N.D. Cent. Code § 13-05-06.2 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-06.2
13-05-06.2. Investigations and subpoenas
Status: in_force

13-05-06.2. Investigations and subpoenas

1. The department of financial institutions may:

a. Make such public or private investigation within or outside this state as it deems

necessary to determine whether a person has violated or is about to violate a

provision of this chapter or a rule or order under this chapter, or to aid in the

enforcement of this chapter or in the adopting of rules and forms under this

chapter.

b. Require or permit a person to file a statement in writing, under oath or otherwise

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

the matter to be investigated.

c. Publish information concerning a violation of this chapter or a rule or order under

this chapter.

2. For the purpose of an investigation or proceeding under this chapter, the department

of financial institutions may administer oaths and affirmations, subpoena witnesses,

compel their attendance, take evidence, and require the production of books, papers,

correspondence, memoranda, agreements, or other documents or records which the

department deems relevant or material to the inquiry.

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

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

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

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

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

punished by the court as a contempt of court.

4. A person is not excused from attending and testifying or from producing a document or

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

of the department or in a proceeding instituted by the department, on the grounds that

the testimony or evidence, documentary or otherwise, required of the person may tend

to incriminate the person or subject the person to a penalty or forfeiture; but an

individual may not be prosecuted or subjected to a penalty or forfeiture for or on

account of a transaction, matter, or thing concerning which the person is compelled,

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

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

prosecution and punishment for perjury or contempt committed in testifying.

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

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

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

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

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

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

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

Unless the commissioner has reasonable grounds to believe any of the documents

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

purposes of concealing a violation of this chapter, the licensee or owner of the

documents and records shall have access to the documents and records as necessary

to conduct its ordinary business affairs. All records controlled by the commissioner

under the authority of this subsection shall be exempt under the open records law.

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

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

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

investigations; and

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

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

subject to this chapter.

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

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

law of this state or claims to act without such authority.
N.D. Cent. Code § 13-09.1-09 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-09
13-09.1-09. License required
Status: in_force

13-09.1-09. License required

1. A person may not engage in the business of money transmission or advertise, solicit,

or hold itself out as providing money transmission unless the person is licensed under

this chapter;

2. Subsection 1 does not apply to:

a. A person that is an authorized delegate of a person licensed under this chapter

acting within the scope of authority conferred by a written contract with the

licensee; or

b. A person that is exempt pursuant to section 13-09.1-02 and does not engage in

money transmission outside the scope of the exemption.

3. A license issued under section 13-09.1-13 is not transferable or assignable.
N.D. Cent. Code § 13-09.1-03 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-03
13-09.1-03. Authority to require demonstration of exemption
Status: in_force

13-09.1-03. Authority to require demonstration of exemption

The commissioner may require any person claiming to be exempt from licensing pursuant to

section 13-09.1-02 to provide information and documentation to the commissioner

demonstrating the person qualifies for any claimed exemption.
N.D. Cent. Code § 13-09.1-45 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-45
13-09.1-45. Scope
Status: in_force

13-09.1-45. Scope

1. This chapter does not apply to the exchange, transfer, or storage of virtual currency or

to virtual-currency administration to the extent the Electronic Fund Transfer Act of 1978

[15 U.S.C. Sections 1693-1693r], the Securities Exchange Act of 1934 [15 U.S.C.

Sections 78a-78oo], the Commodities Exchange Act of 1936 [7 U.S.C. Sections 1-27f],

or chapter 10-04 govern the activity.

2. Sections 13-09.1-44 through 13-09.1-49 do not apply to activity by:

a. A person that:

(1) Contributes only connectivity software or computing power to a

decentralized virtual currency, or to a protocol governing transfer of the

digital representation of value;

(2) Provides only data storage or security services for a business engaged in

virtual-currency business activity and does not otherwise engage in virtual-

currency business activity on behalf of another person; or

(3) Provides only to a person otherwise exempt from this chapter virtual

currency as one or more enterprise solutions used solely among each other

and has no agreement or relationship with a person that is an end-user of

virtual currency;

b. A person using virtual currency, including creating, investing, buying or selling, or

obtaining virtual currency as payment for the purchase or sale of goods or

services, solely:

(1) On its own behalf;

(2) For personal, family, or household purposes; or

(3) For academic purposes;

c. A person whose virtual-currency business activity with or on behalf of persons is

reasonably expected to be valued, in the aggregate, on an annual basis at five

thousand dollars or less, measured by the United States dollar equivalent of

virtual currency;

d. An attorney to the extent of providing escrow services to a person;

e. A title insurance company to the extent of providing escrow services to a person;

f. A securities intermediary, as defined in chapter 41-08, or a commodity

intermediary, as defined in chapter 41-09, that:

(1) Does not engage in the ordinary course of business in virtual-currency

business activity with or on behalf of a person in addition to maintaining

securities accounts or commodities accounts and is regulated as a

securities intermediary or commodity intermediary under federal law, law of

this state other than this chapter, or law of another state; and

(2) Affords a person protections comparable to those set forth in section

13-09.1-10;

g. A secured creditor under chapter 41-09 or creditor with a judicial lien or lien

arising by operation of law on collateral that is virtual currency, if the virtual-

currency business activity of the creditor is limited to enforcement of the security

interest in compliance with chapter 41-09 or lien in compliance with the law

applicable to the lien;

h. A virtual-currency control-services vendor; or

i. A person that:

(1) Does not receive compensation from a person for:

(a) Providing virtual-currency products or services; or

(b) Conducting virtual-currency business activity; or

(2) Is engaged in testing products or services with the person's own funds.

3. The commissioner may determine that a person or class of persons, given facts

particular to the person or class, should be exempt from this chapter, whether the

person or class is covered by requirements imposed under federal law on a money

service business.
N.D. Cent. Code § 13-09.1-06 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-06
13-09.1-06. Supervision
Status: in_force

13-09.1-06. Supervision

1. The commissioner may conduct an examination or investigation of a licensee or

authorized delegate or otherwise take independent action authorized by this chapter or

by a rule adopted or order issued under this chapter as reasonably necessary or

appropriate to administer and enforce this chapter, regulations implementing this

chapter, and other applicable law, including the federal Anti-Money Laundering Act of

2020. The commissioner may:

a. Conduct an examination either onsite or offsite as the commissioner may

reasonably require;

b. Conduct an examination in conjunction with an examination conducted by

representatives of other state agencies or agencies of another state or of the

federal government;

c. Accept the examination report of another state agency or an agency of another

state or of the federal government, or a report prepared by an independent

accounting firm, which on being accepted is considered for all purposes as an

official report of the commissioner; and

d. Summon and examine under oath a key individual or employee of a licensee or

authorized delegate and require the person to produce records regarding any

matter related to the condition and business of the licensee or authorized

delegate.

2. A licensee or authorized delegate shall provide, and the commissioner shall have full

and complete access to, all records the commissioner may reasonably require to

conduct a complete examination. The records must be provided at the location and in

the format specified by the commissioner, provided, the commissioner may utilize

multistate record production standards and examination procedures when the

standards will reasonably achieve the requirements of this subsection.

3. Unless otherwise directed by the commissioner, a licensee shall pay all costs

reasonably incurred in connection with an examination of the licensee or the licensee's

authorized delegates.
N.D. Cent. Code § 13-12-24 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-24
13-12-24. Call reports
Status: in_force

13-12-24. Call reports

Each licensee shall submit to the nationwide multistate licensing system and registry reports

of condition which must be in the form and must contain the information as the nationwide

multistate licensing system and registry may require.
N.D. Cent. Code § 13-10-13 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-13
13-10-13. Surety bond and minimum net worth requirements - Surety bond required
Status: in_force

13-10-13. Surety bond and minimum net worth requirements - Surety bond required

1. Each mortgage loan originator must be covered by a surety bond in accordance with

this section. If the mortgage loan originator is an employee or exclusive agent of a

person subject to this chapter, the surety bond of such person subject to this chapter

may be used in lieu of the mortgage loan originator's surety bond requirement.

a. The surety bond shall provide coverage for each mortgage loan originator in an

amount as prescribed in subsection 2.

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

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

requirements for such surety bonds as are necessary to accomplish the purposes

of this chapter.

2. The licensee shall maintain a surety bond in the amount as determined by the

commissioner by rule. The amount must be reflective of the dollar amount of loans

originated as of the previous yearend. However, the commissioner may increase the

amount of the surety bond if the commissioner determines that such an increase is

necessary to protect the public interests.

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

the filing of a new bond.

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

bond.
N.D. Cent. Code § 13-04.1-15 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-15
13-04.1-15. Change of name or address
Status: in_force

13-04.1-15. Change of name or address

A licensee is required to submit within twenty business days of the date of change

notification of a change of name or change of address. The notification must be in the form

prescribed by the commissioner.
N.D. Cent. Code § 13-10-17 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-17
13-10-17. Prohibited acts and practices
Status: in_force

13-10-17. Prohibited acts and practices

It is a violation of this chapter for a person or individual subject to this chapter to:

1. Directly or indirectly employ any scheme, device, or artifice to defraud or mislead

borrowers or lenders or to defraud any person;

2. Engage in any unfair or deceptive practice toward any person;

3. Obtain property by fraud or misrepresentation;

4. Solicit or enter into a contract with a borrower that provides in substance that the

person or individual subject to this chapter may earn a fee or commission through best

efforts to obtain a loan even though no loan is actually obtained for the borrower;

5. Solicit, advertise, or enter into a contract for specific interest rates, points, or other

financing terms unless the terms are actually available at the time of soliciting,

advertising, or contracting;

6. Conduct any business covered by this chapter without holding a valid license as

required under this chapter, or assist or aid and abet any person in the conduct of

business under this chapter without a valid license as required under this chapter;

7. Fail to make disclosures as required by this chapter and any other applicable state or

federal law and regulations;

8. Fail to comply with this chapter or rules or regulations promulgated under this chapter,

or fail to comply with any other state or federal law, including the rules and regulations

thereunder, applicable to any business authorized or conducted under this chapter;

9. Make, in any manner, any false or deceptive statement or representation, including,

with regard to the rates, points, or other financing terms or conditions for a residential

mortgage loan or engage in bait and switch advertising;

10. Negligently make any false statement or knowingly and willfully make any omission of

material fact in connection with any information or reports filed with a governmental

agency or the nationwide mortgage licensing system and registry or in connection with

any investigation conducted by the commissioner or another governmental agency;

11. Make any payment, threat, or promise, directly or indirectly, to any person for the

purposes of influencing the independent judgment of the person in connection with a

residential mortgage loan or make any payment, threat, or promise, directly or

indirectly, to any appraiser of a property, for the purposes of influencing the

independent judgment of the appraiser with respect to the value of the property;

12. Collect, charge, attempt to collect or charge, or use or propose any agreement

purporting to collect or charge any fee prohibited by this chapter;

13. Cause or require a borrower to obtain property insurance coverage in an amount that

exceeds the replacement cost of the improvements as established by the property

insurer; or

14. Fail to truthfully account for moneys belonging to a party to a residential mortgage loan

transaction.
N.D. Cent. Code § 13-09.1-07 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-07
13-09.1-07. Networked supervision
Status: in_force

13-09.1-07. Networked supervision

1. To efficiently and effectively administer and enforce this chapter and to minimize

regulatory burden, the commissioner may participate in multistate supervisory

processes established between states and coordinated through the conference of

state bank supervisors, money transmitter regulators association, and affiliates and

successors for all licensees that hold licenses in this state and other states. As a

participant in multistate supervision, the commissioner will:

a. Cooperate, coordinate, and share information with other state and federal

regulators in accordance with section 13-09.1-05;

b. Enter into written cooperation, coordination, or information-sharing contracts or

agreements with organizations the membership of which is made up of state or

federal governmental agencies; and

c. Cooperate, coordinate, and share information with organizations the membership

of which is made up of state or federal governmental agencies, provided that the

organizations agree in writing to maintain the confidentiality and security of the

shared information in accordance with section 13-09.1-05.

2. The commissioner may not waive, and nothing in this section constitutes a waiver of,

the commissioner's authority to conduct an examination or investigation or otherwise

take independent action authorized by this chapter or a rule adopted or order issued

under this chapter to enforce compliance with applicable state or federal law.

3. A joint examination or investigation, or acceptance of an examination or investigation

report, does not waive an examination assessment provided for in this chapter.
N.D. Cent. Code § 13-05-05 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-05
13-05-05. Expiration and renewal of license
Status: in_force

13-05-05. Expiration and renewal of license

All licenses required herein expire on December thirty-first of each year and may be

renewed. Applications for renewal must be submitted thirty days before the expiration of the

license and must be accompanied by the required annual fees, which are not subject to refund.

The form and content of renewal applications must be determined by the department of financial

institutions and a renewal application may be denied upon the same grounds as would justify

denial of an initial application. When a licensee has been delinquent in renewing the licensee's

license, the department may charge an additional fee of fifty dollars for the renewal of the

license. A collection agency license is not transferable. If the commissioner determines that an

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

corporation, or limited liability corporation that was previously granted a collection agency

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

must be filed within forty-five days from the date change of ownership is consummated. The

department shall act on the application within sixty days from the date the application is

received but may extend the review period for good cause. The collection agency license

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

either granted or denied.
N.D. Cent. Code § 13-11-11 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-11
13-11-11. Suspension and removal of debt-settlement provider officers and employees
Status: in_force

13-11-11. Suspension and removal of debt-settlement provider officers and

employees.

1. The commissioner may issue and serve upon a debt-settlement provider officer or

employee, and upon the licensee involved, a complaint stating the basis for the

commissioner's belief that the officer or employee is willfully engaging or has willfully

engaged in any of the following conduct:

a. Violating a law, rule, order, or written agreement with the commissioner;

b. Engaging in harassment or abuse, the making of false or misleading

representations, engaging in unfair practices involving debt settlement, or

engaging in prohibited acts and practices under section 13-11-23; or

c. Performing an act of commission or omission or practice that is a breach of trust

or a breach of fiduciary duty.

2. The complaint must contain a notice of opportunity for hearing.

3. If a hearing is not requested within twenty days of the date the complaint is served

upon the officer or employee, or if a hearing is held and the commissioner finds that

the record so warrants, the commissioner may enter an order suspending or

temporarily removing the employee or officer from office for a period not exceeding

three years from the effective date of the suspension or temporary removal.

4. A contested or default suspension or temporary removal order is effective immediately

upon service of the order on the officer or employee and upon the licensee. A consent

order is effective as agreed. An officer or employee suspended or temporarily removed

from office pursuant to this section is not eligible, while under suspension, for

reinstatement to a position with a debt-settlement provider.

5. When an officer or employee, or other person participating in the conduct of the affairs

of a licensee, is charged with a felony in state or federal court which involves

dishonesty or breach of trust, the commissioner immediately may suspend the person

from office or prohibit the person from further participation in the affairs of the

debt-settlement provider, or both. The order is effective immediately upon service of

the order on the licensee and the person charged and remains in effect until the

criminal charge is finally disposed of or until modified by the commissioner. If a

judgment of conviction, federal pretrial diversion, or similar state order or judgment is

entered, the commissioner may order that the suspension or prohibition be made

permanent. A finding of not guilty or other disposition of the charge does not preclude

the commissioner from pursuing administrative or civil remedies.
N.D. Cent. Code § 13-08-05 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-05
13-08-05. Application fees - Financial statements - Annual fee - Deposit of fees
Status: in_force

13-08-05. Application fees - Financial statements - Annual fee - Deposit of fees

Each applicant for licensure shall include with the application an application and

background investigation fee of eight hundred fifty dollars, which is not subject to refund but

which, if the license is granted, constitutes the license fee for the first license year or part of the

first license year, and each applicant for licensure shall include with the application proof of the

required surety bond. The annual license fee is four hundred fifty dollars. Each fee set forth in

this section is applicable to each location. The commissioner shall deposit fees and costs

collected by the commissioner under this chapter in the department of financial institutions

regulatory fund.
N.D. Cent. Code § 13-01-01 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-01
13-01-01. Definitions of creditor and debtor
Status: in_force

13-01-01. Definitions of creditor and debtor

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

1. "Creditor" means one in whose favor an obligation exists by reason of which the

person is or may become entitled to the payment of money.

2. "Debtor" means one who, by reason of an existing obligation, is or may become liable

to pay money to another, whether such liability is certain or contingent.
N.D. Cent. Code § 13-13-13 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-13
13-13-13. Revocation of license - Suspension of license - Surrender of license
Status: in_force

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

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

licensee's license if the commissioner finds that:

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

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

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

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

made pursuant to and within the authority of this chapter.

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

license which clearly would have warranted the department of financial

institutions in refusing originally to issue such license.

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

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

required.

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

3. If a hearing is not requested within twenty days of the date the order is served upon

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

record warrants, the commissioner may enter a final order. The final order is final

suspending or revoking the license.

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

that enforcement of the chapter requires immediate suspension of the license pending

investigation, it may, upon issuance, enter an order suspending the license pending

the holding of a hearing as prescribed in this chapter.

5. Any licensee may surrender its license, but surrender does not affect the licensee's

civil or criminal liability for acts committed before the surrender.
N.D. Cent. Code § 13-04.1-16 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-16
13-04.1-16. Call reports
Status: repealed

13-04.1-16. Call reports

Repealed by S.L. 2023, ch. 138, § 13.
N.D. Cent. Code § 13-05-08 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-08
13-05-08. Revocation of license - Suspension of license - Surrender of license - Pre-existing contracts
Status: in_force

13-05-08. Revocation of license - Suspension of license - Surrender of license -

Pre-existing contracts.

1. The commissioner may issue and serve upon any licensee an order suspending or

revoking a licensee's license if the commissioner finds that:

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

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

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

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

made pursuant to and within the authority of this chapter.

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

license which clearly would have warranted the department of financial

institutions in refusing originally to issue such license.

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

e. The licensee has failed to maintain registration with the North Dakota secretary of

state if so required.

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

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

upon the licensee, or if a hearing is held and the commissioner finds that the record so

warrants, the commissioner may enter a final order suspending or revoking the

license.

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

that enforcement of the chapter requires immediate suspension of such license

pending investigation, it may, upon written notice, enter an order suspending such

license for a period not exceeding sixty days, pending the holding of a hearing as

prescribed in this chapter.

5. Any licensee may surrender the licensee's license by delivering it to the department of

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

affect the licensee's civil or criminal liability for acts committed prior thereto.
N.D. Cent. Code § 13-13-16 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-16
13-13-16. Orders and injunctions
Status: in_force

13-13-16. Orders and injunctions

Whenever it appears to the department of financial institutions either upon complaint or

otherwise, that any person has engaged in, is engaging in, or is about to engage in any act or

practice or transaction which is prohibited by this chapter, or by any order of the department

issued pursuant to any section of this chapter or which is declared to be illegal in this chapter,

the department may, in its discretion:

1. Issue an order that is effective upon issuance, including cease and desist, stop, and

suspension orders, which it deems necessary or appropriate in the public interest or

for the protection of the public. Any person aggrieved by an order issued pursuant to

this subsection may request a hearing before the department if the request is made

within ten days after receipt of the order. The hearing must be held in accordance with

chapter 28-32 as must any appeal.

2. Apply to the district court of Burleigh County for an injunction restraining a person and

the agents, employees, partners, officers, and directors of the person from continuing

the act, practice, or transaction of engaging or doing any acts in furtherance of, and for

other and further relief as the facts may warrant. In any proceeding for an injunction,

the department may apply for and on due showing be entitled to have issued the

court's subpoena requiring the appearance of any defendants and their agents,

employees, partners, officers, or directors, and the production of documents, books,

and records as may appear necessary for the hearing upon the petition for an

injunction. Upon proof of any of the offenses described in this section, the court may

grant an injunction as the facts may warrant. The court may not require the department

to post a bond.
N.D. Cent. Code § 13-12-13 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-13
13-12-13. Suspension and removal of residential mortgage lender officers and employees
Status: in_force

13-12-13. Suspension and removal of residential mortgage lender officers and

employees.

1. The commissioner may issue and serve upon a current or former residential mortgage

lender officer or employee and upon the licensee involved an order stating:

a. That the current or former officer or employee is engaging or has engaged in any

of the following conduct:

(1) Violating a law, rule, order, or written agreement with the commissioner.

(2) Engaging in harassment or abuse, the making of false or misleading

representations, or engaging in unfair practices involving lending activity.

(3) Performing an act of commission or omission or practice which is a breach

of trust or a breach of fiduciary duty.

b. The term of the suspension or removal from employment and participation within

the conduct or the affairs of a residential mortgage lender.

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

3. If a hearing is not requested within twenty days of the date the order is served, or if a

hearing is held and the commissioner finds that the record so warrants, the

commissioner may enter a final order suspending or removing the current or former

employee. The current or former officer or employee may request a termination of the

final order after a period of no less than three years.

4. A contested or default suspension or removal order is effective immediately upon

issuance on the current or former officer or employee and upon the licensee. A

consent order is effective as agreed. Any current or former officer or employee

suspended or removed from employment and participation within the conduct or the

affairs of a residential mortgage lender pursuant to this section is not eligible, while

under suspension or removal, to be employed or otherwise participate in the affairs of

any financial corporation, financial institution, credit union, or any other entity licensed

by the department of financial institutions.

5. When a current or former officer, employee, or other person participating in the

conduct of the affairs of a licensee is charged with a felony in state or federal court

which involves dishonesty or breach of trust, the commissioner may immediately

suspend the person from office or prohibit the person from further participation in the

affairs of the residential mortgage lender, or both. The order is effective immediately

upon issuance and remains in effect until the criminal charge is finally disposed of or

until modified by the commissioner. If a judgment of conviction, federal pretrial

diversion, conviction or agreement to plea to lesser charges, or similar state order or

judgment is entered, the commissioner may order that the suspension or prohibition be

made permanent. A finding of not guilty or other disposition of the charge does not

preclude the commissioner from pursuing administrative or civil remedies.
N.D. Cent. Code § 13-04.1-01 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-01
13-04.1-01. Administration
Status: in_force

13-04.1-01. Administration

The department of financial institutions shall use its facilities to administer and enforce this

chapter. The department has the power to promulgate rules and regulations having the force

and effect of law, reasonably necessary to carry out the provisions of this chapter, in accordance

with chapter 28-32. Any hearing held and any orders issued pursuant to this chapter must be in

accordance with chapter 28-32. In addition to those powers set forth in chapter 28-32, the

department has additional powers as set forth in this chapter.
N.D. Cent. Code § 13-08-15 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-15
13-08-15. Violations - Cease and desist orders - Penalties
Status: in_force

13-08-15. Violations - Cease and desist orders - Penalties

Except as otherwise provided in this chapter, any person who willfully provides deferred

presentment services without a license is guilty of a class C felony and any person who violates

any other provisions of this chapter or any rule adopted to implement this chapter is guilty of an

infraction. If the commissioner finds, whether without a hearing or after a hearing if a hearing is

requested within twenty days of notice of an action by the commissioner under this section, that

a person violated this chapter or any rule adopted to implement this chapter, the commissioner

may do any one or more of the following:

1. Order the person to cease and desist violating this chapter or the rule.

2. Require the refund of any fees collected by the person in violation of this chapter.

3. Impose a civil penalty not to exceed five thousand dollars per violation upon a person

or agency who willfully violates a law, rule, written agreement, or order under this

chapter. An interested party may appeal the assessment of a civil money penalty

under the provisions of chapter 28-32 by filing a written notice of appeal within twenty

days after service of the assessment of civil money penalties. A civil money penalty

collected under this section must be paid to the state treasurer and deposited in the

financial institutions regulatory fund.
N.D. Cent. Code § 13-13-23 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-23
13-13-23. Call reports
Status: in_force

13-13-23. Call reports

Each licensee shall submit to the nationwide multistate licensing system and registry reports

of condition which must be in the prescribed form and must contain the information as the

nationwide multistate licensing system and registry may require. Failure to accurately report

information required by this section is deemed to be a violation of subsection 1 of section

13-13-15.
N.D. Cent. Code § 13-05-06.1 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-06.1
13-05-06.1. Suspension and removal of collection agency officers or employees
Status: in_force

13-05-06.1. Suspension and removal of collection agency officers or employees

1. The commissioner of financial institutions may issue and serve upon any current or

former collection agency officer or employee and upon the collection agency involved

an order stating:

a. That the current or former officer or employee is willfully engaging or has willfully

engaged in any of the following conduct:

(1) Violating any law, rule, order, or written agreement with the commissioner.

(2) Engaging in any harassment or abuse, the making of false or misleading

representations, or engaging in unfair practices involving collection activity.

(3) Performing any act of commission or omission or practice which is a breach

of trust or a breach of fiduciary duty.

b. The term of the suspension or removal from employment and participation within

the conduct or the affairs of a collection agency.

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

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

or if a hearing is held and the commissioner finds that the record so warrants, the

commissioner may enter a final order suspending or removing the current or former

officer or employee. The current or former officer or employee shall have the

opportunity to request a termination of the final order after a period of no less than

three years.

4. A contested or default suspension or removal order is effective immediately upon

service of the final order on the current or former officer or employee and upon the

collection agency. A consent order is effective as agreed. Any current or former officer

or employee suspended or removed from employment and participation within the

conduct or the affairs of a collection agency pursuant to this section is not eligible,

while under suspension or removal, to be employed or otherwise participate in the

affairs of any financial corporation, financial institution, credit union, or any other entity

licensed by the department of financial institutions.

5. When any current or former officer or employee, or other person participating in the

conduct of the affairs of a collection agency is charged with a felony in state or federal

court which involves dishonesty or breach of trust, the commissioner may immediately

suspend the person from office or prohibit the person from any further participation in

the collection agency's affairs, or both. The order is effective immediately upon service

of the order on the collection agency and the person charged and remains in effect

until the criminal charge is finally disposed of or until modified by the commissioner. If

a judgment of conviction, federal pretrial diversion, or similar state order or judgment is

entered, the commissioner may order that the suspension or prohibition be made

permanent. A finding of not guilty or other disposition of the charge does not preclude

the commissioner from pursuing administrative or civil remedies.

6. Under this section, a person engages in conduct "willfully" if the person acted

intentionally in the sense that the person was aware of what the person was doing.
N.D. Cent. Code § 13-12-16 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-16
13-12-16. Maximum charges permitted for loans - Installment payments - Permitted charges
Status: in_force

13-12-16. Maximum charges permitted for loans - Installment payments - Permitted

charges.

1. Interest charges and other fees must be set at rates, amounts, and terms as agreed to

by the parties within the loan contract. A licensee may not contract for or receive

finance charges pursuant to a loan in excess of an annual rate of thirty-six percent,

including all charges and fees necessary for the extension of credit incurred at the time

of origination.

2. Additional charges may be assessed for nonpayment or late payment as agreed to by

the parties within the loan contract. A licensee may not contract for or receive charges

in excess of five percent of the payment. For loans originated for fifty thousand dollars

or less, these charges may not exceed twenty dollars for each nonpayment or late

payment. The charge may be collected at the time of the default or any time after

default. If the charge is taken out of any payment received after a default occurs and if

the deduction results in the default of a subsequent payment, a charge may not be

made for the subsequent default.

3. The restrictions outlined in subsections 1 and 2 do not apply to court costs; lawful fees

for the filing, recording, or releasing in any public office of any instrument securing a

loan; and the identifiable charge or premium for insurance provided for by rule.
N.D. Cent. Code § 13-02.1-02 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-02
13-02.1-02. Insolvency
Status: in_force

13-02.1-02. Insolvency

1. A debtor is insolvent if, at a fair valuation, the sum of the debtor's debts is greater than

the sum of the debtor's assets.

2. A debtor that is generally not paying the debtor's debts as they become due other than

as a result of a bona fide dispute is presumed to be insolvent. The presumption

imposes on the party against which the presumption is directed the burden of proving

that the nonexistence of insolvency is more probable than its existence.

3. Assets under this section do not include property that has been transferred,

concealed, or removed with intent to hinder, delay, or defraud creditors or that has

been transferred in a manner making the transfer voidable under this chapter.

4. Debts under this section do not include an obligation to the extent it is secured by a

valid lien on property of the debtor not included as an asset.
N.D. Cent. Code § 13-01-08 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-08
13-01-08. When act of debtor void for fraud
Status: repealed

13-01-08. When act of debtor void for fraud

Repealed by S.L. 1985, ch. 186, § 12.
N.D. Cent. Code § 13-09.1-39 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-39
13-09.1-39. Consent orders
Status: in_force

13-09.1-39. Consent orders

The commissioner may enter into a consent order at any time with a person to resolve a

matter arising under this chapter or a rule adopted or order issued under this chapter. A consent

order must be signed by the person to whom it is issued or by the person's authorized

representative, and must indicate agreement with the terms contained in the order. A consent

order may provide that it does not constitute an admission by a person that this chapter or a rule

adopted or an order issued under this chapter has been violated.
N.D. Cent. Code § 13-04.1-14 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-14
13-04.1-14. Confidentiality
Status: in_force

13-04.1-14. Confidentiality

To promote more effective regulation and reduce regulatory burden through supervisory

information sharing:

1. Except as otherwise provided in Public Law 110-289, section 1512, the requirements

under any federal law, chapter 44-04, or section 6-01-07.1, regarding the privacy or

confidentiality of any information or material provided to the nationwide multistate

licensing system and registry, and any privilege arising under federal or state law,

including the rules of any federal or state court, with respect to such information or

material, continue to apply to such information or material after the information or

material has been disclosed to the nationwide multistate licensing system and registry.

Such information and material may be shared with all state and federal regulatory

officials with mortgage industry oversight authority without the loss of privilege or the

loss of confidentiality protections provided by federal law, chapter 44-04, or section

6-01-07.1.

2. For these purposes, the commissioner may enter agreements or sharing

arrangements with other governmental agencies, the conference of state bank

supervisors, the American association of residential mortgage regulators, or other

associations representing governmental agencies.

3. Information or material that is subject to a privilege or confidentiality under

subsection 1 is not subject to:

a. Disclosure under any federal or state law governing the disclosure to the public of

information held by an officer or an agency of the federal government or the

respective state; or

b. Subpoena or discovery, or admission into evidence, in any administrative

process, unless with respect to any privilege held by the nationwide multistate

licensing system and registry with respect to such information or material, the

person to whom such information or material pertains waives, in whole or in part,

in the discretion of such person, that privilege.

4. The commissioner shall take all necessary steps, under any applicable law or rule, to

protect the disclosure of information or material that is subject to a privilege or

confidentiality under subsection 1. Records subject to a privilege or confidentiality

under subsection 1 may be required to be disclosed only pursuant to an order of the

court. The court ordering the disclosure shall issue a protective order to protect the

confidential nature of the records.

5. Application of chapter 44-04 or section 6-01-07.1, relating to the disclosure of

confidential supervisory information or any information or material described in

subsection 1 which is inconsistent with subsection 1, is superseded by the

requirements of this section.
N.D. Cent. Code § 13-12-20 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-20
13-12-20. Remedies not exclusive
Status: in_force

13-12-20. Remedies not exclusive

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

remedies provided by law.
N.D. Cent. Code § 13-12-27 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-27
13-12-27. Notice to borrower regarding regulation by the department of financial institutions
Status: in_force

13-12-27. Notice to borrower regarding regulation by the department of financial

institutions.

The written contract must contain the following notice in capital letters: NOTICE:

RESIDENTIAL MORTGAGE LENDERS ARE LICENSED AND REGULATED BY THE NORTH

DAKOTA DEPARTMENT OF FINANCIAL INSTITUTIONS. THE DEPARTMENT OF FINANCIAL

INSTITUTIONS HAS NOT PASSED ON THE MERITS OF THE CONTRACT AND LICENSING

DOES NOT CONSTITUTE AN APPROVAL OF THE TERMS OR OF THE LENDERS ABILITY

TO ARRANGE ANY LOAN. COMPLAINTS REGARDING THE SERVICES OF RESIDENTIAL

MORTGAGE LENDERS SHOULD BE DIRECTED TO THE DEPARTMENT OF FINANCIAL

INSTITUTIONS.
N.D. Cent. Code § 13-04.1-04.2 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-04.2
13-04.1-04.2. Minimum net worth required
Status: in_force

13-04.1-04.2. Minimum net worth required

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

with this section.

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

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

subsection 1, the licensee shall provide a plan, subject to the approval of the

commissioner, to increase the licensee's net worth to an amount in conformance with

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

business days of a notice from the commissioner which states the licensee is not in

compliance with subsection 1. If the licensee does not submit a plan under this

section, fails to comply with an approved plan, or has repeated violations of

subsection 1, the commissioner may revoke the license.
N.D. Cent. Code § 13-12-12 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-12
13-12-12. Revocation of license - Suspension of license - Surrender of license
Status: in_force

13-12-12. Revocation of license - Suspension of license - Surrender of license

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

licensee's license if the commissioner finds:

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

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

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

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

made pursuant to and within the authority of this chapter.

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

license which clearly would have warranted the department of financial

institutions in refusing originally to issue a license.

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

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

required.

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

3. If a hearing is not requested within twenty days of the date the order is served upon

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

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

suspending or revoking the license is final.

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

that enforcement of the chapter requires immediate suspension of the license pending

investigation, it may enter an order suspending the license for a period not exceeding

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

holding of a hearing as prescribed in this chapter.

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

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

the licensee's civil or criminal liability for acts committed before the surrender.
N.D. Cent. Code § 13-01.1-06 — ND Code / Title 13 / Chapter 13-01.1 / Section 13-01.1-06
13-01.1-06. Subcontractor prompt payment required
Status: in_force

13-01.1-06. Subcontractor prompt payment required

Upon payment by a state agency, political subdivision, school district, or agency of the

United States, a business which has acquired under contract, property or services in connection

with its contract with such agency, political subdivision, or school district, from a subcontractor

or supplier, shall pay such subcontractor or supplier within forty-five days after payment from

such agency. Interest at the rate specified in section 13-01.1-02 accrues and is due any

subcontractor or supplier who is not paid within forty-five days after the business receives

payment from the agency, political subdivision, or school district, unless otherwise provided by

contract between the business and the subcontractor or supplier.
N.D. Cent. Code § 13-09.1-15 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-15
13-09.1-15. Maintenance of license
Status: in_force

13-09.1-15. Maintenance of license

1. If a licensee does not continue to meet the qualifications or satisfy the requirements

that apply to an applicant for a new money transmission license, the commissioner

may suspend or revoke the licensee's license in accordance with the procedures

established by this chapter or other applicable state law for such suspension or

revocation.

2. An applicant for a money transmission license and a money transmission licensee

must at all times meet the requirements in sections 13-09.1-32, 13-09.1-33, and

13-09.1-34.
N.D. Cent. Code § 13-09.1-24 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-24
13-09.1-24. Relationship between licensee and authorized delegate
Status: in_force

13-09.1-24. Relationship between licensee and authorized delegate

1. In this section, "remit" means to make direct payments of money to a licensee or its

representative authorized to receive money or to deposit money in a bank in an

account specified by the licensee.

2. Before a licensee may conduct business through an authorized delegate or allows a

person to act as the licensee's authorized delegate, the licensee must:

a. Adopt, and update as necessary, written policies and procedures reasonably

designed to ensure that the licensee's authorized delegates comply with

applicable state and federal law;

b. Enter into a written contract that complies with subsection 4; and

c. Conduct a reasonable risk-based background investigation sufficient for the

licensee to determine whether the authorized delegate has complied and will

likely comply with applicable state and federal law.

3. An authorized delegate must operate in full compliance with this chapter.

4. The written contract required by subsection 2 must be signed by the licensee and the

authorized delegate and, at a minimum, must:

a. Appoint the person signing the contract as the licensee's authorized delegate with

the authority to conduct money transmission on behalf of the licensee;

b. Set forth the nature and scope of the relationship between the licensee and the

authorized delegate and the respective rights and responsibilities of the parties;

c. Require the authorized delegate to agree to fully comply with all applicable state

and federal laws, rules, and regulations pertaining to money transmission,

including this chapter and regulations implementing this chapter, and relevant

provisions of the federal Anti-Money Laundering Act of 2020;

d. Require the authorized delegate to remit and handle money and monetary value

in accordance with the terms of the contract between the licensee and the

authorized delegate;

e. Impose a trust on money and monetary value net of fees received for money

transmission for the benefit of the licensee;

f. Require the authorized delegate to prepare and maintain records as required by

this chapter or regulations implementing this chapter, or as reasonably requested

by the commissioner;

g. Acknowledge that the authorized delegate consents to examination or

investigation by the commissioner;

h. State the licensee is subject to regulation by the commissioner and that, as part

of that regulation, the commissioner may suspend or revoke an authorized

delegate designation or require the licensee to terminate an authorized delegate

designation; and

i. Acknowledge receipt of the written policies and procedures required under

subdivision a of subsection 2.

5. If the licensee's license is suspended, revoked, surrendered, or expired, the licensee

must, within five business days, provide documentation to the commissioner that the

licensee has notified all applicable authorized delegates of the licensee whose names

are in a record filed with the commissioner of the suspension, revocation, surrender, or

expiration of a license. Upon suspension, revocation, surrender, or expiration of a

license, applicable authorized delegates shall immediately cease to provide money

transmission as an authorized delegate of the licensee.

6. An authorized delegate of a licensee holds in trust for the benefit of the licensee all

money net of fees received from money transmission. If any authorized delegate

commingles any funds received from money transmission with any other funds or

property owned or controlled by the authorized delegate, all commingled funds and

other property must be considered held in trust in favor of the licensee in an amount

equal to the amount of money net of fees received from money transmission.

7. An authorized delegate may not use a subdelegate to conduct money transmission on

behalf of a licensee.
N.D. Cent. Code § 13-02.1-12 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-12
13-02.1-12. Application to series organization
Status: in_force

13-02.1-12. Application to series organization

1. In this section:

a. "Protected series" means an arrangement, however denominated, created by a

series organization that, pursuant to the law under which the series organization

is organized, has the characteristics set forth in subdivision b.

b. "Series organization" means an organization that, pursuant to the law under

which it is organized, has the following characteristics:

(1) The organic record of the organization provides for creation by the

organization of one or more protected series, however denominated, with

respect to specified property of the organization, and for records to be

maintained for each protected series that identify the property of or

associated with the protected series.

(2) Debt incurred or existing with respect to the activities of, or property of or

associated with, a particular protected series is enforceable against the

property of or associated with the protected series only, and not against the

property of or associated with the organization or other protected series of

the organization.

(3) Debt incurred or existing with respect to the activities or property of the

organization is enforceable against the property of the organization only,

and not against the property of or associated with a protected series of the

organization.

2. A series organization and each protected series of the organization is a separate

person for purposes of this chapter, even if for other purposes a protected series is not

a person separate from the organization or other protected series of the organization.
N.D. Cent. Code § 13-04.1-02 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-02
13-04.1-02. Money broker license required
Status: in_force

13-04.1-02. Money broker license required

Except as otherwise provided, a person other than a money broker licensed and authorized

under this chapter may not engage in money brokering in the state of North Dakota without a

money broker license issued by the commissioner. A person engages in money brokering in

North Dakota if the borrower resides in North Dakota.
N.D. Cent. Code § 13-12-25 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-25
13-12-25. Report to nationwide multistate licensing system and registry
Status: in_force

13-12-25. Report to nationwide multistate licensing system and registry

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

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

multistate licensing system and registry subject to the provisions contained in section 13-12-22.
N.D. Cent. Code § 13-07-06 — ND Code / Title 13 / Chapter 13-07 / Section 13-07-06
13-07-06. Fees - Payments - Cancellation
Status: in_force

13-07-06. Fees - Payments - Cancellation

A consumer credit counseling service may charge an origination fee of up to fifty dollars,

which may be subtracted from the initial amount paid by the debtor to the counseling service.

The consumer credit counseling service may withdraw and retain as partial payment of the

service's total fee up to fifteen percent of any sum deposited by the debtor for distribution. The

remainder must be disbursed to the listed creditors in accordance with the parties' agreement.

Disbursement must be made within forty-five days after deposit by the debtor. Before an

automatic termination, either party may cancel the agreement without cause upon giving to the

other party thirty days' written notice of an intent to cancel. In the event of a cancellation, the

consumer credit counseling service shall notify the debtor's creditors within thirty days.
N.D. Cent. Code § 13-05-04 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-04
13-05-04. Application requirements - Fee to accompany application for collection agency license
Status: in_force

13-05-04. Application requirements - Fee to accompany application for collection

agency license.

The application for a collection agency license must be in writing, under oath, and in the

form prescribed by the commissioner. The application must give the location where the business

is to be conducted and must contain any further information the commissioner requires,

including the names and addresses of the partners, officers, directors, trustees, and the

principal owners or members as will provide the basis for the investigation and findings

contemplated by section 13-05-03. At the time of making such application, the applicant shall

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

investigating the application, and the sum of four hundred dollars for the annual license. In

addition, the applicant shall pay a fifty dollar annual fee for each branch location. Fees must be

deposited in the financial institutions regulatory fund.
N.D. Cent. Code § 13-04.1-17 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-17
13-04.1-17. Report to nationwide multistate licensing system and registry
Status: in_force

13-04.1-17. Report to nationwide multistate licensing system and registry

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

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

multistate licensing system and registry subject to the provisions contained in section 13-10-15.
N.D. Cent. Code § 13-08-10 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-10
13-08-10. Regulations - Examinations
Status: in_force

13-08-10. Regulations - Examinations

The commissioner may adopt rules for the implementation and enforcement of this chapter.

To assure compliance with this chapter, the commissioner may examine the relevant business,

books, and records of any licensee. The licensee shall pay an examination or visitation fee, and

the commissioner shall charge the licensee for the actual cost of the examination or visitation at

an hourly rate set by the commissioner which is sufficient to cover all reasonable expenses

associated with the examination or visitation.
N.D. Cent. Code § 13-09.1-08 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-08
13-09.1-08. Relationship to federal law
Status: in_force

13-09.1-08. Relationship to federal law

1. In the event state money transmission jurisdiction is conditioned on a federal law, any

inconsistencies between a provision of this chapter and the federal law governing

money transmission must be governed by the applicable federal law to the extent of

the inconsistency.

2. In the event of any inconsistencies between this chapter and a federal law that

governs pursuant to subsection 1, the commissioner may provide interpretive

guidance that identifies:

a. The inconsistency; and

b. The appropriate means of compliance with federal law.
N.D. Cent. Code § 13-09.1-23 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-23
13-09.1-23. Records
Status: in_force

13-09.1-23. Records

1. A licensee shall maintain the following records, for determining its compliance with this

chapter for at least six years:

a. A record of each outstanding money transmission obligation sold;

b. A general ledger posted at least monthly containing all asset, liability, capital,

income, and expense accounts;

c. Bank statements and bank reconciliation records;

d. Records of outstanding money transmission obligations;

e. Records of each outstanding money transmission obligation paid within the

six-year period;

f. A list of the last-known names and addresses of all of the licensee's authorized

delegates; and

g. Any other records the commissioner reasonably requires by rule.

2. The items specified in subsection 1 may be maintained in any form of record.

3. Records specified in subsection 1 may be maintained outside this state if they are

made accessible to the commissioner on seven business days' notice that is sent in a

record.

4. All records maintained by the licensee as required in subsections 1 through 3 are open

to inspection by the commissioner pursuant to subsection 1 of section 13-09.1-06.
N.D. Cent. Code § 13-09.1-12 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-12
13-09.1-12. Information requirements for certain individuals
Status: in_force

13-09.1-12. Information requirements for certain individuals

1. Any individual in control of a licensee or applicant, any individual that seeks to acquire

control of a licensee, and each key individual shall furnish to the commissioner through

the nationwide system the following items:

a. The individual's fingerprints for submission to the federal bureau of investigation

and the commissioner for purposes of a national criminal history background

check unless the person currently resides outside of the United States and has

resided outside of the United States for the last ten years.

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

commissioner, to obtain the following:

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

individual does not have a social security number, in which case, this

requirement shall be waived;

(2) Information related to any criminal convictions or pending charges; and

(3) Information related to any regulatory or administrative action and any civil

litigation involving claims of fraud, misrepresentation, conversion,

mismanagement of funds, breach of fiduciary duty, or breach of contract.

2. If the individual has resided outside of the United States at any time in the last

ten years, the individual also shall provide an investigative background report prepared

by an independent search firm that meets the following requirements:

a. At a minimum, the search firm shall:

(1) Demonstrate that it has sufficient knowledge, resources, and employs

accepted and reasonable methodologies to conduct the research of the

background report; and

(2) Not be affiliated with or have an interest with the individual it is researching.

b. At a minimum, the investigative background report must be written in the English

language and must contain the following:

(1) If available in the individual's current jurisdiction of residency, a

comprehensive credit report, or any equivalent information obtained or

generated by the independent search firm to accomplish the report,

including a search of the court data in the countries, provinces, states, cities,

towns, and contiguous areas where the individual resided and worked;

(2) Criminal records information for the past ten years, including felonies,

misdemeanors, or similar convictions for violations of law in the countries,

provinces, states, cities, towns, and contiguous areas where the individual

resided and worked;

(3) Employment history;

(4) Media history, including an electronic search of national and local

publications, wire services, and business applications; and

(5) Financial services-related regulatory history, including money transmission,

securities, banking, insurance, and mortgage-related industries.
N.D. Cent. Code § 13-05-06.3 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-06.3
13-05-06.3. Prohibited acts and practices
Status: in_force

13-05-06.3. Prohibited acts and practices

It is a violation of this chapter for a person or individual subject to this chapter to:

1. Negligently make any false statement or knowingly make any omission of material fact

in connection with any information, reports, or applications filed with the department or

another governmental agency.

2. Collect, charge, attempt to collect or charge, or use or propose any agreement

purporting to collect or charge any fee prohibited by this chapter.

3. Fail to truthfully account for moneys belonging to or collected from another.
N.D. Cent. Code § 13-11-25 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-25
13-11-25. Liability for the conduct of other persons
Status: in_force

13-11-25. Liability for the conduct of other persons

If a provider delegates any of its duties or obligations under a contract or this chapter to

another person, including an independent contractor, the provider is liable for conduct of the

person which, if done by the provider, would violate the contract or this chapter.
N.D. Cent. Code § 13-05-04.2 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-04.2
13-05-04.2. Minimum net worth required
Status: in_force

13-05-04.2. Minimum net worth required

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

with this section.

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

2. If the net worth of a licensee falls below the minimum net worth as set forth in

subsection 1, the licensee shall provide a plan, subject to the approval of the

commissioner, to increase the licensee's net worth to an amount in conformance with

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

business days of a notice from the commissioner that the licensee is not in compliance

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

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

commissioner may revoke the license.
N.D. Cent. Code § 13-09.1-46 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-46
13-09.1-46. Conditions precedent to engaging in virtual-currency business activity
Status: in_force

13-09.1-46. Conditions precedent to engaging in virtual-currency business activity

1. A person may not engage in virtual-currency business activity, or hold itself out as

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

person unless the person is:

a. Licensed in this state by the commissioner pursuant to section 13-09.1-13; or

b. Exempt from licensing under section 13-09.1-02.

2. A person that is licensed to engage in virtual-currency business activity is engaged in

the business of money transmission and is subject to the requirements of this chapter.
N.D. Cent. Code § 13-02.1-08 — ND Code / Title 13 / Chapter 13-02.1 / Section 13-02.1-08
13-02.1-08. Defenses - Liability - Protection of transferee or obligee
Status: in_force

13-02.1-08. Defenses - Liability - Protection of transferee or obligee

1. A transfer or obligation is not voidable under subdivision a of subsection 1 of section

13-02.1-04 against a person that took in good faith and for a reasonably equivalent

value given the debtor or against any subsequent transferee or obligee.

2. To the extent a transfer is avoidable in an action by the creditor under subdivision a of

subsection 1 of section 13-02.1-07, the following rules apply:

a. Except as otherwise provided in this section, the creditor may recover judgment

for the value of the asset transferred, as adjusted under subsection 3, or the

amount necessary to satisfy the creditor's claim, whichever is less. The judgment

may be entered against:

(1) The first transferee of the asset or the person for whose benefit the transfer

was made; or

(2) An immediate or mediate transferee of the first transferee, other than:

(a) A good-faith transferee that took for value; or

(b) An immediate or mediate good-faith transferee of a person described

in subparagraph a.

b. Recovery pursuant to subdivision a of subsection 1 of section 13-02.1-07 or

subsection 2 of section 13-02.1-07 of or from the asset transferred or its

proceeds, by levy or otherwise, is available only against a person described in

paragraph 1 or 2 of subdivision a.

3. If the judgment under subsection 2 is based upon the value of the asset transferred,

the judgment must be for an amount equal to the value of the asset at the time of the

transfer, subject to adjustment as the equities may require.

4. Notwithstanding voidability of a transfer or an obligation under this chapter, a

good-faith transferee or obligee is entitled, to the extent of the value given the debtor

for the transfer or obligation, to:

a. A lien on or a right to retain an interest in the asset transferred;

b. Enforcement of an obligation incurred; or

c. A reduction in the amount of the liability on the judgment.

5. A transfer is not voidable under subdivision b of subsection 1 of section 13-02.1-04 or

section 13-02.1-05 if the transfer results from termination of a lease upon default by

the debtor when the termination is pursuant to the lease and applicable law or

enforcement of a security interest in compliance with chapter 41-09, other than

acceptance of collateral in full or partial satisfaction of the obligation it secures.

6. A transfer is not voidable under subsection 2 of section 13-02.1-05:

a. To the extent the insider gave new value to or for the benefit of the debtor after

the transfer was made, except to the extent the new value was secured by a valid

lien;

b. If made in the ordinary course of business or financial affairs of the debtor and

the insider; or

c. If made pursuant to a good-faith effort to rehabilitate the debtor and the transfer

secured present value given for that purpose as well as an antecedent debt of the

debtor.

7. The following rules determine the burden of proving matters referred to in this section:

a. A party that seeks to invoke subsection 1, 4, 5, or 6 has the burden of proving the

applicability of that subsection.

b. Except as otherwise provided in subdivision c or d, the creditor has the burden of

proving each applicable element of subsection 2 or 3.

c. The transferee has the burden of proving the applicability to the transferee of

subparagraph a or b of paragraph 2 of subdivision a of subsection 2.

d. A party that seeks adjustment under subsection 3 has the burden of proving the

adjustment.

8. The standard of proof required to establish matters referred to in this section is

preponderance of the evidence.
N.D. Cent. Code § 13-11-26 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-26
13-11-26. Powers of the commissioner
Status: in_force

13-11-26. Powers of the commissioner

Insofar as consistent with other provisions of law, the commissioner may:

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

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

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

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

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

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

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

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

2. Conduct investigations and make an examination of any person, whether licensed or

not, who is engaged in the debt-settlement services business, including all records of

such business, and to subpoena witnesses anytime the commissioner has reason to

believe such is necessary. The licensee shall pay an examination or visitation fee and

must be charged by the commissioner at an hourly rate to be set by the commissioner,

sufficient to cover all reasonable expenses of the department associated with the

examination or visitation provided for by this section. Fees must be deposited in the

financial institutions regulatory fund.

3. Issue and serve upon any person or licensed debt-settlement provider an order to

cease and desist to take corrective action when the commissioner has reason to

believe the person or agency is violating, has violated, or is about to violate the

provisions of this chapter. An interested party may appeal issuance of a cease and

desist order under chapter 28-32 by filing written notice of appeal within twenty days

after service of the order.

4. Deny, suspend, revoke, condition, or decline to renew a license for a violation of this

chapter, rules or regulations issued under this chapter, or an order or directive entered

under this chapter.

5. Deny, suspend, revoke, condition, or decline to renew a license if an applicant or

licensee withholds information or makes a material misstatement in an application for

a license or renewal of a license.
N.D. Cent. Code § 13-10-15 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-15
13-10-15. Confidentiality
Status: in_force

13-10-15. Confidentiality

To promote more effective regulation and reduce regulatory burden through supervisory

information sharing:

1. Except as otherwise provided in Public Law 110-289, section 1512, the requirements

under any federal law or chapter 44-04 regarding the privacy or confidentiality of any

information or material provided to the nationwide mortgage licensing system and

registry, and any privilege arising under federal or state law, including the rules of any

federal or state court, with respect to such information or material, continue to apply to

such information or material after the information or material has been disclosed to the

nationwide mortgage licensing system and registry. Such information and material may

be shared with all state and federal regulatory officials with mortgage industry

oversight authority without the loss of privilege or the loss of confidentiality protections

provided by federal law or chapter 44-04.

2. For these purposes, the commissioner may enter agreements or sharing

arrangements with other governmental agencies, the conference of state bank

supervisors, the American association of residential mortgage regulators, or other

associations representing governmental agencies as established by rule, regulation, or

order of the commissioner.

3. Information or material that is subject to a privilege or confidentiality under

subsection 1 is not subject to:

a. Disclosure under any federal or state law governing the disclosure to the public of

information held by an officer or an agency of the federal government or the

respective state; or

b. Subpoena or discovery, or admission into evidence, in any private civil action or

administrative process, unless with respect to any privilege held by the

nationwide mortgage licensing system and registry with respect to such

information or material, the person to whom such information or material pertains

waives, in whole or in part, in the discretion of such person, that privilege.

4. Application of chapter 44-04 relating to the disclosure of confidential supervisory

information or any information or material described in subsection 1 which is

inconsistent with subsection 1 shall be superseded by the requirements of this section.

5. This section does not apply with respect to the information or material relating to the

employment history of, and publicly adjudicated disciplinary and enforcement actions

against, mortgage loan originators that is included in the nationwide mortgage

licensing system and registry for access by the public.
N.D. Cent. Code § 13-08-09 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-09
13-08-09. Expiration of license - Renewal
Status: in_force

13-08-09. Expiration of license - Renewal

Licenses issued under this chapter expire as of December thirty-first of each year. A license

may be renewed for the ensuing twelve-month period upon application and the payment to the

commissioner of the annual license fee, which is not subject to refund, before December first of

each year. The form and content of renewal applications must be determined by the department

of financial institutions and a renewal application may be denied upon the same grounds as

would justify denial of an initial application. When a licensee has been delinquent in renewing

the licensee's license, the department may charge an additional fee of fifty dollars for the

renewal of such license.
N.D. Cent. Code § 13-09.1-25 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-25
13-09.1-25. Unauthorized activities
Status: in_force

13-09.1-25. Unauthorized activities

A person shall not engage in the business of money transmission on behalf of a person not

licensed under this chapter or not exempt pursuant to section 13-09.1-02. A person that

engages in such activity provides money transmission to the same extent as if the person were

a licensee, and must be jointly and severally liable with the unlicensed or nonexempt person.
N.D. Cent. Code § 13-09.1-28 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-28
13-09.1-28. Refunds
Status: in_force

13-09.1-28. Refunds

1. This section does not apply to:

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

Code of Federal Regulation, part 1005, subpart B]; or

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

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

payee.

2. Every licensee shall refund to the sender within ten days of receipt of the sender's

written request for a refund of any and all money received for transmission unless any

of the following occurs:

a. The money has been forwarded within ten days of the date on which the money

was received for transmission;

b. Instructions have been given committing an equivalent amount of money to the

person designated by the sender within ten days of the date on which the money

was received for transmission;

c. The agreement between the licensee and the sender instructs the licensee to

forward the money at a time that is beyond ten days of the date on which the

money was received for transmission. If funds have not yet been forwarded in

accordance with the terms of the agreement between the licensee and the

sender, the licensee shall issue a refund in accordance with the other provisions

of this section;

d. The refund is requested for a transaction that the licensee has not completed

based on a reasonable belief or a reasonable basis to believe that a crime or

violation of law, rule, or regulation has occurred, is occurring, or may occur; or

e. The refund request does not enable the licensee to:

(1) Identify the sender's name and address or telephone number; or

(2) Identify the particular transaction to be refunded in the event the sender has

multiple transactions outstanding.
N.D. Cent. Code § 13-09.1-17 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-17
13-09.1-17. Notice and information requirements for a change of key individuals
Status: in_force

13-09.1-17. Notice and information requirements for a change of key individuals

1. A licensee adding or replacing any key individual shall:

a. Provide notice in a manner prescribed by the commissioner within fifteen days

after the effective date of the key individual's appointment; and

b. Provide information as required by section 13-09.1-12 within forty-five days of the

effective date.

2. Within ninety days of the date on which the notice provided pursuant to subsection 1

was determined to be complete, the commissioner may issue a notice of disapproval

of a key individual if the competence, experience, character, or integrity of the

individual would not be in the best interests of the public or the customers of the

licensee to permit the individual to be a key individual of the licensee.

3. A notice of disapproval must contain a statement of the basis for disapproval and must

be sent to the licensee and the disapproved individual. A licensee may appeal a notice

of disapproval by requesting a hearing before the commissioner within twenty days

after receipt of notice of disapproval in accordance with chapter 28-32.

4. If the notice provided pursuant to subsection 1 is not disapproved within ninety days

after the date on which the notice was determined to be complete, the key individual is

deemed approved.

5. If a multistate licensing process includes a key individual notice review and

disapproval process pursuant to this section and the licensee avails itself or is

otherwise subject to the multistate licensing process:

a. The commissioner may accept the determination of another state if the

investigating state has sufficient staffing, expertise, and minimum standards for

the purpose of this section; or

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

the applicant pursuant to subsection 2 and the time frames established by

agreement through the multistate licensing process.
N.D. Cent. Code § 13-09.1-05 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-05
13-09.1-05. Confidentiality
Status: in_force

13-09.1-05. Confidentiality

1. Except as otherwise provided in subsection 2, all information or reports obtained by

the commissioner from an applicant, licensee, or authorized delegate, and all

information contained in or related to an examination, investigation, operating report,

or condition report prepared by, on behalf of, or for the use of the commissioner, or

financial statements, balance sheets, or authorized delegate information, are

confidential and are not subject to disclosure under section 6-01-07.1.

2. The commissioner may disclose information not otherwise subject to disclosure under

subsection 1 to representatives of state or federal agencies who promise in a record

that they will maintain the confidentiality of the information or where the commissioner

finds that the release is reasonably necessary for the protection and interest of the

public in accordance with section 6-01-07.1.

3. This section does not prohibit the commissioner from disclosing to the public a list of

all licensees or the aggregated financial or transactional data concerning those

licensees.

4. Information contained in the records of the department of financial institutions that is

not confidential and may be made available to the public either on the department of

financial institutions' website, upon receipt by the department of financial institutions of

a written request, or in the nationwide system must include:

a. The name, business address, telephone number, and unique identifier of a

licensee;

b. The business address of a licensee's registered agent for service;

c. The name, business address, and telephone number of all authorized delegates;

d. The terms of or a copy of any bond filed by a licensee, provided that confidential

information, including prices and fees for bond is redacted;

e. Copies of any nonconfidential final orders of the department of financial

institutions relating to any violation of this chapter or regulations implementing

this chapter; and

f. Imposition of an administrative fine or penalty under this chapter.
N.D. Cent. Code § 13-01.1-05 — ND Code / Title 13 / Chapter 13-01.1 / Section 13-01.1-05
13-01.1-05. When this chapter is inapplicable
Status: in_force

13-01.1-05. When this chapter is inapplicable

If the agency or business fails to timely pay interest as required by sections 13-01.1-02 and

13-01.1-06 and the failure is the result of a dispute between the agency and the business, or a

dispute between the business and a subcontractor or supplier, over the amount due or over

compliance with the contract, the provisions of this chapter are inapplicable. If the settlement of

a dispute is found in favor of the business, or the subcontractor or supplier, interest must accrue

and be paid as provided in section 13-01.1-03.
N.D. Cent. Code § 13-12-15 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-15
13-12-15. Advance fees prohibited - Exception
Status: in_force

13-12-15. Advance fees prohibited - Exception

A residential mortgage lender may not take any type of fee in advance before the funding of

the loan, unless the residential mortgage lender is licensed under this chapter. A residential

mortgage lender licensed under this chapter may accept an advance expense deposit which

may not exceed the residential mortgage lender's good-faith estimate of the actual cost of any

appraisal or credit reports performed by an independent appraiser or independent credit

reporting agency and required by the originating lender for the evaluation of the potential

borrower's loan application. Any expense deposit that exceeds the actual cost of any appraisal

or credit report must be promptly refunded to the borrower or credited to the borrower's account

at the time of the loan closing. A residential mortgage lender may also charge a fee in advance

to lock an interest rate.
N.D. Cent. Code § 13-13-11 — ND Code / Title 13 / Chapter 13-13 / Section 13-13-11
13-13-11. Powers of the department of financial institutions
Status: in_force

13-13-11. Powers of the department of financial institutions

The department of financial institutions has the power to:

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

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

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

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

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

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

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

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

2. Establish codes of ethical conduct for licensees.

3. The commissioner may:

a. Order or direct the licensee subject to this chapter to satisfy additional conditions

necessary to ensure that the institution will continue to operate in a safe and

sound manner and be able to continue to service loans in compliance with state

and federal law or regulation where risk to the institution or borrower is extremely

high, as determined by a formal review.

b. Provide notice that all or part of this chapter is not applicable to an institution

where risk to the institution is extremely low, as determined by a formal review.

c. Provide public notice of a temporary suspension of all or certain sections of this

chapter where economic, environmental, or societal events are determined to be

of such severity to warrant a temporary suspension.
N.D. Cent. Code § 13-05-05.1 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-05.1
13-05-05.1. Change of name or address
Status: in_force

13-05-05.1. Change of name or address

A licensee is required to submit within twenty business days of the date of change,

notification of a change of name or change of address. The notification must be in the form

prescribed by the commissioner.
N.D. Cent. Code § 13-08-14 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-14
13-08-14. Suspension - Revocation
Status: in_force

13-08-14. Suspension - Revocation

1. The commissioner may issue and serve upon any licensee an order suspending or

revoking a license if the commissioner finds that the licensee or any principal of the

licensee has been convicted of a felony or that the licensee knowingly or through lack

of due care:

a. Failed to pay the annual license fee imposed under this chapter or any

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

b. Committed any fraud, engaged in any dishonest activities, or made any

misrepresentations;

c. Violated this chapter or any rule adopted under this chapter or violated any other

law in the course of the licensee's business activities as a licensee;

d. Made false statements in the application for the license;

e. Engaged in any unfair or deceptive acts, practices, or advertising in the conduct

of a deferred presentment service business;

f. Failed to maintain the required bond; or

g. Failed to maintain registration with the secretary of state if so required.

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

3. If a hearing is not requested within twenty business days of the date the order is

served upon the licensee or if a hearing is held and the commissioner finds that the

record so warrants, the commissioner may enter a final order suspending or revoking

the license.

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

that enforcement of the chapter requires immediate suspension of such license

pending investigation, it may upon written notice enter an order temporarily

suspending such license for a period not exceeding sixty days, pending the holding of

a hearing as prescribed in this chapter.
N.D. Cent. Code § 13-01-12 — ND Code / Title 13 / Chapter 13-01 / Section 13-01-12
13-01-12. Removing or disposing of property to defraud creditors - Penalty
Status: in_force

13-01-12. Removing or disposing of property to defraud creditors - Penalty

Every person who removes any of the person's property from a county with intent to prevent

a levy thereon under execution or attachment, or who secretes, assigns, conveys, or otherwise

disposes of any of the person's property with intent to defraud any creditor or to prevent the

property from being made liable for the payment of the person's debts, and every person who

receives any property with such intent, is guilty of a class A misdemeanor.
N.D. Cent. Code § 13-11-12 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-12
13-11-12. Advertising and marketing practices
Status: in_force

13-11-12. Advertising and marketing practices

1. A debt-settlement provider may not represent, expressly or by implication, any results

or outcomes of its debt-settlement services in any advertising, marketing, or other

communication to consumers unless the debt-settlement provider possesses

substantiation for the representation at the time the representation is made.

2. A debt-settlement provider may not make, expressly or by implication, any unfair or

deceptive representations, or any omissions of material facts, in any of its advertising

or marketing communications concerning debt-settlement services.

3. All advertising and marketing communications concerning debt-settlement services

must disclose the following material information clearly and conspicuously:

Debt-settlement services are not appropriate for everyone. Failure to pay your monthly

bills in a timely manner will result in increased balances and will harm your credit

rating. Not all creditors may agree to reduce principal balance, and they may pursue

collection, including lawsuits.
N.D. Cent. Code § 13-09.1-27 — ND Code / Title 13 / Chapter 13-09.1 / Section 13-09.1-27
13-09.1-27. Timely transmission
Status: in_force

13-09.1-27. Timely transmission

1. Every licensee shall forward all money received for transmission in accordance with

the terms of the agreement between the licensee and the sender unless the licensee

has a reasonable belief or a reasonable basis to believe that the sender may be a

victim of fraud or that a crime or violation of law, rule, or regulation has occurred, is

occurring, or may occur.

2. If a licensee fails to forward money received for transmission in accordance with this

section, the licensee must respond to inquiries by the sender with the reason for the

failure unless providing a response would violate a state or federal law, rule, or

regulation.
N.D. Cent. Code § 13-04.1-06 — ND Code / Title 13 / Chapter 13-04.1 / Section 13-04.1-06
13-04.1-06. Powers of the department of financial institutions
Status: in_force

13-04.1-06. Powers of the department of financial institutions

Insofar as consistent with the provisions of law, the department of financial institutions has

the power to:

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

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

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

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

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

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

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

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

2. Establish codes of ethical conduct for licensees.
N.D. Cent. Code § 13-08-08 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-08
13-08-08. Reports of commissioner
Status: in_force

13-08-08. Reports of commissioner

Within fifteen days of the occurrence of any one of the following events, a licensee shall file

a written report with the commissioner describing the event and the event's expected impact on

the activities of the licensee in the state:

1. The filing for bankruptcy or reorganization by the licensee;

2. The institution of revocation or suspension proceedings against the licensee by any

governmental authority;

3. Any felony charges of the licensee or any of the licensee's members, directors,

officers, or shareholders; and

4. Any other event the commissioner identifies by rule.
N.D. Cent. Code § 13-05-01 — ND Code / Title 13 / Chapter 13-05 / Section 13-05-01
13-05-01. Administration
Status: in_force

13-05-01. Administration

The department of financial institutions shall use its facilities to administer and enforce this

chapter. Any person or persons delegated to administer this chapter may not have financial

interests directly or indirectly in any business which is subject to this chapter.
N.D. Cent. Code § 13-10-20 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-20
13-10-20. Privately insured credit unions
Status: in_force

13-10-20. Privately insured credit unions

Nonfederally insured credit unions which employ loan originators, as defined in Public Law

110-289, title V, the S.A.F.E. Act, shall register such employees with the nationwide mortgage

licensing system and registry by furnishing the information concerning the employees' identity

set forth in section 1507(a)(2) of Public Law 110-289, title V.
N.D. Cent. Code § 13-08-03 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-03
13-08-03. Qualifications for license
Status: in_force

13-08-03. Qualifications for license

To qualify for a license, an applicant shall satisfy the following requirements:

1. Each applicant shall maintain a net worth of at least twenty-five thousand dollars per

licensed location, determined in accordance with generally accepted accounting

principles.

2. The financial responsibility, financial condition, business experience, character, and

general fitness of the applicant must reasonably warrant the belief that the applicant's

business will be conducted lawfully and fairly. In determining whether this qualification

is met and for the purpose of investigating compliance with this chapter, the

commissioner may review and consider the relevant business records and the capital

adequacy of the applicant and the competence, experience, integrity, and financial

ability of any person who is a member, partner, director, officer, or twenty-five percent

or more shareholder of the applicant, and whether the applicant has filed the

appropriate registration with the North Dakota secretary of state, if so required.

3. Each applicant shall establish that neither the applicant nor any principal of the

applicant has been convicted of a felony. A deferred sentence or federal pretrial

diversion must be considered a conviction for purposes of this section.

4. Each applicant shall maintain a bond issued by a surety company authorized to do

business in this state, in the amount of twenty thousand dollars, and the commissioner

may require a larger bond if the commissioner determines the larger bond is

necessary based on the volume of the applicant's business.
N.D. Cent. Code § 13-11-05 — ND Code / Title 13 / Chapter 13-11 / Section 13-11-05
13-11-05. Qualifications for license
Status: in_force

13-11-05. Qualifications for license

1. Upon the filing of the application, the approval of the bond, and the payment of the

specified fees, the commissioner may issue a license if the commissioner finds all of

the following:

a. The financial responsibility, experience, character, and general fitness of the

applicant, managers, partners, officers, and directors are such as to command

the confidence of the community and to warrant belief that the business will be

operated fairly, honestly, and efficiently within the purposes of this chapter.

b. The applicant, managers, partners, officers, and directors:

(1) Have not been convicted of a felony;

(2) Have not been convicted of a misdemeanor involving dishonesty or

untrustworthiness; or

(3) Have not been the subject of an adverse finding or adjudication in a license

disciplinary or other administrative proceeding concerning allegations

involving dishonesty or untrustworthiness.

c. The applicant, managers, partners, officers, and directors have not had a record

of having defaulted in the payment of money collected for others, including the

discharge of those debts through bankruptcy proceedings.

d. The applicant or any managers, partners, officers, and directors previously have

not violated any provision of this chapter or any rule adopted by the

commissioner unless the commissioner determines the violation is not material.

e. The applicant has not made any false statement or representation to the

commissioner in applying for a license under this chapter.

2. The commissioner shall deliver a license to the applicant to operate as a

debt-settlement provider in accordance with this chapter at the location specified in the

application. The license remains in full force and effect until it is surrendered by the

debt-settlement provider or revoked by the commissioner as provided in this chapter;

provided, however, that each license expires by its terms on December thirty-first next

following its issuance unless renewed as provided in this chapter. A license may not be

surrendered without the approval of the commissioner.
N.D. Cent. Code § 13-10-04 — ND Code / Title 13 / Chapter 13-10 / Section 13-10-04
13-10-04. State license and registration application and issuance
Status: in_force

13-10-04. State license and registration application and issuance

1. Applicants for a license shall apply in a form as prescribed by the commissioner. Each

such form must contain content as set forth by rule, regulation, instruction, or

procedure of the commissioner and may be changed or updated as necessary by the

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

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

contracts with the nationwide mortgage licensing system and registry or other entities

designated by the nationwide mortgage licensing system and registry to collect and

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

other persons subject to this chapter.

3. In connection with an application for licensing as a mortgage loan originator, the

applicant shall, at a minimum, furnish to the nationwide mortgage licensing system and

registry information concerning the applicant's identity, including:

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

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

national, and international criminal history background check; and

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

licensing system and registry, including the submission of authorization for the

nationwide mortgage licensing system and registry and the commissioner to

obtain:

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

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

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

governmental jurisdiction.

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

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

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

channeling agent for requesting information from and distributing information to the

department of justice or any governmental agency.

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

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

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

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

commissioner.
N.D. Cent. Code § 13-12-03 — ND Code / Title 13 / Chapter 13-12 / Section 13-12-03
13-12-03. Residential mortgage lender license required
Status: in_force

13-12-03. Residential mortgage lender license required

Except as otherwise provided, a person other than a residential mortgage lender licensed

and authorized under this chapter may not engage in residential mortgage lending in the state

without a residential mortgage lender license issued by the commissioner. A person engages in

residential mortgage lending if the borrower resides in North Dakota.
N.D. Cent. Code § 13-08-06 — ND Code / Title 13 / Chapter 13-08 / Section 13-08-06
13-08-06. Issuance of license - Posting
Status: in_force

13-08-06. Issuance of license - Posting

1. Upon receipt of a complete application, the commissioner shall determine whether the

qualifications prescribed under this chapter are satisfied. If the commissioner

determines the qualifications are satisfied and approves the documents, the

commissioner shall issue to the applicant a license to engage in the deferred

presentment service business.

2. A licensee shall keep a notice conspicuously posted in the place of business of the

licensee and shall provide the same notice to its customers in this state. This notice

must include the license number and instructions for customers to look up the licensee

on the nationwide multistate licensing system for license verification.

3. A license issued under this section is effective through the remainder of the fiscal year

ending December thirty-first after the license's date of issuance unless earlier

surrendered, suspended, or revoked under this chapter.