N.D. Cent. Code § 6-05.1-05 — ND Code / Title 6 / Chapter 6-05.1 / Section 6-05.1-05
6-05.1-05. Transfer of fiduciary relationships from affiliated banks to subsidiary trust companies
Status: in_force

6-05.1-05. Transfer of fiduciary relationships from affiliated banks to subsidiary trust

companies.

1. Any subsidiary trust company which has been duly authorized to commence the

business for which it is organized, and which has made any deposit of securities

required by law, may at any time file its verified application in the district court of the

county in which its main office is located requesting that it be substituted, except as

may be expressly excluded in the application, in every fiduciary capacity for each of its

affiliated banks specified in the application, and each such specified affiliated bank

shall join in the application. Any such application must indicate the county wherein the

main office of each affiliated bank joining in the application is located and must

designate each fiduciary account existing at the date thereof with respect to which the

applicant requests substitution, but fiduciary capacities in other cases need not be

listed. Any such application must additionally set forth, with regard to each existing

fiduciary account with respect to which the applicant requests substitution, the name

and address last known to the applicant of each person entitled to mailed notice of

hearing thereon, who are as follows:

a. In the case of an existing fiduciary account which may be revoked, terminated, or

amended, each person who, alone or together with others, is empowered to

revoke, terminate, or amend the same.

b. In the case of an existing fiduciary account with respect to which any person

other than a court has the power to remove the corporate fiduciary, each person

who, alone or together with others, is empowered to remove the corporate

fiduciary.

c. In the case of an existing fiduciary account which is an estate of a deceased

person or which is a guardianship or conservatorship, the clerk of the court in

which such estate, guardianship, or conservatorship matter is pending.

d. In the case of an existing fiduciary account not described in any of the foregoing

subdivisions, each income beneficiary of such account and each beneficiary who,

were such account terminated at the date of the application respecting such

account, would be entitled to share in distributions of income or principal thereof.

e. In the case of an existing fiduciary account wherein an affiliated bank specified in

the application is acting with a cofiduciary, to each such cofiduciary.

2. When any such application has been filed with the district court, the court shall make

an order fixing a date and time for hearing thereon and directing that notice thereof be

given as hereinafter provided. The applicant shall cause a copy of such notice to be

published at least once a week for three successive weeks preceding the hearing

date, the last such publication to be at least ten days preceding the hearing date. Such

publication must be made in a newspaper of general circulation published in each

county in which the main office of an affiliated bank specified in the application is

located. In addition, at least fourteen days preceding the hearing date, the applicant

shall cause a copy of such notice to be mailed by first-class mail to each person

identified in the application as being entitled to mailed notice under the provisions of

this section, at that person's address last known to the applicant as set forth in the

application. Proof of the giving of such notice must be made on or before the hearing

date and filed in the proceeding.

3. The notice to be published and mailed with respect to each such application shall state

the time and place of the hearing thereon, the name of the subsidiary trust company

which has filed the application, the name of each affiliated bank which has joined in the

application, that the application requests that the subsidiary trust company be

substituted in every fiduciary capacity for each of its affiliated banks specified in the

application, and that any person entitled to receive mailed notice pursuant to this

section with respect to any existing fiduciary account may appear on or before the date

of hearing and file written objection to such substitution as to such account, and such

notice must refer to such application for further particulars.

4. On or before the date and time of hearing any such application, any person entitled to

receive mailed notice pursuant to this section with respect to any existing fiduciary

account may appear and file objection to substitution of the applicant in such account

and is then entitled to be heard with respect to such objection. The court may not apply

the provisions of this section to substitute a subsidiary trust company as fiduciary of

any existing fiduciary account with respect to which a person entitled to receive mailed

notice pursuant to this section has filed objection to substitution and has appeared and

been heard in support thereof.

5. On such date of hearing, upon finding that due notice has been given as required by

this section and upon finding that the applicant subsidiary trust company has been

duly authorized to commence the business for which it is organized by the state

banking board, or by the comptroller of the currency if the applicant is a national

banking association, and that the applicant has made such deposit of securities as

may be required by law, the district court shall enter an order substituting the applicant

in every fiduciary capacity for each of its specified affiliated banks, excepting as may

be otherwise specified in the application, and excepting fiduciary capacities in any

account with respect to which a person entitled to receive mailed notice pursuant to

this section has filed objection to substitution and has appeared and been heard in

support thereof. Upon entry of such order, or at such later date as may be specified in

such order, the applicant subsidiary trust company must, without further act, be

substituted in every such fiduciary capacity. The substitution may be made a matter of

record in any county of this state by filing a certified copy of the order of substitution in

the office of the clerk of any district court in this state or by filing a certified copy of

such order in the office of the recorder of any county of this state to be recorded and

indexed in like manner and with like effect as other orders and decrees of court are

recorded and indexed.

6. Each designation, in a will or other instrument heretofore or hereafter executed, of a

bank as fiduciary is deemed a designation of the subsidiary trust company substituted

for such bank pursuant to this section except when such will or other instrument is

executed after such substitution and expressly negates the application of this section.

Any grant in any such will or other instrument of any discretionary power is deemed

conferred upon the subsidiary trust company deemed designated as the fiduciary

pursuant to this section.

7. A bank shall account jointly with the subsidiary trust company which has been

substituted as fiduciary for such bank pursuant to this section for the accounting period

during which the subsidiary trust company is initially so substituted. Upon substitution

pursuant to this section, the bank shall deliver to the subsidiary trust company all

assets held by the bank as fiduciary, except assets held for fiduciary accounts with

respect to which there has been no substitution pursuant to this section, and upon

such substitution all such assets become the property of the subsidiary trust company

without the necessity of any instrument of transfer or conveyance.
N.D. Cent. Code § 6-13-07 — ND Code / Title 6 / Chapter 6-13 / Section 6-13-07
6-13-07. Determination of privilege - Procedure
Status: in_force

6-13-07. Determination of privilege - Procedure

1. If a person seeks from a financial institution communications involving a compliance

audit or any compliance self-critical analysis audit document during the course of a

pending civil or criminal proceeding, the financial institution may assert the self-critical

analysis privilege and provide the information set forth in subsection 6 during the

course of those proceedings just as any other privilege is asserted in the courts of this

state. If the court is required to make a determination as to the privilege, the court shall

follow the procedure and conditions set forth in subsection 5.

2. If there is a pending administrative proceeding, or there is no pending civil or criminal

proceeding, the commissioner, state's attorney, or attorney general may serve on a

financial institution a written request by certified mail for disclosure of a compliance

self-critical analysis audit document. Within thirty days after the commissioner, state's

attorney, or attorney general serves on a financial institution a written request by

certified mail for disclosure of a compliance self-critical analysis audit document, the

financial institution that prepared or caused the document to be prepared may file with

the appropriate court a petition requesting an in camera hearing on whether the

compliance self-critical analysis audit document or portions of the document are

privileged under this chapter or subject to disclosure. The court has jurisdiction over a

petition filed by a financial institution under this subsection requesting an in camera

hearing on whether the compliance self-critical analysis document or portions of the

document are privileged or subject to disclosure. Failure by the financial institution to

file a petition waives the privilege for only the specific request made.

3. A financial institution asserting the compliance self-critical analysis privilege in

response to a request for disclosure under this section shall include in its request for

an in camera hearing all of the information set forth in subsection 6.

4. Upon the filing of a petition under this section, the court shall issue an order

scheduling, within forty-five days after the filing of the petition, an in camera hearing to

determine whether the compliance self-critical analysis audit document or portions of

the document are privileged under this chapter or subject to disclosure.

5. The court, after an in camera review, may require disclosure of material for which the

privilege is asserted if the court determines, based upon its in camera review, that any

one of the conditions set forth in subsection 2 of section 6-13-06 is applicable as to a

civil or administrative proceeding or that any one of the conditions set forth in

subsection 3 of section 6-13-06 is applicable as to a criminal proceeding. Upon making

such determination, the court may only compel the disclosure of those portions of a

compliance self-critical analysis document relevant to issues in dispute in the

underlying proceeding. A compelled disclosure may not be considered to be a public

document or be deemed to be a waiver of the privilege for any other civil, criminal, or

administrative proceeding. A financial institution unsuccessfully opposing disclosure

may apply to the court for an appropriate order protecting the document from further

disclosure.

6. A financial institution asserting the compliance self-critical analysis privilege in

response to a request for disclosure under this section shall provide at the time of

making and filing any objection to the disclosure all of the following information:

a. The date of the compliance self-critical analysis audit document;

b. The identity of the entity conducting the audit;

c. The general nature of the activities covered by the compliance audit; and

d. An identification of the portions of the compliance self-critical analysis audit

document for which the privilege is being asserted.
N.D. Cent. Code § 6-08.6-04 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-04
6-08.6-04. Requirements for special deposit
Status: in_force

6-08.6-04. Requirements for special deposit

A deposit is a special deposit if it is:

1. A deposit of funds in a bank or credit union under an account agreement;

2. For the benefit of at least two beneficiaries, one or more of which may be a depositor;

3. Denominated in a medium of exchange that is currently authorized or adopted by a

domestic or foreign government;

4. For a permissible purpose stated in the account agreement; and

5. Subject to a contingency.
N.D. Cent. Code § 6-09.4-22 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-22
6-09.4-22. Protection of service during term of loan
Status: in_force

6-09.4-22. Protection of service during term of loan

1. The service provided or made available by a political subdivision through the

construction or acquisition of an improvement, or the revenues therefrom, financed in

whole or in part with a loan to the political subdivision from the public finance authority

or any other state agency or enterprise, may not be curtailed or limited by inclusion of

all or any part of the area served by the political subdivision within the boundaries of

any other political subdivision, or by the granting of any private franchise for similar

service within the area served by the political subdivision, during the term of the loan.

The political subdivision providing the service may not be required to obtain or secure

any franchise, license, or permit as a condition of continuing to serve the area if it is

included within the boundaries of another political subdivision during the term of the

loan.

2. Under the circumstances described in subsection 1, nothing prevents the two political

subdivisions, with the public finance authority or other state agency or enterprise, from

negotiating an agreement for the right or obligation to provide the service in question,

provided that any agreement is invalid and unenforceable unless the public finance

authority or other state agency or enterprise is a party to the agreement and unless the

agreement contains adequate safeguards to ensure the security and timely payment of

any outstanding bonds of the public finance authority issued to fund the loan.

3. An agreement made before January 1, 2025, and in violation of subsection 2 is

voidable only at the option of the public finance authority or other state agency or

enterprise upon thirty days written notice from the public finance authority or other

state agency or enterprise to the parties of the agreement. This subsection does not

apply to litigation commenced before January 1, 2025.
N.D. Cent. Code § 6-09-07 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-07
6-09-07. State funds must be deposited in Bank of North Dakota - Income of the Bank
Status: in_force

6-09-07. State funds must be deposited in Bank of North Dakota - Income of the Bank

All state funds and funds of all state penal, educational, and industrial institutions must be

deposited in the Bank of North Dakota by the persons having control of such funds or must be

deposited in accordance with constitutional and statutory provisions. All income earned by the

Bank for its own account on state moneys that are deposited in or invested with the Bank to the

credit of the state must be credited to and become a part of the revenues and income of the

Bank.
N.D. Cent. Code § 6-03-52 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-52
6-03-52. Borrowing and rediscounting - Authorization by directors
Status: in_force

6-03-52. Borrowing and rediscounting - Authorization by directors

No banking association may borrow money, rediscount paper with recourse on it, or pledge

securities for money borrowed or rediscounted paper, except in accordance with express

authority conferred by resolution of its board of directors indicating the officer or officers who are

authorized to borrow, rediscount, and pledge and the extent of their authority. Every such

resolution must be entered in the minute book of the association, but a copy of such resolution

certified as such by an officer of the association, authenticated by the seal of the association

and accepted and acted upon by another bank or other lender in good faith is conclusive

evidence of the existence and terms of the resolution.
N.D. Cent. Code § 6-09-26 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-26
6-09-26. Name in which business conducted and titles taken - Execution of instruments
Status: in_force

6-09-26. Name in which business conducted and titles taken - Execution of

instruments.

All business of the Bank must be conducted under the name of "The Bank of North Dakota".

Title to property pertaining to the operation of the Bank must be obtained and conveyed in the

name of "The State of North Dakota, doing business as The Bank of North Dakota". Instruments

must be executed in the name of the state of North Dakota. Within the scope of authority

granted by the industrial commission, the president may execute instruments on behalf of the

Bank, including any instrument granting, conveying, or otherwise affecting any interest in or lien

upon real or personal property. Other officers or employees of, and legal counsel to, the Bank

may execute instruments on behalf of the Bank when authorized by the industrial commission.

Any instrument executed prior to July 11, 1989, by the president, an attorney for the Bank, or an

officer or employee of the Bank, and otherwise proper, is valid and effective.
N.D. Cent. Code § 6-09.4-07 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-07
6-09.4-07. Powers
Status: in_force

6-09.4-07. Powers

The public finance authority has the following powers:

1. To sue and be sued.

2. To make and enforce bylaws, rules, and regulations for the conduct of its affairs and

business and for use of its services.

3. To acquire, hold, use, and dispose of its income, revenue, funds, and moneys in

accordance with law, this chapter or chapter 40-57, or legislative appropriations.

4. To acquire, rent, lease, hold, use, and dispose of other personal property for its

purposes.

5. To borrow money and to issue its negotiable bonds or notes and to provide for and

secure the payment thereof and to provide for the rights of the holders thereof, and to

purchase, hold, and dispose of any of its bonds.

6. To fix and revise from time to time and charge and collect fees and charges for the use

of its services or facilities.

7. To do and perform any acts and things authorized by this chapter or chapter 40-57

under, through, or by means of its officers, agents, or employees or by contracts with

any person, firm, or corporation.

8. To make, enter into, and enforce all contracts or agreements necessary, convenient, or

desirable for the purposes of the public finance authority or pertaining to any loan to a

political subdivision or other contracting party or any purchase or sale of municipal

securities or other investments or to the performance of its duties and execution or

carrying out of any of its powers under this chapter or chapter 40-57.

9. To purchase or hold municipal securities of political subdivisions or other contracting

parties at such prices and in such manner as the public finance authority shall deem

advisable, and to sell municipal securities acquired or held by it at such prices without

relation to cost and in such manner as the public finance authority deems advisable.

10. To invest any funds or moneys of the public finance authority not then required for loan

to political subdivisions or other contracting parties and for the purchase of municipal

securities in the same manner as permitted for investment of funds belonging to the

state or the Bank of North Dakota.

11. To fix and prescribe any form of application or procedure to be required of a political

subdivision or other contracting party for the purpose of any loan or the purchase of its

municipal securities, and to fix the terms and conditions of any such loan or purchase

and to enter into agreements with political subdivisions or other contracting parties

with respect to any such loan or purchase.

12. To consider the need, desirability, or eligibility of such loan, the ability of such political

subdivision or other contracting party to secure borrowed money from other sources

and the costs thereof, and the particular public improvement, project, or purpose to be

financed by the municipal securities to be purchased by the public finance authority.

13. To impose and collect charges from a political subdivision or other contracting party for

its costs and services in review or consideration of any proposed loan to a political

subdivision or other contracting party or purchase of municipal securities of such

political subdivision or other contracting party, and to impose and collect charges

therefor whether or not such loan has been made or such municipal securities have

been purchased.

14. To fix and establish any and all terms and provisions with respect to any purchase of

municipal securities by the public finance authority, including dates and maturities of

such bonds, provisions as to redemption or payment prior to maturity, and any and all

other matters which in connection therewith are necessary, desirable, or advisable in

the judgment of the public finance authority.

15. To procure insurance against any losses in connection with its property, operations, or

assets in such amounts and from such insurers as it deems desirable to pay the

premiums on such insurance.

16. To the extent permitted under its contracts with the holders of bonds of the public

finance authority, to consent to any modification with respect to rates of interest, time,

and payment of any installment of principal or interest, security, or any other term of

bond, contract, or agreement of any kind to which the public finance authority is a

party.

17. To do all acts and things necessary, convenient, or desirable to carry out the powers

expressly granted or necessarily implied in this chapter or chapter 40-57.

18. To do and perform any act and thing authorized by section 54-01-27 or 54-17-36

under, through, or by means of its officers, agents, or employees or by contracts with

any person to assist the state, or any agency or institution of the state, in making,

entering, and enforcing all contracts or agreements necessary, convenient, or

desirable for the purposes of leasing all or part of, or an undivided or other interest in,

property.
N.D. Cent. Code § 6-01-09 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-09
6-01-09. Supervision and examination by commissioner of financial institutions
Status: in_force

6-01-09. Supervision and examination by commissioner of financial institutions

The commissioner shall exercise a constant supervision over the business affairs of all

financial corporations, financial institutions, and credit unions, including all out-of-state branches

of financial corporations, financial institutions, and credit unions. Either the commissioner or one

or more examiners shall examine each financial institution to assess the affairs of the institution

and ascertain the institution's financial condition. The commissioner shall inspect and verify the

assets and liabilities of the institution and branches to ascertain with reasonable certainty that

the value of the assets and the amounts of the liabilities are correctly carried on its books. The

commissioner shall examine the validity of mortgages held by savings institutions and shall see

that all of the mortgages are properly recorded. The commissioner shall investigate the method

of operation and conduct of the corporations and institutions and their systems of accounting to

ascertain whether the methods conform to the law and sound banking usage and principles.

The commissioner shall inquire into and report any infringement of the laws governing those

corporations and institutions, and for that purpose the commissioner may examine the officers,

agents, and employees of the corporations and institutions and all persons doing business

therewith. The commissioner may examine, or cause to be examined, or review the books and

records of any subsidiary corporation of a bank or credit union service organization of a credit

union under the commissioner's supervision and may require the bank to provide information on

the holding company that owns the bank. The commissioner may also examine, or cause to be

examined, or review the books and records of any technology service provider that provides

services to financial corporations, credit unions, and financial institutions under the

commissioner's supervision, to evaluate that entity's risk management systems and controls and

compliance with applicable laws that affect such services provided to financial corporations,

credit unions, and financial institutions. The commissioner shall report the condition of the

corporations and institutions, together with the commissioner's recommendations or

suggestions in connection therewith, to the state banking board, state credit union board, or

both, and the boards may take such action as the exigencies may demand.
N.D. Cent. Code § 6-08-24 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-24
6-08-24. Actions on accounts and claims limited
Status: in_force

6-08-24. Actions on accounts and claims limited

No depositor or other creditor may commence an action against a bank on any account or

claim of any kind after the expiration of the six-year period provided for in section 6-08-23,

unless such depositor or creditor has, within such six-year period, made demand in writing on

such bank requesting a settlement or adjustment of such claim; provided, however, that ledger

sheets showing unpaid balances in favor of depositors may not be destroyed unless a

photographic copy is retained in accordance with section 31-08-01.1, and nothing in sections

6-08-23 and 6-08-24 may be construed as limiting the time when actions may be brought to

recover such balances.
N.D. Cent. Code § 6-03-31 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-31
6-03-31. Delinquent stock - Sale - Notice
Status: in_force

6-03-31. Delinquent stock - Sale - Notice

Whenever any shareholder or shareholder's assignee fails to pay any assessment of the

stock when the assessment is required to be paid, the board of directors of the association may

sell at public or private sale, whichever appears to it best for all concerned, so much of the

stock, at the best price obtainable, as is necessary to pay the assessment and costs of the sale.

The sale must be made on a day certain to be fixed by the board not less than thirty days after

the day set for the payment of the assessment. Notice of the time and place of the sale must be

given to the shareholder in the manner following:

1. In the event of a private sale, by forwarding the notice to the person or persons in

whose name the stock stands on the books of the association, at least twenty days

prior to the date fixed for the sale, by registered or certified mail addressed to the

shareholder's address last known to the board of directors.

2. In the event of a public sale, by one publication of a notice thereof, at least twenty

days prior to the date fixed for such sale, in a newspaper published in the county

wherein the association is located.

A sale of stock as herein provided effects an absolute cancellation of the outstanding certificate

or certificates in the hands of the delinquent shareholder, or the delinquent shareholder's

assignee or pledgee, and a new certificate must be issued by the association and delivered to

the purchaser for the number of shares purchased, and a new certificate for the remaining

shares, if any, must be issued to the shareholder and delivered to the shareholder, or the

shareholder's assignee or pledgee, upon the surrender of the original certificate or certificates

involved. Any proceeds of such sale remaining after the delinquent assessment and the

expenses of the sale have been fully paid must be paid over to the shareholder, or the

shareholder's assignee or pledgee.
N.D. Cent. Code § 6-01-31 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-31
6-01-31. Certain accounts open for inspection
Status: in_force

6-01-31. Certain accounts open for inspection

Any person acquiring custody of, or receiving any funds for or on behalf of the state of North

Dakota, or any of its political subdivisions, who places such funds in an account with any

financial institution, banking association, or banking institution, or who commingles such funds

with any private account, has waived all privilege of privacy or confidentiality on such accounts

for the purposes of permitting an audit, examination, or inspection by the state auditor,

commissioner of financial institutions, or the attorney general, as hereinafter provided.

Upon application and a reasonable showing by either the state auditor, the commissioner of

financial institutions, or the attorney general that any account, private or otherwise, in any

banking association, financial institution, or banking institution, contains funds belonging to the

state of North Dakota or a political subdivision, whether or not commingled with private funds,

the district court may issue its order making such accounts available for examination, audit, or

inspection by the state auditor, the commissioner of financial institutions, or the attorney

general. No financial institution, banking association, or banking institution is subject to

damages for giving information on, or making such account available for inspection, audit, or

examination pursuant to this section.

In addition to any other presumptions, any check, draft, or other comparable instrument is

presumed to represent public funds of the state, or a political subdivision, as the case may be, if

it is payable to a person identified as an official of the state or a political subdivision.
N.D. Cent. Code § 6-09-42 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-42
6-09-42. Health information technology loan fund - Appropriation
Status: repealed

6-09-42. Health information technology loan fund - Appropriation

Repealed by S.L. 2015, ch. 427, § 6.
N.D. Cent. Code § 6-09-47.1 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-47.1
6-09-47.1. Long-term care facility infrastructure loan program
Status: in_force

6-09-47.1. Long-term care facility infrastructure loan program

1. The Bank of North Dakota shall administer a loan program to provide loans to nursing

and basic care facilities for renovation projects or the construction of new facilities. A

construction project may include a land purchase and the purchase, lease, erection, or

improvement of any structure or facility to the extent the governing body of the nursing

or basic care facility has the authority to authorize such activity.

2. The governing body of a nursing or basic care facility may submit an application to the

Bank for a loan. The application must:

a. Detail the proposed construction project;

b. Demonstrate the need and long-term viability of the project; and

c. Include financial information the Bank determines appropriate to verify eligibility.

3. A loan approved under this section:

a. May not exceed fifty percent of project costs;

b. May not exceed ten million dollars for a project;

c. Must have an interest rate that does not exceed two percent; and

d. Must have a repayment schedule of no longer than twenty years.

4. A recipient of a loan under this section shall complete the financed construction project

within twenty-four months of the approval of the loan. Failure to comply with this

subsection may result in forfeiture of the entire loan received under this section.

5. The Bank shall deposit in the strategic investment and improvements fund all principal

and interest paid on the loans made from the fund. The Bank may deduct from interest

payments a service fee for costs of administering the loan program, not to exceed

one-half of one percent of the outstanding balance of the loans.
N.D. Cent. Code § 6-03-47.3 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-47.3
6-03-47.3. Bank investment in investment company shares
Status: in_force

6-03-47.3. Bank investment in investment company shares

Financial institutions under the jurisdiction of the state banking board may invest in shares

of investment companies registered under the Investment Companies Act of 1940 and which

invest only in investments otherwise permitted under this chapter. The state banking board may

issue rules and regulations governing investments by North Dakota financial institutions in

shares of registered investment companies.
N.D. Cent. Code § 6-03-05.2 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-05.2
6-03-05.2. Agricultural loan amortization and deferral
Status: in_force

6-03-05.2. Agricultural loan amortization and deferral

Expired under S.L. 1989, ch. 99, § 3.
N.D. Cent. Code § 6-01-27 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-27
6-01-27. Duty of state examiner on failures by officers
Status: repealed

6-01-27. Duty of state examiner on failures by officers

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-03-04 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-04
6-03-04. Director's oath of office - Filing
Status: in_force

6-03-04. Director's oath of office - Filing

Every director, when elected or appointed, shall take an oath that the director shall, so far

as the duty devolves upon a director, diligently and honestly administer the affairs of the

association and will not knowingly violate or willingly permit to be violated any of the provisions

of this title. Such oath, subscribed by the director making it and certified by the officer before

whom it was taken, at once must be transmitted to the commissioner to be filed in the

commissioner's office.
N.D. Cent. Code § 6-08-33 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-33
6-08-33. Unauthorized funds transfer - Liability
Status: in_force

6-08-33. Unauthorized funds transfer - Liability

A person who directs, causes, arranges, or permits a transfer of funds by wire or automated

clearinghouse into a financial institution account that is not owned by the beneficiary of the

funds transfer is liable to the financial institution for all damages, costs, or expenditures,

including reasonable attorney's fees, which the financial institution suffers or incurs in

connection with the unauthorized funds transfer transaction or any use or withdrawal of the

funds by the owner of the account.
N.D. Cent. Code § 6-07.1-16 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-16
6-07.1-16. Administrative expenses
Status: in_force

6-07.1-16. Administrative expenses

The receiver may employ agents, legal counsel, accountants, appraisers, consultants, and

other personnel the receiver considers necessary to assist in the performance of the receiver's

duties. The receiver may use personnel of the department if the receiver considers the use to be

advantageous or desirable. The expense of employing these persons is an administrative

expense of liquidation.
N.D. Cent. Code § 6-09.7-04 — ND Code / Title 6 / Chapter 6-09.7 / Section 6-09.7-04
6-09.7-04. Bank to prescribe the rate of interest on guaranteed loan
Status: in_force

6-09.7-04. Bank to prescribe the rate of interest on guaranteed loan

Any loan guaranteed by the Bank of North Dakota must bear interest at a rate not in excess

of the interest charged by the lender to other persons for similar types of loans not guaranteed

by the Bank unless the Bank determines that a higher rate of interest is justified by special

circumstances and would be consistent with the general objectives of this chapter.
N.D. Cent. Code § 6-07.2-08 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-08
6-07.2-08. Claims filed after one hundred eighty-day claim period
Status: in_force

6-07.2-08. Claims filed after one hundred eighty-day claim period

A claim filed after the one hundred eighty-day claim period prescribed by section 6-07.2-07

and subsequently accepted by the receiver is entitled to share in the distribution of assets only

to the extent of the undistributed assets in the hands of the receiver on the date the claim is

accepted or allowed.
N.D. Cent. Code § 6-09-46 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-46
6-09-46. Rebuilders loan program - Loan fund - Continuing appropriation - Requirements
Status: repealed

6-09-46. Rebuilders loan program - Loan fund - Continuing appropriation -

Requirements.

Repealed by S.L. 2021, ch. 79, § 2.
N.D. Cent. Code § 6-07.2-17 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-17
6-07.2-17. Emergency temporary suspension or conservatorship
Status: in_force

6-07.2-17. Emergency temporary suspension or conservatorship

1. If upon the examination or investigation of an institution regulated by the

commissioner, the commissioner determines the laws are not being fully observed,

that any irregularities are being practiced, or that the institution's capital has been or is

in danger of being impaired, the commissioner shall give immediate notice of such

determination to the officers and directors of the institutions. In addition, if it is deemed

necessary in order to conserve the assets of the institution or to protect the interests of

depositors and creditors of the institution, the commissioner may do any one or more

of the following:

a. Temporarily suspend the right of the institution to receive any further deposits;

b. Temporarily close the bank, for a period not exceeding sixty days, which period

may be further extended for one or more sixty-day periods as the commissioner

may deem necessary;

c. Require the officers and directors of the bank to liquidate its outstanding loans

insofar as required;

d. Recapitalize the institution;

e. Require that any irregularities be corrected promptly;

f. Require the institution to make reports, daily or at such other times as may be

required to the commissioner; and

g. Without examination, close or appoint a receiver to operate, for such period as

the commissioner may deem necessary, an institution facing an emergency due

to withdrawal of deposits, a liquidity event in which the institution is unable to

continue operations, a cyber- or technology-related incident, or otherwise, or,

without closing the institution, grant the institution the right to suspend or limit the

withdrawal of deposits, for such period as the commissioner may determine.

2. If an institution fails or refuses to comply with any such order of the commissioner, or if

the commissioner determines a receiver for the institution should be appointed, the

commissioner may apply for the appointment of a receiver to take charge of the

business affairs and assets of the institution and to wind up the institution's affairs as

provided in this chapter.

3. A bank or credit union may request a hearing before the state banking board or state

credit union board within ten days of the emergency temporary suspension or

conservatorship to review the factual basis used to issue the emergency temporary

suspension or conservatorship. The decision made by the state banking board or state

credit union board during the hearing is final. If a hearing is not requested, the initial

decision of the commissioner is final.
N.D. Cent. Code § 6-05-15.2 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-15.2
6-05-15.2. Common trust funds of affiliates
Status: in_force

6-05-15.2. Common trust funds of affiliates

Notwithstanding the provisions of section 6-05-15, any bank or trust company qualified to

act as fiduciary in this state may:

1. Establish and maintain common trust funds for the collective investment of funds held

in any fiduciary capacity by it or by another bank or trust company which is owned or

controlled by a corporation which owns or controls such bank or trust company.

2. As a fiduciary or cofiduciary, invest funds which it holds for investment in common trust

funds established and maintained pursuant to subsection 1 if such investment is not

prohibited by the instrument, judgment, decree, or order creating such fiduciary

relationship. This section applies to fiduciary relationships now in existence or

hereafter created.

To the extent not inconsistent with the provisions of this section, the provisions of section

6-05-15.1 relating to common trust funds apply to the establishment and maintenance of

common trust funds under this section.
N.D. Cent. Code § 6-09.18-03 — ND Code / Title 6 / Chapter 6-09.18 / Section 6-09.18-03
6-09.18-03. Legacy investment technology loan program
Status: in_force

6-09.18-03. Legacy investment technology loan program

The department of commerce shall administer the legacy investment technology loan

program in consultation with the Bank of North Dakota to provide loans for activities identified in

this chapter. The department of commerce shall provide administrative support for the program,

including the drafting of application forms, receiving applications, reviewing applications for

completeness and compliance with committee policy, and forwarding complete applications to

the committee in accordance with the guidelines established by the committee. Program

guidelines relating to ownership of intellectual property, inventions, and discoveries must

address activities and issues unique to technologies, patents, and companies created as a

result of a legacy investment technology loan.
N.D. Cent. Code § 6-05-27 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-27
6-05-27. Commissioner to order increase in security deposit - When
Status: in_force

6-05-27. Commissioner to order increase in security deposit - When

Whenever it appears to the commissioner, from an examination of the business of any such

corporation, that the deposit made by it, as hereinbefore required, is insufficient to insure the

safety of its deposit, trust, and contingent liabilities, the commissioner shall make an order, as

hereinafter provided, requiring an increase of such deposit. Such company immediately upon

receipt of such order shall deposit with the commissioner, or a designated agent, other and

further securities of the kind, class, and value designated in section 6-05-04 in an amount

sufficient to comply with said order.
N.D. Cent. Code § 6-09-44 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-44
6-09-44. Residential mortgages
Status: in_force

6-09-44. Residential mortgages

1. The Bank may establish a residential mortgage loan program under which the Bank

may originate residential mortgages if private sector mortgage loan services are not

reasonably available. Under this program a local financial institution or credit union

may assist the Bank in taking a loan application, gathering required documents,

ordering required legal documents, and maintaining contact with the borrower.

2. If the Bank establishes a program under this section, at a minimum the program must

provide:

a. An applicant must be referred to the Bank by a local financial institution or credit

union;

b. The loan application must be for an owner-occupied primary residence; and

c. The Bank provide all regulatory disclosures, process and underwrite the loan,

prepare closing documents, and disburse the loan.

3. The Bank may sell eligible first-time home buyer loans to the North Dakota housing

finance agency.
N.D. Cent. Code § 6-05-34 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-34
6-05-34. Other code provisions applicable to corporations doing business under this chapter
Status: in_force

6-05-34. Other code provisions applicable to corporations doing business under this

chapter.

The provisions of title 10, as it may be amended from time to time, governing profit

corporations, and sections 6-01-06, 6-01-09, 6-03-11, 6-03-12, 6-03-27, 6-03-33, 6-03-34,

6-03-35, 6-03-41, 6-03-42, 6-03-51, 6-03-52, 6-03-53, 6-03-54, 6-03-55, 6-03-56, 6-03-57,

6-03-58, 6-03-61, 6-03-62, 6-03-63, 6-03-64, 6-03-65, 6-03-70, 6-03-72, chapter 6-07.2,

sections 6-08-03, 6-08-06, 6-08-09, 6-08-14, and 6-08-20 are applicable to and must be

observed by all corporations organized under this chapter, except as to provisions thereof

inconsistent with the provisions of this chapter.
N.D. Cent. Code § 6-03-57 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-57
6-03-57. Foreclosure of pledge contracts
Status: in_force

6-03-57. Foreclosure of pledge contracts

Except as otherwise provided in chapter 6-07.2, no pledge made by an association may be

foreclosed except by an action in equity brought in the district court of the county in which the

pledgor association is located, except where assets are pledged by a state banking association

in order to secure borrowed money or the obligation of the association on rediscounted paper,

the rights of the pledgee must be determined by the terms of the agreement of pledge, and if the

pledged assets are outside of this state, the foreclosure of the pledge is governed by the laws of

the state where the pledge is located.
N.D. Cent. Code § 6-09.10-07 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-07
6-09.10-07. Interest rates - Repayment - Loan qualification
Status: repealed

6-09.10-07. Interest rates - Repayment - Loan qualification

Repealed by S.L. 2011, ch. 83, § 15.
N.D. Cent. Code § 6-09.7-03 — ND Code / Title 6 / Chapter 6-09.7 / Section 6-09.7-03
6-09.7-03. Extent of loan guarantee
Status: in_force

6-09.7-03. Extent of loan guarantee

Expired under S.L. 2013, ch. 87, § 4.
N.D. Cent. Code § 6-13-01 — ND Code / Title 6 / Chapter 6-13 / Section 6-13-01
6-13-01. Definitions
Status: in_force

6-13-01. Definitions

In this chapter, unless the context or subject matter otherwise requires:

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

2. "Compliance audit" means a voluntary, internal evaluation, review, assessment, audit,

or investigation for the purpose of identifying or preventing noncompliance with, or

promoting compliance with, laws, regulations, orders, or industry or professional

standards, which is conducted by or on behalf of a financial institution.

3. "Compliance self-critical analysis audit document" means a document prepared as a

result of or in connection with a financial institution's compliance audit. A compliance

self-critical analysis audit document may include a written response to the findings of a

compliance audit. A compliance self-critical analysis audit document may include, as

applicable, field notes and records of observations, workpapers, findings, opinions,

suggestions, conclusions, drafts, memoranda, drawings, photographs, exhibits,

computer-generated or electronically recorded information, telephone records, maps,

charts, graphs, and surveys, provided this supporting information is collected or

developed for the primary purpose and in the course of a compliance audit. A

compliance self-critical analysis audit document also includes:

a. A compliance audit report prepared by an auditor, who may be an employee of

the financial institution or an independent contractor, which may include the

scope of the audit, the information gained in the audit, and conclusions and

recommendations, with exhibits and appendices;

b. Memoranda and documents analyzing portions or all of the compliance audit

report and discussing potential implementation issues;

c. An implementation plan that addresses correcting past noncompliance, improving

current compliance, and preventing future noncompliance; or

d. Analytic data generated in the course of conducting the compliance audit.

4. "Financial institution" means any organization authorized to do business under state

and federal laws relating to financial institutions, including a bank, the Bank of North

Dakota, a savings bank, a trust company, a savings and loan association, or a credit

union.
N.D. Cent. Code § 6-06.2-01 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-01
6-06.2-01. Definitions
Status: in_force

6-06.2-01. Definitions

1. "Converted organization" means the banking institution, credit union, or other financial

institution previously authorized by the commissioner to engage in the business of

banking under the laws of this state and has been converted into a cooperative

financial institution under this chapter.

2. "Member" means a holder of a cooperative financial institution savings, demand, or

other authorized deposit account.

3. "Originating member" means an individual who seeks to form a cooperative financial

institution under this chapter.
N.D. Cent. Code § 6-09.8-07 — ND Code / Title 6 / Chapter 6-09.8 / Section 6-09.8-07
6-09.8-07. Rules
Status: in_force

6-09.8-07. Rules

The Bank shall adopt rules to implement this chapter, which may include a formula for

determining the ratio of reserves in the loan guarantee fund to the amount of guaranteed loans,

the maximum dollar amount of a guarantee, and the maximum allowable annual interest rate on

a loan eligible for a guarantee.
N.D. Cent. Code § 6-09.11-05 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-05
6-09.11-05. Loan applications
Status: in_force

6-09.11-05. Loan applications

An applicant for a loan must meet all of the following qualifications:

1. The applicant is at least eighteen years of age.

2. The applicant is a farmer.

3. The applicant has had the farming experience and training necessary to enable the

applicant to operate a family farm and to make proper use of the proceeds of the loan.

4. The net worth of the applicant does not exceed an amount determined by the Bank of

North Dakota.
N.D. Cent. Code § 6-05-15.5 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-15.5
6-05-15.5. Structure of trust company - Operating subsidiaries - Notice - Hearing - Supervision
Status: in_force

6-05-15.5. Structure of trust company - Operating subsidiaries - Notice - Hearing -

Supervision.

1. A trust company may conduct its business directly or through one or more operating

subsidiary organizations, including a limited purpose bank that is established under the

laws of a jurisdiction other than this state. The activities of an operating subsidiary of a

trust company must be limited to those activities in which the trust company itself could

engage.

2. A trust company that desires to establish or acquire an operating subsidiary must

submit a written notification to the department of financial institutions not less than

thirty days before the trust company's investment in the subsidiary organization is

made. The notification must include the information specified by the state banking

board.

3. Within ten business days after receipt of the notification by the department, the

commissioner shall determine if the notice is complete and shall notify the trust

company of the determination. If within the ten business days the commissioner

determines that the notice is incomplete, the commissioner shall request the additional

information necessary to complete the notice. Within ten days after receipt of the

additional information, the commissioner shall notify the trust company by mail of the

commissioner's determination of completeness. The commissioner shall inform the

state banking board of the receipt of a completed notice. Upon expiration of thirty days

from the date for the mailing of a notice of completeness, the trust company's

investment in the operating subsidiary in accordance with its notice is deemed

approved by the state banking board, unless within that thirty-day period the state

banking board has served the trust company with a notice of hearing on the company's

proposed investment.

4. Any hearing required by the state banking board must be commenced and concluded

by the issuance of the order of the board within ninety days after the date for the

mailing of a notice of completeness by the commissioner. If the hearing is not

concluded within the ninety-day period, the investment by the trust company is

deemed approved by the state banking board.

5. The state banking board may prohibit the trust company's investment in an operating

subsidiary organization if it finds after a hearing:

a. The investment will jeopardize the solvency of the trust company; or

b. The operation of the trust company through the subsidiary organization will place

the trust company in an unsafe and unsound condition.

6. The state banking board has the same authority to examine and supervise an

operating subsidiary as exists for the trust company.
N.D. Cent. Code § 6-05-11.1 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-11.1
6-05-11.1. Bonds of officers and employees
Status: in_force

6-05-11.1. Bonds of officers and employees

An officer or employee of any trust company, before entering upon the person's duties, shall

furnish a bond to the trust company in the sum and upon the conditions as required by the

board of directors in keeping with rules adopted by the state banking board. All bonds must be

approved by the board of directors of the trust company and are subject to the approval of the

commissioner. A record of the approval of the bonds by the board of directors of the trust

company must be made on the records of the trust company and the bonds must be filed with

the commissioner. Stockholders of the trust company are not eligible as bondsmen for the

officers or employees.
N.D. Cent. Code § 6-09.8-03 — ND Code / Title 6 / Chapter 6-09.8 / Section 6-09.8-03
6-09.8-03. Loan guarantee fund - Administrative charges
Status: in_force

6-09.8-03. Loan guarantee fund - Administrative charges

There is hereby created a beginning farmer loan guarantee fund which must be used by the

Bank to carry out the provisions of this chapter. The fund must include the moneys appropriated

by section 54-17-31 as it existed on June 30, 1983, and all earnings, less any administrative

charges, from the investment of those moneys, and such moneys are hereby appropriated to

the beginning farmer loan guarantee fund. Any and all administrative charges of the Bank

necessary for the administration of the program established by this chapter may be charged to

earnings of the fund. The fund must be audited annually pursuant to section 6-09-29, and the

cost of the audit must be paid from the fund.
N.D. Cent. Code § 6-09.10-03 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-03
6-09.10-03. North Dakota mediation service - Establishment - Administration - Fees
Status: in_force

6-09.10-03. North Dakota mediation service - Establishment - Administration - Fees

1. The agriculture commissioner shall establish and administer a mediation service.

2. The commissioner shall appoint the administrator of the mediation service and shall

hire negotiators, mediators, and other necessary personnel.

3. The board may establish the fees to be paid by those using the North Dakota

mediation service. The fees, which must be used to support continuation of the

service, may not exceed twenty-five dollars per hour.

4. The board shall adopt policies governing the North Dakota mediation service's

negotiators, mediators, and other personnel, as well as the nature and scope of all

mediation efforts.
N.D. Cent. Code § 6-05.2-05 — ND Code / Title 6 / Chapter 6-05.2 / Section 6-05.2-05
6-05.2-05. Uninvested or undistributed funds
Status: in_force

6-05.2-05. Uninvested or undistributed funds

Uninvested or undistributed funds held by a banking institution in a fiduciary capacity must

not be held uninvested or undistributed any longer than is reasonable for the proper

management of the account. Each banking institution exercising fiduciary powers must adopt

and follow written policies and procedures intended to ensure that the maximum rate of return

available for trust-quality, short-term investments is obtained consistent with the requirements of

the governing instrument or law. The policies and procedures must take into consideration all

relevant factors, including the anticipated return that could be obtained while the cash remains

uninvested or undistributed, the cost of investing the funds, and the anticipated need for the

funds.
N.D. Cent. Code § 6-03-02.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-02.1
6-03-02.1. Indemnification by banking association
Status: in_force

6-03-02.1. Indemnification by banking association

Each banking association has the same power to indemnify as provided for business

corporations in section 10-19.1-91.
N.D. Cent. Code § 6-06-21.1 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-21.1
6-06-21.1. Amount and manner of establishing special reserves for delinquent loans and investments
Status: repealed

6-06-21.1. Amount and manner of establishing special reserves for delinquent loans

and investments.

Repealed by S.L. 2005, ch. 86, § 16.
N.D. Cent. Code § 6-06.2-09 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-09
6-06.2-09. Conversion to or from a cooperative financial institution
Status: in_force

6-06.2-09. Conversion to or from a cooperative financial institution

1. Any banking institution, credit union, or financial institution authorized by the

commissioner to engage in the business of banking under the laws of this state, laws

of the United States, or laws of another state may be converted into a cooperative

financial institution.

2. A cooperative financial institution may convert to a federal savings association by

complying with the following requirements:

a. The proposition for conversion must be approved by a majority of the directors of

the organization that seeks conversion. If approved by a majority of the directors,

the directors shall set a date for a vote by the members either at a meeting or by

written ballot to be filed on or before the date. Written notice of the proposition

and the date set for the vote must be delivered in person to each member or

mailed to each member at the address for the member appearing on the records

of the organization, between seven and thirty days before the date. Conversion

must be approved by two-thirds of the members participating in the vote.

b. Each member of the credit union is entitled to one vote during regular or special

meetings of the membership.

c. The voting rights for a banking institution or financial institution are determined by

applicable law.

d. Forty-five days before consideration of a conversion, the membership or board

acting on the proposed change must be notified of the bylaw change under

consideration and of the date and time of the meeting the change will be acted

on.

e. Promptly after the vote is taken, but no more than ninety days after, if the

proposition for conversion was approved, the organization seeking conversion

shall provide the state banking board with the results of the vote, verified by the

affidavits of the president or vice president and secretary.

f. A cooperative financial institution converting to a federal savings association shall

provide notice of completion of subdivisions a, b, c, d and e, and may not be

subject to any other provision of this chapter. The converted cooperative financial

institution shall provide notice to the state banking board upon commencement of

operations as a federal savings association, at which time the state charter must

be terminated.

3. If a cooperative financial institution converts to a state-chartered credit union, the

institution shall:

a. Obtain federal deposit insurance.

b. File with the commissioner an organization certificate as required in section

6-06-02 and all other documentation necessary as determined by the

commissioner.

c. Obtain approval from the state credit union board.
N.D. Cent. Code § 6-09-15.4 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15.4
6-09-15.4. Participations in loans to small business concerns - Direct loans to nonprofit corporations
Status: repealed

6-09-15.4. Participations in loans to small business concerns - Direct loans to

nonprofit corporations.

Repealed by S.L. 1999, ch. 82, § 1.
N.D. Cent. Code § 6-08-16 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-16
6-08-16. Issuing check or draft without sufficient funds or credit - Notice - Time limitation - Financial liability - Penalty
Status: in_force

6-08-16. Issuing check or draft without sufficient funds or credit - Notice - Time

limitation - Financial liability - Penalty.

1. A person may not, for that person, as the agent or representative of another, or as an

officer or member of an organization make, draw, utter, or deliver any check, draft, or

order, or authorize an electronic funds transfer, for the payment of money upon a bank,

banker, or depository, if at the time of the making, drawing, uttering, electronically

authorizing, or delivery, or at the time of presentation for payment, if the presentation

for payment is made within fourteen days after the original delivery thereof, there are

not sufficient funds in or credit with the bank, banker, or depository to meet the check,

draft, electronic funds transfer, or order in full upon its authorized presentation.

Violation of this subsection is:

a. An infraction if the amount of insufficient funds or credit is not more than one

hundred dollars;

b. A class B misdemeanor if the amount of insufficient funds or credit is more than

one hundred dollars but not more than five hundred dollars, or if the individual

has pled guilty or been found guilty of a violation of this section within three years

of issuing an insufficient funds check, draft, or order;

c. A class A misdemeanor if the amount of insufficient funds or credit is more than

five hundred dollars but not more than one thousand dollars, or if the individual

has pled guilty or been found guilty of two violations of this section within three

years of issuing an insufficient funds check, draft, or order; or

d. A class C felony if the amount of insufficient funds or credit is more than one

thousand dollars, or an individual has pled guilty or been found guilty of three or

more violations of this section within five years of willfully issuing an insufficient

funds check, draft, or order.

2. The grade of an offense under this section may be determined by individual or

aggregate totals of insufficient funds checks, drafts, electronic funds transfer

authorizations, or orders.

a. In addition to the criminal penalty, the person is liable for collection fees or costs

not in excess of forty dollars which are recoverable by the holder of the check,

draft, electronic funds transfer authorization, or order or by the holder's agent or

representative. If the holder of the check, draft, electronic funds transfer

authorization, or order or the holder's agent or representative uses the automated

clearinghouse network to collect the collection fees or costs, that person shall

comply with the network's rules and requirements. If the state's attorney or holder

determines the person identified as the issuer of the instrument did not make,

draw, utter, or deliver the instrument in violation of this section but instead is the

victim of fraud, that state's attorney or holder shall provide the holder or the

holder's agent or representative written notice of the fraud and upon receipt of the

notice that holder or the holder's agent or representative may not collect fees or

costs under this subdivision.

b. A collection agency shall reimburse the original holder of the check, draft,

electronic funds transfer authorization, or order any additional charges assessed

by the depository bank of the check, draft, electronic funds transfer authorization,

or order if recovered by the collection agency.

c. If the person does not pay the instrument in full and any collection fees or costs

not in excess of forty dollars within ten days from receipt of the notice of dishonor

provided for in subsection 4, the holder of the check, draft, electronic funds

transfer authorization, or order or the holder's agent or representative is entitled

to bring a civil action to recover a civil penalty. The civil penalty is payment to the

holder of the instrument or the holder's agent or representative the lesser of two

hundred dollars or three times the amount of each instrument.

d. The court may order an individual convicted under this section to undergo an

evaluation by a licensed gaming, alcohol, or drug addiction counselor.

3. The word "credit" as used in this section means an arrangement or understanding with

the bank, banker, or depository for the payment of the check, draft, electronic funds

transfer authorization, or order. The making of a postdated check knowingly received

as such, or of a check issued under an agreement with the payee that the check would

not be presented for payment for a time specified, does not violate this section.

4. A notice of dishonor may be mailed by the holder of the check upon dishonor or by the

holder's agent or representative upon dishonor. Proof of mailing may be made by

return receipt or by an affidavit of mailing signed by the individual making the mailing.

The notice must be in substantially the following form:

Notice of Dishonored Check

Date __________________________________________________

Name of Issuer __________________________________________

Street Address __________________________________________

City and State ___________________________________________

You are according to law notified that a check dated _____________,

___________, drawn on the ______________________ Bank

of ______________ in the amount of ___________ has been returned

unpaid with the notation the payment has been refused because of

nonsufficient funds. Within ten days from the receipt of this

notice, you must pay or tender to ____________________________

(Holder or agent or representative)

sufficient moneys to pay such instrument in full and any collection

fees or costs not in excess of forty dollars.

The notice of dishonor also may contain a recital of the penal provisions of this section

and the possibility of a civil action to recover any collection fees or costs or civil

penalty authorized by this section.

5. An agent acting for the receiver of a check in violation of this section may present the

check to the state's attorney for prosecution if the holder or the holder's agent or

representative mailed a notice under subsection 4. During the first one hundred twenty

days after the drawer received notice under this subsection the state's attorney shall

accept the instrument presented by the agent. The criminal complaint for the offense of

issuing a check, draft, electronic funds transfer authorization, or order without sufficient

funds under this section must be executed within not more than one hundred twenty

days after the dishonor by the drawee of said instrument for nonsufficient funds. The

failure to execute a complaint within said time bars the criminal charge under this

section.
N.D. Cent. Code § 6-09-28 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-28
6-09-28. Surety on appeal, attachment, claim and delivery, and other cases in which undertaking required, not required of Bank of North Dakota
Status: in_force

6-09-28. Surety on appeal, attachment, claim and delivery, and other cases in which

undertaking required, not required of Bank of North Dakota.

Provisions of law requiring that a surety or sureties be given on undertakings in actions on

appeal, attachment, claim and delivery, and other cases in which an undertaking is required, are

not applicable to the state of North Dakota, doing business as the Bank of North Dakota, as the

party seeking such relief. It is required to give its own undertaking without surety and to

reimburse the adverse party when required by law.
N.D. Cent. Code § 6-10-06 — ND Code / Title 6 / Chapter 6-10 / Section 6-10-06
6-10-06. Duty of commissioner
Status: in_force

6-10-06. Duty of commissioner

The commissioner may make an examination of the business of such licensee, and such

applicant shall pay an examination fee. Fees for such examinations 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 examinations provided for

by this section. Fees must be paid to the state treasurer and deposited in the financial

institutions regulatory fund.
N.D. Cent. Code § 6-09.4-06 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-06
6-09.4-06. Lending and borrowing powers generally
Status: in_force

6-09.4-06. Lending and borrowing powers generally

1. The public finance authority may lend money to political subdivisions or other

contracting parties through the purchase or holding of municipal securities which, in

the opinion of the attorney general, are properly eligible for purchase or holding by the

public finance authority under this chapter or chapter 40-57 and for purposes of the

public finance authority's capital financing program the principal amount of any one

issue does not exceed five hundred thousand dollars. However, the public finance

authority may lend money to political subdivisions through the purchase of securities

issued by the political subdivisions through the capital financing program without

regard to the principal amount of the bonds issued, if the industrial commission

approves a resolution that authorizes the public finance authority to purchase the

securities. The capital financing program authorizing resolution must state that the

industrial commission has determined that private bond markets will not be responsive

to the needs of the issuing political subdivision concerning the securities or, if it

appears that the securities can be sold through private bond markets without the

involvement of the public finance authority, the authorizing resolution must state

reasons for the public finance authority's involvement in the bond issue. The public

finance authority may hold such municipal securities for any length of time it finds to be

necessary. The public finance authority, for the purposes authorized by this chapter or

chapter 40-57, may issue its bonds payable solely from the revenues available to the

public finance authority which are authorized or pledged for payment of public finance

authority obligations, and to otherwise assist political subdivisions or other contracting

parties as provided in this chapter or chapter 40-57.

2. The public finance authority may lend money to the Bank of North Dakota under terms

and conditions requiring the Bank to use the proceeds to make loans for agricultural

improvements that qualify for assistance under the revolving loan fund program

established by chapter 61-28.2.

3. The public finance authority may transfer money to the Bank of North Dakota for

allocations to infrastructure projects and programs. Bonds issued for these purposes

are payable in each biennium solely from amounts the legislative assembly may

appropriate for debt service for any biennium or from a reserve fund established for

the bonds. Neither the obligation of the state to pay the bonds nor the obligation of the

issuer to pay debt service will constitute a debt of the state or any agency or political

subdivision of the state within the meaning of any constitutional or statutory provision.

The issuance of the bond does not directly or contingently obligate the state to pay the

bond payments beyond the appropriation for the current biennium of the state. The

issuer has no taxing power. In addition to providing funds for the transfers, the public

finance authority may use the bond proceeds to pay the costs of issuance of the

bonds, capitalized interest, and establish a reserve fund for the bonds.

4. Bonds of the public finance authority issued under this chapter or chapter 40-57 are

not in any way a debt or liability of the state and do not constitute a loan of the credit of

the state or create any debt or debts, liability or liabilities, on behalf of the state, or

constitute a pledge of the faith and credit of the state, but all such bonds are payable

solely from revenues pledged or available for their payment as authorized in this

chapter. Each bond must contain on its face a statement to the effect that the public

finance authority is obligated to pay such principal or interest, and redemption

premium, if any, and that neither the faith and credit nor the taxing power of the state is

pledged to the payment of the principal of or the interest on such bonds. Specific funds

pledged to fulfill the public finance authority's obligations are obligations of the public

finance authority.

5. All expenses incurred in carrying out the purposes of this chapter or chapter 40-57 are

payable solely from revenues or funds provided or to be provided under this chapter or

chapter 40-57 and nothing in this chapter may be construed to authorize the public

finance authority to incur any indebtedness or liability on behalf of or payable by the

state.
N.D. Cent. Code § 6-09-15.6 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15.6
6-09-15.6. Bank of North Dakota purchase of export trading company stock - Limitation
Status: repealed

6-09-15.6. Bank of North Dakota purchase of export trading company stock -

Limitation.

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-09.16-05 — ND Code / Title 6 / Chapter 6-09.16 / Section 6-09.16-05
6-09.16-05. Amount of loans - Terms and conditions
Status: in_force

6-09.16-05. Amount of loans - Terms and conditions

Loans in an amount not exceeding ninety percent of project costs may be made by the

Bank of North Dakota from the fund maintained pursuant to this chapter. Such loans must bear

interest at a rate of two percent of the outstanding principal balance of the loan. In consideration

of the making of a loan under this chapter, each borrower shall execute a contract with the

department to operate the project in accordance with standards established under chapter
N.D. Cent. Code § 6-06.2-06 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-06
6-06.2-06. Acknowledgment of organization certificate - Application for certificate of authority - Notice of hearing
Status: in_force

6-06.2-06. Acknowledgment of organization certificate - Application for certificate of

authority - Notice of hearing.

The organization certificate must be notarized. The authenticated certificate must be

transmitted to the state banking board with a request for permission to present the certificate to

the secretary of state, with application for the issuance of a certificate of authority, as well as

payment of an application fee. The commissioner shall establish the application by rule. After

receipt of the proposed organization certificate, application, and application fee, the board shall

publish the application in the official newspaper of the county the cooperative financial institution

is proposed to be established. The notice must contain a statement of a time and place at which

the board will hear the application and must specify that any individual objecting the application

may appear and show cause why the application should not be approved.
N.D. Cent. Code § 6-08-02 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-02
6-08-02. Oath of officers - Form and filing
Status: in_force

6-08-02. Oath of officers - Form and filing

Every active officer of any state banking association or trust company organized under this

title, before entering upon the duties of the office, shall take and subscribe an oath that the

officer will administer the affairs of the association or trust company diligently and honestly, so

far as the duty devolves upon the officer, and that the officer will not violate knowingly, nor

willingly permit to be violated, any of the provisions of this title. All oaths must be presented to

the board of directors and a synopsis thereof recorded in the board's record and then filed with

the board.
N.D. Cent. Code § 6-01-21.4 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-21.4
6-01-21.4. Examination in case of irregularity or embezzlement
Status: repealed

6-01-21.4. Examination in case of irregularity or embezzlement

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-07.2-19 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-19
6-07.2-19. Voluntary liquidation of a credit union or cooperative financial institution
Status: in_force

6-07.2-19. Voluntary liquidation of a credit union or cooperative financial institution

1. A credit union or cooperative financial institution may go into voluntary liquidation

following a vote of the majority of the board of directors and approval by the majority of

its members in writing or by a vote in favor of the liquidation by a majority of the

members of the credit union or cooperative financial institution at a regular meeting of

the members or at a special meeting called for that purpose.

a. When authorization for liquidation is to be obtained at a meeting of members:

(1) Notice in writing must be given to each member at least ten days before the

meeting and the notice must inform members they have the right to vote on

the proposed liquidation.

(2) The minutes of the meeting must show the number of members present and

the number that voted for and against liquidation.

b. If approval by a majority of all members of a credit union is not obtained at the

meeting of members, authorization for voluntary liquidation may be obtained by

having a majority of members sign a statement in substantially the following form:

We the undersigned members of the _____ Credit Union, Charter No. _____,

hereby request the dissolution of our credit union.

c. If approval by a majority of all members of a cooperative financial institution is not

obtained at the meeting of members, authorization for voluntary liquidation may

be obtained by having a majority of members sign a statement in substantially the

following form: We the undersigned members of the _____ cooperative financial

institution, Charter No. _____, hereby request the dissolution of our cooperative

financial institution.

2. The board of directors of a credit union or cooperative financial institution in voluntary

liquidation:

a. Is responsible for conserving the assets, for expediting the liquidation, and for

equitably distributing the assets to members.

b. Shall determine all persons handling or having access to funds of the credit union

or cooperative financial institution are adequately covered by surety bond.

c. Shall appoint a custodian for the credit union's or cooperative financial

institution's records that are to be retained for five years after the charter is

canceled.

d. May appoint a liquidating agent and delegate part or all of these responsibilities to

the agent and may authorize reasonable compensation for the agent's services. A

liquidating agent must be adequately bonded for faithful performance of the

agent's duties, and the coverage must remain in effect or the discovery period

extended for at least four months after the final distribution of assets.

3. The supervisory committee, a certified public accountant hired by the supervisory

committee, or if the bylaws do not establish a supervisory committee, a certified public

accountant hired by the board of directors, is responsible for making periodic audits of

the credit union's or cooperative financial institution's records, at least quarterly, during

the period of liquidation.

4. Within three days after the decision of the board of directors to submit the question of

liquidation to the members, the president shall notify the commissioner and the

regional director of the national credit union administration or federal deposit insurance

corporation as appropriate in writing, setting forth in detail:

a. The reasons for the proposed action;

b. The previous month-end balance sheet and income statement; and

c. A written plan for the liquidation of assets, payment of creditors, and payment of

shares to be completed within one year of the date of membership approval to

liquidate.

5. Within three days after the action of the members on the question of liquidation, the

president shall notify the commissioner and the regional director of the national credit

union administration or federal deposit insurance corporation as appropriate in writing

as to whether a majority of the members approved the proposed liquidation.

6. Within ten days of the decision to liquidate by the board of directors, a notice of the

decision must be handed to each member, electronically distributed, or mailed to the

member's last-known address to confirm in writing the shares and deposits held by the

member in the credit union or cooperative financial institution and the loans owed by

the member to the credit union or cooperative financial institution.

7. Within ten days of the approval of a majority of the members of a credit union or

cooperative financial institution of a proposal to liquidate, the board of directors of the

credit union or cooperative financial institution shall have prepared and mailed to all

creditors a notice of liquidation containing instructions to present claims to the credit

union or cooperative financial institution within ninety days for payment. New creditor

claims subsequent to this notice which are necessary for the continued operation of

the credit union during liquidation must continue to be paid upon authorization of the

board of directors or liquidating agent.

8. Immediately upon the decision of the membership to liquidate, the credit union or

cooperative financial institution may continue to do all things under the original

corporate name of the institution, to sue and be sued, to execute conveyances and

other instruments, to take, hold, and own property, and to do all other things as may be

necessary to realize upon the institution's remaining assets for the benefit of the

institution's members, but not to engage or continue in any new or other business

under the institution's charter or otherwise. At the discretion of the board of directors or

the liquidating agent, transactions upon membership transactional accounts may

continue to be honored up to the federal insurance limit until the accounts are sold or

otherwise liquidated.

9. At the commencement of voluntary liquidation of a credit union or cooperative financial

institution, the treasurer or agent conducting the liquidation shall file with the

commissioner a financial and statistical report and a schedule showing the name, book

number or account number, share balance, and loan balance of each member.

10. Credit unions or cooperative financial institutions in the process of voluntary liquidation

shall file with the commissioner a financial and statistical report as of December thirty-

first or within thirty days after such date. Additional reports, as determined by the

commissioner to be necessary, must be furnished promptly on written request.

11. When deemed advisable by the commissioner, an examination of the books and

records of a credit union or cooperative financial institution may be made before,

during, or following completion of voluntary liquidation. The commissioner shall set

fees for the examination at an hourly rate sufficient to cover all reasonable expenses of

the department of financial institutions associated with the examination. Fees must be

collected by the commissioner and deposited in the financial institutions regulatory

fund.

12. If at any time during the liquidation of credit union assets or cooperative financial

institution, it is found the value of remaining assets will not be sufficient to cover the

claims of creditors and shareholders, the board of directors or, if appointed, the

liquidating agent shall immediately notify the commissioner and the regional director of

the national credit union administration or federal deposit insurance corporation as

appropriate. Further liquidation of credit union or cooperative financial institution

assets or distributions to shareholders after notice requires written approval from the

commissioner.

13. With the written approval of the commissioner, a partial distribution of the credit union's

or cooperative financial institution's assets may be made to its members from cash

funds available on authorization by its board of directors or by a duly authorized

liquidating agent whose appointment specifically includes the authority. Partial

distributions cannot exceed the national credit union share insurance limit.

14. When all assets of the credit union or cooperative financial institution have been

converted to cash or found to be worthless and all loans and debts owing to it have

been collected, sold, or found to be uncollectible and all obligations of the credit union

or cooperative financial institution have been paid, with the exception of amounts due

its members:

a. The books must be closed and the pro rata distribution to members computed.

This computation must be based on the total amount in each member's share

accounts as of the date the board of directors voted to voluntarily liquidate.

b. The amount of gain or loss must be entered in each member's share account and

should be entered in the member's passbook or statement of account.

c. Promptly, funds must be distributed to each member. The funds must be mailed

to such members at their last-known addresses, electronically transmitted to the

members designated account, or handed to them in person.

d. The passbooks or written confirmations submitted by members to verify balances

must be retained with the credit union or cooperative financial institution records.

e. Unclaimed share accounts subject to the escheat or abandoned property laws of

the state or the state of the members' residence must be paid to the state as

required by such laws.

f. The commissioner must be promptly notified of the date final distribution of assets

to the members is started.

g. In the event of a loss on members share accounts, a claim must be submitted by

the board of directors or the liquidating agent if appointed, to the national credit

union administration or federal deposit insurance corporation as appropriate,

private share insurance if available, and bonding company.

15. Within one hundred twenty days after the final distribution to members is started, the

credit union or cooperative financial institution shall furnish to the commissioner's

office a schedule of unpaid claims. The board of directors of the credit union or

cooperative financial institution or the liquidating agent if appointed shall report money

in the account of a member who failed to surrender their passbooks or confirm their

balances, final distribution checks not cashed within one hundred twenty days, and

any unpaid claims to the unclaimed property division of the board of university and

school lands pursuant to chapter 47-30.2.
N.D. Cent. Code § 6-08.3-14 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-14
6-08.3-14. Provisions not severable
Status: repealed

6-08.3-14. Provisions not severable

Repealed by S.L. 1995, ch. 79, § 25.
N.D. Cent. Code § 6-03-49.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-49.1
6-03-49.1. Bank investment in service corporation - Service corporation services and activities
Status: in_force

6-03-49.1. Bank investment in service corporation - Service corporation services and

activities.

1. Subject to the approval of the state banking board, any bank may invest in a service

corporation and provide services and activities through the service corporation, if:

a. The service corporation is a United States corporation and is organized as a bank

service corporation having its principal place of business in the United States.

b. The investment in stocks, bonds, debentures, or other obligations does not

exceed ten percent of paid-in and unimpaired capital and unimpaired surplus in

each corporation.

c. The service corporation is operated exclusively for the purpose of providing for

such bank and one or more other banks, bank services which the banks would

otherwise be required or permitted to provide for on an individual bank basis. The

term bank services in this section includes:

(1) Check and deposit sorting and posting.

(2) Computation and posting of interest and other credits and charges.

(3) Preparation and mailing of checks, statements, notices, and similar items.

(4) Any other clerical, bookkeeping, accounting, statistical, or similar functions

performed by a bank.

(5) Owning and administering a credit card program for customers of banks.

(6) Engaging in activities incidental to banking services.

(7) Other activities that further or facilitate the corporate purposes of a bank or

subsidiaries of a bank, if the services may be lawfully performed by both its

national bank shareholders under the laws of the United States and its state

bank shareholders under the laws of this state.

2. Payment for rent earned, goods sold and delivered, or services rendered prior to the

making of the payment is not an investment under this subsection. A bank service

corporation may not accept deposits.
N.D. Cent. Code § 6-03-13 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-13
6-03-13. Conversion to national bank - Sale of bank - Removal to new location
Status: in_force

6-03-13. Conversion to national bank - Sale of bank - Removal to new location

An association organized to do business in any city in this state, and which has sold or

converted its business to a national bank or to any other banking association which is continued

at the same place, may not use its charter to recommence business at another place without

first obtaining the consent of the state banking board. When a banking association which has

not so converted or sold its business is located at a place where there is not, or can reasonably

project that there will not be, sufficient business for the profitable conduct of a bank, such

association may apply to the state banking board for authority to remove its business to some

other place within the state and to change its name if desired, and upon the approval of such

application, by the board and the proper amendment of the articles of incorporation, the board

may issue authority for such removal and change. No such association, however, is permitted to

remove its business to any city unless it has the full amount of capital stock and surplus

required by this title for a new organization in such city. A banking association may apply to the

state banking board for authority to move its main office to any location currently being operated

by the banking association as a facility or to another location within the same corporate city

limits.
N.D. Cent. Code § 6-03-47.4 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-47.4
6-03-47.4. Bank investment in federal agricultural mortgage corporation stock
Status: in_force

6-03-47.4. Bank investment in federal agricultural mortgage corporation stock

Financial institutions under the jurisdiction of the state banking board may invest in stock

and equity instruments of the federal agricultural mortgage corporation. The state banking board

may adopt rules governing investments by North Dakota financial institutions in the stock and

equity instruments of the federal agricultural mortgage corporation.
N.D. Cent. Code § 6-06-32 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-32
6-06-32. Duty of committee when liquidation completed - State examiner custodian of books and papers
Status: repealed

6-06-32. Duty of committee when liquidation completed - State examiner custodian of

books and papers.

Repealed by S.L. 1967, ch. 90, § 13.
N.D. Cent. Code § 6-09.4-23 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-23
6-09.4-23. Evidences of indebtedness - Authority to withhold school district state aid
Status: in_force

6-09.4-23. Evidences of indebtedness - Authority to withhold school district state aid

1. If the public finance authority or a paying agent notifies the superintendent of public

instruction, in writing, that a school district has failed to pay when due the principal or

interest on any evidences of indebtedness issued after July 31, 1999, or that the public

finance authority, school district, or the paying agent has reason to believe a school

district will not be able to make a full payment of the principal and interest when the

payment is due, the superintendent of public instruction shall withhold any funds that

are due or payable or appropriated to the school district under chapter 15.1-27 until

the payment of the principal or interest has been made to the public finance authority

or the paying agent, or until the public finance authority, school district, or the paying

agent notifies the superintendent of public instruction that arrangements satisfactory to

the public finance authority or the paying agent have been made for the payment of

the principal and interest then due and owing. The notification must include information

required by the superintendent of public instruction. State funds available to a school

district under chapter 15.1-27 are not subject to withholding under this section unless

the withholding is authorized by resolution of the district's school board.

2. If the public finance authority or a paying agent notifies the state treasurer, in writing,

that a school district has failed to pay when due the principal or interest on any

evidence of indebtedness issued after July 31, 2023, or that the public finance

authority, school district, or the paying agent has reason to believe a school district will

not be able to make a full payment of the principal and interest when the payment is

due, the state treasurer shall withhold any funds that are due or payable or

appropriated to the school district under chapter 57-51 until the payment of the

principal or interest has been made to the public finance authority or the paying agent,

or until the public finance authority, school district, or the paying agent notifies the state

treasurer that arrangements satisfactory to the public finance authority or the paying

agent have been made for the payment of the principal and interest then due and

owing. The notification must include information required by the state treasurer. State

funds available to a school district under chapter 57-51 are not subject to withholding

under this section unless the withholding is authorized by resolution of the district's

school board.

3. If the public finance authority or a paying agent notifies the county auditor, in writing,

that a school district has failed to pay when due the principal or interest on any

evidence of indebtedness issued after July 31, 2023, or that the public finance

authority, school district, or the paying agent has reason to believe a school district will

not be able to make a full payment of the principal and interest when the payment is

due, the county auditor shall withhold any funds that are due or payable or

appropriated to the school district under chapters 57-33.2, 57-34, and 57-55 and

section 21-06-10 until the payment of the principal or interest has been made to the

public finance authority or the paying agent, or until the public finance authority, school

district, or the paying agent notifies the county auditor that arrangements satisfactory

to the public finance authority or the paying agent have been made for the payment of

the principal and interest then due and owing. The notification must include information

required by the county auditor. State funds available to a school district under chapters

57-33.2, 57-34, and 57-55 and section 21-06-10 are not subject to withholding under

this section unless the withholding is authorized by resolution of the district's school

board.

4. Notification by the public finance authority, school district, or the paying agent that

satisfactory arrangements have been made for the payment of the principal and

interest then due and owing under subsection 1, 2, or 3 must be made at least fifteen

working days before the principal or interest is due. The notice must be in writing and

include the name of the school district, an identification of the debt obligation issue, the

date the payment is due, the amount of principal and interest due on the payment

date, the amount of principal or interest the school district will be unable to pay, the

paying agent for the debt obligation, the wire transfer instructions to transfer funds to

the paying agent, and an indication that payment is requested under this section. A

paying agent shall notify the superintendent of public instruction, the state treasurer,

and the appropriate county auditor if the paying agent becomes aware of a potential

default. If the superintendent, state treasurer, or the county auditor receives notice of a

requested payment under this section, the superintendent of public instruction, state

treasurer, or county auditor shall withhold and transfer funds due or payable or

appropriated to the school district under chapter 15.1-27 or 57-51 to the paying agent

after:

a. Consulting with the school district and the paying agent; and

b. Verifying the accuracy of the provided request information.

5. Notwithstanding any withholding of state funds under section 15-39.1-23 or any other

law, the superintendent of public instruction, state treasurer, and county auditor shall

make available any funds withheld under subsection 1, 2, or 3 to the public finance

authority or the paying agent. The public finance authority or the paying agent shall

apply the funds to payments that the school district is required to make to the public

finance authority or the paying agent.

6. If funds are withheld from a school district and made available to the public finance

authority or a paying agent under this section and if tax revenues are received by the

school district during the fiscal year in which the funds are withheld and are deposited

in the district's sinking fund established in accordance with section 21-03-42, the

district, with the consent of the public finance authority or the paying agent, may

withdraw from its sinking fund an amount equal to that withheld and made available to

the public finance authority or a paying agent under this section.

7. The superintendent of public instruction, state treasurer, and county auditor shall

develop detailed procedures for a school district to notify the superintendent of public

instruction, state treasurer, and the county auditor that the school district has obligated

the district to be bound by this section; procedures for a school district, paying agent,

and the public finance authority to notify the superintendent of public instruction, state

treasurer, or county auditors of potential defaults and to request payment under this

section; and procedures for the state to expedite payments to prevent defaults.
N.D. Cent. Code § 6-08-22 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-22
6-08-22. Holiday transactions
Status: in_force

6-08-22. Holiday transactions

Nothing in any law in this state may in any manner whatsoever affect the validity of, or

render void or voidable, the payment, certification, or acceptance of a check or other negotiable

instrument or any other transaction by a bank or trust company in this state because done or

performed during any other than regular banking hours, provided, further, that nothing herein

may be construed to compel any bank or trust company in this state, which by law or custom is

entitled to close at twelve noon on any Saturday, or for the whole or any part of any legal

holiday, to keep open for the transaction of business, or to perform any of the acts or

transactions aforesaid on any Saturday after such hour, or on any legal holiday, except at its

own option.
N.D. Cent. Code § 6-01-17.1 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-17.1
6-01-17.1. Application fees - Cost of transcript
Status: in_force

6-01-17.1. Application fees - Cost of transcript

The following fees must accompany an application presented to the state banking board,

state credit union board, or commissioner and must be paid by the commissioner into the

financial institutions regulatory fund:

1. For a certificate of authority to organize a banking association, a fee of five thousand

dollars, paid by the applicants.

2. A banking association's application for authority to remove its business to some place

within the state other than the town in which it is presently located and to change its

name, a fee of two thousand five hundred dollars.

3. National bank conversion to a state bank, a fee of two thousand five hundred dollars.

4. Application by two or more banks to merge or consolidate, a fee of one thousand five

hundred dollars.

5. Application by a person to sell, dispose, or purchase an association, banking

institution, or holding company, a fee of five hundred dollars unless a hearing is held

before the board in which case the fee is two thousand dollars.

6. A banking association's application to establish and operate a separate facility, a fee of

one thousand five hundred dollars. A banking institution that discontinues a facility

established for the purpose of providing educational opportunities to a high school is

entitled to a refund of any application fee paid.

7. A banking association's application to establish customer electronic funds transfer

centers, a fee not to exceed five hundred dollars.

8. For a certificate of authority to organize an annuity, safe deposit, surety, or trust

company, a fee of five thousand dollars.

9. A banking association's application for authority to exercise trust powers, a fee of one

thousand five hundred dollars.

10. Application to organize a credit union, a fee of three hundred dollars, paid by the

applicants.

11. Application for a credit union to establish a branch, a fee of three hundred dollars.

12. Application by a credit union to expand its field of membership, a fee of one hundred

fifty dollars.

13. Application by a federal credit union to convert to a state credit union, a fee of three

hundred dollars.

14. For a certificate of authority to organize a cooperative financial institution, a fee of five

thousand dollars.

15. A cooperative financial institution's application to establish and operate a branch office,

a fee of one thousand five hundred dollars.

16. A trust company's application or notification to establish an operating subsidiary or

branch office, a fee of five hundred dollars.

17. Application by two or more credit unions to merge, a fee of three hundred dollars.

18. A banking institution, credit union, or other financial institution to convert to a

cooperative financial institution, a fee of five thousand dollars.

The commissioner may cause a certified transcript to be prepared for any hearing conducted on

an application. The costs for the original and up to six copies of the transcript must be paid by

the applicant.
N.D. Cent. Code § 6-09.8-01 — ND Code / Title 6 / Chapter 6-09.8 / Section 6-09.8-01
6-09.8-01. Definitions
Status: in_force

6-09.8-01. Definitions

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

1. "Beginning farmer" means an individual who qualifies as a beginning farmer who:

a. Is a resident of this state;

b. Receives more than half of that person's gross annual income from farming,

unless the person initially commences farming during the year of the application

under this chapter;

c. Intends to use any farmland to be purchased or rented for agricultural purposes;

d. Is adequately trained by education in the type of farming operation which the

person wishes to begin on the purchased or rented land referred to in

subdivision c through satisfactory participation in the adult farm management

education program of the state board for career and technical education or an

equivalent program approved by the agriculture commissioner; and

e. Has, including the net worth of any dependents and spouse, a net worth of less

than one hundred thousand dollars, not including the value of their equity in their

principal residence, the value of one personal or family motor vehicle, and the

value of their household goods, including furniture, appliances, musical

instruments, clothing, and other personal belongings.

2. "Lender" means any lending institution which is regulated or funded under the laws of

this state or the United States and which has provided financing to a beginning farmer

for the purchase of qualified agricultural property.

3. "Loan guarantee" means an agreement that in the event of default by a beginning

farmer under a contract for deed, a note and mortgage, or other loan or financing

agreement, the Bank shall pay the seller or lender ninety percent of the amount of

principal due the seller or lender on a real estate transaction and up to fifty percent of

the amount of principal due the seller or lender on a personal property loan at the time

the claim is approved from the loan guarantee fund.

4. "Qualified agricultural property" means real estate or depreciable personal property

used in the production of agricultural products. Depreciable personal property means

personal property that may be depreciated under generally accepted accounting

principles and is designed for use in more than one production year.

5. "Seller" means any person, association, partnership, corporation, or limited liability

company which has provided financing to a beginning farmer for the purchase of

qualified agricultural property or which has entered into a contract for deed with a

beginning farmer for the sale and purchase of agricultural real estate.
N.D. Cent. Code § 6-05-03 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-03
6-05-03. Capital required
Status: in_force

6-05-03. Capital required

The amount of capital of any such corporation may not be less than one million dollars, with

no less than five hundred thousand dollars of that amount in liquid assets. The state banking

board may require such additional capital, surplus, and undivided profits as it may determine

necessary to properly serve the area and to protect the public interests. The state banking

board shall take into consideration peer group ratios, or federal standards and guidelines, when

determining whether any additional capital is required.
N.D. Cent. Code § 6-07.2-13 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-13
6-07.2-13. Notice concerning safekeeping and safe deposit boxes
Status: in_force

6-07.2-13. Notice concerning safekeeping and safe deposit boxes

The receiver shall cause notice to be mailed to the last address of record to the owners of

any personal property in the possession of or held by a closed institution for safekeeping, and to

all lessees of safe deposit boxes. The notice must require the intended recipients to appear and

assert the claims of the recipients to the property within sixty days from the date of the notice.

The receiver shall make such agreements or arrangements as may be necessary for the

disposition of property held by the closed institution for safekeeping and the contents of safe

deposit boxes, and for the termination of any leases or other contracts relating to the property or

contents.
N.D. Cent. Code § 6-09-49.2 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-49.2
6-09-49.2. Water infrastructure revolving loan fund - State water commission - Continuing appropriation
Status: in_force

6-09-49.2. Water infrastructure revolving loan fund - State water commission -

Continuing appropriation.

1. There is created in the state treasury the water infrastructure revolving loan fund to

provide loans for water supply, flood protection, or other water development and water

management projects. The fund consists of moneys transferred into the fund, interest

earned on moneys in the fund, and principal and interest payments to the fund. All

moneys in the fund are appropriated to the Bank of North Dakota on a continuing basis

for loan disbursements and administrative costs.

2. The state water commission shall approve eligible projects for loans from the water

infrastructure loan fund. The state water commission shall consider the following when

evaluating eligible projects:

a. A description of the nature and purposes of the proposed infrastructure project,

including an explanation of the need for the project, the reasons why the project

is in the public interest, and the overall economic impact of the project.

b. The estimated cost of the project, the amount of loan funding requested, and

other proposed sources of funding.

c. The extent to which completion of the project will provide a benefit to the state or

regions within the state.

3. Projects not eligible for the state revolving funds under chapters 61-28.1 and 61-28.2

must be given priority for loans from the water infrastructure revolving loan fund.

4. In consultation with the state water commission, the Bank of North Dakota shall

develop policies for the review and approval of loans under this section. Loans made

under this section must be made at the same interest rate as the revolving loan funds

established under chapters 61-28.1 and 61-28.2.

5. The Bank of North Dakota shall manage and administer loans from the water

infrastructure loan fund. The Bank shall deposit in the fund all principal and interest

paid on loans made from the fund. Annually, the Bank may deduct one-half of

one percent of the outstanding loan balance as a service fee for administering the

water infrastructure revolving loan fund. The fund must be audited annually pursuant to

section 6-09-29, and the cost of the audit must be paid from the fund.
N.D. Cent. Code § 6-09.8-06 — ND Code / Title 6 / Chapter 6-09.8 / Section 6-09.8-06
6-09.8-06. Termination
Status: in_force

6-09.8-06. Termination

A loan guarantee may be terminated by the Bank upon the sale, exchange, assignment, or

transfer of the beginning farmer's interest in the qualified agricultural property and must be

terminated if the Bank determines that the loan guarantee was obtained by fraud or material

misrepresentation of which the lender or seller has actual knowledge.
N.D. Cent. Code § 6-09.4-08 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-08
6-09.4-08. Bonds of the public finance authority
Status: in_force

6-09.4-08. Bonds of the public finance authority

Bonds of the public finance authority must be authorized by resolution of the industrial

commission and may be issued in one or more series and must bear such date or dates, mature

at such time or times, bear interest at such rate or rates of interest per year, be in such

denomination or denominations, be in such form, either coupon or registered, carry such

conversion or registration privileges, have such rank or priority, be executed in such manner, be

payable from such sources in such medium of payment at such place or places within or without

the state, and be subject to such terms of redemption, with or without premium, as such

resolution or resolutions may provide. Bonds of the public finance authority, issued to provide

funds to a municipal pipeline authority, are to mature not more than thirty years from the date of

issue. Bonds of the public finance authority may be sold at public or private sale at such time or

times and at such price or prices as the public finance authority determines.
N.D. Cent. Code § 6-03-02 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-02
6-03-02. Powers
Status: in_force

6-03-02. Powers

After an association has made and filed articles of association and an organization

certificate, it becomes a body corporate, and as such, and in the name designated in the

certificate, it, subject to section 6-03-01, has the power to:

1. Have a perpetual existence, unless it is sooner dissolved according to the provisions

of this title, or unless its franchise becomes forfeited by a violation of law.

2. Make contracts.

3. Sue and be sued.

4. Elect or appoint directors, such board to consist of any number of members, not less

than three nor more than twenty-five, at least two-thirds of whom must be citizens of

the United States, and, by such board of directors, to appoint a president, who must be

a member of said board, and such other employees as may be required, to define their

duties, to require bonds of them and fix the penalty thereof, and to dismiss such

officers and employees, or any of them, and appoint others to fill their places. This

subsection does not apply to a cooperative financial institution.

5. Provide, by its board of directors, bylaws not inconsistent with the laws of this state to

regulate the manner in which its directors and officers must be elected or appointed.

Vacancies in the board of directors, not exceeding one-third of the whole membership

thereof in any calendar year, must be filled by a majority vote of the remaining

members. The bylaws must provide a method for filling vacancies exceeding that

number. This subsection does not apply to a cooperative financial institution.

6. Provide, by its board of directors, bylaws not inconsistent with the laws of this state to

regulate the manner in which its stock and property must be transferred, its business

conducted, and the privileges granted to it by law exercised and enjoyed. This

subsection does not apply to a cooperative financial institution.

7. Exercise, as determined by the board or commissioner by order or rule, all the

incidental powers as are necessary to carry on the business of banking, including

discounting and negotiating promissory notes, bills of exchange, drafts, and other

evidences of debt; receiving deposits; buying and selling exchange, coin, and bullion;

loaning money upon real or personal security, or both; soliciting and receiving deposits

in the nature of custodial accounts for the purpose of health savings or similar health

care cost funding accounts, retirement fund contracts, or pension programs, and such

custodial accounts are exempt from chapter 6-05; and providing services to its

customers involving electronic transfer of funds to the same extent that other financial

institutions chartered and regulated by an agency of the federal government are

permitted to provide those services within this state. A bank that provides electronic

funds transfer equipment and service to its customers, at premises separate from its

main banking house or duly authorized facility approved by the state banking board,

must make the equipment and service available for use by customers of any other

bank upon the request of the other bank to share its use and the agreement of the

other bank to share pro rata all costs incurred in connection with its installation and

operation, and the electronic operations are not deemed to be the establishment of a

branch, nor of a separate facility. The electronic operations at premises separate from

its banking house or duly authorized facility must be considered a customer electronic

funds transfer center and may be established subject to rules that the state banking

board adopts.

8. Enter into contracts, incur obligations, and generally to perform all acts necessary or

appropriate to take advantage of any and all memberships, loans, subscriptions,

contracts, grants, rights, or privileges which may be or become available or may inure

to banking institutions or to their depositors, creditors, stockholders, conservators,

receivers, or liquidators under the provisions of the federal Act creating the federal

deposit insurance corporation or under any other Act or regulation of Congress to aid,

regulate, or safeguard banking institutions and their depositors, including any

amendments thereto or substitution therefor, when authorized so to do by its board of

directors.

9. Subscribe for and acquire any stock, debentures, bonds, or other types of securities of

the federal deposit insurance corporation and to comply with the lawful regulations and

requirements from time to time issued or made by such corporation.

10. Take, receive, and hold United States postal savings deposits and to take any action

necessary to procure the deposit of the same.

11. Enter into the business of dealing in securities and stock for the purpose of purchasing

and selling such securities and stock without recourse, solely upon the order, and for

the account of individual and institutional customers and to provide portfolio

investment advisory, management, information, forecasting, and research services to

such customers in combination with or separate from such purchases and sales.

12. Exercise fiduciary powers upon application as provided under section 6-05-01 as the

board may prescribe by rule.

13. Invest all moneys received by it in a trust, in authorized securities, and be responsible

to the owner or a third-party beneficiary for the validity, regularity, quality, value, and

genuineness of these investments and securities at the time made and for the

safekeeping of these securities and the evidences of the securities. When special

directions are given in any order, judgment, decree, will, or other written instrument as

to the particular manner or the particular class or kind of securities or property in which

any investment may be made, a bank shall follow this direction and, in such case, it is

not further responsible by reason of the performance of the trust. A bank may retain

and continue any investment and security or securities coming into its possession in

any fiduciary capacity. For the faithful discharge of its duties and the discharge of its

trust, it is entitled to reasonable compensation or an amount as has been or may be

agreed upon by the parties and all necessary expenses, with legal interest on those

amounts. The trustee may acquire and retain securities of any open-end or closed-end

management type investment company or investment trust registered under the

Federal Investment Company Act of 1940 [Pub. L. 76-686; 54 Stat. 789; 15 U.S.C.

80a-1 - 80a-52]. The fact that the banking institution, or an affiliate of the banking

institution, is providing services to the investment company or trust as investment

advisor, sponsor, broker, distributor, custodian, transfer agent, registrar, or otherwise

and receiving compensation for the services does not preclude the trustee from

investing in the securities of that investment company or trust. The banking institution

and trust shall disclose to all current income beneficiaries of the trust the rate, formula,

and method of the compensation, and the relationship of ownership. No compensation

or commission paid or agreed to be paid to it for the negotiation of a loan or the

execution of a trust may be deemed interest within the meaning of the law, nor may

any excess thereof over the legal rate be deemed usury.
N.D. Cent. Code § 6-08-27 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-27
6-08-27. Resident place of business, branch office, or agency authorized - Application
Status: in_force

6-08-27. Resident place of business, branch office, or agency authorized -

Application.

A bank or trust company, organized and doing business under the laws of any other state,

territory, or district than the state of North Dakota, including a national bank doing business in

any other state, may establish in this state a place of business, branch office, or agency for the

conduct of business as a fiduciary to the extent that the state, territory, or district in which such

bank or trust company is organized or has its principal place of business grants authority for a

North Dakota state-chartered bank or trust company to establish a place of business, branch

office, or agency for the conduct of business as a fiduciary within that state's, territory's, or

district's jurisdiction.

Prior to the establishment of any place of business, branch office, or agency, under this

section, a bank or trust company organized and doing business under the laws of any state or

territory of the United States of America, or of the District of Columbia, other than the state of

North Dakota, or a national bank doing business in any other state, territory, or district, must

submit a copy of its application to the North Dakota department of financial institutions for

review and comment.
N.D. Cent. Code § 6-09.9-02 — ND Code / Title 6 / Chapter 6-09.9 / Section 6-09.9-02
6-09.9-02. Definitions
Status: in_force

6-09.9-02. Definitions

In this chapter, unless the context or subject matter otherwise requires:

1. "Farmer" means a resident of this state who owns or operates an existing farm or

ranch operation, and has a debt-to-asset ratio of fifty percent or greater or a net worth

of less than an amount determined by the Bank of North Dakota. The industrial

commission may adopt additional eligibility criteria in determining who is a farmer

eligible for loans under this chapter.

2. "Operating loan" means a loan or extension of credit with a term of one year or less

made by a nongovernmental financial institution to a farmer for the operation of an

existing farm or ranch operation. An operating loan includes a farmers home

administration subordinated operating loan and guaranteed operating loan and may be

further defined by rule of the industrial commission.
N.D. Cent. Code § 6-03-53 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-53
6-03-53. Borrowing and rediscounting - Report required
Status: in_force

6-03-53. Borrowing and rediscounting - Report required

Whenever a state banking association borrows money or rediscounts with recourse such

association shall immediately make a full written report of the transaction to the commissioner

upon the commissioner's request, which report must include a full description of all collateral

security given or to be given by such association for the credit obtained.
N.D. Cent. Code § 6-03-45 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-45
6-03-45. Preferred stock - Rights of holders - Nonassessable
Status: in_force

6-03-45. Preferred stock - Rights of holders - Nonassessable

The holders of preferred stock are entitled to all rights and privileges and are subject to all

limitations and restrictions with respect to dividends, voting, conversion rights, control of

management, retirement and replacement of stock, rights and preferences in case of liquidation,

and such other rights or privileges as may be fixed and provided in the articles of incorporation

of the issuing institution. Preferred stock is nonassessable, and the holders thereof individually

are not responsible as such holders for any debts, contracts, or engagements of the bank.
N.D. Cent. Code § 6-03-04.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-04.1
6-03-04.1. Standard of conduct for directors of financial institutions
Status: in_force

6-03-04.1. Standard of conduct for directors of financial institutions

1. A director shall discharge the duties of the position of director in good faith, in a

manner the director reasonably believes to be in the best interests of the financial

institution, and with the care an ordinarily prudent person in a like position would

exercise under similar circumstances. A person who so performs those duties is not

liable by reason of being or having been a director of the financial institution.

2. A director is entitled to rely on information, opinions, reports, or statements, including

financial statements and other financial data, in each case prepared or presented by:

a. One or more officers or employees of the financial institution whom the director

reasonably believes to be reliable and competent in the matters presented;

b. Counsel, public accountants, or other persons as to matters the director

reasonably believes are within the person's professional or expert competence;

or

c. A committee of the board upon which the director does not serve, duly

established by the board as to matters within its designated authority, if the

director reasonably believes the committee to merit confidence.

3. Subsection 2 does not apply to a director who has specialized knowledge concerning

the matter in question that makes the reliance otherwise permitted by subsection 2

unwarranted.

4. A director who is present at a meeting of the board when an action is approved by the

affirmative vote of a majority of the directors present is presumed to have assented to

the action approved, unless the director:

a. Objects at the beginning of the meeting to the transaction of business because

the meeting is not lawfully called or convened and does not participate thereafter

in the meeting, in which case the director shall not be considered to be present at

the meeting for any purpose;

b. Votes against the action at the meeting; or

c. Is prohibited from voting on the action:

(1) By the articles;

(2) By the bylaws;

(3) As the result of a decision to approve, ratify, or authorize a transaction that

meets the standards and follows the process stated in section 10-19.1-51

for a business corporation; or

(4) By a conflict of interest policy adopted by the board.

5. A director's personal liability to the financial institution or its shareholders for monetary

damages for breach of fiduciary duty as a director may be eliminated or limited in the

articles. The articles may not eliminate or limit the liability of a director:

a. For any breach of the director's duty of loyalty to the financial institution or its

shareholders;

b. For acts or omissions not in good faith or that involve intentional misconduct or a

knowing violation of law;

c. For illegal distributions which a director who is present and not disqualified from

acting has voted for or failed to vote against;

d. For any transaction from which the director derived an improper personal benefit;

or

e. For any act or omission occurring prior to the date when the provision in the

articles eliminating or limiting liability becomes effective.

6. In discharging the duties of the position of director, a director may, in considering the

best interests of the financial institution, consider the interests of the financial

institution's employees, customers, suppliers, and creditors; the economy of the state

and nation; community and societal considerations; and the long-term and short-term

interests of the financial institution and its shareholders, including the possibility these

interests may be best served by the continued independence of the financial

institution.
N.D. Cent. Code § 6-08.3-06 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-06
6-08.3-06. Notice of disapproval - Hearing
Status: repealed

6-08.3-06. Notice of disapproval - Hearing

Repealed by S.L. 1995, ch. 79, § 25.
N.D. Cent. Code § 6-02-02 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-02
6-02-02. Banking corporations - Who may form
Status: in_force

6-02-02. Banking corporations - Who may form

An association for carrying on the business of banking under this title may be formed by any

number of natural persons, not less than three, at least two-thirds of whom must be residents of

this state. They shall enter into articles of association which must specify in general terms the

object for which the association is formed and which may contain any other provisions, not

inconsistent with law, which the association may see fit to adopt for the regulation of its business

and the conduct of its affairs. These articles must be signed and acknowledged by the persons

uniting to form the association and must be filed in the office of the secretary of state. This

section does not apply to a cooperative financial institution.
N.D. Cent. Code § 6-09-46.2 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-46.2
6-09-46.2. Rebuilders loan program - Rebuilders permanent loan fund - Continuing appropriation
Status: in_force

6-09-46.2. Rebuilders loan program - Rebuilders permanent loan fund - Continuing

appropriation.

1. The Bank of North Dakota shall develop a rebuilders loan program to make or

participate in loans to North Dakota residents as a result of:

a. A presidentially declared disaster in the state;

b. A governor-declared disaster in the state;

c. An emergency in the state;

d. A weather-related incident in the state as determined by the governor; or

e. An economic hardship as determined by the governor.

2. Under the rebuilders loan program, the Bank shall develop and implement specific

loan programs to respond to the specific needs resulting from a disaster, emergency,

incident, or hardship. The Bank may fund the loan from any available funding in the

rebuilders permanent loan fund and may accept private sector donations and funds

from the federal government.

3. Upon request of the Bank of North Dakota, the governor shall furnish the Bank with

information relating to the nature and amount of state and local resources that have

been or will be committed to alleviating the results of the disaster or emergency, an

estimate of the amount and severity of the damage and the impact on the private and

public sectors, and an estimate of the type and amount of assistance needed.

4. To apply for a loan under the program, a person shall apply to the originating financial

institution. Upon Bank of North Dakota approval of an application, the Bank shall make

a loan in accordance with the loan program established under this section. The Bank

shall establish a loan application period, which may not exceed a period of eighteen

months from the date of the declaration of the disaster or emergency.

5. Excluding the rebuilders and rebuilders home loans transferred to the fund, the Bank

of North Dakota shall deposit in the fund all principal and interest paid on the loans

made from the fund. The Bank may deduct from interest payments received on a loan

under the program a service fee for administering the fund for the Bank and the

originating financial institution. The fund must be audited annually pursuant to section

6-09-29, and the cost of the audit and any other actual costs incurred by the Bank on

behalf of the fund, must be paid by the fund.

6. There is created in the state treasury the rebuilders permanent loan fund administered

by the Bank of North Dakota. The fund consists of all moneys transferred to the fund

by the legislative assembly, interest on moneys in the fund, and payments to the fund

of principal and interest on loans made from the fund. All moneys in the fund are

appropriated to the Bank on a continuing basis for the rebuilders loan program.

7. If approved by the industrial commission, the fund may borrow from the Bank of North

Dakota to provide funding for loans under this section. A loan made to the fund by the

Bank must be repaid with principal and interest payment received by the rebuilders

permanent loan fund or with moneys appropriated by the legislative assembly.

8. The Bank of North Dakota shall adopt policies to implement this section.
N.D. Cent. Code § 6-08.3-03.1 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-03.1
6-08.3-03.1. Deposit limitation
Status: in_force

6-08.3-03.1. Deposit limitation

1. A depository institution or depository institution holding company may not consolidate

or merge with, or acquire a North Dakota depository institution or a depository

institution holding company that controls a North Dakota depository institution if the

federal reserve, comptroller of the currency, federal deposit insurance corporation, or

office of thrift supervision, as the case may be, determines that the depository

institution or a depository institution holding company will control more than twenty-five

percent of North Dakota deposits.

2. The federal reserve, comptroller of the currency, or federal deposit insurance

corporation, as the case may be, may approve an acquisition or merger under this title

without regard to the limitations of this section, if the transaction involves an

acquisition or merger:

a. Of one or more depository institutions in default or in danger of default; or

b. With respect to which assistance is provided under section 13(c) of the Federal

Deposit Insurance Act [12 U.S.C. 1823(c)].
N.D. Cent. Code § 6-09.14-04 — ND Code / Title 6 / Chapter 6-09.14 / Section 6-09.14-04
6-09.14-04. Fund moneys - Eligible uses
Status: in_force

6-09.14-04. Fund moneys - Eligible uses

1. The fund moneys may be used to participate in an interest rate buydown on a loan to a

new or expanding business for the following eligible uses:

a. Purchase of real property and equipment.

b. Expansion of facilities.

c. Working capital.

d. Inventory.

2. The loan funds cannot be used to refinance any existing debt or for the relocation of

the business within North Dakota.

3. The community shall determine the amount of the interest rate buydown and apply to

the Bank of North Dakota for participation from the partnership in assisting community

expansion fund. The funds for the community's portion of the buydown may come from

a local development corporation, contributions, community funds, future dedicated tax

programs, or any other community source.

4. The fund participation portion in the buydown must be determined by the Bank of

North Dakota based on economic conditions in the city or county in which the business

is located.

5. a. The maximum amount from the fund in the interest rate buydown may not exceed

five hundred thousand dollars per loan.

b. If the Bank determines the project has a substantial economic impact and

qualifies as a primary sector business, the maximum amount from the fund in the

interest rate buydown may be increased by up to one million dollars, in addition to

the amount under subdivision a, without a required community match.

6. The fund participation must be limited to the amount required to buy down the interest

to five hundred basis points below the national prime interest rate.

7. The Bank of North Dakota shall adopt rules to implement this chapter.
N.D. Cent. Code § 6-08-16.1 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-16.1
6-08-16.1. Issuing check or draft without account - Penalty
Status: in_force

6-08-16.1. Issuing check or draft without account - Penalty

Any person who issues any check, draft, or order, or authorizes an electronic funds transfer,

upon any bank or depository, for the payment of money, and, at the time of the issuance does

not have an account with the bank or depository upon which the check, draft, electronic funds

transfer authorization, or order was written, is guilty of a class A misdemeanor.
N.D. Cent. Code § 6-09.4-17 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-17
6-09.4-17. Exemption of property from execution sale
Status: in_force

6-09.4-17. Exemption of property from execution sale

All property of the public finance authority is exempt from levy and sale by virtue of an

execution and no execution or other judicial process may issue against the same nor may any

judgment against the public finance authority be a charge or lien upon its property; provided,

that nothing contained in this chapter applies to or limits the rights of the holder of any bonds to

pursue any remedy for the enforcement of any pledge or lien given by the public finance

authority on its revenues. Any action or proceeding in any court to set aside a resolution

authorizing the issuance of bonds by the public finance authority under this chapter or to obtain

any relief upon the ground that such resolution is invalid must be commenced within ten days

after the adoption of said resolution by the industrial commission. After the expiration of such

period of limitation, no claim for relief or defense founded upon the invalidity of the resolution or

any of its provisions may be asserted nor may the validity of the resolution or any of its

provisions be open to question in any court on any ground whatever.
N.D. Cent. Code § 6-06.2-02 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-02
6-06.2-02. Formation
Status: in_force

6-06.2-02. Formation

Fifteen or more originating members who intend to associate themselves by written

agreement and a cooperative financial institution may, upon compliance with this title, become a

cooperative financial institution, with all the powers and privileges and subject to the duties,

restrictions, and liabilities under section 6-03-02.
N.D. Cent. Code § 6-03-25 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-25
6-03-25. Approval of increase or reduction by stockholders - Notice of stockholders' meeting
Status: in_force

6-03-25. Approval of increase or reduction by stockholders - Notice of stockholders'

meeting.

An increase or reduction of the capital stock of any association is not valid unless approved

by the stockholders of the association at a meeting called for that purpose. Notice of the time

and place of the meeting stating its object and the amount to which it is proposed to increase or

reduce the capital stock of the association must be served personally or by registered or by

certified mail on each stockholder of the association at least thirty days prior to the time set for

such meeting. The notice must be given to stockholders whose places of residence are

unknown or who are not residents of this state by publication of the notice at least once prior to

the meeting in a legal newspaper of the county in which the principal office of the association is

situated. A vote in favor of an increase in capital stock is not effective until the proceedings of

the meeting showing the names of all of the stockholders voting for the increase and the amount

of stock owned by each have been entered upon the records of the association.
N.D. Cent. Code § 6-05-01 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-01
6-05-01. Who may form - Corporation has perpetual existence
Status: in_force

6-05-01. Who may form - Corporation has perpetual existence

Any number of persons, not less than nine, at least three of whom must be residents of this

state, may associate themselves and form a corporation for the purpose of transacting business

as an annuity, safe deposit, and trust company. Its existence shall be perpetual.

At the time and place stated, and through any sources of information at its command, the

board shall examine and consider all relevant factors, including whether the place where such

company is proposed to be located is in need of a further annuity, safe deposit, and trust

company, whether the proposed institution is adapted to the filling of such need, and whether

the proposed incorporators are possessed of such character, integrity, reputation, and financial

standing as shown by a detailed financial statement to be furnished by them, that their

connection with the company will be beneficial to the public welfare of the community in which

such company is proposed to be established. The board shall hear any reasons advanced by

the applicants why they should be permitted to organize the proposed institution and any

reasons advanced by any person why such institution should not be permitted to be organized.

At the termination of such hearing, the board shall make a brief statement in writing of its

conclusions, and if it finds that the proposed institution should not be permitted to organize, it

shall state briefly the reasons why. A copy of such conclusions either shall be endorsed upon or

attached to the organization certificate, together with the refusal or grant of permission to the

proposed incorporators to present the said organization certificate to the secretary of state. A

determination in favor of such organization must be joined in by a majority of the members of

the board.

Any banking association organized under chapter 6-02 or 6-06.2 may apply to the board for

an order authorizing the applicant to exercise fiduciary powers. If the determination of the board

is in favor of the applicant, the board shall make its order authorizing the applicant to engage in

the business of a trust company upon its showing full compliance with sections 6-05-03,

6-05-04, and 6-05-05 except the capital stock of the banking association shall not be required to

be divided in shares of one hundred dollars each as provided by section 6-05-03. Sections

6-05-06 and 6-05-07 are not applicable to banking associations granted authority to engage in

the business of a trust company by the board. Thereafter, such banking association must be

subject to the jurisdiction of the board as to its trust company operations the same as trust

companies organized under chapter 6-05.

Any corporation organized and authorized to transact the business of fidelity insurance and

corporate suretyship prior to July 1, 1983, pursuant to the former sections 6-05-08 and 6-05-19

through 6-05-24 and sections 6-05-30 through 6-05-33 may continue to operate under the

provisions of those sections as they existed on June 30, 1983.
N.D. Cent. Code § 6-06.2-08 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-08
6-06.2-08. Determination of board - Recording of organization certificate
Status: in_force

6-06.2-08. Determination of board - Recording of organization certificate

1. If the state banking board votes to approve the application to organize a cooperative

financial institution, the organization certificate and permission of the board must be

recorded in the county where the cooperative financial institution will be established

and must be transmitted to the secretary of state.

2. The secretary of state shall certify the facts to the state banking board and record the

document in the secretary of state's office. The secretary of state shall issue a

certificate of authority to the cooperative financial institution.

3. The secretary of state shall send the certificate to the commissioner. The

commissioner may not issue the certificate until an examination is made and the

certificate of the commissioner stating the capital structure as required by the state

banking board has been acquired, federal deposit insurance corporation insurance of

deposits has been secured, and all conditions of the law have been complied with

strictly.

4. If the determination of the state banking board is against the organization of the

cooperative financial institution, the organization certificate may not be recorded in the

office of the recorder and may not be accepted by the secretary of state.
N.D. Cent. Code § 6-08.1-04 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-04
6-08.1-04. Consent
Status: in_force

6-08.1-04. Consent

1. No consent or waiver shall be required as a condition of doing business with any

financial institution, and any consent or waiver obtained from a customer as a

condition of doing business with a financial institution shall not be deemed a consent

of the customer for the purpose of this chapter.

2. A valid consent must be in writing and signed by the customer. In consenting to

disclosure of customer information, a customer may specify any of the following:

a. The time during which such consent will operate.

b. The customer information to be disclosed.

c. The persons, governmental agencies, or law enforcement agencies to which

disclosure may be made.
N.D. Cent. Code § 6-06-04 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-04
6-06-04. Amendment of certificate or bylaws - Approval by state credit union board
Status: in_force

6-06-04. Amendment of certificate or bylaws - Approval by state credit union board

The certificate of organization or bylaws of a credit union may be amended by the board of

directors or the membership of the credit union as specified in the bylaws. If the bylaws provide

for amendments by the board of directors, such amendments require an affirmative vote of

two-thirds of the authorized number of members of the board of directors of the credit union at

any duly held meeting of the board, if the members of the board have been given prior written

notice of said meeting and the notice contains a copy of the proposed amendment or

amendments. If the bylaws provide for amendments by the membership of the credit union,

such amendments require an affirmative vote of two-thirds of the members present and voting

at a duly called regular or special meeting of the membership, providing the members have

been given prior written notice of said meeting and the notice contains a copy or summary of the

proposed amendment or amendments. No amendment of the bylaws or of the certificate of

organization becomes effective, until approved in writing by the state credit union board.

Amendments to the certificate of organization together with a filing fee of twenty dollars must be

filed with the secretary of state within thirty days after the amendments have been approved by

the state credit union board.
N.D. Cent. Code § 6-03-11 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-11
6-03-11. Conversion, consolidation, or merger
Status: in_force

6-03-11. Conversion, consolidation, or merger

1. Any two or more banking institutions upon making application to the commissioner or

the state banking board may consolidate or merge if authorized by the commissioner

or board into one banking institution under the charter of either existing banking

institution on such terms and conditions as lawfully may be agreed upon by a majority

of the board of directors of each banking institution proposing to consolidate or merge

subject to rules adopted by the state banking board.

2. Before becoming final, such consolidation or merger must be ratified and confirmed by

the:

a. Vote of the shareholders of each such banking institution owning at least

two-thirds of its capital stock outstanding at a meeting to be held on the call of the

directors. Notice of such meeting and of the purpose thereof must be given to

each shareholder of record by registered or certified mail at least ten days prior to

the meeting. The shareholders may unanimously waive such notice and may

consent to such meeting and consolidation or merger in writing; or

b. Vote of the members of a cooperative financial institution.

(1) The proposition for a merger first must be approved by the board of

directors, and on a date set for a vote by the members either at a meeting or

by written ballot filed on or before the date, by a majority of the directors of

the organization which seeks the merger. Written notice of the proposition

and the date set for the vote must be delivered in person to each member or

mailed to each member at the address appearing on the records of the

organization. The notice must be mailed between seven and thirty days

before the date of the merger. Approval of the proposition for merger must

be made by the affirmative vote of two-thirds of the members participating in

the meeting.

(2) Each member of the cooperative financial institution is entitled to one vote

during a regular or special meeting of the membership. Voting rights for a

banking institution or financial institution are determined by applicable law.

(3) At least forty-five days before consideration of a merger, the membership

and board acting upon the proposed change must be made aware of the

merger under consideration and day and time of the meeting the change will

be acted upon.

(4) Promptly after the vote, and in no event later than ninety days thereafter, if

the proposition for merger was approved, the organization seeking the

merger shall provide the state banking board with the results of the vote,

verified by the affidavits of the president or vice president and secretary.

3. The capital stock and surplus of such consolidated banking institution must not be less

than that required under this title for the organization of a banking institution of the

class of the largest consolidating banking institution.

4. Immediately after the consolidation or merger a full report thereof, including a

statement of the assets and liabilities of the consolidated banking institution, must be

made to the commissioner by the surviving banking institution.

5. Any banking institution may without approval by any state authority convert into or

merge or consolidate with a national banking association as provided by federal law.

6. A national bank proposing to merge into a state-chartered bank shall grant the

commissioner discretionary authority to conduct an examination. The commissioner

shall set fees for such examination at an hourly rate sufficient to cover all reasonable

expenses of the department of financial institutions associated with the examination.

Fees must be collected by the commissioner and deposited in the financial institutions

regulatory fund.
N.D. Cent. Code § 6-07.1-10 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-10
6-07.1-10. Pending lawsuits
Status: in_force

6-07.1-10. Pending lawsuits

A judgment or order of a court of this state or of any other jurisdiction in an action pending

by or against the state trust company, rendered after the date the state trust company was

closed for liquidation, is not binding on the receiver unless the receiver was made a party to the

suit. Before the first anniversary of the date the state trust company was closed for liquidation,

the receiver may not be required to plead to any suit pending against the state trust company in

a court in this state on the date the state trust company was closed for liquidation and in which

the receiver is a proper plaintiff or defendant.
N.D. Cent. Code § 6-09.10-02 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-02
6-09.10-02. Credit review board
Status: in_force

6-09.10-02. Credit review board

1. The board consists of:

a. One individual who has experience as a director or officer of a financial institution,

appointed by the governor;

b. One individual who has experience as a director or officer of a financial institution,

appointed by the attorney general;

c. One individual actively engaged in farming in the state, appointed by the

governor;

d. One individual actively engaged in farming in the state, appointed by the attorney

general; and

e. Two individuals actively engaged in farming in the state, appointed by the

agriculture commissioner.

2. A board member may not be an employee or official of the state during the member's

term of office.

3. The term of office for members of the board is two years. An individual may serve

consecutive terms.

4. a. Annually, the board shall elect one member to serve as the chairman.

b. The chairman shall call all meetings of the board.
N.D. Cent. Code § 6-09.4-04 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-04
6-09.4-04. Creation of public finance authority
Status: in_force

6-09.4-04. Creation of public finance authority

A public finance authority is established under the operation, management, and control of

the industrial commission to be known as the "public finance authority". The public finance

authority is constituted as an instrumentality of the state exercising public and governmental

functions, and the exercise by the public finance authority of the powers conferred by this

chapter must be deemed and held to be an essential governmental function of the state.
N.D. Cent. Code § 6-08-25 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-25
6-08-25. When foreign bank or trust company may serve in fiduciary capacity in state - Reciprocity
Status: in_force

6-08-25. When foreign bank or trust company may serve in fiduciary capacity in state

- Reciprocity.

A bank or trust company organized and doing business under the laws of any state or

territory of the United States of America, including the District of Columbia, other than the state

of North Dakota, and a national bank, duly authorized so to act, may be appointed and may

serve in this state as trustee, whether of a corporate or personal trust, executor, administrator,

guardian for a minor or for an incompetent person, or in any other fiduciary capacity, whether

the appointment is by will, deed, court order, or decree, or otherwise, when and to the extent

that the state, territory, or district in which such bank or trust company is organized or has its

principal place of business grants authority to serve in like fiduciary capacities to a bank or trust

company organized and doing business under the laws of this state.
N.D. Cent. Code § 6-09.7-07 — ND Code / Title 6 / Chapter 6-09.7 / Section 6-09.7-07
6-09.7-07. Fees for reasonable costs
Status: in_force

6-09.7-07. Fees for reasonable costs

The Bank of North Dakota may charge reasonable fees for guaranteeing of loans under this

chapter, and the fees must be available to defray costs of administering the state guarantee

loan program. Fees in excess of the amount required to pay the cost of administering the

program must be deposited in the reserve fund.
N.D. Cent. Code § 6-03-34 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-34
6-03-34. Surplus fund required - Dividends only out of earnings not required for surplus
Status: in_force

6-03-34. Surplus fund required - Dividends only out of earnings not required for

surplus.

The board of directors of any association organized under this title may declare and pay

dividends out of the net profits of the association subject to the limitations of this chapter. Except

for cooperative financial institutions, every such association, as its board of directors deems

advisable, shall ascertain, set apart, and convert into a surplus fund at least fifty percent of its

net earnings until such surplus fund equals one hundred percent of its common stock, and no

dividend may be declared upon its stock except from the remaining fifty percent of its net

earnings.
N.D. Cent. Code § 6-03-67.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-67.1
6-03-67.1. Operation without federal deposit insurance prohibited - Liability - Penalty
Status: in_force

6-03-67.1. Operation without federal deposit insurance prohibited - Liability - Penalty

No state banking association shall, after July 1, 1978, engage in the business of banking

without securing and continuing in force federal deposit insurance corporation insurance of

deposits. Any officer or director of any state banking association who violates this section is

guilty of a class A misdemeanor and shall be personally liable to any person aggrieved for any

damages caused by the violation.
N.D. Cent. Code § 6-06-24 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-24
6-06-24. Renewal of loan from permanent loan fund - Foreclosure
Status: repealed

6-06-24. Renewal of loan from permanent loan fund - Foreclosure

Repealed by S.L. 1965, ch. 90, § 11.
N.D. Cent. Code § 6-07.2-18 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-18
6-07.2-18. Voluntary liquidation of a bank
Status: in_force

6-07.2-18. Voluntary liquidation of a bank

1. An application for approval to voluntarily liquidate the affairs of a bank must be

submitted to the commissioner in the manner and form that the commissioner may

prescribe, must include the information set forth in this section, and must contain such

additional information the commissioner may require. The application must include

duplicate copies of a resolution authorizing the dissolution and duplicate copies of a

certificate, verified by the applicant's president or chief executive officer or a vice

president, stating the facts pertaining to the resolution and that the applicant's liabilities

have been paid in full. Each duplicate certificate must have annexed to the duplicate,

over the official signatures, evidence showing:

a. The date on which the resolution was authorized by the affirmative vote of the

holders of at least a simple majority of the outstanding shares entitled to vote on

the resolution;

b. The number of shares of each class entitled to vote on the resolution which were

outstanding on the date of the stockholders' meeting;

c. The number of shares of each class entitled to vote on the resolution whose

owners were present in person or by proxy;

d. The number of shares of each class voted for and against the resolution; and

e. The manner in which the meeting was called and the time and manner of giving

notice, with a certification that the meeting was lawfully called and held.

2. Upon receipt of the application, the commissioner shall investigate the merits of the

application. If the commissioner is satisfied the application is complete and all

applicable provisions of law have been complied with, the commissioner shall cause

an examination to be made of the applicant institution for the purpose of verifying the

payment of all the applicant's liabilities. If the examination satisfies the commissioner

that all of the applicant's liabilities have been paid, the commissioner shall endorse

one copy of the certificate with the commissioner's statement that the institution is

voluntarily liquidating. The return of the endorsed copy of the certificate operates to

free the institution from further examination and to authorize the institution, under the

original corporate name of the institution, to sue and be sued, to execute conveyances

and other instruments, to take, hold, and own property, and to do all such other things

as may be necessary to realize upon the institution's remaining assets for the pro rata

benefit of the institution's stockholders, but not to engage or continue in any new or

other business under the institution's charter or otherwise. The liquidation must

proceed as expeditiously as possible, and upon conclusion, the institution shall

surrender its charter. In lieu of continuing the liquidation under the original corporate

name, the institution may transfer the remaining assets to a trustee agreed upon by

the stockholders by a majority vote and upon so doing shall surrender the institution's

charter.
N.D. Cent. Code § 6-09-15.5 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15.5
6-09-15.5. Bank loans to beginning farmers - Revolving loan fund - Requirements
Status: in_force

6-09-15.5. Bank loans to beginning farmers - Revolving loan fund - Requirements

1. A revolving loan fund must be maintained in the Bank of North Dakota for the purpose

of making or participating in loans to North Dakota beginning farmers for the purchase

of agricultural real estate, equipment, and livestock. All moneys transferred into the

fund, interest upon moneys in the fund, and payments to the fund of principal and

interest on loans made from the fund are appropriated for the purpose of providing

loans and to supplement the interest rate on loans to beginning farmers made by the

Bank of North Dakota under subdivision c of subsection 1 of section 6-09-15 and in

accordance with this section.

2. The revolving loan fund and loans made from the fund must be administered and

supervised by the Bank of North Dakota. The Bank may deduct a service fee for

administering the fund from interest payments received on loans. An application for a

loan from the fund must be made to the Bank and, upon approval, a loan must be

made from the fund in accordance with this section.

3. A loan made from the fund may not exceed eighty percent of the appraised value of

the agricultural collateral, with the actual percentage to be determined by the Bank.

The Bank may do all things and acts and may establish additional terms and

conditions necessary to make a loan under this section. A loan made from the fund

must have a first security interest.

4. A loan made from the fund must have either a fixed rate at one percent below the

Bank's then current base for ten years or the interest rate fixed at one percent below

the Bank's then current base rate for the first five years with a maximum rate of six

percent per year and variable at one percent below the Bank's then current base rate

for the second five years and during the second five years, the variable rate must be

adjusted annually on the anniversary date. The rate during the remaining term of the

loan floats at the Bank's base rate as in effect from time to time.

5. The maximum term of a real estate loan is thirty years. The maximum term of a farm

equipment or livestock loan is seven years.

6. The fund must be audited annually pursuant to section 6-09-29, and the cost of the

audit and any other actual costs incurred by the Bank on behalf of the fund, must be

paid for by the fund.

7. The Bank shall adopt policies to implement this section.

8. Notwithstanding any other provision of law, the Bank may transfer any unobligated

funds between funds that have been appropriated by the legislative assembly for

interest buydown in the beginning farmers loan fund and the agriculture partnership in

assisting community expansion fund.

9. Notwithstanding any other provision of law, the Bank may transfer any unobligated

funds to the value-added agriculture equity loan program for the purpose of interest

buydown on a loan made for investment in a feedlot or dairy operation. Fund transfers

under this subsection may not exceed one million dollars during a biennium.
N.D. Cent. Code § 6-08.1-06 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-06
6-08.1-06. Suspicion of unlawful conduct
Status: in_force

6-08.1-06. Suspicion of unlawful conduct

1. Nothing in this chapter precludes a financial institution from initiating contact with, and

thereafter communicating with and disclosing customer information to, a law

enforcement agency when the financial institution reasonably believes that the

customer about whom such information pertains:

a. Is engaged in unlawful activity; or

b. Is defrauding the financial institution.

2. Conviction of the customer or admission by the customer shall be conclusive of the

reasonableness of the disclosure for purposes of this section.

3. The burden is on the financial institution to show that at the time the disclosure was

made, the disclosure was reasonable for the purposes of this section.
N.D. Cent. Code § 6-08.3-04 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-04
6-08.3-04. New bank application
Status: repealed

6-08.3-04. New bank application

Repealed by S.L. 1997, ch. 92, § 3.
N.D. Cent. Code § 6-03-05.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-05.1
6-03-05.1. Additional optional loans and advances
Status: repealed

6-03-05.1. Additional optional loans and advances

Repealed by S.L. 1991, ch. 84, § 1.
N.D. Cent. Code § 6-01-07.1 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-07.1
6-01-07.1. Records - Confidential
Status: in_force

6-01-07.1. Records - Confidential

1. All facts and information obtained or created by the commissioner or the department in

the following ways are confidential, except as provided in subsections 2 through 8:

a. In the course of examining financial institutions, credit unions, and other licensed

entities under the supervision of the commissioner, or in the course of receiving

audit reports, reports of examining committee and reports of annual meetings of

stockholders and directors of such institutions and licensees. The reports of

examination may be made available to the financial institution's or licensee's

board of directors, or the board's specifically authorized agents or

representatives, but the reports remain the property of the department.

b. From the federal reserve system, federal deposit insurance corporation, federal

home loan bank board, national credit union administration, or any state bank or

credit union supervisors or supervisors of other licensed entities of other states.

c. In the course of investigating an institution under the supervision of, or licensed

by, the commissioner, until such investigation is complete.

d. In the course of a special investigation being carried out at the request of the

governor or any court.

e. (1) In the form or nature of an application for a charter, license, or permission

which meets any of the following criteria:

(a) Trade secrets and commercial or financial information.

(b) Personnel and medical files and similar files the disclosure of which

would constitute a clearly unwarranted invasion of personal privacy.

(c) Information contained in the application form which is in the nature of

examination report information.

(2) Determination of what required application information falls within each

category must be made by the body before which the application is brought.

f. In the form of a complaint or comment from the public regarding a financial

institution, credit union, or other licensed entity under the supervision of the

commissioner, unless the commissioner is providing aggregate, nonspecific

information.

2. When the commissioner is required or permitted by law to report upon or take special

action regarding the affairs of any institution or licensed entity under the

commissioner's supervision, the commissioner shall divulge only such information

specified in subsection 1 as is necessary and sufficient for the action taken or to be

taken.

3. The commissioner may furnish information to the attorney general, other state

agencies, any prosecuting officials requiring the information for use in pursuit of official

duties, and legislative investigations under chapter 54-03.2, if the commissioner

determines necessary or proper to the enforcement of federal laws or the laws of this

state or in the best interest of the public. Information furnished by the commissioner to

any third party which is confidential in the commissioner's possession remains

confidential in the possession of the third party. Information received by the

commissioner from any third party which is confidential in the third party's possession

remains confidential in the commissioner's possession.

4. The commissioner may furnish information and enter sharing agreements as to

matters of mutual interest to an official or examiner of the federal reserve system,

federal deposit insurance corporation, federal home loan bank board, national credit

union administration, office of thrift supervision, comptroller of the currency, any other

federal government agency, insurance commissioner, regulatory trade associations,

any state bank or credit union supervisors or supervisors of other licensed entities of

other states, or a nationwide multistate licensing system.

5. Information regarding complaints or comments from the public may be provided to

other regulatory agencies, to the individual in response to the complaint or comment,

or to the subject financial institution, credit union, or other licensed entity under the

supervision of the commissioner.

6. The commissioner shall not be required to disclose the name of any debtor of any

financial institution, credit union, or licensed entity reporting to or under the supervision

of the commissioner or anything relative to the private accounts, ownership, or

transactions of any such institution, or any fact obtained in the course of any

examination thereof, except as herein provided. All disclosures must be limited to only

those documents directly relevant to the inquiry at issue.

7. This section does not limit the right of access of stockholders, shareholders,

depositors, creditors, and sureties on bonds to specified department records as, and to

the extent, provided by section 6-01-07.

8. The standards for confidentiality and disclosure by the commissioner set forth in this

section, except the standard of the exercise of discretion, which shall only be

exercised by the commissioner, apply equally to the state banking board, the state

credit union board, and all department employees.
N.D. Cent. Code § 6-08.3-07 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-07
6-08.3-07. Divestiture - Cease and desist
Status: in_force

6-08.3-07. Divestiture - Cease and desist

1. If a reciprocating state bank holding company makes an acquisition other than in full

compliance with the requirements and procedures of this chapter, the board may, by

order:

a. Immediately require the reciprocating state bank holding company to divest itself

of its direct or indirect ownership or control of any bank located in this state; or

b. Require the reciprocating state bank holding company to cease and desist the

violations by a certain date.

2. The order is subject to the procedures applicable to cease and desist proceedings

under section 6-01-04.2 and any applicable rules.
N.D. Cent. Code § 6-08.6-06 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-06
6-08.6-06. Payment to beneficiary by bank or credit union
Status: in_force

6-08.6-06. Payment to beneficiary by bank or credit union

1. Unless the account agreement provides otherwise, the bank or credit union is

obligated to pay a beneficiary if there are sufficient actually and finally collected funds

in the balance of the special deposit.

2. Except as provided in subsection 3, the obligation to pay the beneficiary is excused if

the funds available in the special deposit are insufficient to cover the payment.

3. Unless the account agreement provides otherwise, if the funds available in the special

deposit are insufficient to cover an obligation to pay a beneficiary, a beneficiary may

elect to be paid the funds that are available or, if there is more than one beneficiary, a

pro rata share of the funds available. Payment to the beneficiary making the election

under this subsection discharges the bank's or credit union's obligation to pay a

beneficiary and does not constitute an accord and satisfaction with respect to another

person obligated to the beneficiary.

4. Unless the account agreement provides otherwise, the obligation of the bank or credit

union obligated to pay a beneficiary is immediately due and payable.

5. The bank or credit union may discharge the bank's or credit union's obligation under

this section by:

a. Crediting another transaction account of the beneficiary; or

b. Taking other action that:

(1) Is allowed under the account agreement for the bank or credit union to

obtain a discharge; or

(2) Otherwise would constitute a discharge under law.

6. If the bank or credit union obligated to pay a beneficiary has incurred an obligation to

discharge the obligation of another person, the obligation of the other person is

discharged if action by the bank or credit union under subsection 5 would constitute a

discharge of the obligation of the other person under law that determines whether an

obligation is satisfied.
N.D. Cent. Code § 6-03-66 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-66
6-03-66. Deposit in two or more names - To whom paid
Status: repealed

6-03-66. Deposit in two or more names - To whom paid

Repealed by S.L. 1973, ch. 257, § 82.
N.D. Cent. Code § 6-05-09 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-09
6-05-09. Savings, investment, and trust property - Separate accounts
Status: in_force

6-05-09. Savings, investment, and trust property - Separate accounts

Whenever any sum or sums of money, or any real or personal property, has been received

by, deposited with, or conveyed to be held by such a corporation for savings or investment

account, or in trust under any of the provisions of subsection 1, 2, 3, or 4 of section 6-05-08,

such money or property, and all evidences of the investment of the same, and their accretions,

must be kept by such corporation separate and apart and readily identified from similar property

of its own or of other persons, and the same is not liable for any debt or claim against the

corporation, except for debts or claims accruing to and in favor of the person or persons making

such deposits or creating such trusts, or the beneficiaries thereunder.
N.D. Cent. Code § 6-06-10 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-10
6-06-10. General and special meetings - Notice - Quorum - Voting privileges
Status: in_force

6-06-10. General and special meetings - Notice - Quorum - Voting privileges

General and special meetings may be held in the manner and for the purposes indicated in

the bylaws of the credit union. Ten days before any regular or special meeting, written notice

thereof must be mailed or sent by an electronic communication to each member and, in the

case of a special meeting, the notice must state clearly the purpose of the meeting and what

matters will be considered thereat. The members present at a general or special meeting

constitute a quorum for the transaction of the business of the credit union. At all meetings, a

member has but a single vote, whatever the member's shareholdings. There is no voting by

proxy, but any firm, society, or corporation having a membership in the credit union may cast its

vote by one person upon presentation by that person to the credit union of written authority from

such firm, society, or corporation. The credit union may allow members to vote by mail ballot or

electronic ballot for directors and committee members.
N.D. Cent. Code § 6-03-69 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-69
6-03-69. Report of examining committee
Status: in_force

6-03-69. Report of examining committee

The board of directors shall submit to the commissioner a report of the examining

committee on forms provided by the commissioner. The report must reflect the results of a

careful and thorough examination of the assets of the bank, including loans and discounts of

every nature and the securities and collaterals belonging to the bank. The valuation of the

assets of the bank must be compared with the records of the bank. The report must be made a

part of the minutes of a regular meeting of the board of directors. The commissioner may refuse

to accept the report if found to be not in accordance with acceptable accounting principles.

Any of the following methods may be used to conduct the examination required by this

section:

1. Examination by the board of directors or its examining committee. When this method is

employed, the examination must be conducted and the report submitted in July of

each year.

2. Examination on an annual basis by an independent certified public accountant or firms

composed of such accountants, or auditors of the bank's holding company, if any.

3. Examination by an autonomous internal audit control system. The individual directing

the internal audit control system shall submit to the board of directors each quarter an

interim report as to the degree of compliance with the internal audit control system and

shall express an opinion as to the adequacy of the internal controls. A complete report

must be submitted annually to the board of directors.
N.D. Cent. Code § 6-09-24 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-24
6-09-24. Partial payments - Sale and assignment of mortgages assigned to state treasurer
Status: repealed

6-09-24. Partial payments - Sale and assignment of mortgages assigned to state

treasurer.

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-09.4-05.1 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-05.1
6-09.4-05.1. Administrative agreements with state agencies
Status: in_force

6-09.4-05.1. Administrative agreements with state agencies

The public finance authority and any state agency authorized by state or federal law to

make an allocation of bonds or bonding authority or to make loans, or to issue bonds to obtain

funds for the purpose of making loans or grants, may enter into an administrative agreement,

which may authorize the public finance authority to administer the loan or bond program for the

state agency. The agreement may delegate to the public finance authority the authority to make

loans, or to issue bonds to obtain funds for the purpose of making loans or grants.
N.D. Cent. Code § 6-05.2-03 — ND Code / Title 6 / Chapter 6-05.2 / Section 6-05.2-03
6-05.2-03. Books and accounts
Status: in_force

6-05.2-03. Books and accounts

1. Every banking institution exercising fiduciary powers must keep its fiduciary records

separate and distinct from other records of the banking institution. All fiduciary records

necessary for reporting purposes must be maintained for such time as to enable the

banking institution to furnish such information or reports with the commissioner. The

fiduciary records must contain full information relative to each account.

2. Every banking institution must keep an adequate record of all pending litigation to

which it is a party in concerning its exercise of fiduciary powers.

3. A banking institution must retain the records required for a period of three years from

the later of the termination of the fiduciary account relationship to which the records

relate or of litigation relating to the account.
N.D. Cent. Code § 6-09-14 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-14
6-09-14. Bank of North Dakota may deposit in any bank
Status: repealed

6-09-14. Bank of North Dakota may deposit in any bank

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-03-23 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-23
6-03-23. Capital stock may be increased
Status: in_force

6-03-23. Capital stock may be increased

Any association may provide, either by its articles of incorporation, by subsequent

resolution, or by written agreement of the holders of a majority of its stock, for an increase in its

capital stock from time to time subject to the limitations of this title. No increase in capital stock

is valid until the whole amount has been paid in, in cash, and such payment certified under oath

by the president or cashier of the association to the secretary of state, nor until the secretary of

state executes a certificate specifying that this chapter has been complied with, the amount of

the increase in capital stock, and that the increase has been paid in as part of the capital of the

association, nor until a copy of such certificate has been filed with the state banking board.
N.D. Cent. Code § 6-06-08.5 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-08.5
6-06-08.5. Corporate central credit union records
Status: in_force

6-06-08.5. Corporate central credit union records

A North Dakota federally chartered corporate credit union must allow access or produce any

records requested by the commissioner which the commissioner determines necessary to

conduct an examination of the state-chartered credit union. A federally chartered corporate

credit union is entitled to be reimbursed for any search and processing time at the rate of ten

dollars per hour per person and for copies made of any records at the rate of fifteen cents per

page.
N.D. Cent. Code § 6-07.1-15 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-15
6-07.1-15. Preferences
Status: in_force

6-07.1-15. Preferences

Any transfer of or lien on the property or assets of a state trust company is voidable by the

receiver if the transfer or lien is made or created after four months before the date the state trust

company is closed for liquidation or one year before the date the state trust company is closed

for liquidation if the receiving creditor was at the time an affiliate, officer, director, manager,

principal shareholder, or participant of the state trust company or an affiliate of the state trust

company, or was made or created with the intent of giving to a creditor, enabling the creditor to

obtain a greater percentage of the claimant's debt that is given or obtained by another claimant

of the same class.
N.D. Cent. Code § 6-09.16-01 — ND Code / Title 6 / Chapter 6-09.16 / Section 6-09.16-01
6-09.16-01. Definitions
Status: in_force

6-09.16-01. Definitions

Terms defined in chapter 50-30 have the same meaning when used in this chapter.
N.D. Cent. Code § 6-03-75 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-75
6-03-75. Varied by agreement
Status: repealed

6-03-75. Varied by agreement

Repealed by omission from this code.
N.D. Cent. Code § 6-02-02.1 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-02.1
6-02-02.1. Nonbank bank not qualified to do business
Status: in_force

6-02-02.1. Nonbank bank not qualified to do business

It is unlawful for any organization, association, or corporation, which owns or controls an

institution insured by the federal deposit insurance corporation, to own or control an institution

insured by the federal deposit insurance corporation or eligible to be insured by the federal

deposit insurance corporation which accepts deposits that the depositor has a legal right to

withdraw on demand or engages in the business of making commercial loans but does not do

both.
N.D. Cent. Code § 6-09.7-09 — ND Code / Title 6 / Chapter 6-09.7 / Section 6-09.7-09
6-09.7-09. Agricultural real estate loans - Guarantee
Status: in_force

6-09.7-09. Agricultural real estate loans - Guarantee

The Bank of North Dakota may guarantee the loan of money by banks, credit unions,

lending institutions that are part of the farm credit system, and savings and loan associations in

this state to eligible persons for the purchase of agricultural real estate or the restructuring of

agricultural real estate loans, provided the transactions do not exceed a loan-to-value ratio of

eighty percent and further provided that no single loan exceed four hundred thousand dollars.

The Bank of North Dakota may have no more than eight million dollars in outstanding loan

guarantees under this section. The Bank of North Dakota may establish additional terms,

conditions, and procedures, as necessary to meet the requirements of this section.
N.D. Cent. Code § 6-03-71 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-71
6-03-71. Bonds of officers and employees
Status: in_force

6-03-71. Bonds of officers and employees

All officers and employees of any state banking association, before entering upon their

duties, shall furnish a bond to the association in the sum and upon the conditions as required by

the board of directors in keeping with rules established by the state banking board. All bonds

must be approved by the board of directors of the association and are subject to the approval of

the commissioner. A record of the approval of the bonds by the board of directors of the

association must be made on the records of the bank, and the bonds must be filed with the

commissioner. Stockholders of the banks are not eligible as bondsmen for the officers.
N.D. Cent. Code § 6-06-41 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-41
6-06-41. Depository credit union - Endorsements
Status: in_force

6-06-41. Depository credit union - Endorsements

A depository credit union that has taken a check or draft for collection may supply any

endorsement of the member which is necessary to title unless the item contains the words

"payee's endorsement required" or words to that effect. In the absence of such a requirement, a

statement placed on the item by the depository credit union to the effect that the item was

deposited by a member or credited to that member's account is effective as the member's

endorsement. An intermediary credit union, or payor credit union, which is not a depository

credit union, is neither given notice nor otherwise affected by a restrictive endorsement of any

person except the credit union's immediate transferor.
N.D. Cent. Code § 6-07.2-01 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-01
6-07.2-01. Department taking possession - Procedure
Status: in_force

6-07.2-01. Department taking possession - Procedure

1. The commissioner may take possession of the business and property of an institution

the commissioner supervises if it appears to the commissioner that any of the following

conditions exist:

a. The directors or officers of the institution, or the liquidators of the institution

subject to a voluntary plan of liquidation, have neglected, failed, or refused to take

action the commissioner deems necessary for the protection of the institution.

b. The directors, officers, or liquidators of the institution have impeded or obstructed

an examination. This may include concealment or refusal to submit books,

papers, records, or affairs of the institution for inspection to any examiner or to

any lawful agent of the appropriate federal financial institution regulatory agency

or of the department.

c. The business is being conducted in a fraudulent, illegal, or unsafe manner.

d. The institution is conducting business in a way causing losses to depositors.

e. The institution is operating in an unsafe or unsound condition.

f. The capital of the institution is impaired such that the likely realizable value of the

institution's assets is insufficient to pay and satisfy the claims of all depositors and

all creditors.

g. The institution is insolvent or in imminent danger of insolvency or has suspended

ordinary business transactions of the institution due to insufficient funds.

h. The institution has refused or been unable to pay deposits or obligations in

accordance with the terms under which those deposits or obligations of the

institution were incurred.

i. Substantial dissipation of assets or earnings due to:

(1) Any violation of any law or rule; or

(2) An unsafe or unsound practice.

j. The institution is unable to continue operations.

k. The institution is in violation of any applicable state or federal regulation.

l. Neglect or refusal to comply with the terms of a final order of the department,

state banking board, state credit union board, or federal financial institution's

regulatory agency essential to preserve the solvency of the institution.

m. The institution has failed to pay the fees charged by the department under section

6-01-17 after due notice of the amount of the fee has been given.

n. The institution's board of directors requests that the department take possession

for the benefit of depositors, other creditors, shareholders, or other persons.

o. The institution has been advised by the federal deposit insurance corporation of

the federal deposit insurance corporation's intention to withdraw deposit

insurance coverage.

p. The institution has been advised by the national credit union association of the

national credit union association's intention to withdraw share insurance

coverage.

q. The directors or officers of the bank, or the liquidators of a bank subject to a

voluntary plan of liquidation, have assumed duties or performed acts in excess of

those authorized by applicable statutes or regulations, by the bank's

organizational documents or plan of liquidation, or without supplying the required

bond.

2. If it appears to the commissioner one or more of the conditions in this section exists as

to any institution, the commissioner shall cause a notice to be served on the president

or other executive officer in charge of the institution and, pursuant to such notice, take

possession of the business, property, and records of the institution from the officer

citing the reasons for such a demand from this section. The decision of the

commissioner is final upon the president or other executive officer's receipt of the

notice and the institution immediately shall surrender possession to the commissioner.
N.D. Cent. Code § 6-09.15-05 — ND Code / Title 6 / Chapter 6-09.15 / Section 6-09.15-05
6-09.15-05. Rules
Status: in_force

6-09.15-05. Rules

Notwithstanding any provision of this chapter, the Bank of North Dakota shall adopt rules to

implement this chapter. The rules may include a formula for determining the ratio of reserves in

the loan guarantee fund to the amount of guaranteed loans, the maximum dollar amount of a

guarantee, and the maximum allowable annual interest rate on a loan eligible for a guarantee.
N.D. Cent. Code § 6-05-14 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-14
6-05-14. Compensation - Lien
Status: in_force

6-05-14. Compensation - Lien

For the faithful performance of any trust, duty, obligation, or service imposed or conferred

upon or accepted by any corporation under the provisions of this chapter, it is entitled to receive

a reasonable compensation, or such compensation as may have been fixed by the contract or

agreement of the parties, as well as any and all advances necessarily paid out and expended in

the discharge and performance thereof, and to charge legal interest, as permitted by law, upon

such advances unless otherwise agreed upon. The company has a lien upon all moneys,

securities, and all property of every description which may come into its possession while in the

performance of such trust, for the payment of all sums due or to become due to it for services,

expenses, and advances, and the costs and expenses of enforcing such payment.
N.D. Cent. Code § 6-15-01 — ND Code / Title 6 / Chapter 6-15 / Section 6-15-01
6-15-01. Definitions
Status: in_force

6-15-01. Definitions

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

1. "Customer" means any person engaged in a payment card transaction facilitated or

processed by a financial entity.

2. "Disclosure" means the transfer, publication, or distribution of protected financial

information to another person for any purpose other than the processing or facilitating

of a payment card transaction, or taking any actions related to dispute processing,

fraud management, or protecting transaction integrity from concerns related to illegal

activities, breach, or cyber risks.

3. "Financial entity" means a person involved in facilitating or processing a payment card

transaction, including a bank, acquirer, payment card network, or payment card issuer.

4. "Firearms code" means a merchant category code approved by the international

organization for standardization for firearms retailers.

5. "Firearms retailer" means any person physically located in this state engaged in the

lawful business of selling or trading firearms or ammunition to be used in firearms.

6. "Government entity" means any state board, commission, agency, bureau, or

department, or any political subdivision of the state.

7. "Protected financial information" means any record of sale, purchase, return, or refund

involving a payment card which is retrieved, characterized, generated, labeled, sorted,

or grouped based on the assignments of a firearms code.
N.D. Cent. Code § 6-09-51 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-51
6-09-51. Dynamic fiscal impact analysis
Status: in_force

6-09-51. Dynamic fiscal impact analysis

Expired under S.L. 2017, ch. 364, § 3.
N.D. Cent. Code § 6-01-02 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-02
6-01-02. Definitions
Status: in_force

6-01-02. Definitions

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

1. "Association", "banking association", or "state banking association" means any

corporation organized under the laws of this state covering state banking associations,

and all corporations, limited liability companies, partnerships, firms, or associations

whose business in whole or in part consists of the taking of money on deposit, except

national banks, trust companies, and the Bank of North Dakota.

2. "Bank" means any national bank, national banking association, corporation, state

bank, cooperative financial institution, state banking association, or savings bank,

whether organized under the laws of this state or of the United States, engaged in the

business of banking.

3. "Bank holding company" means bank holding company as defined in 12 U.S.C.

1841(a)(1).

4. "Banking" means the business of receiving deposits, making loans, discounting

commercial paper, issuing drafts, traveler's checks, and similar instruments, handling

and making collections, cashing checks and drafts, and buying and selling exchange.

5. "Banking department" means the state department of financial institutions.

6. "Banking institution" means any bank, trust company, or bank and trust company

organized under the laws of this state.

7. "Branch" means a place of business where deposits are received, checks paid, or

money lent as a result of a bank that was merged into another bank pursuant to an

interstate merger.

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

9. "Cooperative financial institution" means an institution without capital stock organized

under chapter 6-06.2 and operated for mutual purposes and without profit, and which

is subject by law to supervision and examination by the department and federal

authority which have supervision over such institutions.

10. "Corporate central credit union" means a credit union operated for the primary purpose

of serving corporate accounts. A credit union is deemed to be a corporate central

credit union when its total dollar amount of outstanding corporate loans plus corporate

share and deposit holdings is equal to or greater than seventy-five percent of its

outstanding loans plus share and deposit holdings.

11. "Credit union" means a cooperative, nonprofit association organized for the purposes

of encouraging thrift among its members, creating a source of credit at a fair and

reasonable rate of interest, and providing an opportunity for its members to improve

their economic and social condition.

12. "Derivative transaction" means derivative transaction as defined in 12 U.S.C. 84(b)(3).

13. "Electronic" means relating to technology having electrical, digital, magnetic, wireless,

optical, electromagnetic, or similar capabilities.

14. "Electronic communication" means any form of communication, not directly involving

the physical transmission of paper that creates a record that may be retained,

retrieved, and reviewed by a recipient of the communication and may be directly

reproduced in paper form by the recipient through an automated process.

15. "Electronic record" means a record created, generated, sent, communicated, received,

or stored by electronic means.

16. "Electronic signature" means an electronic sound, symbol, or process attached to or

logically associated with a record and signed or adopted by a person with the intent to

sign the record.

17. "Financial corporation" means all entities regulated by the department of financial

institutions, excluding financial institutions and credit unions.

18. "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.

19. "Market value" means the highest price for which property can be sold in the open

market by a willing seller to a willing purchaser, neither acting upon compulsion and

both exercising reasonable judgment.

20. "Merger" or "merge" means the merging or consolidation of two or more banks

including the purchase of all or substantially all of the assets and assumption of

liabilities of a bank, facility, or branch.

21. "Mutual investment corporation" or "mutual savings corporation" means a corporation

organized to engage in the investment or savings business, but having no capital stock

or a nominal capital stock.

22. "National bank" or "national banking association" means an institution chartered by the

comptroller of the currency under the National Bank Act [12 U.S.C. 24].

23. "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.

24. "Technology service provider" includes any person that provides services to a financial

institution, financial corporation, or credit union, including: core processing; information

and transaction processing and settlement activities that support banking functions

such as lending, deposit-taking, funds transfer, fiduciary, or trading activities;

internet-related services; security monitoring; and system development and

maintenance.

25. "Tier 1, tier 2, and tier 3 capital" means those terms as set under title 12, Code of

Federal Regulations, part 325, in effect on August 1, 2011.

26. "Trust company" means any corporation formed for the purpose of transacting

business as an annuity, safe deposit, surety, or trust company.
N.D. Cent. Code § 6-09.18-07 — ND Code / Title 6 / Chapter 6-09.18 / Section 6-09.18-07
6-09.18-07. Postaward monitoring
Status: in_force

6-09.18-07. Postaward monitoring

Upon completion of work performed from funding provided by a legacy investment

technology loan, the department of commerce shall provide an independent review of the

results. Evaluation criteria may include:

1. How the work performed has contributed to the development of a company or the

expansion of an existing company, has enhanced the ability of a company to make

investments in the state, or otherwise enticed a company to invest or move to the

state.

2. How the work performed has led to additional economic investment of capital from

public and private sector entities within and outside North Dakota.

3. How the work performed has led to or may lead to a patent or research that is

commercially viable.