this section is guilty of a

class A misdemeanor.
N.D. Cent. Code § 13-13-14 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-14
13-13-14. Suspension and removal of residential mortgage loan servicer officers and employees
Status: in_force

13-13-14. Suspension and removal of residential mortgage loan servicer officers and

employees.

1. The commissioner of financial institutions may issue upon a current or former

residential mortgage loan servicer officer or employee and upon the licensee involved

an order stating:

a. The current or former officer or employee is engaging or has 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 servicing 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 the suspension or removal from employment and participation within

the conduct or the affairs of a residential mortgage loan servicer.

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 days of the date the order is served, 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 suspending or

removing the current or former employee is final. 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

issuance 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 residential mortgage loan servicer 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

affairs of any entity licensed or chartered by the department. The order is effective

upon issuance 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, conviction or agreement to plea to lesser charges, or similar state order or

judgment is entered, the suspension or prohibition is permanent. A finding of not guilty

or other disposition of the charge does not preclude the commissioner from pursuing

administrative or civil remedies.
N.D. Cent. Code § 13-01-10 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-10
13-01-10. Fraudulent intent a question of fact
Status: in_force

13-01-10. Fraudulent intent a question of fact

In all cases arising under the provisions of this chapter, the question of fraudulent intent is

one of fact and not of law. No transfer or charge may be adjudged fraudulent solely on the

ground that it was not made for a valuable consideration.
N.D. Cent. Code § 13-04.1-18 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-18
13-04.1-18. Disclosure of customer information
Status: in_force

13-04.1-18. 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 money brokers licensed under this chapter.
N.D. Cent. Code § 13-08-11.1 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-11.1
13-08-11.1. Response to department requests
Status: in_force

13-08-11.1. 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 § 13-08-05.1 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-05.1
13-08-05.1. Change of name or address
Status: in_force

13-08-05.1. Change of name or address

A licensee shall 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. In addition, the licensee shall submit the original license certificate for reissue.
N.D. Cent. Code § 13-11-09 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-09
13-11-09. Approval or denial of a license
Status: in_force

13-11-09. Approval or denial of a license

Any complete application for a license must be approved or denied within sixty days after

the filing of the complete application with the commissioner.
N.D. Cent. Code § 13-13-20 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-20
13-13-20. Penalty
Status: in_force

13-13-20. Penalty

Any person 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

against any person who violates a law, rule, written agreement, or order under this chapter. The

commissioner may not impose a civil money penalty in excess of one hundred thousand dollars

for each occurrence and one thousand dollars per day for each day that the violation continues

after issuance of an order. 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 deposited in the financial institutions regulatory fund.
N.D. Cent. Code § 13-10-07 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-07
13-10-07. Testing of loan originators
Status: in_force

13-10-07. Testing of loan originators

1. In order to meet the written test requirement referred to in subsection 5 of section

13-10-05, an individual must pass, in accordance with the standards established under

this subsection, a qualified written test developed by the nationwide mortgage

licensing system and registry and administered by a test provider approved by the

nationwide mortgage licensing system and registry based upon reasonable standards.

2. A written test shall not be treated as a qualified written test for purposes of

subsection 1 unless the test adequately measures the applicant's knowledge and

comprehension in appropriate subject areas, including:

a. Ethics;

b. Federal law and regulation pertaining to mortgage origination;

c. State law and regulation pertaining to mortgage origination; and

d. Federal and state law and regulation, including instruction on fraud, consumer

protection, the nontraditional mortgage marketplace, and fair lending issues.

3. Nothing in this section prohibits a test provider approved by the nationwide mortgage

licensing system and registry from providing a test at the location of the employer of

the applicant or the location of any subsidiary or affiliate of the employer of the

applicant or the location of any entity with which the applicant holds an exclusive

arrangement to conduct the business of a mortgage loan originator.

4. a. An individual shall not be considered to have passed a qualified written test

unless the individual achieves a test score of not less than seventy-five percent

correct answers to questions.

b. An individual may retake a test three consecutive times, with each consecutive

taking occurring at least thirty days after the preceding test.

c. After failing three consecutive tests, an individual shall wait at least six months

before taking the test again.

d. A licensed mortgage loan originator who fails to maintain a valid license for a

period of five years or longer shall retake the test, not taking into account any

time during which individual is a registered mortgage loan originator.
N.D. Cent. Code § 13-11-30 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-30
13-11-30. Confidentiality
Status: in_force

13-11-30. 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 § 13-11-14 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-14
13-11-14. Trust funds - Requirements and restrictions
Status: in_force

13-11-14. Trust funds - Requirements and restrictions

1. All funds received by a debt-settlement provider or the provider's agent from and for

the purpose of paying bills, invoices, or accounts of a debtor constitute trust funds

owned by and belonging to the debtor from whom the funds were received. All such

funds received by the debt-settlement provider must be separated from the funds of

the debt-settlement provider not later than the end of the business day following

receipt by the debt-settlement provider. All such funds must be kept separate and

apart at all times from funds belonging to the debt-settlement provider or any of its

officers, employees, or agents and may be used for no purpose other than paying bills,

invoices, or accounts of the debtor. On or before the close of the business day

following receipt, all such trust funds received at the main or branch offices of a

debt-settlement provider must be deposited in a bank in an account in the name of the

debt-settlement provider-designated trust account, or by some other appropriate name

indicating that the funds are not the funds of the debt-settlement provider or its

officers, employees, or agents.

2. At least once every month, the debt-settlement provider shall render an accounting to

the debtor that itemizes the total amount received from the debtor, the total amount

paid each creditor, the amount of charges deducted, and any amount held in reserve,

if applicable, and the status of each of the debtor's enrolled accounts. In addition, a

debt-settlement provider shall provide such an accounting to a debtor within seven

days after written demand, but not more than three times per six-month period.

3. This chapter does not require the establishment of a trust account if no consumer

funds other than earned settlement fees are held or controlled by a debt-settlement

provider.
N.D. Cent. Code § 13-02.1-10 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-10
13-02.1-10. Supplementary provisions
Status: in_force

13-02.1-10. Supplementary provisions

Unless displaced by the provisions of this chapter, the principles of law and equity, including

the law merchant and the law relating to principal and agent, estoppel, laches, fraud,

misrepresentation, duress, coercion, mistake, insolvency, or other validating or invalidating

cause, supplement their provisions.
N.D. Cent. Code § 13-11-10 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-10
13-11-10. Revocation of license - Suspension of license - Surrender of license
Status: in_force

13-11-10. Revocation of license - Suspension of license - Surrender of license

1. If the commissioner has reason to believe that grounds for revocation of a license

exist, the commissioner may notify the licensee with a notice of hearing stating the

contemplated action and in general the grounds thereof and setting the time and place

for a hearing thereon. Grounds for revocation of a license include:

a. Any debt-settlement provider has failed to pay the annual license fee or to

maintain in effect the bond required under this chapter;

b. The debt-settlement provider has violated this chapter or any rule lawfully made

by the commissioner implementing this chapter;

c. Any fact or condition exists that, if it had existed at the time of the original

application for a license, would have warranted the commissioner in refusing its

issuance; or

d. Any applicant has made any false statement or representation to the

commissioner in applying for a license under this chapter.

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

that enforcement of the chapter requires immediate suspension of that license pending

investigation, the commissioner, upon written notice, may enter an order suspending

that license for a period not exceeding thirty days, pending the holding of a hearing as

prescribed in this chapter.

3. Any licensee may surrender the licensee's license by delivering the license to the

commissioner with written notice of its surrender; however, surrender of the license

does not affect the licensee's civil or criminal liability for acts committed before the

surrender of the license.
N.D. Cent. Code § 13-12-18 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-18
13-12-18. Investigations, subpoenas, and examination authority
Status: in_force

13-12-18. Investigations, subpoenas, and examination authority

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

investigations and examinations as follows:

1. The department of financial institutions in its discretion:

a. May make a public or private investigation or examination within or outside this

state as it deems necessary to determine whether a person has violated or is

about to violate any provision of this chapter or rule, or to aid in the enforcement

of this chapter or in the prescribing of rules and forms hereunder. The licensee

shall pay an investigation or examination fee and must be charged by the

department of financial institutions at an hourly rate to be set by the

commissioner, sufficient to cover all reasonable expenses of the department

associated with the visitation provided for by this section. Fees must be deposited

in the financial institutions regulatory fund.

b. May require or permit any person to file a statement in writing, under oath, or

otherwise as the department determines, as to all the facts and circumstances

concerning the matter to be investigated or examined.

c. May publish information concerning any violation of this chapter or any rule or

order under this chapter.

2. For the purpose of any investigation, examination, or proceeding under this chapter,

the department of financial institutions may administer oaths and affirmations,

subpoena witnesses, compel their attendance, take evidence, and require the

production of any books, papers, correspondence, memoranda, agreements, or other

documents or records which the department deems relevant or material to the inquiry.

3. In case of contumacy by, or refusal to obey a subpoena issued to, any person, the

district court, upon application by the department of financial institutions, may issue to

the person an order requiring the person to appear before the department there to

produce documentary evidence if so ordered or to give evidence touching the matter in

question under investigation or examination. Failure to obey the order of the court may

be punished by the court as a contempt of court.

4. A person is not excused from attending and testifying or from producing any document

or record before the department of financial institutions, or in obedience to the

subpoena of the department, or in any proceeding instituted by the department, on the

grounds that the testimony or evidence, documentary or otherwise, required of a

person may tend to incriminate the person or subject the person to a penalty forfeiture.

An individual may not be prosecuted or subjected to any penalty or forfeiture for or on

account of any transaction, matter, or thing concerning which the person is compelled,

after claiming the privilege against self-incrimination, to testify or produce evidence,

documentary or otherwise, except that the individual testifying is not exempt from

prosecution and punishment for perjury or contempt committed in testifying.

5. 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 [15 U.S.C. 1681 et seq.]; 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.

6. For purposes of investigating violations or complaints arising under this chapter, or for

purposes of examination, the commissioner may review, investigate, or examine any

licensee or person subject to this chapter, as often as necessary in order to carry out

the purposes of this chapter.

7. Upon request, each licensee or person subject to this chapter shall make available to

the commissioner the books and records relating to the operations of the licensee or

person subject to this chapter. The commissioner shall have access to the books,

records, and interviews of the officers, principals, mortgage loan originators,

employees, independent contractors, agents, and customers of the licensee or person

subject to this chapter concerning their business.

8. Each licensee 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. Other information deemed necessary to carry out the purposes of this section.

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

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

person under investigation or examination. 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, a

person may not 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 may have access to the documents or records as necessary to conduct its

ordinary business affairs.

10. 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; and

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

licensee 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.

11. The authority of this section remains in effect, whether a licensee 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.

12. A licensee or person subject to investigation or examination under this section may not

knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records,

computer records, or other information.
N.D. Cent. Code § 13-04.1-08.1 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-08.1
13-04.1-08.1. Suspension and removal of money broker officers and employees
Status: in_force

13-04.1-08.1. Suspension and removal of money broker officers and employees

1. The commissioner of financial institutions may issue upon a current or former money

broker officer or employee and upon the licensee involved an order stating:

a. That the current or former officer or employee is engaging or has 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 the suspension or removal from employment and participation within

the conduct or the affairs of a financial corporation, financial institution, credit

union, or any other entity licensed by the department of financial institutions.

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 days of the date the order is served, the

order shall be 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 removing the current or former employee. 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

issuance 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 money broker 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

affairs of the money broker, or both. The order is effective immediately upon issuance

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, conviction or agreement to plea to

lesser charges, 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.
N.D. Cent. Code § 13-05-01.1 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-01.1
13-05-01.1. Definitions
Status: in_force

13-05-01.1. Definitions

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

1. "Collection agency" means a person that, in the ordinary course of business, engages

in debt collection.

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

3. "Communication" means the conveyance or receipt of information regarding or

facilitating the collection of a debt, directly or indirectly, to or from any person through

any medium.

4. "Credit card payment" means a payment made by a payment card which incurs a

credit card interchange fee to the collection agency, regardless of the type of payment

card used.

5. "Creditor" means a person that offers or extends credit creating a debt or to which a

debt is owed. The term does not include a person to the extent that person receives an

assignment or transfer of a debt in default solely for the purpose of facilitating

collection of that debt.

6. "Debt" means an obligation or alleged obligation to pay money arising out of a

transaction, regardless of whether the obligation has been reduced to a judgment.

7. "Debt collection" means the act of collecting or attempting to collect, directly or

indirectly, debts owed or due or asserted to be owed or due another. The term also

includes solicitation of debts for the purpose of collection and accepting assignment of

debts for the purpose of collection.

8. "Insolvent" means the point at which a licensed entity's liabilities exceed the entity's

tangible assets, which only include assets that have a physical existence and are

capable of being assigned a value.

9. "Mortgage servicing company" means a company performing the required duties of a

mortgage seller, such as collecting payments, releasing the lien on full payment, and

confirming taxes are paid and insurance is in force.
N.D. Cent. Code § 13-10-11 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-11
13-10-11. Nationwide mortgage licensing system and registry information challenge process
Status: in_force

13-10-11. Nationwide mortgage licensing system and registry information challenge

process.

The commissioner shall establish a process by which mortgage loan originators may

challenge information entered into the nationwide mortgage licensing system and registry by the

commissioner.
N.D. Cent. Code § 13-09.1-42 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-42
13-09.1-42. Unlicensed persons
Status: in_force

13-09.1-42. Unlicensed persons

1. If the commissioner has reason to believe that a person has violated or is violating

section 13-09.1-09, the commissioner may issue an order to show cause why an order

to cease and desist should not issue requiring that the person cease and desist from

the violation of section 13-09.1-09.

2. In an emergency, the commissioner may petition the district court of Burleigh County

for the issuance of a temporary restraining order ex parte pursuant to the rules of civil

procedure.

3. An order to cease and desist becomes effective upon service upon the unlicensed

person.

4. An order to cease and desist remains effective and enforceable pending the

completion of an administrative proceeding pursuant to chapter 28-32.
N.D. Cent. Code § 13-04.1-09.3 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-09.3
13-04.1-09.3. Maximum charges permitted for loans - Installment payments - Permitted charges
Status: in_force

13-04.1-09.3. Maximum charges permitted for loans - Installment payments -

Permitted charges.

1. Interest charges and other fees must be set at rates, amounts, and terms as agreed to

by the parties within the loan contract. However, a licensee may not contract for or

receive finance charges pursuant to a loan in excess of an annual rate of thirty-six

percent, including all charges and fees necessary for the extension of credit incurred

at the time of origination.

2. Additional charges may be assessed for nonpayment or late payment as agreed to by

the parties within the loan contract. However, a licensee may not contract for or

receive charges in excess of five percent of the payment. For loans originated for fifty

thousand dollars or less, these charges may not exceed twenty dollars for each

nonpayment or late payment. The charge may be collected at the time of the default or

any time after default. However, if the charge is taken out of any payment received

after a default occurs and if the deduction results in the default of a subsequent

payment, a charge may not be made for the subsequent default.

3. The restrictions outlined in subsections 1, 2, and 4 do not apply to court costs; lawful

fees for the filing, recording, or releasing in any public office of any instrument securing

a loan; or the identifiable charge or premium for insurance provided for by rule.

4. Additional restrictions for small loans originated for less than two thousand dollars

include the following:

a. Installment loans must be paid in equal installments as agreed to by the parties

within the loan contract. However, the maximum term for installment loans may

not exceed thirty-six months, and a balloon payment is prohibited.

b. Outstanding balances of existing loans may be refinanced into a new small loan

of less than two thousand dollars, but the combination of any refinance fees along

with any fees collected as part of the original loans may not exceed one hundred

dollars per calendar year.

c. Additional charges may be assessed as part of a loan extension or deferment of

payment agreed to by the parties within the agreement. However, a licensee may

not contract for or receive charges in excess of one hundred dollars for these

loan extensions or deferments per calendar year.
N.D. Cent. Code § 13-11-08 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-08
13-11-08. Records - Annual reports
Status: in_force

13-11-08. Records - Annual reports

1. Every licensee shall maintain records in conformity with generally accepted accounting

principles and practices in a manner that will enable the commissioner to determine

whether the licensee is complying with this chapter. The records of a licensee may be

maintained electronically provided all records can be reproduced upon request of the

commissioner and within the required statutory time frame outlined in this section.

2. Before January first of each year, the parent company of each licensee shall file with

the commissioner a composite annual report in the form prescribed by the

commissioner relating to services provided by licensees.
N.D. Cent. Code § 13-01-03 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-03
13-01-03. Creditors may be preferred
Status: in_force

13-01-03. Creditors may be preferred

Except as otherwise provided in section 13-02.1-05, a debtor may pay one creditor in

preference to another, or may give to one creditor security for the payment of that creditor's

demand in preference to another.
N.D. Cent. Code § 13-07-07 — ND Code / Title 13 / Chapter 13-07 / Section 13-07-07
13-07-07. Prohibitions - Investigation - Civil penalty
Status: in_force

13-07-07. Prohibitions - Investigation - Civil penalty

A consumer credit counseling service may not take a confession of judgment or a power of

attorney to confess judgment against the debtor or appear as the debtor in any judicial

proceeding. The attorney general may, upon the attorney general's own motion, and shall, upon

receipt of a complaint, investigate any alleged violation of law by a consumer credit counseling

service. For that purpose, the attorney general may subpoena witnesses, administer oaths, take

testimony, and require the production of books, documents, and other records. The attorney

general may institute a civil action in the name of the state in the district court for an injunction

prohibiting any practice in violation of this chapter. The court, upon notice to the defendant of

not less than five days, and upon proof that the defendant has engaged in a practice in violation

of this chapter may enjoin the defendant from engaging in any practice in violation of this

chapter. In addition, the court may impose a civil penalty not to exceed five thousand dollars for

each violation of this chapter. The attorney general may recover costs and disbursements,

including the costs of investigation and reasonable attorney's fees.
N.D. Cent. Code § 13-13-19 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-19
13-13-19. Remedies not exclusive
Status: in_force

13-13-19. 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 § 13-01.2-01 — ND Code / Title 13 / Chapter 13-01.2 / Section 13-01.2-01
13-01.2-01. Definitions
Status: in_force

13-01.2-01. Definitions

For purposes of this chapter, the following definitions shall apply:

1. "Authorized user" means any employee, contractor, agent, or other person who:

a. Participates in a financial corporation's business operations; and

b. Is authorized to access and use any of the financial corporation's information

systems and data.

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

3. "Consumer":

a. Means an individual, or that individual's legal representative, who applies for or

has obtained a financial product or service from a financial corporation which is to

be used primarily for personal, family, or household purposes. A consumer

includes an individual who:

(1) Applies to a financial corporation for credit for personal, family, or household

purposes, regardless of whether the credit is extended.

(2) Provides nonpublic personal information to a financial corporation to obtain

a determination about whether the applicant may qualify for a loan to be

used primarily for personal, family, or household purposes, regardless of

whether the loan is extended.

(3) Provides nonpublic personal information to a financial corporation in

connection with obtaining or seeking to obtain financial, investment, or

economic advisory services, regardless of whether the financial corporation

establishes a continuing advisory relationship.

(4) Has a loan for personal, family, or household purposes in which the financial

corporation has ownership or servicing rights, even if the financial

corporation or one or more other corporations that hold ownership or

servicing rights in conjunction with the financial corporation hires an agent to

collect on the loan.

b. Does not include an individual who:

(1) Uses a different financial corporation or financial institution to act solely as

an agent for, or provide processing or other services to, the individual

financial corporation or financial institution.

(2) Designates a financial corporation solely for the purposes to act as trustee

for a trust.

(3) Is a beneficiary of a trust for which the financial corporation is a trustee.

(4) Is a participant or a beneficiary of an employee benefit plan that the financial

corporation sponsors or for which the financial corporation acts as a trustee

or fiduciary.

4. "Continuing relationship":

a. Means a situation in which a consumer:

(1) Has a credit or investment account with a financial corporation;

(2) Obtains a loan from a financial corporation;

(3) Purchases an insurance product from a financial corporation;

(4) Holds an investment product through a financial corporation, including when

a financial corporation acts as a custodian for securities or for assets in an

individual retirement arrangement;

(5) Enters into an agreement or understanding with a financial corporation in

which the financial corporation undertakes to arrange or broker a home

mortgage loan, or credit to purchase a vehicle, for the consumer;

(6) Enters into a lease of personal property on a nonoperating basis with a

financial corporation;

(7) Obtains financial, investment, or economic advisory services from a financial

corporation for a fee;

(8) Becomes a financial corporation's client for the purpose of obtaining tax

preparation or credit counseling services from the financial corporation;

(9) Obtains career counseling while:

(a) Seeking employment with a financial corporation or the finance,

accounting, or audit department of any company; or

(b) Employed by a financial corporation or department of any company;

(10) Is obligated on an account that a financial corporation purchases from

another financial corporation, regardless of whether the account is in default

when purchased, unless the financial corporation does not locate the

consumer or attempt to collect any amount from the consumer on the

account;

(11) Obtains real estate settlement services from a financial corporation; or

(12) Has a loan for which a financial corporation owns the servicing rights.

b. Does not include a situation in which:

(1) The consumer obtains a financial product or service from a financial

corporation only in isolated transactions, including:

(a) A financial corporation's automated teller machine to withdraw cash

from an account at another financial institution;

(b) Purchasing a money order from a financial corporation;

(c) Cashing a check with a financial corporation; or

(d) Making a wire transfer through a financial corporation;

(2) A financial corporation sells the consumer's loan and does not retain the

rights to service that loan;

(3) A financial corporation sells the consumer an airline ticket, travel insurance,

or a traveler's check in isolated transactions;

(4) The consumer obtains one-time personal or real property appraisal services

from a financial corporation; or

(5) The consumer purchases checks for a personal checking account from a

financial corporation.

5. "Customer" means a consumer who has a customer relationship with a financial

corporation.

6. "Customer information" means any record containing nonpublic personal information

about a customer of a financial corporation, whether in paper, electronic, or other form,

which is handled or maintained by or on behalf of the financial corporation or the

financial corporation's affiliates.

7. "Customer relationship" means a continuing relationship between a consumer and a

financial corporation under which the financial corporation provides one or more

financial products or services to the consumer that are used primarily for personal,

family, or household purposes.

8. "Encryption" means the transformation of data into a form that results in a low

probability of assigning meaning without the use of a protective process or key,

consistent with current cryptographic standards and accompanied by appropriate

safeguards for cryptographic key material.

9. "Financial corporation" means all entities regulated by the department of financial

institutions, excluding financial institutions and credit unions.

10. "Financial institution" means any bank, industrial loan company, or savings and loan

association organized under the laws of this state or of the United States.

11. "Financial product or service" means any product or service that a financial holding

company could offer by engaging in a financial activity under the federal Bank Holding

Company Act of 1956 [12 U.S.C. 1843 section 4(k)]. The term includes a financial

corporation's evaluation or brokerage of information that a financial corporation

collects in connection with a request or an application from a consumer for a financial

product or service.

12. "Information security program" means the administrative, technical, or physical

safeguards a financial corporation uses to access, collect, distribute, process, protect,

store, use, transmit, dispose of, or otherwise handle customer information.

13. "Information system" means a discrete set of electronic information resources

organized for the collection, processing, maintenance, use, sharing, dissemination, or

disposition of electronic information, as well as any specialized system, including

industrial process controls systems, telephone switching and private branch exchange

systems, and environmental controls systems that contain customer information or that

is connected to a system that contains customer information.

14. "Multifactor authentication" means authentication through verification of at least two of

the following types of authentication factors:

a. Knowledge factors, including a password;

b. Possession factors, including a token; or

c. Inherence factors, including biometric characteristics.

15. "Nonpublic personal information":

a. Means:

(1) Personally identifiable financial information; and

(2) Any list, description, or other grouping of consumers, including publicly

available information pertaining to the consumers that is derived using

personally identifiable financial information that is not publicly available,

including account numbers.

b. Does not include:

(1) Publicly available information, except as included on a list described in

paragraph 2 of subdivision a;

(2) Any list, description, or other grouping of consumers, including publicly

available information pertaining to the consumers that is derived without

using any personally identifiable financial information that is not publicly

available; or

(3) Any list of individuals' names and addresses that contains only publicly

available information, is not derived, in whole or in part, using personally

identifiable financial information that is not publicly available, and is not

disclosed in a manner that indicates that any individual on the list is the

financial corporation's consumer.

16. "Notification event" means the acquisition of unencrypted customer information without

the authorization of the individual to which the information pertains. Customer

information is considered unencrypted for purposes of this subsection if the encryption

key was accessed by an unauthorized person. Unauthorized acquisition is presumed

to include unauthorized access to unencrypted customer information unless the

financial corporation has reliable evidence showing there has not been, or could not

reasonably have been, unauthorized acquisition of customer information.

17. "Penetration testing" means a test methodology in which assessors attempt to

circumvent or defeat the security features of an information system by attempting to

penetrate databases or controls from outside or inside a financial corporation's

information systems.

18. "Personally identifiable financial information":

a. Means any information:

(1) A consumer provides to a financial corporation to obtain a financial product

or service;

(2) About a consumer resulting from any transaction involving a financial

product or service between a financial corporation and a consumer; or

(3) A financial corporation otherwise obtains about a consumer in connection

with providing a financial product or service to that consumer.

b. Includes:

(1) Information a consumer provides to a financial corporation on an application

to obtain a loan, credit card, or other financial product or service;

(2) Account balance information, payment history, overdraft history, and credit

or debit card purchase information;

(3) An individual that is or has been a financial corporation's customer or has

obtained a financial product or service from the financial corporation;

(4) Any information about a financial corporation's consumer if it is disclosed in

a manner that indicates the individual is or has been a financial corporation's

consumer;

(5) Any information a consumer provides to a financial corporation or which a

financial corporation or a financial corporation's agent otherwise obtains in

connection with collecting on, or servicing, a credit account;

(6) Any information a financial corporation collects through an information

collecting device from a web server; and

(7) Information from a consumer report.

c. Does not include:

(1) A list of names and addresses of customers of an entity that is not a

financial corporation; and

(2) Information that does not identify a consumer, such as aggregate

information or blind data that does not contain personal identifiers such as

account numbers, names, or addresses.

19. a. "Publicly available information":

(1) Means any information that a financial corporation has a reasonable basis to

believe is lawfully made available to the general public from:

(a) Federal, state, or local government records;

(b) Widely distributed media; or

(c) Disclosures to the general public which are required under federal,

state, or local law.

(2) Includes information:

(a) In government real estate records and security interest filings; or

(b) From widely distributed media, a telephone book, a television or radio

program, a newspaper, or a website that is available to the general

public on an unrestricted basis. A website is not restricted because an

internet service provider or a site operator requires a fee or a

password, provided access is available to the general public.

b. For purposes of this subsection, a financial corporation has a reasonable basis to

believe information is lawfully made available to the general public if the financial

corporation has taken steps to determine:

(1) The information is of the type available to the general public; and

(2) Whether an individual can direct that the information not be made available

to the general public and, if so, that the financial corporation's consumer has

not done so. A financial corporation has a reasonable basis to believe

mortgage information is lawfully made available to the general public if the

financial corporation determines the information is of the type included on

the public record in the jurisdiction where the mortgage is recorded. A

financial corporation has a reasonable basis to believe an individual's

telephone number is lawfully made available to the general public if the

financial corporation has located the telephone number in the telephone

book or the consumer has informed the financial corporation the telephone

number is not unlisted.

20. "Qualified individual" means the individual designated by a financial institution to

oversee, implement, and enforce the financial institution's information security

program.

21. "Security event" means an event resulting in unauthorized access to, or disruption or

misuse of:

a. An information system or information stored on an information system; or

b. Customer information held in physical form.

22. "Service provider" means any person or entity that receives, maintains, processes, or

otherwise is permitted access to customer information through its provision of services

directly to a financial corporation that is subject to this chapter.
N.D. Cent. Code § 13-12-19 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-19
13-12-19. Response to department requests
Status: in_force

13-12-19. 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 § 13-08-02 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-02
13-08-02. License requirements
Status: in_force

13-08-02. License requirements

A person may not engage in the business of deferred presentment service without a license

issued under this chapter. A separate license is required for each location from which the

business of deferred presentment service is conducted. A person is considered to be engaging

in the business of deferred presentment service if the customer is located in this state.
N.D. Cent. Code § 13-12-14 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-14
13-12-14. Prohibited acts and practices
Status: in_force

13-12-14. 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 or rule, 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 residential

mortgage 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 mortgage lending 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 § 13-09.1-18 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-18
13-09.1-18. Report of condition
Status: in_force

13-09.1-18. Report of condition

1. Each licensee shall submit a report of condition within forty-five days of the end of the

calendar quarter, or within any extended time as the commissioner may prescribe.

2. The report of condition must include:

a. Financial information at the licensee level;

b. Nationwide and state-specific money transmission transaction information in

every jurisdiction in the United States where the licensee is licensed to engage in

money transmission;

c. Permissible investments report;

d. Transaction destination country reporting for money received for transmission, if

applicable; and

e. Any other information the commissioner reasonably requires with respect to the

licensee. The commissioner may utilize the nationwide system for the submission

of the report required by subsection 1 and may update as necessary the

requirements of this section to carry out the purposes of this chapter and maintain

consistency with the nationwide system reporting.

3. The information required by subdivision d of subsection 2 may only be included in a

report of condition submitted within forty-five days of the end of the fourth calendar

quarter.
N.D. Cent. Code § 13-09.1-26 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-26
13-09.1-26. Prohibited authorized new delegates - Penalty
Status: in_force

13-09.1-26. Prohibited authorized new delegates - Penalty

1. The district court of Burleigh County, in an action brought by a licensee, has

jurisdiction to grant appropriate equitable or legal relief, including without limitation

prohibiting the authorized delegate from directly or indirectly acting as an authorized

delegate for any licensee in this state and the payment of restitution, damages, or

other monetary relief, if the district court of Burleigh County finds that an authorized

delegate failed to remit money in accordance with the written contract required by

subsection 2 of section 13-09.1-24 or as otherwise directed by the licensee or required

by law.

2. If the district court of Burleigh County issues an order prohibiting a person from acting

as an authorized delegate for any licensee pursuant to subsection 1 of section

13-09.1-24, the licensee that brought the action shall report the order to the

commissioner within thirty days and shall report the order through the nationwide

system within ninety days.

3. An authorized delegate who holds money in trust for the benefit of a licensee and

knowingly fails to remit such money is guilty of a class C felony.
N.D. Cent. Code § 13-10-12 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-12
13-10-12. Enforcement authorities, violations, and penalties
Status: in_force

13-10-12. Enforcement authorities, violations, and penalties

1. To ensure the effective supervision and enforcement of this chapter the commissioner

may:

a. Deny, suspend, revoke, condition, or decline to renew a license for a violation of

this chapter, rules or regulations issued under this chapter or order or directive

entered under this chapter.

b. Deny, suspend, revoke, condition, or decline to renew a license if an applicant or

licensee fails at any time to meet the requirements of section 13-10-05 or

13-10-08, or withholds information or makes a material misstatement in an

application for a license or renewal of a license.

c. Order restitution against persons subject to this chapter for violations of this

chapter.

d. Impose fines on persons subject to this chapter pursuant to subsections 2, 3, and

4.

e. Issue orders or directives under this chapter as follows:

(1) Order or direct persons subject to this chapter to cease and desist from

conducting business, including immediate temporary orders to cease and

desist.

(2) Order or direct persons subject to this chapter to cease any harmful

activities or violations of this chapter, including immediate temporary orders

to cease and desist.

(3) Enter immediate temporary orders to cease business under a license or

interim license issued pursuant to the authority granted under subsection 5

of section 13-10-03 if the commissioner determines that such license was

erroneously granted or the licensee is currently in violation of this chapter.

(4) Order or direct such other affirmative action as the commissioner deems

necessary.

2. The commissioner may impose a civil penalty on a mortgage loan originator or person

subject to this chapter, if the commissioner finds, on the record after notice and

opportunity for hearing, that such mortgage loan originator or person subject to this

chapter has violated or failed to comply with any requirement of this chapter or any

regulation prescribed by the commissioner under this chapter or order issued under

authority of this chapter.

3. The maximum amount of penalty for each act or omission described in subsection 2 is

twenty-five thousand dollars.

4. Each violation or failure to comply with any directive or order of the commissioner is a

separate and distinct violation or failure.
N.D. Cent. Code § 13-08-13 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-13
13-08-13. Denial of license - Hearing
Status: in_force

13-08-13. Denial of license - Hearing

If the commissioner determines an applicant is not qualified to receive a license, the

commissioner shall notify the applicant in writing stating that the application is denied and

stating the basis for denial. If the commissioner denies an application, or if the commissioner

fails to act on an application within thirty days after the filing of a properly completed application,

the applicant may make written demand to the commissioner for a hearing before the

commissioner on the question of whether the license should be granted. The hearing must be

held within thirty days after receipt of the written demand by the applicant. In the event of a

hearing, the commissioner shall reconsider the application and, after hearing, issue a written

order granting or denying the application. If an applicant who is denied a license requests a

hearing and the commissioner's denial is upheld, the commissioner may assess the applicant

for the commissioner's costs incurred for the hearing, in an amount not exceeding two thousand

dollars.
N.D. Cent. Code § 13-09.1-02 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-02
13-09.1-02. Exemptions
Status: in_force

13-09.1-02. Exemptions

This chapter does not apply to:

1. An operator of a payment system to the extent that it provides processing, clearing, or

settlement services, between or among persons exempted by this section or

licensees, in connection with wire transfers, credit card transactions, debit card

transactions, stored-value transactions, automated clearing house transfers, or similar

funds transfers.

2. A person appointed as an agent of a payee to collect and process a payment from a

payor to the payee for goods or services, other than money transmission itself,

provided to the payor by the payee, provided that:

a. There exists a written agreement between the payee and the agent directing the

agent to collect and process payments from payors on the payee's behalf;

b. The payee holds the agent out to the public as accepting payments for goods or

services on the payee's behalf; and

c. Payment for the goods and services is treated as received by the payee upon

receipt by the agent so that the payor's obligation is extinguished and there is no

risk of loss to the payor if the agent fails to remit the funds to the payee.

3. A person that acts as an intermediary by processing payments between an entity that

has directly incurred an outstanding money transmission obligation to a sender, and

the sender's designated recipient, provided that the entity:

a. Is properly licensed or exempt from licensing requirements under this chapter;

b. Provides a receipt, electronic record, or other written confirmation to the sender

identifying the entity as the provider of money transmission in the transaction; and

c. Bears sole responsibility to satisfy the outstanding money transmission obligation

to the sender, including the obligation to make the sender whole in connection

with any failure to transmit the funds to the sender's designated recipient.

4. The United States or a department, agency, instrumentality, or its agent.

5. Money transmission by the United States postal service or by an agent of the United

States postal service.

6. A state, county, city, or any other governmental agency or governmental subdivision, or

instrumentality of a state, or its agent.

7. A federally insured depository financial institution, bank holding company, office of an

international banking corporation, foreign bank that establishes a federal branch

pursuant to the International Bank Act of 1978 [12 U.S.C. Section 3102], corporation

organized pursuant to the Bank Service Company Act [12 U.S.C. Sections 1861-1867],

or corporation organized under the Edge Act [12 U.S.C. Sections 611-633].

8. Electronic funds transfer of governmental benefits for a federal, state, county, or

governmental agency by a contractor on behalf of the United States or a department,

agency, instrumentality, or on behalf of a state or governmental subdivision, agency, or

instrumentality.

9. A board of trade designated as a contract market under the Commodity Exchange Act

[7 U.S.C. Sections 1-25], or a person that, in the ordinary course of business, provides

clearance and settlement services for a board of trade to the extent of its operation as

or for a board.

10. A registered futures commission merchant under the federal commodities laws to the

extent of its operation as a merchant.

11. A person registered as a securities broker-dealer under federal or state securities laws

to the extent of its operation as a broker-dealer.

12. An individual employed by a licensee, authorized delegate, or any person exempted

from the licensing requirements of this chapter when acting within the scope of

employment and under the supervision of the licensee, authorized delegate, or

exempted person as an employee and not as an independent contractor.

13. A person expressly appointed as a third-party service provider to, or agent of an entity

exempt under subsection 7, solely to the extent that:

a. The service provider or agent is engaging in money transmission on behalf of and

pursuant to a written agreement with the exempt entity that sets forth the specific

functions that the service provider or agent is to perform; and

b. The exempt entity assumes all risk of loss and all legal responsibility for satisfying

the outstanding money transmission obligations owed to purchasers and holders

of the outstanding money transmission obligations upon receipt of the

purchaser's or holder's money or monetary value by the service provider or

agent.

14. A person exempt by regulation or order if the commissioner finds the exemption to be

in the public interest and that the regulation of the person is not necessary for the

purposes of this chapter.
N.D. Cent. Code § 13-04.1-07 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-07
13-04.1-07. Manner in which records to be kept
Status: in_force

13-04.1-07. Manner in which records to be kept

Every money broker licensed under this chapter shall keep a record of all sums collected by

them and of all loans and leases completed as a result of their efforts 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 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 § 13-02.1-11 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-11
13-02.1-11. Governing law
Status: in_force

13-02.1-11. Governing law

1. In this section, the following rules determine a debtor's location:

a. A debtor who is an individual is located at the individual's principal residence.

b. A debtor that is an organization and has only one place of business is located at

its place of business.

c. A debtor that is an organization and has more than one place of business is

located at its chief executive office.

2. A claim for relief in the nature of a claim for relief under this chapter is governed by the

local law of the jurisdiction in which the debtor is located when the transfer is made or

the obligation is incurred.
N.D. Cent. Code § 13-01-14.1 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-14.1
13-01-14.1. Late payment charge on accounts receivable for medical services - Limitations on extensions of credit by medical providers
Status: in_force

13-01-14.1. Late payment charge on accounts receivable for medical services -

Limitations on extensions of credit by medical providers.

1. This section applies to a creditor that is a medical services provider for debts incurred

in providing medical services.

2. A creditor that is a medical services provider may not charge, receive, or collect a late

payment charge on money due on an account receivable for medical services except

as provided under this section. For purposes of late charges on accounts receivable

under this section:

a. An account for medical services, except an account for medical services of a

licensed nursing facility or basic care facility, does not become delinquent until

ninety days have passed following receipt of the billed medical services; and

b. An account for medical services of a licensed nursing facility or basic care facility

does not become delinquent until forty-five days have passed following billing of

the medical services.

3. The account receivable 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 and late payment of the obligation was unanticipated.

4. A creditor that is not a hospital may charge, receive, and collect an account receivable

late payment charge under this section at a rate that does not exceed one percent per

month. A creditor that is a hospital may charge, receive, and collect an account

receivable late payment charge under this section at a rate that does not exceed one

percent per month, not to exceed twenty-five dollars per month.

5. Notwithstanding a higher rate or amount that may be allowed under any other law or

agreed to in any written or verbal agreement, the finance charge, credit service

charge, or rate of interest for an extension of credit for medical services which is

charged by:

a. A medical services provider that is not a hospital may not exceed one percent per

month.

b. A hospital may not exceed one percent per month, not to exceed twenty-five

dollars per month.
N.D. Cent. Code § 13-01.1-01 — ND Code / Title 13 / Chapter 13-01.1 / Section 13-01.1-01
13-01.1-01. Prompt payment required
Status: in_force

13-01.1-01. Prompt payment required

Every state agency, political subdivision, or school district, which acquires property or

services pursuant to a contract with a business shall pay for each complete delivered item of

property or service on the date required by contract between such business and agency or, if no

date for payment is specified by contract, within forty-five days after receipt of the invoice

covering the delivered items or services. The acquisition of property includes the rental of real or

personal property.
N.D. Cent. Code § 13-13-17 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-17
13-13-17. Investigations, subpoenas, and examination authority
Status: in_force

13-13-17. Investigations, subpoenas, and examination authority

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

investigations and examinations as follows:

1. The department of financial institutions may:

a. Make a public or private investigation or examination within or outside this state

as it deems necessary to determine whether any person has violated or is about

to violate any provision of this chapter or any rule or order, or to aid in the

enforcement of this chapter or in the prescribing of rules and forms. The licensee

shall pay an investigation or examination fee and must be charged by the

department of financial institutions at an hourly rate to be set by the

commissioner, sufficient to cover all reasonable expenses of the department

associated with the visitation provided for by this section. Fees must be deposited

in the financial institutions regulatory fund.

b. Require or permit any person to file a statement in writing, under oath or

otherwise as the department determines, as to all the facts and circumstances

concerning the matter to be investigated or examined.

c. Publish information concerning any violation of this chapter or any rule or order.

2. For the purpose of any investigation, examination, or proceeding under this chapter,

the department of financial institutions may administer oaths and affirmations,

subpoena witnesses, compel their attendance, take evidence, and require the

production of any books, papers, correspondence, memoranda, agreements, or other

documents or records which the department deems relevant or material to the inquiry.

3. The district court, upon application by the department of financial institutions, may

issue an order requiring a witness to appear before the department, to produce

documentary evidence if so ordered or to give evidence touching the matter in

question under investigation or examination. Failure to obey the order of the court may

be punished by the court as a contempt of court.

4. No person is excused from attending and testifying or from producing any document or

record before the department of financial institutions, or in obedience to the subpoena

of the department, or in any proceeding instituted by the department, on the grounds

that the testimony or evidence, documentary or otherwise, required of the person may

tend to incriminate the person or subject the person to a penalty forfeiture, but no

individual may be prosecuted or subjected to any penalty or forfeiture for or on account

of any transaction, matter, or thing concerning which the person is compelled, after

claiming the privilege against self-incrimination, to testify or produce evidence,

documentary or otherwise, except that the individual testifying is not exempt from

prosecution and punishment for perjury or contempt committed in testifying.

5. 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 [15 U.S.C. section 1681 et seq.]; 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.

6. For purposes of investigating violations or complaints arising under this chapter, or for

purposes of examination, the commissioner may review, investigate, or examine any

licensee or person subject to this chapter, as often as necessary in order to carry out

the purposes of this chapter.

7. Each licensee or person subject to this chapter shall make available to the

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

licensee or person subject to this chapter. The commissioner shall have access to the

books and records and interview the officers, principals, employees, independent

contractors, agents, and customers of the licensee or person subject to this chapter

concerning their business.

8. Each licensee 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. Other information deemed necessary to carry out the purposes of this section.

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

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

person under investigation or examination. 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, a

person may not 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 may have access to the documents or records as necessary to conduct its

ordinary business affairs.

10. 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; and

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

licensee 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.

11. The authority of this section remains in effect, whether such a licensee 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 authority.

12. A licensee or person subject to investigation or examination under this section may not

knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records,

computer records, or other information.
N.D. Cent. Code § 13-10-18 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-18
13-10-18. Mortgage call reports
Status: in_force

13-10-18. Mortgage call reports

Each mortgage licensee shall submit to the nationwide mortgage licensing system and

registry reports of condition, which shall be in such form and shall contain such information as

the nationwide mortgage licensing system and registry may require.
N.D. Cent. Code § 13-05-06 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-06
13-05-06. Powers of the department of financial institutions
Status: in_force

13-05-06. Powers of the department of financial institutions

Insofar as consistent with other provisions of law, the department of financial institutions has

the power to:

1. Determine the qualifications of all applicants based on financial responsibility, financial

condition, business experience, character, and general fitness which must reasonably

warrant the belief that the applicant's business will be conducted lawfully and fairly. In

determining whether this qualification is met, and for the purpose of investigating

compliance with this chapter, the commissioner may review and consider the relevant

business records and capital adequacy of the applicant and the competence,

experience, integrity, and financial ability of a person who is a member, partner,

director, officer, or twenty-five percent or more shareholder of the applicant.

2. Conduct investigations and make an examination of any licensee or licensee's place of

business, including all records of such business, and to subpoena witnesses anytime it

has reason to believe such is necessary to ensure and enforce compliance with state

and federal rules and regulations. The licensee shall pay an examination or visitation

fee and must be charged by the department of financial institutions at an hourly rate to

be set by the commissioner, sufficient to cover all reasonable expenses of the

department associated with the examination or visitation provided for by this section.

Fees must be paid to the state treasurer and deposited in the financial institutions

regulatory fund.

3. Establish codes of ethical conduct for licensees.

4. Adopt any and all rules and regulations necessary to carry out the purpose of this

chapter.

5. Issue and serve upon any person or licensed collection agency an order to cease and

desist to take corrective action when the department has reason to believe the person

or agency is violating, has violated, or is about to violate the provisions of this chapter.

An interested party may appeal issuance of a cease and desist order under the

provisions of chapter 28-32 by filing written notice of appeal within twenty days after

service of the order.

6. If the commissioner determines a licensee is insolvent, or the license has expired or

terminated for any reason, the commissioner, on determining such action necessary to

protect the public interest, may apply to the district court for the county in which the

main office of such licensee is located for appointment of a receiver to receive the

assets of the licensee for the purpose of liquidating its business or for such other relief

as the nature of the case and the interest of the claimants may require. The

reasonable and necessary expenses of the receivership shall constitute the first claim

on the bond.
N.D. Cent. Code § 13-09.1-19 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-19
13-09.1-19. Audited financials
Status: in_force

13-09.1-19. Audited financials

1. Each licensee shall, within ninety days after the end of each fiscal year, or within any

extended time as the commissioner may prescribe, file with the commissioner:

a. An audited financial statement of the licensee for the fiscal year prepared in

accordance with United States generally accepted accounting principles; and

b. Any other information as the commissioner may reasonably require.

2. The audited financial statements must be prepared by an independent certified public

accountant or independent public accountant who is satisfactory to the commissioner.

3. The audited financial statements must include or be accompanied by a certificate of

opinion of the independent certified public accountant or independent public

accountant that is satisfactory in form and content to the commissioner. If the

certificate or opinion is qualified, the commissioner may order the licensee to take any

action as the commissioner may find necessary to enable the independent or certified

public accountant or independent public accountant to remove the qualification.
N.D. Cent. Code § 13-12-06 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-06
13-12-06. Fee to accompany application for residential mortgage lender license
Status: in_force

13-12-06. Fee to accompany application for residential mortgage lender 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 13-12-05. 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, 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 residential mortgage lending in this

state. Fees must be deposited in the financial institutions regulatory fund.
N.D. Cent. Code § 13-04.1-04.1 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-04.1
13-04.1-04.1. Surety bond required
Status: in_force

13-04.1-04.1. 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 upon any action on the bond, the licensee shall file a new

bond.