N.D. Cent. Code § 6-06-12 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-12
6-06-12. Directors - Duties and powers - Loan limitations
Status: in_force

6-06-12. Directors - Duties and powers - Loan limitations

1. The directors shall have general management of the credit union, and it is their duty

particularly:

a. To act on applications for membership, unless a membership officer is appointed.

b. To determine interest rates on loans and deposits or designate a representative

to determine these rates.

c. To fix, subject to the approval of the commissioner, the amount of surety bond

which must be required of all officers and employees handling money.

d. To declare dividends.

e. To transmit to the members recommendations for changes in the bylaws.

f. To fill vacancies on the board of directors and on the credit committee who shall

serve until their successors are chosen and qualified.

g. To determine the maximum individual shareholdings and the maximum aggregate

liability to the credit union of any one borrower but such maximum aggregate

liability allowed by the board may not exceed the amounts listed in the following

schedule:

Total Assets Loan Limit

0 to 70,000 10% with a limit of 5,000

70,001 to 100,000 6,000 limit

100,001 to 200,000 8,000 limit

200,001 to 300,000 10,000 limit

300,001 to 400,000 12,000 limit

400,001 to 500,000 14,000 limit

over 500,000 3% of assets

For purposes of this subsection, the aggregate liability of one borrower to a

credit union includes the total direct, indirect, and contingent liabilities of the

borrower, and the liabilities of separate borrowers for which the repayment of

separate loans or extensions of credit is substantially from the same source. The

aggregate liability of any one borrower to the credit union does not include any

loan or portion of a loan guaranteed by the government, to the extent of the

guarantee, nor any loan secured by shares in the credit union, to the extent of the

security.

In all cases a credit union is allowed to loan up to and including two hundred

dollars to any individual regardless of the amount of total assets in said credit

union. Provided, that the foregoing provisions do not apply to the North Dakota

central credit union.

h. To supervise and control investments other than loans to members.

i. To establish a schedule of fines for delinquency in the payment of principal or

interest, which the board shall impose at its discretion.

2. The board may appoint membership officers authorized to approve applications for

membership under such conditions as the board may prescribe; except that such

membership officers so authorized shall submit to the board at each monthly meeting

a list of approved or pending applications for membership received since the previous

monthly meeting, together with such other related information as the bylaws or the

board may require.

3. No immediate family member of the president, general manager, or chief executive

officer of the credit union may serve on the board of directors of the credit union.

4. A majority of the board of directors of a credit union may not be immediate family

members of each other.
N.D. Cent. Code § 6-09-02.1 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-02.1
6-09-02.1. Declaration and finding of public purpose - Bank of North Dakota advisory board of directors
Status: in_force

6-09-02.1. Declaration and finding of public purpose - Bank of North Dakota advisory

board of directors.

To enlist the help of private enterprise and to encourage more active use of the purposes for

which the Bank of North Dakota was created, the governor shall appoint an advisory board of

directors to the Bank of North Dakota consisting of seven persons, at least two of whom must

be officers of banks, the majority of the stock of which is owned by North Dakota residents, and

at least one of whom must be an officer of a state-chartered or federally chartered financial

institution. The governor shall appoint a chairman, vice chairman, and secretary from the

advisory board of directors. The term of a director is four years. The industrial commission shall

define the duties of the advisory board of directors.
N.D. Cent. Code § 6-01-21.3 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-21.3
6-01-21.3. Examination of municipal agencies and school districts by order of governor or upon petition
Status: repealed

6-01-21.3. Examination of municipal agencies and school districts by order of

governor or upon petition.

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-05-15.3 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-15.3
6-05-15.3. Deposit of trust funds awaiting investment or distribution in affiliates
Status: in_force

6-05-15.3. Deposit of trust funds awaiting investment or distribution in affiliates

A bank or trust company qualified to and acting as fiduciary or cofiduciary in this state may

deposit trust funds awaiting investment or distribution in a bank, including, without limitation, a

bank that owns or controls, or that is owned or controlled by a corporation that owns or controls,

the bank or trust company.
N.D. Cent. Code § 6-09.4-20 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-20
6-09.4-20. Form of municipal securities and investments
Status: in_force

6-09.4-20. Form of municipal securities and investments

All municipal securities held by the public finance authority as permitted or provided for

under this chapter must at all times be purchased and held in fully marketable form, subject to

provision for any registration in the name of the public finance authority. All municipal securities

at any time purchased, held, or owned by the public finance authority must, upon delivery to the

public finance authority, be in fully marketable form and accompanied by such documentation as

shall from time to time be required by the public finance authority.
N.D. Cent. Code § 6-03-02.2 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-02.2
6-03-02.2. Issuance of certificates of deposit - Penalty
Status: in_force

6-03-02.2. Issuance of certificates of deposit - Penalty

Certificates of deposit, as defined in section 41-03-04, may only be issued in this state by

financial institutions authorized to issue certificates of deposit and chartered to do business in

this state under this chapter or as authorized under section 6-06-06.1. Any person violating this

section is subject to a civil penalty not to exceed five thousand dollars.
N.D. Cent. Code § 6-05-02 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-02
6-05-02. Compliance with chapter required - Penalty for noncompliance
Status: in_force

6-05-02. Compliance with chapter required - Penalty for noncompliance

No person, firm, company, copartnership, or corporation, either domestic or foreign, not

organized under this chapter nor subject to its provisions, except only national banking

corporations, state banks authorized under this chapter, state banks or trust companies

authorized to engage in trust activities under the laws of another state, their affiliates, bona fide

banking institution trade associations and their affiliates, and the Bank of North Dakota, may

make use of or display in connection with its business, in signs, letterheads, advertising, or in

any other way, such words as "trust", "trust company", or any other word or words of like import,

nor may any person or concern do or perform anything in the nature of the business of a trust

company until and unless such business is regularly organized and authorized under this

chapter. If any firm or corporation organized prior to July 1, 1931, has been granted a charter

permitting it to use any word, words, or title contrary to the intent of this section, and by reason

of its rights under such charter, the provisions of this section may not be enforced against it

during the life of such charter. However, no renewal charter may be granted to such person,

firm, or corporation permitting the continuance of the use of such word, words, or title contrary to

or in violation of this section. Any person, firm, or corporation which, by reason of an existing

charter right under any law or statute in effect prior to July 1, 1931, may be held by the courts

not to be affected by this section and which therefore refuses to comply with the provisions of

this section, during the period of noncompliance, shall display, prominently and continuously in

plain, legible, and clearly discernible lettering on all of its signs, stationery, circulars, and

advertising, and in all of its printed or written matter the following words and language: "NOT

UNDER THE SUPERVISION OF THE STATE BANKING BOARD OR THE COMMISSIONER

OF FINANCIAL INSTITUTIONS", and such language must be displayed thereon as prominently

as any other matter therein. Any person, firm, company, copartnership, or corporation, domestic

or foreign, violating any provision of this section, shall forfeit to the state one hundred dollars for

every day or part thereof during which such violation continues. In an action brought by the

commissioner or any aggrieved person, the court may issue an injunction restraining such

person, firm, company, copartnership, or corporation from further using such words, terms, or

phrases in violation of this section or from further transacting business in such a way or manner

as to lead the public to believe that its business is in whole or in part of the nature of a trust

company, or that it is under the supervision of the state banking board or the commissioner.

Upon written request, the commissioner may grant an exemption to this section if the

commissioner finds that use of the words "trust" or "trust company", or words of like import, are

not reasonably likely to cause confusion or lead the public to believe that the person requesting

the exemption is a trust company, banking institution trade association, or affiliate authorized

under this section or is conducting a business subject to the jurisdiction of the department. In

granting an exemption under this section, the commissioner may restrict or condition the

exemption and use of the name or word or the activities of an exempt person as the

commissioner considers appropriate to protect the public interest.
N.D. Cent. Code § 6-06-23 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-23
6-06-23. Use of permanent loan fund - To whom loaned and regulating making of loans
Status: repealed

6-06-23. Use of permanent loan fund - To whom loaned and regulating making of

loans.

Repealed by S.L. 1965, ch. 90, § 11.
N.D. Cent. Code § 6-05-07 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-07
6-05-07. Election of directors - Appointment and bonds of officers
Status: in_force

6-05-07. Election of directors - Appointment and bonds of officers

An annual election must be held at the principal office or place of business of the

corporation, which must be within this state, upon a day to be fixed by the articles of the

corporation, and notice of such election must be given by registered or certified mail at least ten

days prior to such date, or by publication in a newspaper published in the county in which the

corporation has its principal place of business. At such meeting, the directors must be elected,

and in case of a failure to elect on that day or on a day to which such annual meeting may be

adjourned, the directors whose regular terms do not then expire shall proceed to elect such

number of directors as have failed of election, and any vacancy in the office of director may be

filled by the board until the next annual meeting. The board of directors, at its next meeting

following the election of directors and after such directors have qualified, shall elect from its

number a president, vice president, and such other officers as may be necessary to the

transaction of the business of the corporation. The board shall define the powers, authority, and

duties of such officers and employees by bylaws or resolutions, fix the conditions, form, and

amount of their bonds, and approve the same, but no such officer or employee may enter upon

the discharge of the person's duties until such bond has been approved and has been filed with

and approved by the commissioner.
N.D. Cent. Code § 6-06-01 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-01
6-06-01. Savings and credit association may be organized
Status: in_force

6-06-01. Savings and credit association may be organized

Any seven residents of this state may apply to the state credit union board for permission to

organize a corporate cooperative association to be known as a credit union.
N.D. Cent. Code § 6-03-62 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-62
6-03-62. Interest on loans - Rate
Status: in_force

6-03-62. Interest on loans - Rate

An association may demand and receive for loans on personal security, or for discounting

notes, bills, or other evidences of debt, such rate of interest as may be agreed upon, not

exceeding the amount authorized by law to be contracted for, and it may receive such interest

according to the ordinary usage of banking associations and for not more than one year in

advance.
N.D. Cent. Code § 6-13-04 — ND Code / Title 6 / Chapter 6-13 / Section 6-13-04
6-13-04. Application of privilege
Status: in_force

6-13-04. Application of privilege

If a financial institution, person, or entity performs or directs the performance of a

compliance audit, an officer, employee, or agent involved with the compliance audit, or any

consultant who is hired for the purpose of performing the compliance audit, may not be

examined in any civil, criminal, or administrative proceeding as to the compliance audit or any

compliance self-critical analysis audit document. This section does not apply if it is determined

under section 6-13-06 or 6-13-07 that the privilege does not apply.
N.D. Cent. Code § 6-06-14 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-14
6-06-14. Loans - How made - Security - Meetings and duties of credit committee - Preferential loans
Status: repealed

6-06-14. Loans - How made - Security - Meetings and duties of credit committee -

Preferential loans.

Repealed by S.L. 2021, ch. 76, § 17.
N.D. Cent. Code § 6-08-10 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-10
6-08-10. Articles as evidence
Status: in_force

6-08-10. Articles as evidence

A certified copy of the articles of incorporation of any association or corporation organized

under the provisions of this title may be used as evidence in all courts, for or against any

person, association, or corporation in both civil and criminal trials.
N.D. Cent. Code § 6-07.2-05 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-05
6-07.2-05. Powers of receiver
Status: in_force

6-07.2-05. Powers of receiver

The receiver of a closed institution may do the following:

1. Take possession of all books, records, and assets of the institution.

2. Collect all debts, claims, and judgments belonging to the institution and do such other

acts as are necessary to preserve and liquidate the assets of the institution.

3. Execute in the name of the institution any instrument necessary or proper to effectuate

the receiver's powers or perform the duties as receiver.

4. Initiate, pursue, and defend litigation involving any right, claim, interest, or liability of

the institution.

5. Exercise any and all existing fiduciary functions of the institution as of the date of

appointment as receiver.

6. Borrow money as necessary and secure the borrowings by the pledge or mortgage of

assets. The repayment of money borrowed under this subsection and interest on the

money borrowed under this section must be considered an expense of administration

under section 6-07.2-09.

7. Abandon or convey title to any holder of a mortgage, deed of trust, security interest, or

lien against property in which the institution has an interest if the receiver determines

that to continue to claim the interest is burdensome and of no advantage to the

institution or the institution's depositors, creditors, or shareholders.

8. Repudiate any leases or executory contracts to which the institution is a party in

accordance with section 6-07.2-09.

9. Sell any and all real and personal property to compromise any debt, claim, or

judgment due from the institution and discontinue any action or other proceedings

pending.

10. Pay off all mortgages, deeds of trust, security agreements, and liens upon any real or

personal property belonging to the institution and purchase at judicial sale or at sale

authorized by court order, any real or personal property in order to protect the

institution's equity in that property.

11. Sell in bulk the assets and liabilities of the institution.
N.D. Cent. Code § 6-09.18-06 — ND Code / Title 6 / Chapter 6-09.18 / Section 6-09.18-06
6-09.18-06. Use of loan funds
Status: in_force

6-09.18-06. Use of loan funds

Loan recipients shall use legacy investment technology loan funds to enhance capacity and,

to the extent possible, leverage state, federal, and private sources of funding. An entity receiving

a loan under this chapter may not use the funds for capital or building investments or for

research or other activities not identified in this chapter. The funds may not be used for

academic or instructive programming, workforce training, administrative costs, or to supplant

funding for regular operations of institutions of higher education. Unless otherwise approved by

the committee, loan recipients may use funding only to conduct applied research,

experimentation, or operational testing within the state. If an entity awarded a loan no longer

conducts its activities in the state, the interest rate of the loan shall default to the rate of a

standard Bank of North Dakota loan.
N.D. Cent. Code § 6-09.11-09 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-09
6-09.11-09. Postponement of repayment of principal
Status: in_force

6-09.11-09. Postponement of repayment of principal

If the income of a borrower is reduced in any year due to causes beyond the borrower's

control to the extent that the borrower is unable to make a payment on a loan under this

chapter, the Bank of North Dakota and the originating lender may defer the payment of the

principal sum due in that year and the term of the loan may be extended for the period of

deferment.
N.D. Cent. Code § 6-09.15-01 — ND Code / Title 6 / Chapter 6-09.15 / Section 6-09.15-01
6-09.15-01. Definitions
Status: in_force

6-09.15-01. Definitions

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

1. "Beginning entrepreneur" means a resident of this state who:

a. Has graduated from high school or has received a general equivalency certificate.

b. Has had some training, by education or experience, in the type of

revenue-producing enterprise which that person wishes to begin.

c. Has, including the net worth of that person's dependents and spouse, if any, a net

worth of less than an amount determined by the Bank of North Dakota.

2. "Child care provider" means a child care home, group, or center licensed by the

department of health and human services.

3. "Lender" means any lending institution that is regulated or funded under the laws of

this state or the United States and which has provided financing to a beginning

entrepreneur for the establishment of a qualified revenue-producing enterprise.

4. "Loan guarantee" means an agreement that in the event of default by a beginning

entrepreneur under a note and mortgage or other loan or financing agreement, the

Bank of North Dakota shall pay the lender the amount agreed upon up to a percentage

to be determined by the Bank of the amount of principal due the lender on a loan at

the time the claim is approved from the loan guarantee fund.

5. "Qualified revenue-producing enterprise" means any real property, buildings,

improvements on the property or to the buildings, any equipment located on the

property or in the buildings, and any personal property used or useful in connection

with a revenue-producing enterprise engaged in any industry or business not

prohibited by the Constitution of North Dakota or the laws of this state. The term does

not include an enterprise for which a person is eligible under section 6-09-15.5 or
N.D. Cent. Code § 6-08.1-09 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-09
6-08.1-09. Joint marketing agreements - Consent
Status: in_force

6-08.1-09. Joint marketing agreements - Consent

A financial institution must have a customer's consent before the financial institution may

disclose the customer's information to a nonaffiliated third party under a joint marketing

agreement as provided under section 502(b)(2) of the federal Financial Services Modernization

Act of 1999 [Pub. L. 106-102; 113 Stat. 1437; 15 U.S.C. 6802(b)(2)].
N.D. Cent. Code § 6-02-07 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-07
6-02-07. Determination of board - Recording of organization certificate
Status: in_force

6-02-07. Determination of board - Recording of organization certificate

If the determination of the state banking board is in favor of the applicants, the organization

certificate and permission of the board accompanying the same must be recorded in the office

of the recorder of the county in which such banking association is to be established, and the

same must be transmitted to and received by the secretary of state. The secretary of state shall

record and carefully preserve it in the secretary of state's office and shall certify the facts to the

state banking board. The secretary of state then shall issue a certificate of authority to the

corporation, and such certificate of authority must be transmitted to and held by the

commissioner until an examination is made and the certificate of the commissioner or the

deputy examiner procured to the effect that the capital stock and required surplus have been

paid in full, that federal deposit insurance corporation insurance of deposits has been secured,

and that all conditions of the law have been complied with strictly. If the determination of the

state banking board is against the said application, such organization certificate must not be

recorded in the office of the recorder, and, if presented, it must not be accepted by the secretary

of state.
N.D. Cent. Code § 6-05-21 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-21
6-05-21. Cost of bond allowable as expense and taxable as costs in suit
Status: repealed

6-05-21. Cost of bond allowable as expense and taxable as costs in suit

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-01-06 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-06
6-01-06. Appointment of receivers
Status: in_force

6-01-06. Appointment of receivers

The state banking board and state credit union board, except as otherwise provided in this

title, have authority and power to appoint, by their own order, receivers for insolvent financial

institutions and credit unions under their regulatory supervision. Such receivers have the same

power and authority, and their acts have the same validity, as if they had been appointed under

and by the direction of a district court. Nothing herein contained may be construed so as to take

away from the courts the power to appoint receivers of such financial institutions and credit

unions at any stage of the proceedings and thus to terminate the receivership ordered by the

board.
N.D. Cent. Code § 6-09.11-01 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-01
6-09.11-01. Definitions
Status: in_force

6-09.11-01. Definitions

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

1. "Family farm" means agricultural real estate operated and owned or leased by a

farmer, or other organization authorized to own or lease land used for farming or

ranching under chapter 10-06.1, where the majority of the labor necessary to operate

the farm is performed by the farmer and the farmer's family, if any.

2. "Farmer" means a resident of North Dakota whose principal occupation is or will be the

production of an agricultural commodity or livestock on a family farm if granted a loan.
N.D. Cent. Code § 6-09.18-01 — ND Code / Title 6 / Chapter 6-09.18 / Section 6-09.18-01
6-09.18-01. Definitions
Status: in_force

6-09.18-01. Definitions

In this chapter, unless the context otherwise requires:

1. "Commissioner" means the commissioner of the department of commerce.

2. "Committee" means the legacy investment for technology committee.

3. "Diversification sectors" means the following industries:

a. Advanced computing and data management;

b. Agriculture technology;

c. Autonomous and uncrewed vehicles and related technologies;

d. Energy;

e. Health care;

f. Value-added agriculture;

g. Value-added energy; and

h. Any industry or area specifically identified by the committee as an industry that

will contribute to the diversification of the state's economy.
N.D. Cent. Code § 6-07.1-01 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-01
6-07.1-01. Action to close state trust company
Status: in_force

6-07.1-01. Action to close state trust company

The commissioner or board may close and liquidate a state trust company on finding that

the interests of its clients and creditors are jeopardized by the state trust company's insolvency

or imminent insolvency or that the best interests of clients and creditors would be served by

requiring that the state trust company be closed and its assets liquidated. A majority of the state

trust company's directors, managers, or managing participants may voluntarily close the state

trust company and place it with the commissioner for liquidation.
N.D. Cent. Code § 6-08-35 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-35
6-08-35. Legal recognition of electronic records and electronic signatures
Status: in_force

6-08-35. Legal recognition of electronic records and electronic signatures

A record or signature on a record or document may not be denied legal effect or

enforceability solely because it is in electronic form. A contract between a financial institution

and another person may not be denied legal effect or enforceability solely because an electronic

record was used in its formation. If a provision requires a record to be in writing, an electronic

record satisfies the requirement. If a provision requires a signature, an electronic signature

satisfies the requirement.
N.D. Cent. Code § 6-06-37 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-37
6-06-37. Rules and regulations
Status: in_force

6-06-37. Rules and regulations

The state credit union board shall prescribe rules and regulations regarding the merger,

consolidation, and dissolution of corporations organized under this chapter and Acts of

Congress.
N.D. Cent. Code § 6-03-74 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-74
6-03-74. Definitions
Status: repealed

6-03-74. Definitions

Repealed by S.L. 1965, ch. 296, § 32.
N.D. Cent. Code § 6-08.6-10 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-10
6-08.6-10. Recoupment or set off
Status: in_force

6-08.6-10. Recoupment or set off

1. Except as provided in subsection 2 or 3, a bank or credit union may not exercise a

right of recoupment or set off against a special deposit.

2. An account agreement may allow the bank or credit union to debit the special deposit:

a. When the bank or credit union becomes obligated to pay a beneficiary, in an

amount that does not exceed the amount necessary to discharge the obligation;

b. For a fee assessed by the bank or credit union that relates to an overdraft in the

special deposit account;

c. For costs incurred by the bank or credit union that relate directly to the special

deposit; or

d. To reverse an earlier credit posted by the bank or credit union to the balance of

the special deposit account, if the reversal occurs under an event or circumstance

warranted under other law governing mistake and restitution.

3. The bank or credit union holding a special deposit may exercise a right of recoupment

or set off against an obligation to pay a beneficiary, even if the bank or credit union

funds payment from the special deposit.
N.D. Cent. Code § 6-09.7-08 — ND Code / Title 6 / Chapter 6-09.7 / Section 6-09.7-08
6-09.7-08. Limitation on additional state aid
Status: repealed

6-09.7-08. Limitation on additional state aid

Repealed by S.L. 2011, ch. 82, § 4.
N.D. Cent. Code § 6-06-30 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-30
6-06-30. Voluntary liquidation authorized - Qualification of liquidating committee
Status: repealed

6-06-30. Voluntary liquidation authorized - Qualification of liquidating committee

Repealed by S.L. 1967, ch. 90, § 13.
N.D. Cent. Code § 6-10-07 — ND Code / Title 6 / Chapter 6-10 / Section 6-10-07
6-10-07. Revocation of license
Status: in_force

6-10-07. Revocation of license

In the event of the failure of any person, partnership, association, corporation, or limited

liability company to comply with the provisions of this chapter or the regulations promulgated by

the commissioner as herein provided, the commissioner, after fifteen days' notice in writing, may

revoke such license. Such applicant, upon demand in writing served upon the commissioner,

within ten days after the receipt of such notice as above provided, is entitled to a hearing with

respect to such violation. The notice of revocation must specify the violations of law or

regulations which constitute the grounds for such charges against such licensee.
N.D. Cent. Code § 6-09.4-13 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-13
6-09.4-13. Personal liability
Status: in_force

6-09.4-13. Personal liability

Neither the members of the industrial commission nor any person executing bonds issued

pursuant to this chapter or chapter 40-57 is liable personally on such bonds by reason of the

issuance thereof.
N.D. Cent. Code § 6-08-23 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-23
6-08-23. Retention of records
Status: in_force

6-08-23. Retention of records

No bank may be required to preserve and retain its records of accounts or files for a longer

period than six years next after the first day of January of the year following the date of such

record or files.
N.D. Cent. Code § 6-06-13.1 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-13.1
6-06-13.1. Credit union volunteers - Immunity
Status: in_force

6-06-13.1. Credit union volunteers - Immunity

A person who serves as a volunteer, including a director, credit committee member, or

supervisory committee member, of a federal or state-chartered credit union is immune from civil

liability for any act or omission resulting in damage or injury if at the time of the act or omission

all of the following are met:

1. The volunteer was acting in good faith and in the scope of that person's official duties

as a volunteer of the credit union.

2. The act or omission did not constitute willful misconduct or gross negligence on the

part of the volunteer.

3. The volunteer did not receive or expect to receive reimbursement for or payment of

expenses in excess of five thousand dollars per year for expenses actually incurred as

a result of providing services as a volunteer of the credit union and did not receive or

expect to receive compensation or anything in lieu of compensation as payment for

services provided as a volunteer of the credit union.

This section does not grant immunity to any person causing damage as the result of the

negligent operation of a motor vehicle.
N.D. Cent. Code § 6-01-29 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-29
6-01-29. Obstructing or misleading examiner - Penalty
Status: in_force

6-01-29. Obstructing or misleading examiner - Penalty

Every person who, when required to do so, shall refuse or neglect to make any return or

exhibit, or to make or give any information required by the examiner, or who willfully shall

obstruct or mislead the examiner in the execution of the examiner's duties, or who in any

manner shall hinder a thorough examination by the examiner, shall be guilty of a class C felony.
N.D. Cent. Code § 6-10-02 — ND Code / Title 6 / Chapter 6-10 / Section 6-10-02
6-10-02. License fee - Bond
Status: in_force

6-10-02. License fee - Bond

Such applicant shall pay to the commissioner an annual fee of twenty-five dollars, and shall

furnish a bond to the state of North Dakota, executed by a corporate surety company authorized

to do business in this state, in the sum of not less than five thousand dollars. Such bond from

time to time may be increased by the commissioner whenever, in the commissioner's judgment,

the business of said licensee warrants.
N.D. Cent. Code § 6-06.2-03 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-03
6-06.2-03. Capital structure
Status: in_force

6-06.2-03. Capital structure

A cooperative financial institution formed under this chapter shall have a capital structure

the state banking board or commissioner determines is adequate. The cooperative financial

institution shall comply with prompt corrective actions requirements of section 6-01-04.4. A

cooperative financial institution is not authorized to issue capital stock, common stock, preferred

stock, or other forms of equity ownership authorized by this title for other types of banking

associations.
N.D. Cent. Code § 6-09-47 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-47
6-09-47. Medical facility infrastructure loan fund - Medical facility infrastructure loan program - Rural health loan program - Medical facility emergency operating loan program - Continuing appropriation - Audit and costs of administration (Effective through June 30, 2027)
Status: in_force

6-09-47. Medical facility infrastructure loan fund - Medical facility infrastructure loan

program - Rural health loan program - Medical facility emergency operating loan

program - Continuing appropriation - Audit and costs of administration. (Effective

through June 30, 2027)

1. The Bank of North Dakota shall administer a medical facility infrastructure loan

program to provide loans to medical facilities to conduct construction that improves the

health care infrastructure in the state or improves access to existing nonprofit health

care providers in the state. The construction project may include land purchases and

may include purchase, lease, erection, or improvement of any structure or facility to

the extent the governing board of the health care facility has the authority to authorize

such activity.

2. In order to be eligible under the medical facility infrastructure loan program, the

applicant must be the governing board of the health care facility which shall submit an

application to the Bank. The application must:

a. Detail the proposed construction project, which must be a project of at least

one million dollars and which is expected to be utilized for at least thirty years;

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

c. Include financial information as the Bank may determine appropriate to determine

eligibility, such as whether there are alternative financing methods.

3. A medical facility infrastructure loan provided under this section:

a. May not exceed the lesser of fifteen million dollars or seventy-five percent of the

actual cost of the project;

b. Must have an interest rate equal to two percent; and

c. Must provide a repayment schedule of no longer than twenty-five years.

4. A recipient of a medical facility infrastructure loan under this section shall complete the

financed construction project within twenty-four months of approval of the loan. Failure

to comply with this subsection may result in forfeiture of the entire loan received under

this section.

5. The Bank shall administer a rural health loan program to provide short-term gap

financing to grant recipients under the federal rural health transformation program with

approved projects and a demonstrated financial need.

a. To be eligible for a rural health loan under this subsection, the applicant:

(1) Must be approved for a grant by the department of health and human

services and the centers for Medicare and Medicaid services, as applicable,

under the federal rural health transformation program based on policies

developed by the department of health and human services.

(2) Provide information as requested by the Bank, including information

substantiating a demonstrated financial need and evidence of project

approval from the department of health and human services under the

federal rural health transformation program.

b. A loan under this subsection must have:

(1) An annual interest rate that does not exceed two percent;

(2) A term that complies with the criteria established by the department of

health and human services, in accordance with the federal rural health

transformation program, and does not exceed three years.

c. From the repayment of loans under this subsection, the principal portion must be

used to replenish the Bank's profits which were transferred to the fund for the

loans under this program, and interest portion must be deposited in the fund.

6. The Bank shall administer a medical facility emergency operating loan program to

provide emergency operating loans to local nonprofit hospitals located in cities with a

population of fewer than two thousand five hundred according to the most recent

decennial census.

a. To be eligible for an emergency operating loan under this subsection, the

governing board of a health care facility shall:

(1) Submit an application to the Bank by March 31, 2026;

(2) Provide financial information as requested by the Bank to determine

eligibility, including information on alternative financing and other funding

sources; and

(3) Provide an updated operating plan and cash flow projections indicating the

feasibility of future operations after restructuring and sufficient financial

resources to address any operating deficit and to repay the loan.

b. A medical facility emergency operating loan under this subsection:

(1) May not exceed five million dollars per qualified applicant;

(2) Must have an annual interest rate that does not exceed two percent; and

(3) Must have a maximum term that does not exceed eleven years, unless a

shorter term is required based on an analysis by the Bank, with the first year

of the loan eligible for interest-only payments.

7. The medical facility infrastructure loan fund is a special fund in the state treasury. This

fund is a revolving fund. All moneys transferred into the fund, interest on moneys in the

fund, and collections of principal and interest on loans from the fund are appropriated

to the Bank on a continuing basis for the purpose of providing loans under this section.

8. Moneys in the fund may be used for loans as provided under this section and to pay

the costs of administration of the fund. Annually, the Bank may deduct a service fee for

administering the fund.

9. The fund must be audited in accordance with section 6-09-29. The cost of the audit

and any other actual costs incurred by the Bank on behalf of the fund must be paid

from the fund.

10. The Bank shall deposit medical facility infrastructure loan repayments in the fund.

Medical facility infrastructure loan fund - Medical facility infrastructure loan program -

Rural health loan program - Continuing appropriation - Audit and costs of administration.

(Effective after June 30, 2027)

1. The Bank of North Dakota shall administer a medical facility infrastructure loan

program to provide loans to medical facilities to conduct construction that improves the

health care infrastructure in the state or improves access to existing nonprofit health

care providers in the state. The construction project may include land purchases and

may include purchase, lease, erection, or improvement of any structure or facility to

the extent the governing board of the health care facility has the authority to authorize

such activity.

2. In order to be eligible under the medical facility infrastructure loan program, the

applicant must be the governing board of the health care facility which shall submit an

application to the Bank. The application must:

a. Detail the proposed construction project, which must be a project of at least one

million dollars and which is expected to be utilized for at least thirty years;

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

c. Include financial information as the Bank may determine appropriate to determine

eligibility, such as whether there are alternative financing methods.

3. A medical facility infrastructure loan provided under this section:

a. May not exceed the lesser of fifteen million dollars or seventy-five percent of the

actual cost of the project;

b. Must have an interest rate equal to two percent; and

c. Must provide a repayment schedule of no longer than twenty-five years.

4. A recipient of a medical facility infrastructure loan under this section shall complete the

financed construction project within twenty-four months of approval of the loan. Failure

to comply with this subsection may result in forfeiture of the entire loan received under

this section.

5. The Bank shall administer a rural health loan program to provide short-term gap

financing to grant recipients under the federal rural health transformation program with

approved projects and a demonstrated financial need.

a. To be eligible for a rural health loan under this subsection, the applicant:

(1) Must be approved for a grant by the department of health and human

services and the centers for Medicare and Medicaid services, as applicable,

under the federal rural health transformation program based on policies

developed by the department of health and human services.

(2) Provide information as requested by the Bank, including information

substantiating a demonstrated financial need and evidence of project

approval from the department of health and human services under the

federal rural health transformation program.

b. A loan under this subsection must have:

(1) An annual interest rate that does not exceed two percent;

(2) A term that complies with the criteria established by the department of

health and human services, in accordance with the federal rural health

transformation program, and does not exceed three years.

c. From the repayment of loans under this subsection, the principal portion must be

used to replenish the Bank's profits which were transferred to the fund for the

loans under this program, and interest portion must be deposited in the fund.

6. The medical facility infrastructure loan fund is a special fund in the state treasury. This

fund is a revolving fund. All moneys transferred into the fund, interest on moneys in the

fund, and collections of principal and interest on loans from the fund are appropriated

to the Bank on a continuing basis for the purpose of providing loans under this section.

7. Moneys in the fund may be used for loans as provided under this section and to pay

the costs of administration of the fund. Annually, the Bank may deduct a service fee for

administering the fund.

8. The fund must be audited in accordance with section 6-09-29. The cost of the audit

and any other actual costs incurred by the Bank on behalf of the fund must be paid

from the fund.

9. The Bank shall deposit medical facility infrastructure loan repayments in the fund.
N.D. Cent. Code § 6-09-40 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-40
6-09-40. Reimbursement of Bank losses
Status: repealed

6-09-40. Reimbursement of Bank losses

Repealed by S.L. 2007, ch. 87, § 2.
N.D. Cent. Code § 6-06-03 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-03
6-06-03. Commissioner to furnish forms
Status: in_force

6-06-03. Commissioner to furnish forms

The commissioner, on written application of any seven residents of this state, shall furnish

without charge to persons proposing to incorporate a credit union a form of certificate of

organization and a set of suggested bylaws approved by the commissioner as consistent with

this chapter.
N.D. Cent. Code § 6-08-11 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-11
6-08-11. Punishment for violation of duty by director of moneyed corporation - Penalty
Status: in_force

6-08-11. Punishment for violation of duty by director of moneyed corporation -

Penalty.

Every director of any moneyed association or corporation who willfully does any act as such

director which is expressly forbidden by law, or who willfully omits to perform any duty by law

expressly imposed upon the director as such director, if the punishment for such act or omission

is not prescribed otherwise by this code, is guilty of a class B misdemeanor.
N.D. Cent. Code § 6-08-30 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-30
6-08-30. Limitation on control of deposits
Status: in_force

6-08-30. Limitation on control of deposits

No financial institution or financial institution holding company may acquire direct or indirect

ownership or control of more than twenty-five percent of North Dakota deposits through the

direct or indirect acquisition of an interest in, ownership of, or control over another financial

institution in this state. No financial institution or financial institution holding company may

purchase the assets and assume the liabilities of a banking house or facility of any financial

institution located in this state if the consummation of the acquisition results in the acquiring

financial institution or financial institution holding company having direct or indirect interest in,

ownership of, or control over more than twenty-five percent of North Dakota deposits. No

financial institution may establish a facility outside the corporate city limits of the location of the

main banking house or any authorized facility if the financial institution or its financial institution

holding company has a direct or indirect interest in, ownership of, or control over more than

twenty-five percent of North Dakota deposits. For purposes of this chapter, "North Dakota

deposits" means North Dakota deposits as that term is defined in section 6-08.3-01.
N.D. Cent. Code § 6-09.4-14 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-14
6-09.4-14. Purchase of bonds of public finance authority
Status: in_force

6-09.4-14. Purchase of bonds of public finance authority

The public finance authority has the power to purchase bonds of the public finance authority

out of any funds or money of the public finance authority available therefor. The public finance

authority may hold, cancel, or resell such bonds or notes subject to and in accordance with

agreements with holders of its bonds.
N.D. Cent. Code § 6-05.1-02 — ND Code / Title 6 / Chapter 6-05.1 / Section 6-05.1-02
6-05.1-02. Organization of subsidiary trust companies
Status: in_force

6-05.1-02. Organization of subsidiary trust companies

A subsidiary trust company may be incorporated under the laws of this state or formed

under the laws of the United States. To the extent not inconsistent with the provisions of

sections 6-05.1-01 through 6-05.1-05, any subsidiary trust company incorporated under the

laws of this state is subject to the laws of this state generally applicable to trust companies. A

subsidiary trust company formed under the laws of the United States is, to the extent provided

by the laws of the United States, subject to the laws of this state applicable to subsidiary trust

companies incorporated under the laws of this state.
N.D. Cent. Code § 6-06-06.1 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-06.1
6-06-06.1. Issuance of certificates of deposit - Penalty
Status: in_force

6-06-06.1. Issuance of certificates of deposit - Penalty

Certificates of deposit, as defined in section 41-03-04, may only be issued in this state by

credit unions authorized to issue certificates of deposit, and which are organized to do business

in this state under this chapter or under the Federal Credit Union Act, and whose accounts are

insured by the national credit union administration, except that the requirement for insurance of

accounts for any "corporate central credit union" or "central credit union" may be waived under

section 6-06-40, or as authorized under section 6-03-02.2. Any person violating this section is

subject to a civil penalty not to exceed five thousand dollars.
N.D. Cent. Code § 6-03-37.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-37.1
6-03-37.1. Bank loans of excess reserves
Status: in_force

6-03-37.1. Bank loans of excess reserves

Obligations representing loans from one business day to the next to any state-chartered

bank or national banking association of excess reserve balances from time to time maintained

under the provisions of section 6-03-37, as amended, may not be deemed loans or additions to

any loans for the purposes of section 6-03-59.
N.D. Cent. Code § 6-03-59 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-59
6-03-59. Loan limitation to one borrower or concern
Status: in_force

6-03-59. Loan limitation to one borrower or concern

The total direct, indirect, or contingent liability of any borrower to any state banking

association shall not exceed at any time twenty-five percent of the association's tier 1 capital as

of the most recent report of condition and income. For the purpose of this section, the total

liability of a borrower includes the liabilities of any separate borrowers for which the repayment

of separate loans or extensions of credit is substantially from the same source and any credit

exposure to a borrower arising from a derivative transaction, repurchase agreement, reverse

repurchase agreement, securities lending transaction, or securities borrowing transaction

between the state banking association and the borrower.
N.D. Cent. Code § 6-01-20 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-20
6-01-20. Bank of North Dakota entitled to records
Status: repealed

6-01-20. Bank of North Dakota entitled to records

Repealed by S.L. 1997, ch. 80, § 2.
N.D. Cent. Code § 6-03-22 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-22
6-03-22. Impairment of capital - Stock assessments - Notice and limitation
Status: in_force

6-03-22. Impairment of capital - Stock assessments - Notice and limitation

When the capital of any association becomes impaired or when its capital stock is reduced

below the amount required by this title or its articles of incorporation, the board of directors of

the association has the power, and it is its duty, immediately to make a pro rata assessment

upon all the outstanding stock of the association to make good such impairment or deficiency,

and to serve notice thereof by registered or certified mail upon each stockholder of record,

directed to such stockholder at the stockholder's address last known to the board. Any such

assessment or assessments may not exceed in the aggregate one hundred percent of the face

value of the stock in the first year and may not exceed twenty-five percent in any succeeding

year. The notice must specify the date on which the assessment is due and payable, and such

date may not be less than ten days nor more than thirty days after the date of mailing the notice

of assessment.
N.D. Cent. Code § 6-09.18-04 — ND Code / Title 6 / Chapter 6-09.18 / Section 6-09.18-04
6-09.18-04. Legacy investment technology loans - Eligibility
Status: in_force

6-09.18-04. Legacy investment technology loans - Eligibility

1. The committee shall establish guidelines for entities to qualify for a legacy investment

technology loan under this section. The committee shall consider and process

applications in a timely manner that does not jeopardize an applicant's opportunity to

leverage other funds.

2. In determining whether to recommend approval of an application, the committee shall

consider the extent to which the proposal will:

a. Deliver applied research, experimentation, or operational testing in one or more

of the diversification sectors to create information or data to enhance North

Dakota companies or industries or companies making investments in North

Dakota;

b. Lead to the commercialization or patent of an innovation technology solution; or

c. Result in the development of a new company or expansion of an existing

company that will diversify the state's economy through new products,

investment, or skilled jobs.

3. The Bank of North Dakota shall review the business plan, financial statements, and

other information necessary for the Bank to determine which applications

recommended for approval by the committee will be approved by the Bank for final

loan approval. The terms of the loan must include:

a. Zero percent interest for the first three years of the loan;

b. Two percent interest for the next two years of the loan; and

c. An interest rate equal to a standard Bank of North Dakota loan for all subsequent

years.

4. To be eligible for a loan under this chapter, an entity shall agree to provide the Bank of

North Dakota with information as requested by the Bank.
N.D. Cent. Code § 6-03-09 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-09
6-03-09. Holding of real estate - Limitation
Status: in_force

6-03-09. Holding of real estate - Limitation

No banking association may hold the possession of any real estate under mortgage, nor

title and possession of any real estate purchased to satisfy indebtedness, for a longer period

than five years from the date of acquiring title thereto unless such time has been extended by

certificate of the commissioner.
N.D. Cent. Code § 6-09.4-26 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-26
6-09.4-26. Public finance authority as continuation of and successor in interest to municipal bond bank
Status: in_force

6-09.4-26. Public finance authority as continuation of and successor in interest to

municipal bond bank.

1. Beginning August 1, 2005, the public finance authority is deemed the continuation of

and successor in interest to the municipal bond bank and any reference to the

municipal bond bank or bond bank in any agreement, certificate, contract, covenant,

indenture, resolution, recital, undertaking, bond, note, other evidence of indebtedness,

or in any other document or instrument means the public finance authority.

2. The public finance authority as the continuation of and successor in interest to the

municipal bond bank is deemed to:

a. Possess all rights, title, privileges, powers, immunities, property, assets, and

claims of the bond bank; and

b. Fulfill and perform all obligations of the bond bank, including all bond bank

obligations relating to outstanding bonds and notes.
N.D. Cent. Code § 6-08-04 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-04
6-08-04. Bank officer or employee paying overdrafts personally liable
Status: repealed

6-08-04. Bank officer or employee paying overdrafts personally liable

Repealed by S.L. 1969, ch. 119, § 1.
N.D. Cent. Code § 6-03-03 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-03
6-03-03. Directors - Qualifying shares - Issue and transfer
Status: repealed

6-03-03. Directors - Qualifying shares - Issue and transfer

Repealed by S.L. 1985, ch. 116, § 2.
N.D. Cent. Code § 6-03-29.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-29.1
6-03-29.1. Responsibility of shareholders
Status: repealed

6-03-29.1. Responsibility of shareholders

Repealed by omission from this code.
N.D. Cent. Code § 6-08.3-01 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-01
6-08.3-01. Definitions
Status: in_force

6-08.3-01. Definitions

In this chapter, unless the context otherwise requires:

1. "Adequately capitalized" means a level of capitalization that meets or exceeds all

applicable federal regulatory capital standards.

2. "Board" means the state banking board.

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

4. "Default" means default as defined in section 3 of the Federal Deposit Insurance Act

[12 U.S.C. 1813].

5. "Deposit" means deposit as defined in section 3 of the Federal Deposit Insurance Act

[12 U.S.C. 1813].

6. "Depository institution" means depository institution as defined in section 3 of the

Federal Deposit Insurance Act [12 U.S.C. 1813].

7. "Depository institution holding company" means depository institution holding company

as defined in section 3 of the Federal Deposit Insurance Act [12 U.S.C. 1813].

8. "Federal reserve" means the board of governors of the federal reserve system or any

successor thereto.

9. "In danger of default" means in danger of default as defined in section 3 of the Federal

Deposit Insurance Act [12 U.S.C. 1813].

10. "North Dakota deposits" means all deposits held at branches or offices located in this

state of all depository institutions, based upon the public reports most recently filed

with the appropriate regulatory agency.
N.D. Cent. Code § 6-06-06 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-06
6-06-06. Powers of credit unions
Status: in_force

6-06-06. Powers of credit unions

A credit union has the following powers:

1. To receive the savings of its members either as payment on shares or as deposits,

including the right to conduct Christmas clubs, vacation clubs, and other such thrift

organizations within its membership.

2. To make loans to members.

3. To make loans to a cooperative society or other organization having membership in

the credit union.

4. To deposit its moneys in financial institutions, trust companies, credit unions, corporate

central credit unions, and the Bank of North Dakota authorized to receive deposits.

5. To invest in the following:

a. In bonds of the United States without limitation in securities issued as direct

obligations by the United States government or any agency thereof and in any

trust established for investing directly or collectively in such securities.

b. In bonds or evidences of debt of this state or in bonds of states of the United

States.

c. In bonds or certificates of indebtedness of any county, city, or school district in

this state, issued pursuant to authority of law, but not to exceed thirty percent of

the assets of any credit union may be invested in such bonds or certificates of

indebtedness.

d. In notes or bonds secured by mortgage or deed of trust upon unencumbered,

improved real estate in this state, if such investment does not exceed sixty-five

percent of the market value of the property mortgaged, and fire and tornado

insurance policies are maintained and deposited as collateral to such mortgage,

subject to such restriction and regulations as may be imposed by the state credit

union board.

e. In notes or bonds secured by a security interest or lien upon unencumbered

personal property, if the investment does not exceed ninety percent of the market

value of the property secured.

f. In first lien, public utility, industrial, corporation, or association bonds, notes, or

other evidences of debt issued by corporations located in the United States of

America to the extent authorized by the state credit union board.

g. Subject to rules of the state credit union board, in shares of investment

companies registered under the Investment Companies Act of 1940 and which

invest only in investments otherwise permissible under this section.

h. In investments or insurance products or in loans to the credit union employee

associated with the investment or insurance product which are otherwise

prohibited by this section if the investments are directly related to a benefit plan

for credit union employees.

6. To borrow money as limited in this chapter.

7. Subject to such regulations as the state credit union board may prescribe, insurance

obtained under title 1 of the National Housing Act must be deemed adequate security.

8. To sue and be sued.

9. A credit union may invest in a credit union office building, including the lot, piece, or

parcel of land on which the same is located, and in furniture and fixtures, to the extent

authorized by regulations issued by the state credit union board.

10. a. Every state credit union has the power to purchase, hold, and convey other real

estate as herein provided, and not otherwise:

(1) Such as is mortgaged to it in good faith by way of security for loans, or for

debts previously contracted.

(2) Such as is conveyed to it in good faith in satisfaction of debts previously

contracted in the course of its dealings.

(3) Such as it purchases at sales under judgments, decrees, or mortgages held

by the credit union, or purchases to secure debts due to it.

b. Upon transfer to other real estate owned, a current appraisal must be conducted

by an individual who is independent of the transaction. Except as otherwise

provided by chapter 10-06.1, a state credit union may hold possession of any real

estate acquired under mortgage or title and possession of any real estate

purchased to satisfy indebtedness, for a period not to exceed five years. The

commissioner may extend the real estate holding period up to an additional five

years upon formal request by a credit union if the credit union has made a

good-faith attempt to dispose of the real estate within the five-year period, or

disposal within the five-year period would be detrimental to the credit union.

Within thirty days after receipt of an adverse decision, the credit union may

appeal that decision to the state credit union board.

c. Notwithstanding other sections of this chapter, a credit union may apply to the

commissioner for authority to exchange its interest in real property acquired in

satisfaction of a debt previously contracted for an interest in an entity that would

dispose of the real property. If the commissioner's decision with respect to an

application is unfavorable, the applicant credit union may appeal the decision to

the state credit union board by filing a notice of appeal with the commissioner

within twenty business days after the commissioner has notified the applicant

credit union of the decision.

11. Subject to authorization by the state credit union board, acting by order or rule, a state

credit union has the same powers as a federal credit union and may engage in any

activity in which a credit union could engage if the credit union were federally

chartered.

12. To exercise any incidental power necessary or requisite to enable the credit union to

carry out effectively the business for which it is incorporated or as determined by the

board by order or rule.
N.D. Cent. Code § 6-09.9-05 — ND Code / Title 6 / Chapter 6-09.9 / Section 6-09.9-05
6-09.9-05. Interest buydown
Status: in_force

6-09.9-05. Interest buydown

1. There is hereby established an interest rate buydown fund to be maintained by the

industrial commission at the Bank of North Dakota.

2. The industrial commission may buy down or reduce the interest paid by a farmer or

agribusiness on the Bank's portion of the participation operating loans by up to an

additional five percentage points a year below the amount provided in section

6-09.9-03.

3. Any interest buydown provided under this section must be repaid by the farmer or

agribusiness not later than July 1, 1991, under terms approved by the Bank of North

Dakota and pursuant to rules adopted by the industrial commission. Money collected

under this subsection must be deposited in the fire and tornado fund in the state

treasury.
N.D. Cent. Code § 6-08.3-13 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-13
6-08.3-13. Interstate banking authorization
Status: in_force

6-08.3-13. Interstate banking authorization

This chapter specifically authorizes, in accordance with section 3 of the Bank Holding

Company Act of 1956 [12 U.S.C. 1842], and section 101 of the Riegle-Neal Interstate Banking

and Branching Efficiency Act of 1994 [Pub. L. 103-328; 108 Stat. 2338; 12 U.S.C. 1811 et seq.],

interstate banking in this state. However, to the extent a state imposes a restriction on the ability

of a North Dakota bank holding company to acquire a bank in that state and the restriction is

based on the length of time either bank has existed, that restriction must apply to any

acquisition of a North Dakota bank by a bank holding company located in that state but does not

apply to any bank established in this state on July 31, 1997.
N.D. Cent. Code § 6-03-07 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-07
6-03-07. Investment in banking facility, furniture, and fixtures - Limitation
Status: in_force

6-03-07. Investment in banking facility, furniture, and fixtures - Limitation

A state banking association may not invest more than sixty-five percent of the amount of its

unimpaired capital stock, surplus, and undivided profits in a banking facility, furniture, fixtures,

and equipment without the approval of the commissioner or the state banking board.
N.D. Cent. Code § 6-03-37 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-37
6-03-37. Reserve funds
Status: in_force

6-03-37. Reserve funds

Every banking association shall have on hand at all times in available funds an amount

which meets the requirements of the board of governors of the federal reserve system.
N.D. Cent. Code § 6-01-21.1 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-21.1
6-01-21.1. County agencies - Examinations - Fees
Status: repealed

6-01-21.1. County agencies - Examinations - Fees

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-01-16 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-16
6-01-16. Salaries of commissioner's deputies (Effective through June 30, 2029)
Status: in_force

6-01-16. Salaries of commissioner's deputies. (Effective through June 30, 2029)

The salary of the assistant commissioner and the salary of each other deputy must be fixed

by the commissioner within the budget approved by the boards. In addition to the amounts

herein specified, each deputy must be allowed the deputy's actual and necessary traveling

expenses when engaged in the discharge of the deputy's duties. The salaries of all clerks,

stenographers, and other assistants must be fixed by the commissioner within the budget

approved by the boards.

Salaries of commissioner's deputies. (Effective after June 30, 2029) The salary of the

assistant commissioner and the salary of each other deputy must be fixed by the commissioner

within the limits of the legislative appropriation for such salaries. In addition to the amounts

herein specified, each deputy must be allowed the deputy's actual and necessary traveling

expenses when engaged in the discharge of the deputy's duties. The salaries of all clerks,

stenographers, and other assistants must be fixed by the commissioner within the limits of the

legislative appropriation therefor.
N.D. Cent. Code § 6-09.10-01 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-01
6-09.10-01. Definitions
Status: in_force

6-09.10-01. Definitions

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

1. "Board" means the credit review board, or its authorized agent when applicable.

2. "Farmer" means a person who is or was involved in the production of an agricultural

commodity or livestock.
N.D. Cent. Code § 6-08.3-05 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-05
6-08.3-05. Applicant capital requirement
Status: repealed

6-08.3-05. Applicant capital requirement

Repealed by S.L. 1995, ch. 79, § 25.
N.D. Cent. Code § 6-03-36 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-36
6-03-36. Capital must be maintained - Dividends prohibited under certain conditions
Status: in_force

6-03-36. Capital must be maintained - Dividends prohibited under certain conditions

1. No director or officer of an association may permit the impairment of an association's

capital by the payment of dividends or otherwise.

2. Except as provided in subsection 4, no dividend may be paid which exceeds the

following amount:

a. An association's net profits for the period beginning January first of the year for

which the proposed dividends are declared and ending as reported in the most

recent quarter-end call report; plus

b. The association's net profits for the preceding two calendar years as reported in

the year-end call report; less

c. Any required transfers to:

(1) Surplus; and

(2) Funds for the retirement of preferred stock, capital notes, and debentures.

3. For the purpose of this section, "net profits" means the institution's net profits after

taxes prior to extraordinary items less dividends as reported on the call reports.

4. Payment of a dividend which exceeds the calculated amount in subsection 2 may be

made only with prior approval of the commissioner or state banking board.
N.D. Cent. Code § 6-05-17 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-17
6-05-17. Corporation subject to court orders - Reports to court
Status: in_force

6-05-17. Corporation subject to court orders - Reports to court

Every such corporation is subject at all times to the orders, judgments, and decrees of any

court of record from which or under which it has accepted any trust, appointment, or

commission as to such trust, and shall render to the court such itemized and verified accounts,

statements, and reports as may be required by law, or as such court shall order in relation to

any trust.
N.D. Cent. Code § 6-08-28 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-28
6-08-28. Penalty
Status: in_force

6-08-28. Penalty

Any bank or trust company violating any provisions of sections 6-08-25 through 6-08-28 is

guilty of a class A misdemeanor and, upon conviction thereof, may, in the discretion of the court,

be prohibited thereafter from serving in this state in any fiduciary capacity.
N.D. Cent. Code § 6-03-21 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-21
6-03-21. Impairment of capital - Dividends stopped - Action by board - Restoration
Status: in_force

6-03-21. Impairment of capital - Dividends stopped - Action by board - Restoration

Whenever the capital of any state banking association becomes impaired or the capital

stock reduced below the amount required by this title or by the articles of incorporation, no

dividend may be declared nor distribution of profits made thereafter while any debts of the

association remain unsatisfied, nor until the impairment or deficiency is made good. Whenever it

appears that the capital of any state banking association has become impaired or its capital

stock reduced, the commissioner shall report the same to the state banking board immediately.

The commissioner thereupon shall issue and enforce the necessary order restraining the

declaring of dividends and requiring that the impairment or deficiency be made good. The

impairment or deficiency must be made good within sixty days thereafter, or the commissioner,

upon the order or direction of the state banking board, may take charge of the state banking

association and proceed to liquidate the association as in case of insolvency.
N.D. Cent. Code § 6-07.2-16 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-16
6-07.2-16. Execution and filing of articles with department - Certificate of dissolution
Status: in_force

6-07.2-16. Execution and filing of articles with department - Certificate of dissolution

1. The articles of dissolution must be executed in duplicate and presented in duplicate to

the department of financial institutions.

a. Upon presentation of the articles of dissolution, the commissioner shall endorse

the commissioner's approval upon each of the duplicate copies of the articles if

the commissioner finds the articles conform to law.

b. The commissioner shall file one copy of the articles in the department and issue

two certificates of dissolution. The commissioner shall file one certificate of

dissolution with the department and shall deliver the second to the receiver.

2. Upon the issuance of the certificate of dissolution, the institution is dissolved and its

existence ceases. Upon the issuance of the certificate of dissolution, the receiver is

authorized, as agent for the directors and shareholders of any subsidiary trust

company, to file any and all documents with the secretary of state necessary to

terminate the subsidiary trust company's corporate existence under applicable

corporate law.
N.D. Cent. Code § 6-03-58 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-58
6-03-58. Unlawful rediscounts, borrowings, and pledgings
Status: in_force

6-03-58. Unlawful rediscounts, borrowings, and pledgings

It is unlawful for any state banking association, either directly or indirectly, to make any

rediscount or contract to borrow money, nor may it borrow money, nor pledge or hypothecate,

nor contract to pledge or hypothecate, any of its assets except in accordance with the provisions

of this chapter.
N.D. Cent. Code § 6-08-14 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-14
6-08-14. False statements concerning bank values - Penalty
Status: in_force

6-08-14. False statements concerning bank values - Penalty

Any person who knowingly makes or publishes any book, prospectus, notice, report,

statement, exhibit, or other publication containing any statement which is false and which is

intended to give and does give a substantially greater or less apparent value to the shares,

bonds, or property, or any part thereof, of any state banking association than said shares,

bonds, property, or any part thereof possess in fact, is guilty of a class A misdemeanor.
N.D. Cent. Code § 6-08.6-11 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-11
6-08.6-11. Duties and liability of bank or credit union
Status: in_force

6-08.6-11. Duties and liability of bank or credit union

1. A bank or credit union does not have a fiduciary duty to any person with respect to a

special deposit.

2. When the bank or credit union holding a special deposit becomes obligated to pay a

beneficiary, a debtor-creditor relationship arises between the bank or credit union and

beneficiary.

3. The bank or credit union holding a special deposit has a duty to a beneficiary to

comply with the account agreement and this chapter.

4. If the bank or credit union holding a special deposit does not comply with the account

agreement or this chapter, the bank or credit union is liable to a depositor or

beneficiary only for damages proximately caused by the noncompliance. Except as

provided by other law, the bank or credit union is not liable for consequential, special,

or exemplary damages.

5. The bank or credit union holding a special deposit may rely on records presented in

compliance with the account agreement to determine whether the bank or credit union

is obligated to pay a beneficiary.

6. If the account agreement requires payment on presentation of a record, the bank or

credit union shall determine within a reasonable time whether the record is sufficient to

require payment. If the agreement requires action by the bank or credit union on

presentation of a record, the bank or credit union is not liable for relying in good faith

on the genuineness of the record if the record appears on its face to be genuine.

7. Unless the account agreement provides otherwise, the bank or credit union is not

required to determine whether a permissible purpose stated in the agreement

continues to exist.
N.D. Cent. Code § 6-06-19 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-19
6-06-19. Authority to borrow - Limitation - Exception
Status: in_force

6-06-19. Authority to borrow - Limitation - Exception

A credit union may borrow money from any source, but the total borrowings may not exceed

twenty-five percent of the credit union's assets unless the commissioner authorizes a larger

amount. The board or commissioner may suspend or restrict the borrowing powers of a credit

union. The limitation on borrowing does not apply to a corporate central credit union which is

limited to borrowing up to five times the corporate central credit union's capital, surplus, and

reserve fund. For purposes of this section, capital, surplus, and reserve fund for a corporate

central credit union includes statutory or regulatory reserves, reserves established for

contingencies or any other purposes, undivided earnings, all sums on deposit by other credit

unions which are membership capital share deposits as defined by the bylaws of the corporate

central credit union, or any other funds being held by the corporate central credit union for the

purpose of maintaining a capital base. A credit union must provide within one week written

notification to the commissioner of the amount, terms, and source of all borrowings under this

section. Written notification is not required if the borrowings are provided by the corporate

central credit union and that information is available to the commissioner through electronic

inquiry.
N.D. Cent. Code § 6-08-21 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-21
6-08-21. Execution of instruments
Status: in_force

6-08-21. Execution of instruments

Any loan, trust, or banking corporation in its bylaws may empower any one or more of its

officers severally or conjointly to execute and acknowledge in its behalf conveyances, transfers,

assignments, releases, satisfactions, or other instruments affecting liens upon, titles to, or

interests in real estate. In the absence of such provision in the bylaws, the president, secretary,

treasurer, or cashier of any loan, trust, or banking corporation may execute and acknowledge

such instruments on behalf of the corporation when authorized so to do by resolution of its

board of directors.
N.D. Cent. Code § 6-03-08 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-08
6-03-08. Powers as to other real estate
Status: in_force

6-03-08. Powers as to other real estate

Every state banking association has the power to purchase, hold, and convey other real

estate as herein provided, and not otherwise:

1. Such as is mortgaged to it in good faith by way of security for loans or for debts

previously contracted.

2. Such as is conveyed to it in good faith in satisfaction of debts previously contracted in

the course of its dealings.

3. Such as it purchases at sales under judgments, decrees, or mortgages held by the

association or purchases to secure debts due to it.

Upon transfer to other real estate owned, a current appraisal must be conducted by an

individual who is independent of the transaction. Notwithstanding other sections of this chapter,

a bank may apply to the commissioner for authority to exchange its interest in real property

acquired in satisfaction of a debt previously contracted for an interest in an entity that would

dispose of the real property. If the commissioner's decision with respect to an application is

unfavorable, the applicant bank may appeal the decision to the state banking board by filing a

notice of appeal with the commissioner within twenty business days after the commissioner has

notified the applicant bank of the decision.
N.D. Cent. Code § 6-08.1-08 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-08
6-08.1-08. Liability
Status: in_force

6-08.1-08. Liability

1. A financial institution, governmental agency, law enforcement agency, or any other

person is liable to the customer for intentional violations of this chapter in an amount

equal to the greater of the following:

a. One thousand dollars.

b. Actual damages caused by the disclosure of the customer information.

2. Any financial institution, governmental agency, law enforcement agency, or other

person that takes any action pursuant to this chapter, relying in good faith on any

provision of this chapter, may not be held liable to any person for its actions.
N.D. Cent. Code § 6-08.5-01 — ND Code / Title 6 / Chapter 6-08.5 / Section 6-08.5-01
6-08.5-01. Definitions
Status: in_force

6-08.5-01. Definitions

As used in this chapter:

1. "Account" means funds or assets held by a financial service provider, including a

deposit account, savings account, share account, certificate of deposit, trust account,

individual retirement account, guardianship or conservatorship account, investment or

securities account, retirement account, loan, extension of credit, or safe deposit box.

2. "Eligible adult" means an individual who is at least sixty-five years of age or a

vulnerable adult as defined in section 50-25.2-01.

3. "Financial exploitation" means the wrongful or unauthorized taking, withholding,

appropriation, or use of an eligible adult's money, assets, or property for one's own

benefit or the benefit of a third party. The term includes defrauding an eligible adult.

4. "Financial service provider" means a financial institution, credit union, savings and

loan association, or trust company.

5. "Financial transaction" means any of the following as applicable to the business or

services provided by a financial service provider:

a. A transfer or request to transfer or disburse funds or assets in an account;

b. A request to initiate a wire transfer, initiate an automated clearing house transfer,

or issue a money order, cashier's check, or official check;

c. A request to negotiate a check or other negotiable instrument;

d. A request to change the ownership of an account;

e. A request for a loan, extension of credit, or draw on a line of credit; or

f. A request to designate or change the designation of a beneficiary to receive any

property, benefit, or contract right for an eligible adult.

6. "Law enforcement agency" means an agency authorized by law to enforce the law and

to conduct or engage in investigations or prosecutions for violations of the law.
N.D. Cent. Code § 6-08.4-03 — ND Code / Title 6 / Chapter 6-08.4 / Section 6-08.4-03
6-08.4-03. Authority of state banks to establish interstate branches
Status: in_force

6-08.4-03. Authority of state banks to establish interstate branches

Notwithstanding section 6-08.4-02, a North Dakota state-chartered bank, with approval of

the commissioner or board, may establish, acquire, retain, and operate one or more branches in

a state other than this state. An application must be filed with the commissioner or board at the

time an application is filed with the responsible federal regulatory authority. The North Dakota

state-chartered bank must also comply with section 6-03-11 or 6-03-13.3, as applicable. The

commissioner or board may approve the transaction if the commissioner or board finds that:

1. The proposed transaction will not be detrimental to the safety and soundness of the

North Dakota state-chartered bank;

2. Any new officers and directors are qualified, and possess appropriate experience and

financial responsibility; and

3. The proposed transaction is consistent with the convenience and needs of the

communities to be served by the bank in this state and is otherwise in the public

interest.

If the commissioner's decision with respect to an application is unfavorable, the applicant bank

may appeal the decision to the board by filing a notice of appeal with the commissioner within

twenty days after the commissioner has notified the applicant bank of the decision.
N.D. Cent. Code § 6-05-13 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-13
6-05-13. Transfer of trust to corporation
Status: in_force

6-05-13. Transfer of trust to corporation

Any executor, administrator, guardian, conservator, trustee, assignee, or receiver may

resign that person's trust in favor of a corporation organized, acting, and qualified under this

chapter, and thereupon, such corporation may be appointed as trustee by any court having

jurisdiction of the subject matter of such trust upon such terms and conditions as such court

may prescribe.
N.D. Cent. Code § 6-08.3-02 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-02
6-08.3-02. Application to acquire a bank or bank holding company
Status: repealed

6-08.3-02. Application to acquire a bank or bank holding company

Repealed by S.L. 1995, ch. 79, § 25.
N.D. Cent. Code § 6-09.4-02 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-02
6-09.4-02. Legislative policy
Status: in_force

6-09.4-02. Legislative policy

It is declared to be the policy of the state of North Dakota to foster and promote the

provision of adequate capital markets and facilities for borrowing money by political subdivisions

or other contracting parties and for the financing of their respective public improvements or

projects as those terms are used or defined in this chapter or chapter 40-57. It is in the public

interest to encourage political subdivisions or other contracting parties to continue their

independent undertakings of public improvements or projects and the financing thereof by

making funds available at reduced interest costs, especially during periods of restricted credit or

money supply. Current credit and municipal bond market conditions require the exercise of the

powers of the state to further and implement such policies by authorizing a state instrumentality

to be created to borrow money and to issue its bonds to make funds available at reduced rates

and on favorable terms for borrowing by political subdivisions or other contracting parties

through the purchase or holding of marketable municipal securities of political subdivisions or

other contracting parties in fully marketable form or in another form adequate to secure bonds

issued by the state instrumentality and by granting broad powers to accomplish and to carry out

the policies of the state.
N.D. Cent. Code § 6-09.8-05 — ND Code / Title 6 / Chapter 6-09.8 / Section 6-09.8-05
6-09.8-05. Term - Annual fee
Status: in_force

6-09.8-05. Term - Annual fee

The term of a loan guarantee may not exceed five years. The Bank may charge a seller or

lender an annual fee during the term of a loan guarantee.
N.D. Cent. Code § 6-09.10-09 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-09
6-09.10-09. Rulemaking authority
Status: in_force

6-09.10-09. Rulemaking authority

The board may adopt rules under chapter 28-32 as are necessary to implement this

chapter.
N.D. Cent. Code § 6-09.15-04 — ND Code / Title 6 / Chapter 6-09.15 / Section 6-09.15-04
6-09.15-04. Termination
Status: in_force

6-09.15-04. Termination

The Bank of North Dakota may terminate a loan guarantee upon the sale, exchange,

assignment, or transfer of the beginning entrepreneur's interest in the qualified

revenue-producing enterprise. The Bank shall terminate a loan guarantee if the Bank

determines that the loan guarantee was obtained by fraud or material misrepresentation of

which the lender or seller has actual knowledge.
N.D. Cent. Code § 6-08-13 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-13
6-08-13. False statements to obtain credit - Accepting credit on false statements - Misdemeanor
Status: repealed

6-08-13. False statements to obtain credit - Accepting credit on false statements -

Misdemeanor.

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 6-06-26 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-26
6-06-26. Dividends
Status: in_force

6-06-26. Dividends

A credit union's board of directors may declare and pay a dividend on shares from current or

accumulated net earnings, or both, but only after providing for required reserves, accrued and

unpaid expenses, and established loan and lease losses. A credit union may pay a dividend on

partial or full shares and may pay the dividend at differing levels and at differing intervals based

on the type of share accounts owned by a member, the liquidation priority of share accounts,

and the balances of a member's share accounts. A credit union may determine the rate and

amount of a dividend before the end of the dividend period involved. A credit union, upon action

of its board of directors, may authorize an interest refund to members of record at the close of

business the last day of any dividend period in proportion to the interest paid during that

dividend period. A credit union shall not pay a dividend if payment would result in the insolvency

of the credit union.
N.D. Cent. Code § 6-03-14.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-14.1
6-03-14.1. Maintenance of facilities of merged banks
Status: repealed

6-03-14.1. Maintenance of facilities of merged banks

Repealed by S.L. 1995, ch. 79, § 24.
N.D. Cent. Code § 6-09.13-03 — ND Code / Title 6 / Chapter 6-09.13 / Section 6-09.13-03
6-09.13-03. Loans to farmers - Purposes - Eligible uses
Status: in_force

6-09.13-03. Loans to farmers - Purposes - Eligible uses

The loan moneys received by a farmer under this chapter must be used for a farm business.

Eligible uses are:

1. Purchase of real property and equipment.

2. Expansions.

3. Working capital.

4. Purchase of inventory.

5. Subsurface field tiling projects.

The moneys cannot be used to refinance any existing debt.
N.D. Cent. Code § 6-06-27 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-27
6-06-27. Notice of intention to withdraw shares and deposits
Status: in_force

6-06-27. Notice of intention to withdraw shares and deposits

A credit union may require sixty days' notice of intention to withdraw shares and thirty days'

notice of intention to withdraw deposits. Withdrawing members have no further rights in the

credit union, but are not released from any remaining liability to it by such withdrawal. All

amounts paid on shares or as deposits by a withdrawing member, and any dividends or interest

credited to that member to the date of withdrawal, after all sums due from the member to the

credit union have been deducted, must be repaid to the member as funds become available.
N.D. Cent. Code § 6-07.2-15 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-15
6-07.2-15. Contents of articles of dissolution
Status: in_force

6-07.2-15. Contents of articles of dissolution

If the proceedings described in this chapter have been completed, the receiver shall

execute and file, in the manner provided in this section, articles of dissolution, setting forth the

following information:

1. The name of the institution;

2. The place where the institution's main office was located;

3. The names and addresses of the directors and officers of the institution at the time the

liquidation proceedings were begun;

4. A brief summary of the aggregate amount of general claims finally allowed against the

institution, the order in which the claims were paid, and the aggregate amount of all

other claims against the institution. A statement of the aggregate payments made on

each of the groups of claims must be provided, referencing the orders of the receiver

authorizing those payments and the current reports documenting such payments; and

5. A brief summary of the aggregate amount of payments made to the shareholders of

the institution, whether of money or other property, and a reference to the orders of the

receiver authorizing the payments and to the current reports in which documentation of

the payments is made.
N.D. Cent. Code § 6-03-13.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-13.1
6-03-13.1. Separate facilities authorized
Status: in_force

6-03-13.1. Separate facilities authorized

Upon compliance with section 6-03-13.3, any bank organized under chapter 6-02 or 6-06.2

and under the supervision of the state banking board, and any national bank doing business in

this state, may maintain and operate separate and apart from its banking house facilities, in

addition to such service at its main banking house. Any activity incidental to the business of

banking may be transacted at a separate facility, including receiving deposits of every kind and

nature, cashing checks or orders to pay, issuing exchange, making loans, renting safe deposit

boxes, exercising fiduciary powers if authorized by the board, and receiving payments payable

at the bank. Whenever any banking institution that has been granted approval to establish and

maintain a facility deems it advisable to discontinue the maintenance of the facility, the banking

institution may apply to the commissioner or state banking board for cancellation and the

commissioner or board may order the cancellation approval within the time the board specifies.

The banking institution shall provide notice of the application as required by the board by rule.
N.D. Cent. Code § 6-05-08.1 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-08.1
6-05-08.1. Issuance of certificates of deposit - Penalty
Status: repealed

6-05-08.1. Issuance of certificates of deposit - Penalty

Repealed by S.L. 1991, ch. 82, § 7.
N.D. Cent. Code § 6-08.1-03.1 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-03.1
6-08.1-03.1. Agricultural and commercial accounts
Status: in_force

6-08.1-03.1. Agricultural and commercial accounts

Disapproved by R.M. June 11, 2002, S.L. 2003, ch. 575.
N.D. Cent. Code § 6-09-05 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-05
6-09-05. Removal and discharge of appointees
Status: in_force

6-09-05. Removal and discharge of appointees

The industrial commission may remove and discharge any and all persons appointed in the

exercise of the powers granted by this chapter, whether by the commission or by the president

of the Bank. All appointments and removals contemplated by this chapter must be made as the

commission deems fit to promote the efficiency of the public service.
N.D. Cent. Code § 6-03-60 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-60
6-03-60. Loans to and purchases from directors, executive officers, and principal shareholders - Restrictions - Conditions - Penalty - Civil liability
Status: in_force

6-03-60. Loans to and purchases from directors, executive officers, and principal

shareholders - Restrictions - Conditions - Penalty - Civil liability.

At no time may any combination of loans or extensions of credit or both made by a state

banking association to an officer of that association exceed the limitation on loans to one person

or concern specified in section 6-03-59, federal law, or federal rule.

No director, officer, or employee of a bank shall sell to such bank, directly or indirectly, any

mortgage, bond, note, stock, or other property whatsoever without first obtaining the written

approval of the board of directors. The action of the board of directors in connection with the

loans and discounts required under this section shall be made a matter of permanent record in

the minute books of the banking association. Any shareholder, officer, or director of any banking

association who knowingly shall violate the provisions of this section shall be held liable in the

person's personal and individual capacity for all loss or damage which the association or any

person shall sustain in consequence thereof and shall be guilty of a class B misdemeanor. The

commissioner may require, at any time, the payment or repurchase of loans, securities, or

obligations herein referred to.
N.D. Cent. Code § 6-09.16-03 — ND Code / Title 6 / Chapter 6-09.16 / Section 6-09.16-03
6-09.16-03. Long-term care facility loan fund
Status: in_force

6-09.16-03. Long-term care facility loan fund

1. There is created a long-term care facility loan fund. The fund consists of revenue

transferred from the North Dakota health care trust fund, interest upon moneys in the

fund, and collections of interest and principal on loans made from the fund.

2. The Bank of North Dakota shall administer the loan fund. Funds in the loan fund may

be used for:

a. Loans as provided in this chapter and as approved by the department under

chapter 50-30; and

b. The costs of administration of the fund. The fund must be audited annually

pursuant to section 6-09-29, and the cost of the audit must be paid from the fund.

3. Any money in the fund not required for use under subsection 2 must be transferred to

the North Dakota health care trust fund.
N.D. Cent. Code § 6-06.2-04 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-04
6-06.2-04. Contents of agreement of association
Status: in_force

6-06.2-04. Contents of agreement of association

1. Before the formation of a cooperative financial institution under this chapter, the

originating members of the proposed cooperative financial institution shall execute a

written agreement of association to form a cooperative financial institution. The written

agreement of association must identify and comply with the capital structure required

by the state banking board and must specifically state:

a. That the originating members of the cooperative financial institution intend to

associate themselves with the intention of forming a cooperative financial

institution;

b. The name of the cooperative financial institution;

c. The location of the principal office of the cooperative financial institution;

d. The purposes for which the cooperative financial institution is formed and the

nature of the business the cooperative financial institution is to conduct; and

e. The names and addresses of each originating member of the financial institution.

2. Each originating member shall subscribe to the agreement of association before

submission to the state banking board.
N.D. Cent. Code § 6-08-17 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-17
6-08-17. Punishment of felonies
Status: repealed

6-08-17. Punishment of felonies

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 6-09.16-02 — ND Code / Title 6 / Chapter 6-09.16 / Section 6-09.16-02
6-09.16-02. Long-term care facility loan fund - Continuing appropriation
Status: in_force

6-09.16-02. Long-term care facility loan fund - Continuing appropriation

A revolving loan fund must be maintained in the Bank of North Dakota for the purpose of

making loans to nursing facilities, basic care facilities, or assisted living facilities for renovation

projects.

All moneys transferred into the fund, interest upon moneys in the fund, and collections of

interest and principal on loans made from the fund are appropriated for disbursement pursuant

to the requirements of this chapter.
N.D. Cent. Code § 6-08.6-13 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-13
6-08.6-13. Principles of law and equity
Status: in_force

6-08.6-13. Principles of law and equity

Title 41, consumer protection law, law governing deposits generally, law related to escheat

and abandoned or unclaimed property, and the principles of law and equity, including law related

to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress,

coercion, mistake, and bankruptcy, supplement this chapter except to the extent inconsistent

with this chapter.
N.D. Cent. Code § 6-09-02.2 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-02.2
6-09-02.2. Authority of the advisory board of directors to the Bank of North Dakota
Status: in_force

6-09-02.2. Authority of the advisory board of directors to the Bank of North Dakota

The advisory board of directors to the Bank of North Dakota shall:

1. Meet regularly with the management of the Bank of North Dakota to review the Bank's

operations to determine whether recommendations should be made by the board to

the industrial commission relating to improved management performance, better

customer service, and overall improvement in internal methods, procedures, and

operating policies of the Bank.

2. Make recommendations to the industrial commission relating to the establishment of

additional objectives for the operation of the Bank of North Dakota.

3. Make recommendations to the industrial commission concerning the appointment of

officers of the Bank of North Dakota.

4. Meet regularly with the industrial commission to present any recommendations

concerning the Bank of North Dakota.

5. In addition to the foregoing and pursuant to authorization from the industrial

commission, act on behalf of the Bank with respect to the powers and functions of the

Bank.
N.D. Cent. Code § 6-09-49 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-49
6-09-49. Infrastructure revolving loan fund - Continuing appropriation
Status: in_force

6-09-49. Infrastructure revolving loan fund - Continuing appropriation

1. The infrastructure revolving loan fund is a special fund in the state treasury from which

the Bank of North Dakota shall provide loans to political subdivisions, the Garrison

Diversion Conservancy District, and the Lake Agassiz water authority for essential

infrastructure projects. The Bank shall administer the infrastructure revolving loan fund.

The maximum term of a loan made under this section is the lesser of thirty years or the

useful life of the project. A loan made from the fund under this section must have an

interest rate that does not exceed two percent per year.

2. For purposes of this section, "essential infrastructure projects" means capital

construction projects to construct new infrastructure or replace existing infrastructure,

which provide the fixed installations necessary for the function of a political

subdivision. Capital construction projects exclude routine maintenance and repair

projects, but include the following:

a. The Red River valley water supply project;

b. Water treatment plants;

c. Wastewater treatment plants;

d. Sewerlines and waterlines, including lift stations and pumping systems;

e. Storm water infrastructure, including curb and gutter construction;

f. Water storage systems, including dams, water tanks, and water towers;

g. Road and bridge infrastructure, including paved and unpaved roads and bridges;

h. Airport infrastructure;

i. Electricity transmission infrastructure;

j. Natural gas transmission infrastructure;

k. Communications infrastructure;

l. Emergency services facilities, excluding hospitals;

m. Critical political subdivision buildings and infrastructure; and

n. Infrastructure required to service recreation and community facilities, not

including the construction of a building or recreational amenity.

3. In processing political subdivision loan applications under this section, the Bank shall

calculate the maximum outstanding loan amount per qualified applicant. A qualified

applicant under this section may have a maximum combined total of twenty million

dollars in outstanding loans under this section and section 6-09-49.1. The Bank shall

consider the applicant's ability to repay the loan when processing the application and

shall issue loans only to applicants that provide reasonable assurance of sufficient

future income to repay the loan.

4. The Bank shall deposit in the infrastructure revolving loan fund all payments of interest

and principal paid under loans made from the infrastructure revolving loan fund. The

Bank may use a portion of the interest paid on the outstanding loans as a servicing fee

to pay for administrative costs which may not exceed one-half of one percent of the

amount of the interest payment. All moneys transferred to the fund, interest upon

moneys in the fund, and payments to the fund of principal and interest are

appropriated to the Bank on a continuing basis for administrative costs and for loan

disbursement according to this section.

5. The Bank may adopt policies and establish guidelines to administer this loan program

in accordance with the provisions of this section and to supplement and leverage the

funds in the infrastructure revolving loan fund. Additionally, the Bank may adopt

policies allowing participation by local financial institutions.

6. If a political subdivision applies for a loan under this section for a county road or bridge

project, the department of transportation shall review and approve the project before

the Bank may issue a loan. If a political subdivision applies for a loan under this

section for a water-related project, the state water commission shall review and

approve the project before the Bank may issue a loan. The department of

transportation and state water commission may develop policies for reviewing and

approving projects under this section.
N.D. Cent. Code § 6-06-36 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-36
6-06-36. Merger
Status: in_force

6-06-36. Merger

Any credit union chartered under this chapter or under Act of Congress may merge under

rules and regulations established by the state credit union board. A federal credit union

proposing to merge into a state-chartered credit union shall grant the commissioner

discretionary authority to conduct an examination. The commissioner shall set fees for such

examination at an hourly rate sufficient to cover all reasonable expenses of the department of

financial institutions associated with the examination. Fees must be collected by the

commissioner, transferred to the state treasurer, and deposited in the financial institutions

regulatory fund. The secretary of state shall charge a fee of fifty dollars for all services in

connection with a merger authorized by the state credit union board, including filing of a

certificate of organization or bylaws, and issuing or canceling charters.

Upon approval by the state credit union board of a merger application under this section,

the former main office and facilities of the credit union merged will become branches of the

continuing credit union and the continuing credit union is not required to file an application for

any branches acquired in the merger transaction.
N.D. Cent. Code § 6-03-51 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-51
6-03-51. Borrowing, normal and emergency - Limitations
Status: in_force

6-03-51. Borrowing, normal and emergency - Limitations

Any state banking association has power to borrow money subject to the limitations of this

chapter. Money borrowed from correspondent banks must be evidenced by the promissory note

or notes of the borrowing association, and no such association may issue its certificate of

deposit for money so borrowed or otherwise conceal the true nature of the transaction. Nothing

herein affects the right of a state banking association to receive bona fide deposits from banks

or other persons.
N.D. Cent. Code § 6-09.4-10.2 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-10.2
6-09.4-10.2. Debt service requirements - Bonds for infrastructure projects and programs
Status: in_force

6-09.4-10.2. Debt service requirements - Bonds for infrastructure projects and

programs.

Each biennium, the public finance authority shall request from the legislative assembly an

appropriation from the general fund, derived from legacy fund earnings, Bank of North Dakota

profits, or other sources to meet the debt service requirements for bonds issued by the authority

for allocations to infrastructure projects and programs.
N.D. Cent. Code § 6-09-36 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-36
6-09-36. Bank of North Dakota - Custodian of securities
Status: in_force

6-09-36. Bank of North Dakota - Custodian of securities

Notwithstanding any other provision of law to the contrary, the Bank of North Dakota shall

replace the state treasurer as the custodian of all securities that are required to be deposited

with the state except that the state treasurer is the custodian of all securities resulting from the

investment of funds by the state treasurer, or except as otherwise required by this section and

sections 6-05-04, 6-05-05, 6-05-27, 39-16-10, and 39-16.1-15, subsection 1 of section

39-16.1-17, and subsection 1 of section 39-16.1-19.
N.D. Cent. Code § 6-09.4-18 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-18
6-09.4-18. Insurance or guaranty
Status: in_force

6-09.4-18. Insurance or guaranty

The public finance authority is authorized and empowered to obtain from any entity of the

state, any department or agency of the United States of America, or any nongovernmental

insurer any insurance, guaranty, or liquidity facility, or from a financial institution a letter of credit

to the extent such insurance, guaranty, liquidity facility, or letter of credit now or hereafter

available, as to, or for, the payment or repayment of, interest or principal, or both, or any part

thereof, on any bonds issued by the public finance authority, or on any municipal securities

purchased or held by the public finance authority, pursuant to this chapter; and to enter into any

agreement or contract with respect to any such insurance, guaranty, letter of credit, or liquidity

facility, and pay any required fee, unless the same would impair or interfere with the ability of the

public finance authority to fulfill the terms of any agreement made with the holders of its bonds.
N.D. Cent. Code § 6-03-41 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-41
6-03-41. Issuance of capital notes or debentures - Not subject to double liability
Status: in_force

6-03-41. Issuance of capital notes or debentures - Not subject to double liability

With the approval of the commissioner, any banking institution, through action by its board

of directors taken at any time and without requiring any action by its stockholders, may issue

and sell its capital notes or debentures. All capital notes or debentures are subordinate and

subject to the claims of depositors, and at the time of issue may be subordinated and subjected

to the claims of other creditors, but in no case may be subject to assessment. The holders of

capital notes or debentures as such are not responsible individually for any debts, contracts, or

engagements of the issuing institution.
N.D. Cent. Code § 6-09.10-08.1 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-08.1
6-09.10-08.1. Contract for legal and tax assistance - Administration
Status: repealed

6-09.10-08.1. Contract for legal and tax assistance - Administration

Repealed by S.L. 1997, ch. 98, § 3.
N.D. Cent. Code § 6-07.2-03 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-03
6-07.2-03. Notice of possession
Status: in_force

6-07.2-03. Notice of possession

1. Immediately upon taking possession of the business and property of an institution

under section 6-07.2-01, the commissioner shall give notice by:

a. Causing the notice to be served upon the president or other executive officer in

charge of the business of the institution;

b. Causing the notice to be provided to all correspondent banks of the institution.

However, if the commissioner fails to provide the notice, the commissioner shall

incur no liability for such failure to act; and

c. Causing the notice to be made public.

2. The rights and liabilities of an institution and of the institution's creditors, depositors,

shareholders, and all other persons interested in the institution's estate, unless

otherwise directed, must be fixed as of the date of the delivery of the notice of

possession to the president or other executive officer actively in charge of the business

of the institution. In the case of mutual debts or mutual credits of equal priority

between the institution and another person, the credits and debts must be setoff and

the balance only must be allowed or paid. The right to setoff must be determined as of

the date of delivery of the notice of possession of the institution to the president or

other executive officer actively in charge of the business of the institution.
N.D. Cent. Code § 6-08.4-04 — ND Code / Title 6 / Chapter 6-08.4 / Section 6-08.4-04
6-08.4-04. Interstate merger transactions and branching permitted
Status: in_force

6-08.4-04. Interstate merger transactions and branching permitted

Effective May 31, 1997, one or more North Dakota banks may merge with one or more

out-of-state banks under this chapter, and an out-of-state bank resulting from an interstate

merger may maintain and operate branches of a merged North Dakota bank in this state if the

conditions and filing requirements of this title are met.
N.D. Cent. Code § 6-07.1-18 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-18
6-07.1-18. Filing reports and expenses
Status: in_force

6-07.1-18. Filing reports and expenses

The receiver shall file quarterly reports with the court showing the operation, receipts,

expenditures, and general condition of the state trust company in liquidation. The receiver shall

also file a final report regarding the liquidated state trust company showing all receipts and

expenditures and giving a full explanation and a statement of the disposition of all assets of the

state trust company. The receiver shall pay all administrative expenses out of funds or assets of

the state trust company. Each quarter the receiver shall submit an itemized report of those

expenses.
N.D. Cent. Code § 6-09.4-24 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-24
6-09.4-24. Public finance authority - Issuance on behalf of other state agencies
Status: in_force

6-09.4-24. Public finance authority - Issuance on behalf of other state agencies

The public finance authority may issue bonds or other evidences of indebtedness on behalf

of other state agencies, instrumentalities, or officers, including the farm finance agency,

industrial commission, North Dakota building authority, student loan trust, and any other state

agency, instrumentality, or officer authorized by law to issue bonds or other evidences of

indebtedness and which elects to enter into an administrative agreement with the public finance

authority under this chapter. The public finance authority may be assisted by any other official

appointed by the industrial commission to aid the executive director or to serve as an authorized

officer of the public finance authority from time to time. Notwithstanding any other provision of

law, in issuing bonds or other evidences of indebtedness and in administering or managing any

bond issue postissuance on behalf of any other state agency, instrumentality, or officer, the

public finance authority may exercise any of the powers and authority of that state agency,

instrumentality, or officer which the industrial commission determines to be necessary or

expedient in the issuance of bonds or other evidences of indebtedness or in the administration

or management of the issue. Any bonds or other evidences of indebtedness issued by the public

finance authority on behalf of any other state agency, instrumentality, or officer, if so determined

by the industrial commission, continues to be the obligation or liability of the state agency or

instrumentality as otherwise provided by law and not an obligation or liability of the public

finance authority.
N.D. Cent. Code § 6-09.10-06 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-06
6-09.10-06. Fund - Appropriation
Status: in_force

6-09.10-06. Fund - Appropriation

1. On July 1, 2011, the state treasurer shall transfer any moneys remaining in the

home-quarter fund to the agriculture commissioner.

2. Any moneys transferred, as required by subsection 1, are appropriated to the

agriculture commissioner, for the purposes of this chapter.

3. If it appears to the board that the moneys appropriated to the agriculture commissioner

for the North Dakota mediation service are insufficient, the agriculture commissioner

may petition the emergency commission for a transfer from the state contingency fund.

The emergency commission may grant the transfer request, or so much of the request

as may be necessary, if it finds that an emergency situation exists, due to increasing

requests for mediation.
N.D. Cent. Code § 6-07.1-13 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-13
6-07.1-13. Injunction in aid of liquidation
Status: in_force

6-07.1-13. Injunction in aid of liquidation

On application by the receiver, the court may with or without notice issue an injunction

restraining each state trust company, officer, director, manager, managing participant, employee,

shareholder, participant, trustee, agent, employee, attorney, attorney in fact, accountant or

accounting firm, correspondent, or another person from transacting the state trust company's

business or wasting or disposing of its property or requiring the delivery of its property or assets

to the receiver subject to the further order of the court. The court, at any time during a

proceeding under this chapter, may issue another injunction or order considered necessary or

desirable to prevent interference with the receiver of the proceeding, waste of the assets of the

state trust company, the beginning of prosecution of an action, the obtaining of a preference,

judgment, attachment, garnishment, or other lien, or the making of a levy against the state trust

company or its assets.
N.D. Cent. Code § 6-05-10 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-10
6-05-10. Discretionary power of investment - Limitations
Status: in_force

6-05-10. Discretionary power of investment - Limitations

The directors of any such corporation have discretionary power to invest all moneys

received by it on deposit or in trust, and the investment or deposit of which otherwise may not

be limited or directed, in such securities as are herein authorized. The corporation is responsible

to the owners or beneficiaries of such moneys, for the validity, regularity, quality, value, and

genuineness of all such investments and securities at the time said investments are so made,

and for the safekeeping of the evidences and securities thereof. If any special direction,

limitation, agreement, or trust is imposed, made or conferred in and by the order, judgment,

decree, will, contract, deed, conveyance, or other written instrument, as to the particular

manner, or the particular class or kinds of securities, funds, or property, whether real or

personal, in which the moneys must be invested, the corporation shall follow and carry out such

order, judgment, decree, contract, deed, or other written instrument or instruction, and may not

be held liable or responsible for any loss, damage, or injury which may occur to or be incurred

by any person or beneficiary by reason of its proper performance of such trust, and the

directions or limitations thereof.
N.D. Cent. Code § 6-08.2-01 — ND Code / Title 6 / Chapter 6-08.2 / Section 6-08.2-01
6-08.2-01. Sale of banking institutions owned by charitable trusts
Status: in_force

6-08.2-01. Sale of banking institutions owned by charitable trusts

Expired under S.L. 1987, ch. 124, § 9.
N.D. Cent. Code § 6-03-13.4 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-13.4
6-03-13.4. Effect of authority
Status: in_force

6-03-13.4. Effect of authority

Every paying and receiving station, banking house or office, or drive-in and walkup facility

existing on August 1, 1996, must be considered a separate facility approved by the state

banking board or the comptroller of the currency, as the case may be, under this chapter. A

facility approved under this section may continue to provide from the facility those services or

functions as were permitted to be provided before August 1, 1996. National banking

associations located in this state have the same, but no greater, right by virtue of sections

6-03-13.1 and 6-03-13.3 as banks organized under the laws of this state.
N.D. Cent. Code § 6-03-35 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-35
6-03-35. Surplus fund exempt from taxation
Status: in_force

6-03-35. Surplus fund exempt from taxation

The surplus fund of any association organized under this title, in an amount not exceeding

one hundred percent of its capital stock, is exempt from taxation and must not be taken into

account in determining the taxable value of the shares of stock of the association.
N.D. Cent. Code § 6-09-15.2 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15.2
6-09-15.2. Bank may invest in certain government sponsored stocks - Limit
Status: repealed

6-09-15.2. Bank may invest in certain government sponsored stocks - Limit

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-08-18 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-18
6-08-18. Punishment of misdemeanors
Status: repealed

6-08-18. Punishment of misdemeanors

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 6-09.4-10 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-10
6-09.4-10. Reserve fund
Status: in_force

6-09.4-10. Reserve fund

1. The public finance authority shall establish and maintain a reserve fund in which there

must be deposited all moneys appropriated by the state for the purpose of the fund, all

proceeds of bonds required to be deposited therein by terms of any contract between

the public finance authority and its bondholders or any resolution of the public finance

authority with respect to the proceeds of bonds, any other moneys or funds of the

public finance authority which it determines to deposit therein, any contractual right to

the receipt of moneys by the public finance authority for the purpose of the fund,

including a letter of credit or similar instrument, and any other moneys made available

to the public finance authority only for the purposes of the fund from any other source

or sources. Moneys in the reserve fund must be held and applied solely to the

payment of the interest on and the principal of bonds and sinking fund payments as

the same become due and payable and for the retirement of bonds, including payment

of any redemption premium required to be paid when any bonds are redeemed or

retired prior to maturity. Moneys in the reserve fund may not be withdrawn therefrom if

the withdrawal would reduce the amount in the reserve fund to an amount less than

the required debt service reserve, except for payment of interest then due and payable

on bonds and the principal of bonds then maturing and payable and sinking fund

payments and for the retirement of bonds in accordance with the terms of any contract

between the public finance authority and its bondholders and for the payments on

account of which interest or principal or sinking fund payments or retirement of bonds,

other moneys of the public finance authority are not then available in accordance with

the terms of the contract. The required debt service reserve must be an aggregate

amount equal to at least the largest amount of money required by the terms of all

contracts between the public finance authority and its bondholders to be raised in the

then current or any succeeding calendar year for the payment of interest on and

maturing principal of outstanding bonds, and sinking fund payments required by the

terms of any contracts to sinking funds established for the payment or redemption of

the bonds.

2. If the establishment of the reserve fund for an issue or the maintenance of an existing

reserve fund at a required level under this section would necessitate the investment of

all or any portion of a new reserve fund or all or any portion of an existing reserve fund

at a restricted yield, because to not restrict the yield may cause the bonds to be

taxable under the Internal Revenue Code, then at the discretion of the public finance

authority no reserve fund need be established prior to the issuance of bonds or the

reserve fund need not be funded to the levels required by other subsections of this

section or an existing reserve fund may be reduced.

3. No bonds may be issued by the public finance authority unless there is in the reserve

fund the required debt service reserve for all bonds then issued and outstanding and

the bonds to be issued. Nothing in this chapter prevents or precludes the public

finance authority from satisfying the foregoing requirement by depositing so much of

the proceeds of the bonds to be issued, upon their issuance, as is needed to achieve

the required debt service reserve. The public finance authority may at any time issue

its bonds or notes for the purpose of providing any amount necessary to increase the

amount in the reserve fund to the required debt service reserve, or to meet such

higher or additional reserve as may be fixed by the public finance authority with

respect to such fund.

4. In order to assure the maintenance of the required debt service reserve, there shall be

appropriated by the legislative assembly and paid to the public finance authority for

deposit in the reserve fund, such sum, if any, as shall be certified by the industrial

commission as necessary to restore the reserve fund to an amount equal to the

required debt service reserve. However, the commission may approve a resolution for

the issuance of bonds, as provided by section 6-09.4-06, which states in substance

that this subsection is not applicable to the required debt service reserve for bonds

issued under that resolution.

5. If the maturity of a series of bonds of the public finance authority is three years or less

from the date of issuance of the bonds, the public finance authority may determine that

no reserve fund need be established for that respective series of bonds. If such a

determination is made, holders of that respective series of bonds may have no interest

in or claim on existing reserve funds established for the security of the holders of

previously issued public finance authority bonds, and may have no interest in or claim

on reserve funds established for the holders of subsequent issues of bonds of the

public finance authority.

6. The industrial commission may determine this section is inapplicable in whole or in

part for bonds issued under:

a. Section 6-09.4-06;

b. Section 6-09.4-24; or

c. The public finance authority's state revolving fund program.
N.D. Cent. Code § 6-05.1-01 — ND Code / Title 6 / Chapter 6-05.1 / Section 6-05.1-01
6-05.1-01. Definitions
Status: in_force

6-05.1-01. Definitions

As used in this chapter, unless the context plainly requires otherwise:

1. "Affiliated bank", with respect to a subsidiary trust company, means any of the

following:

a. A bank incorporated under the laws of this state, or a national banking

association having its main office in this state, more than fifty percent of the

voting stock of which is owned by the same owning bank holding company that

owns more than fifty percent of the voting stock of such subsidiary trust company.

b. A bank which owns shares of voting stock of such subsidiary trust company.

2. "Fiduciary capacity" means a capacity resulting from a bank undertaking to act alone

or jointly with others primarily for the benefit of another in all matters connected with its

undertaking and includes the capacities of trustee, including trustee of a common trust

fund, executor, administrator, personal representative, registrar, or transfer agent with

respect to stocks, bonds, or other evidences of indebtedness of any corporation,

association, municipality, state or public authority, guardian of estates, conservator,

receiver, escrow agent, agent for the investment of money, attorney in fact, and any

other similar capacity.

3. "Main office", with respect to a subsidiary trust company or an affiliated bank, is the

place designated in the articles of incorporation or articles of association of such

subsidiary trust company or affiliated bank at which its principal functions are to be

conducted.

4. "Owning bank holding company", with respect to a subsidiary trust company or an

affiliated bank, means a bank holding company as defined in the United States Bank

Holding Company Act of 1956, as amended.

5. "Subsidiary trust company" means any trust company incorporated under the laws of

this state, or any national banking association formed under the laws of the United

States solely for the purpose of engaging in trust business with its main office in this

state, more than fifty percent of the voting stock of which is owned by an owning bank

holding company or by a bank having its main office in this state or by two or more

banks each of which has its main office in this state, and which has as its sole purpose

the conduct of trust business as defined in section 6-05-08. A subsidiary trust company

may not conduct commercial banking business but may maintain deposits of funds of

fiduciary accounts not currently invested.

6. "Trust office", with respect to a subsidiary trust company, means an office, including

the main office, of such subsidiary trust company maintained for the purpose of

conducting its business.
N.D. Cent. Code § 6-05.1-03 — ND Code / Title 6 / Chapter 6-05.1 / Section 6-05.1-03
6-05.1-03. Permissible business of subsidiary trust companies
Status: in_force

6-05.1-03. Permissible business of subsidiary trust companies

The permissible business of a subsidiary trust company is to engage in such trust business

as may be engaged in by a trust company pursuant to section 6-05-08. A subsidiary trust

company may not exercise any of the powers provided in subsection 7 of section 6-03-02, nor

conduct commercial banking business, but may maintain deposits of funds of fiduciary accounts

not currently invested.
N.D. Cent. Code § 6-06.2-05 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-05
6-06.2-05. Organization certificate - Contents
Status: in_force

6-06.2-05. Organization certificate - Contents

Before formation of a cooperative financial institution under this chapter, originating

members who wish to associate themselves in a cooperative financial institution shall sign and

execute an organization certificate on a form prescribed by the commissioner, which must state:

1. The name of the cooperative financial institution. The name may not be the name of

any other bank, credit union, or financial institution previously incorporated within the

this state;

2. The location of the principal office of the cooperative financial institution at which

business will be conducted;

3. The names and places of residence of the originating members; and

4. The respective dates on which the cooperative financial institution will commence

business.
N.D. Cent. Code § 6-09-39 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-39
6-09-39. Truckdriver training programs - Loans to students
Status: in_force

6-09-39. Truckdriver training programs - Loans to students

Expired under S.L. 2007, ch. 79, § 2.
N.D. Cent. Code § 6-01-11 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-11
6-01-11. Salary of commissioner (Effective through June 30, 2029)
Status: in_force

6-01-11. Salary of commissioner. (Effective through June 30, 2029)

The salary of the commissioner must be within the budget approved by the boards. The

commissioner is allowed, in addition to the commissioner's salary, the commissioner's

necessary and actual expenses incurred in the discharge of the commissioner's official duties

within the budget approved by the boards. The commissioner's salary and expenses must be

audited and paid in the manner in which the salary and expenses of other state officers are

paid.

Salary of commissioner. (Effective after June 30, 2029) The salary of the commissioner

must be within the amount appropriated for salaries by the legislative assembly. The

commissioner is allowed, in addition to the commissioner's salary, the commissioner's

necessary and actual expenses incurred in the discharge of the commissioner's official duties.

The commissioner's salary and expenses must be audited and paid in the manner in which the

salary and expenses of other state officers are paid.
N.D. Cent. Code § 6-05-16 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-16
6-05-16. Indebtedness of directors - Prohibition and exception - Theft - Penalty
Status: in_force

6-05-16. Indebtedness of directors - Prohibition and exception - Theft - Penalty

Such corporation may not loan its funds, moneys, capital, trust funds, or any other property

whatsoever to any director, officer, agent, or other employee thereof, nor may any such director,

officer, agent, or other employee become in any manner indebted to said corporation by means

of any overdraft, promissory note, account, endorsement, guaranty, or other contract

whatsoever unless such indebtedness has been approved or authorized first by the board of

directors, or an investment committee created by it, and such approval entered in the minutes of

the proceedings of such board or committee. Any such director, agent, or employee who

becomes indebted to said company, contrary to the provisions hereof, is guilty of the crime of

theft to the amount of such indebtedness from the time such indebtedness was created and

must be punished in the manner prescribed by section 12.1-23-05. The execution and delivery

of the official bond of such officer, agent, or employee, or that person's endorsement of

commercial paper, however, may not be considered as an indebtedness for the purpose of this

section.
N.D. Cent. Code § 6-06.2-11 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-11
6-06.2-11. Benefit to directors or management
Status: in_force

6-06.2-11. Benefit to directors or management

1. A director or senior management official of a converted organization may not receive

any economic benefit in connection with a conversion of the converted organization

other than reasonable director fees, compensation, and other benefits paid to the

directors or senior management officials in the ordinary course of business.

2. For purposes of this section, "senior management official" means a chief executive

officer, an assistant chief executive officer, a chief financial officer, and any other

senior executive officer as may be defined by the state banking board.
N.D. Cent. Code § 6-09.14-02 — ND Code / Title 6 / Chapter 6-09.14 / Section 6-09.14-02
6-09.14-02. Fund - Continuing appropriation - Administration
Status: in_force

6-09.14-02. Fund - Continuing appropriation - Administration

A partnership in assisting community expansion fund is hereby established from a transfer

of earnings from the Bank of North Dakota. This is a revolving fund, and all moneys transferred

into the fund, interest on fund moneys, and payments to the fund are hereby appropriated for

the purposes of this chapter. This fund is not subject to section 54-44.1-11. The Bank of North

Dakota shall administer the fund. The fund must be audited annually pursuant to section

6-09-29, and the cost of the audit must be paid from the fund.
N.D. Cent. Code § 6-08.4-07 — ND Code / Title 6 / Chapter 6-08.4 / Section 6-08.4-07
6-08.4-07. Enforcement
Status: in_force

6-08.4-07. Enforcement

If the board or commissioner determines that a branch maintained by an out-of-state

state-chartered bank is being operated in violation of any provision of North Dakota law, or that

the branch is being operated in an unsafe and unsound manner, the board or commissioner has

the same authority to take all enforcement actions as if the branch were a North Dakota

state-chartered bank.
N.D. Cent. Code § 6-03-14.2 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-14.2
6-03-14.2. Subsidiary depository institutions as agents
Status: in_force

6-03-14.2. Subsidiary depository institutions as agents

Any bank subsidiary of a bank holding company may receive deposits, renew time deposits,

close loans, service loans, and receive payments on loans and any other obligations as an

agent for a depository institution affiliate, subject to any requirements established by the board

by rule. Notwithstanding any other law, a bank acting as an agent under this section may not be

considered to be a branch of the affiliate. However, a depository institution may not conduct any

activity as an agent that it is prohibited from conducting as a principal under any federal or state

law.
N.D. Cent. Code § 6-09-22 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-22
6-09-22. Assignment of note and mortgage to state treasurer - Payments - Satisfactions
Status: repealed

6-09-22. Assignment of note and mortgage to state treasurer - Payments -

Satisfactions.

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-05-18 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-18
6-05-18. Annual report to state examiner - Publication
Status: repealed

6-05-18. Annual report to state examiner - Publication

Repealed by S.L. 1969, ch. 117, § 1.
N.D. Cent. Code § 6-03-40.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-40.1
6-03-40.1. Liquidation of investments in agricultural credit corporations - Penalty
Status: repealed

6-03-40.1. Liquidation of investments in agricultural credit corporations - Penalty

Repealed by S.L. 1969, ch. 108, § 1.
N.D. Cent. Code § 6-09-15 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15
6-09-15. Powers
Status: in_force

6-09-15. Powers

The Bank of North Dakota may:

1. Make, purchase, guarantee, or hold loans:

a. To state-chartered or federally chartered lending agencies or institutions or any

other financial institutions.

b. To holders of Bank of North Dakota certificates of deposit and savings accounts

up to ninety percent of the value of the certificates and savings accounts offered

as security.

c. To actual farmers who are residents of this state, if the loans are secured by

recorded mortgages giving the Bank of North Dakota a first lien on real estate in

North Dakota in amounts not to exceed eighty percent of the value of the security.

d. That are insured or guaranteed in whole or in part by the United States, its

agencies, or instrumentalities.

e. That are eligible to be guaranteed under chapter 15-62.1. Loans made pursuant

to this subdivision may provide for interest that remains unpaid at the end of any

period specified in the loan to be added to the principal amount of the debt and

thereafter accumulate interest.

f. To individuals or bank holding companies for the purpose of purchasing or

refinancing the purchase of bank stock of a bank located in the state.

g. To nonprofit organizations that are exempt from federal taxation under section

501(c)(3) of the Internal Revenue Code [26 U.S.C. 501(c)(3)], the proceeds of the

loans to be used for construction, reconstruction, repair, renovation, maintenance,

and associated costs on property under the control of the parks and recreation

department.

h. Under Public Law No. 99-198 [99 Stat. 1534; 7 U.S.C. 1932 et seq.], as amended

through December 31, 1996, to nonprofit corporations for the purpose of

relending loan funds to rural businesses.

i. Under title 7, Code of Federal Regulations, part 1948, subpart C; part 1951,

subparts F and R; and part 1955, subparts A, B, and C, as amended through

December 31, 1996, to finance businesses and community development projects

in rural areas.

j. Obtained as security pledged for or originated in the restructuring of any other

loan properly originated or participated in by the Bank.

k. To instrumentalities of this state.

l. As otherwise provided by this chapter or other statutes.

m. If the Bank is participating in the loan and the Bank deems it is in the best

interests of the Bank to do so, it may purchase the remaining portion of the loan

from a participating lender that is closed by regulatory action or from the receiver

of the participating lender's assets.

n. To an investment company created for completing a trust preferred securities

transaction for the benefit of a financial institution located in this state.

2. Make agricultural real estate loans in order to participate in the agricultural mortgage

secondary market program established pursuant to the Agricultural Credit Act [Pub. L.

100-233; 101 Stat. 1686; 12 U.S.C. 2279aa-2279aa-14], as amended through

December 31, 1996.

3. Purchase participation interests in loans made or held by banks, bank holding

companies, state-chartered or federally chartered lending agencies or institutions, any

other financial institutions, or any other entity that provides financial services and that

meets underwriting standards that are generally accepted by state or federal financial

regulatory agencies.

4. Invest its funds:

a. In conformity with policies of the industrial commission.

b. In a public venture capital corporation organized and doing business in this state

through the purchase of shares of stock.

c. In North Dakota alternative and venture capital investments and early-stage

capital funds, including the North Dakota development fund, incorporated, not to

exceed fifteen million dollars, for the purpose of providing funds for investment in

North Dakota alternative and venture capital investments, early-stage capital

funds, and entrepreneurship awards. The Bank may invest a maximum of two

hundred thousand dollars per biennium in North Dakota-based venture capital

entities that make investments in companies located outside North Dakota. The

Bank may allow for third-party management of the funds invested under this

subdivision if the management is provided by the North Dakota development

fund, incorporated, or a third party that is located in the state and that has

demonstrated fund management experience.

5. Buy and sell federal funds.

6. Lease, assign, sell, exchange, transfer, convey, grant, pledge, or mortgage all real and

personal property, title to which has been acquired in any manner.

7. Acquire real or personal property or property rights by purchase, lease, or, subject to

chapter 32-15, the exercise of the right of eminent domain and may construct,

remodel, and repair buildings.

8. Receive deposits from any source and deposit its funds in any bank or other financial

institution.

9. Perform all acts and do all things necessary, convenient, advisable, or desirable to

carry out the powers expressly granted or necessarily implied in this chapter through

or by means of its president, officers, agents, or employees or by contracts with any

person, firm, or corporation.

10. Purchase mortgage loans on residential real property originated by financial

institutions.
N.D. Cent. Code § 6-07.1-12 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-12
6-07.1-12. Records with third parties
Status: in_force

6-07.1-12. Records with third parties

Each state trust company affiliate, officer, director, manager, managing participant,

employee, shareholder, participant, trustee, agent, employee, attorney, attorney in fact, or

correspondent shall immediately upon request deliver to the receiver any property, book, record,

account, document, or other writing of the state trust company which relates to the business of

the state trust company, without cost to the receiver.
N.D. Cent. Code § 6-06-34 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-34
6-06-34. Unclaimed dividends of credit unions
Status: in_force

6-06-34. Unclaimed dividends of credit unions

The commissioner shall transfer all unpaid dividends to the commissioner of university and

school lands. The commissioner of university and school lands is authorized to issue a voucher

for the payment of such dividends to the persons respectively entitled thereto, in accordance

with the escheat and abandoned property laws of the state.
N.D. Cent. Code § 6-09.10-03.1 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-03.1
6-09.10-03.1. Board compensation
Status: in_force

6-09.10-03.1. Board compensation

Each member of the board is entitled to receive compensation in the amount of one

hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state

officers if the member is attending meetings or performing duties directed by the board.
N.D. Cent. Code § 6-05-33 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-33
6-05-33. Responsibility of fidelity and surety corporation for fraud of bonded officer
Status: repealed

6-05-33. Responsibility of fidelity and surety corporation for fraud of bonded officer

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-03-28 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-28
6-03-28. Shares - Value and transfer - Shareholder's obligation
Status: in_force

6-03-28. Shares - Value and transfer - Shareholder's obligation

The capital stock of each association must be divided into shares of not less than ten

dollars each and is deemed personal property and transferable on the books of the association

in such manner as may be prescribed by its bylaws or articles of incorporation. A transfer of

shares is not valid except between the parties to the transfer until the transfer is entered upon

the books of the association and is not valid against the association or any creditor of the

association while the registered holder of the shares is indebted to the bank as principal debtor,

surety, guarantor, or otherwise. No dividend, interest, or profit may be paid on any stock of the

bank or bank holding company as long as any past-due liability of the shareholder continues,

but such dividend, interest, or profit must be retained by the association and applied to the

discharge of the past-due liability. Every person or corporation becoming a shareholder by any

transfer shall succeed, in proportion to the shares acquired by that shareholder, to all rights and

liabilities of prior holders of the shares existing by reason of ownership of the shares and no

change may be made in the articles of incorporation or bylaws of the association by which the

rights, remedies, or security of its existing creditors shall be impaired.
N.D. Cent. Code § 6-03-68 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-68
6-03-68. Collection of negotiable instruments by bank - Liability for negligence
Status: repealed

6-03-68. Collection of negotiable instruments by bank - Liability for negligence

Repealed by S.L. 1965, ch. 296, § 32.
N.D. Cent. Code § 6-09-08 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-08
6-09-08. Nonliability of officers and sureties after deposit
Status: in_force

6-09-08. Nonliability of officers and sureties after deposit

Whenever any of the public funds hereinbefore designated are deposited in the Bank of

North Dakota, as hereinbefore provided, the official having control thereof and the sureties on

the bond of every such official shall be exempt from all liability by reason of loss of any such

funds while so deposited.
N.D. Cent. Code § 6-03-15 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-15
6-03-15. Application to state banking board to establish stations
Status: repealed

6-03-15. Application to state banking board to establish stations

Repealed by S.L. 1995, ch. 79, § 24.
N.D. Cent. Code § 6-08.3-11 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-11
6-08.3-11. Exception
Status: repealed

6-08.3-11. Exception

Repealed by S.L. 1995, ch. 79, § 25.
N.D. Cent. Code § 6-03-54.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-54.1
6-03-54.1. Pledges of bank securities to secure repayment of deposits by a federally recognized Indian tribe
Status: in_force

6-03-54.1. Pledges of bank securities to secure repayment of deposits by a federally

recognized Indian tribe.

A bank, upon the deposit with it of funds by a federally recognized Indian tribe, or an officer,

employee, or agent thereof in that person's official capacity, may give security for the

safekeeping and repayment of the funds deposited by a pledge of securities of the same kind

and to the same extent as is authorized by section 21-04-09 in the case of deposits of public

funds by public corporations.
N.D. Cent. Code § 6-09-49.3 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-49.3
6-09-49.3. Rail revolving loan fund - Continuing appropriation
Status: in_force

6-09-49.3. Rail revolving loan fund - Continuing appropriation

1. The rail revolving loan fund is a special fund in the state treasury from which the Bank

of North Dakota shall provide loans to counties, cities, railroads, and other freight

railroad users to construct or upgrade rail infrastructure to improve rail service.

2. The Bank shall administer the fund in accordance with the provisions of this section

and may adopt policies and establish guidelines for the loans, including policies for

eligibility and allowing participation by local financial institutions. Class I railroads are

not eligible.

3. The Bank shall consider the applicant's ability to repay the loan when processing the

application and shall issue loans only to applicants that provide reasonable assurance

of sufficient future income to repay the loan.

4. The department of transportation shall review and approve the project before the Bank

may issue a loan based on policies developed by the department.

5. The Bank shall deposit in the fund all payments of principal and interest paid on loans

made from the fund. The Bank may use a portion of the interest paid on the

outstanding loans as a servicing fee to pay administrative costs which may not exceed

one-half of one percent of the amount of the outstanding loans.

6. All moneys transferred to the fund, interest upon moneys in the fund, and payments to

the fund of principal and interest are appropriated to the Bank on a continuing basis for

administrative costs and for loan disbursements according to this section.

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

audit must be paid from the fund.
N.D. Cent. Code § 6-09-25 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-25
6-09-25. State treasurer may lease lands acquired through foreclosure of Bank mortgages - Oil and gas leases
Status: repealed

6-09-25. State treasurer may lease lands acquired through foreclosure of Bank

mortgages - Oil and gas leases.

Repealed by S.L. 1977, ch. 138, § 12.
N.D. Cent. Code § 6-09-15.3 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15.3
6-09-15.3. Bank stock loans - Requirements
Status: repealed

6-09-15.3. Bank stock loans - Requirements

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-05-30 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-30
6-05-30. Conditions under which foreign corporation may do fidelity and surety business
Status: repealed

6-05-30. Conditions under which foreign corporation may do fidelity and surety

business.

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-05-11 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-11
6-05-11. Bond not required - Power to be surety on judicial bonds - Deposit of securities
Status: in_force

6-05-11. Bond not required - Power to be surety on judicial bonds - Deposit of

securities.

No bond or other security, oath, or other qualification is necessary to enable such

corporation to accept any appointment or trust. It is lawful for any such corporation to become

surety upon any bond or undertaking for or on behalf of any person, persons, or corporation, in

any suit, action, or special proceeding, in any court in this state. Whenever a bond or new

sureties on a bond may be required from any person, persons, or corporation, acting in any trust

capacity whatever, if the value of the estate or fund is so great that the judge of the court having

jurisdiction of the proceedings deems it inexpedient to require security in the full amount

prescribed by law, the judge may direct that any securities for the payment of moneys belonging

to the estate or fund be deposited, subject to the order of the person acting in such trust

capacity, countersigned by a judge of said court, with any trust company organized and qualified

to do business under the provisions of this chapter. After such deposit has been made, the

judge may fix the amount of the bond with respect to the value of the remainder only of such

estate or fund.
N.D. Cent. Code § 6-05-06 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-06
6-05-06. Directors - Qualifications - Terms - Vacancies
Status: in_force

6-05-06. Directors - Qualifications - Terms - Vacancies

All the corporate powers of such a corporation must be exercised by a board of directors of

not less than three nor more than twenty-five in number, and such officers and agents as it

elects or appoints. At least two-thirds of the directors must be citizens of the United States. Any

director who becomes in any manner disqualified shall vacate that director's office thereupon.

Every director, when elected or appointed, shall take the oath specified in section 6-03-04. Such

oath, subscribed by the director making it and certified by the officer before whom it was taken,

must be transmitted at once to the commissioner to be filed in the commissioner's office. The

articles of incorporation must state the names and residences of the first board of directors, of

whom the first named one-third shall serve for a period of three years, the second one-third

named for a period of two years, and the balance thereof shall serve for a period of one year

from the date fixed for the commencement of such corporation. In case any of the persons so

named shall fail or refuse to qualify from any cause, the directors who qualify must elect

qualified persons to fill such vacancies, and thereafter, at each annual meeting of the

stockholders, directors must be elected to serve three years in place of those whose terms then

expire.
N.D. Cent. Code § 6-09-54 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-54
6-09-54. Extraordinary medical needs housing loan fund - Continuing appropriation
Status: in_force

6-09-54. Extraordinary medical needs housing loan fund - Continuing appropriation

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

construction projects to provide housing for individuals with disabilities that have

extraordinary medical needs. A construction project may include a land purchase and

the construction costs of the project. The applicant must comply with project

requirements as approved by the department of health and human services and the

North Dakota housing finance agency.

2. The extraordinary medical needs housing loan fund is a special fund maintained in the

state treasury from which the Bank shall provide loans under this section. The fund

consists of revenues transferred under legislative authorization, interest upon moneys

in the fund, and collections of interest and principal on loans made from the fund. All

moneys in the fund are appropriated on a continuing basis to the Bank for the purpose

of providing loans under this section.

3. The developer of the housing facility for individuals with disabilities that have

extraordinary medical needs may submit an application to the Bank for a loan. The

application must:

a. Provide detail on the proposed construction project and its compliance with the

department of health and human services and the North Dakota housing finance

agency requirements;

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

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

4. A loan approved under this section:

a. May not exceed three million three hundred thousand dollars for a project;

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

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

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

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

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

6. The Bank shall deposit in the fund all principal and interest paid on the loans made

from the fund. The Bank may deduct from interest payments a service fee for costs of

administering the loan program. The fund must be audited annually pursuant to section

6-09-29 and the cost of the audit and any other actual costs incurred by the Bank on

behalf of the fund must be paid from the fund.
N.D. Cent. Code § 6-06-29 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-29
6-06-29. Taxation of credit unions
Status: in_force

6-06-29. Taxation of credit unions

Any credit union organized under this chapter or under the Federal Credit Union Act is

exempt from all taxation now or hereafter imposed by the state or any municipality within the

state or any local taxing authority and no law which taxes corporations in any form, or the

shares thereof, or the accumulations thereon, shall apply to any such credit union, except that

any real property and any tangible personal property owned by any credit union organized

under this chapter or under the Federal Credit Union Act is subject to taxation to the same

extent as other similar property is taxed and purchases by credit unions are subject to sales or

use tax. The shares of credit unions are not subject to any stock transfer tax, either when issued

or when transferred from one member to another. The participation by the credit union in any

unemployment insurance funds, or social security fund, or old-age fund may not be deemed a

waiver of the tax immunities hereby granted.
N.D. Cent. Code § 6-09-38 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-38
6-09-38. North Dakota higher education savings plan - Administration - Rules - Continuing appropriation
Status: in_force

6-09-38. North Dakota higher education savings plan - Administration - Rules -

Continuing appropriation.

The Bank of North Dakota shall adopt rules to administer, manage, promote, and market a

North Dakota higher education savings plan. The Bank shall ensure that the North Dakota

higher education savings plan is maintained in compliance with internal revenue service

standards for qualified state tuition programs. The Bank, as trustee of the North Dakota higher

education savings plan, may impose an annual administrative fee to recover expenses incurred

in connection with operation of the plan, support the functions of the Bank related to the

educational mission of the Bank, or defray the expenses of education as defined by section 529

of the Internal Revenue Code of 1986 [26 U.S.C. 529]. Administrative fees received by the Bank

are appropriated on a continuing basis to be used as provided in this section. Contributions

made during the taxable year to a higher education savings plan administered by the Bank,

pursuant to the provisions of the plan, are eligible for an income tax deduction as provided in

chapter 57-38. Information related to contributions is confidential except as is needed by the tax

commissioner for determining compliance with the income tax deduction provided in chapter

57-38.
N.D. Cent. Code § 6-01-08 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-08
6-01-08. Appointment of commissioner - Qualifications
Status: in_force

6-01-08. Appointment of commissioner - Qualifications

The commissioner must be appointed by the governor and confirmed by the senate, and

shall hold office for a term of four years and until a successor has been appointed, confirmed by

the senate, and has qualified, unless the commissioner is removed sooner as herein provided. If

the senate is not in session, the governor may make an interim appointment, and the interim

appointee shall hold office until the senate confirms or rejects the appointment. The

commissioner's term of office commences on the first day of July in each year next following a

national presidential election. The commissioner must be a skilled accountant, and may not be

an incumbent of any other public office in the state, or in any county, municipality, or public

institution thereof, and may not own, hold, or control any stocks, capital, or bonds, or hold the

office of trustee, assignee, officer, agent, or employee of any financial institution under the

commissioner's jurisdiction, or of any corporation engaged in the business of guarantying or

ensuring the fidelity or faithful performance of the duties or the solvency of public officers or of

public depositaries. The governor may remove from office any commissioner who violates or

fails to discharge faithfully the duties of office or who becomes disqualified under the provisions

of this section.
N.D. Cent. Code § 6-07.1-20 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-20
6-07.1-20. Disposition and maintenance of records
Status: in_force

6-07.1-20. Disposition and maintenance of records

On approval by the court, the receiver may dispose of records of the state trust company in

liquidation which are obsolete and unnecessary to continue administration of the receivership

proceeding. Records of a liquidated state trust company are not public records for any purpose

and are exempt from public disclosure. To maintain the records of a liquidated state trust

company after the closing of the receivership proceeding, the receiver may reserve assets of an

estate, deposit them in an account, and use them for maintenance, storage, and disposal of

records in closed receivership estates.
N.D. Cent. Code § 6-03-73 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-73
6-03-73. Deferred posting authorized
Status: repealed

6-03-73. Deferred posting authorized

Repealed by S.L. 1965, ch. 296, § 32.
N.D. Cent. Code § 6-01-32 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-32
6-01-32. Liability of bank officers and directors
Status: in_force

6-01-32. Liability of bank officers and directors

No claim or action seeking to recover money damages may be brought by the federal

deposit insurance corporation, resolution trust corporation, or other federal banking regulatory

agency against any director or officer, including any former director or officer, of any insured

financial depository institution unless the claim or action arises out of the gross negligence, or

willful or intentional misconduct of the officer or director during the term of office with the insured

financial institution.
N.D. Cent. Code § 6-10-03 — ND Code / Title 6 / Chapter 6-10 / Section 6-10-03
6-10-03. Limit on license
Status: in_force

6-10-03. Limit on license

No license may be granted for the purpose of conducting such business in any city wherein

there already is operating a state or national bank or an authorized separate facility. In the event

that a national or state bank or an authorized separate facility is authorized to do, and does

commence doing business in any city where a license has been granted to operate a business

under this section, such license may not thereafter be renewed.
N.D. Cent. Code § 6-08.2-02 — ND Code / Title 6 / Chapter 6-08.2 / Section 6-08.2-02
6-08.2-02. Presentment of plan of acquiring entity to the state department of financial institutions
Status: in_force

6-08.2-02. Presentment of plan of acquiring entity to the state department of financial

institutions.

Prior to any acquisition under this chapter, the acquiring entity must present a plan to the

state department of financial institutions. The plan must provide that the acquiring entity

commits itself to the condition that it capitalize each bank to be acquired in this state according

to the applicable banking laws of this state and the requirements of the federal deposit

insurance corporation or any applicable federal banking laws.
N.D. Cent. Code § 6-09-06 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-06
6-09-06. Capital of Bank
Status: repealed

6-09-06. Capital of Bank

Repealed by S.L. 1979, ch. 138, § 1.
N.D. Cent. Code § 6-08.1-05 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-05
6-08.1-05. Government access
Status: in_force

6-08.1-05. Government access

1. A governmental agency or law enforcement agency may obtain customer information

from a financial institution pursuant to either of the following:

a. The consent of the customer, in accordance with this chapter.

b. Valid legal process, in accordance with this section.

2. A governmental agency or law enforcement agency may obtain customer information

from a financial institution pursuant to a judicial or administrative subpoena duces

tecum served on the financial institution, if there is reason to believe that the customer

information sought is relevant to a proper law enforcement objective or is otherwise

authorized by law.

3. A governmental agency or law enforcement agency may obtain customer information

from a financial institution pursuant to a search warrant if it obtains the search warrant

pursuant to the rules of criminal procedure of this state. Examination of the customer

information may occur as soon as it is reasonably practicable after the warrant is

served on the financial institution.
N.D. Cent. Code § 6-06-07 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-07
6-06-07. Membership in credit union
Status: in_force

6-06-07. Membership in credit union

1. The membership of a credit union consists of the incorporators and such other

persons as may be elected to membership. Each member shall subscribe to and pay

the initial installment on at least one share in the credit union and pay the entrance fee

as provided by the bylaws of the credit union. Organizations, incorporated or

otherwise, composed principally of the same general group as the credit union

membership may be members of the credit union.

2. Credit union membership is limited to groups having a common bond of occupation or

association or to groups residing within a geographic area that does not extend

beyond a seventy-five-mile [120.70-kilometer] radius of the home office of the credit

union. Except as provided by this section, an office of a credit union that has a field of

membership defined by geography may not be located more than seventy-five miles

[120.70 kilometers] from the credit union main office. The restrictions on location and

field of membership under this section do not apply to a credit union office location or

field of membership approved by the board before January 1, 2005. In the event of a

merger between credit unions with different geographic fields of membership, the

surviving credit union may expand the field of membership to include the geographic

field of membership of the merged credit union. After December 31, 2004, a credit

union may not establish and operate a new branch office that is outside the credit

union's field of membership. A branch office may not expand the geographic field of

membership of a credit union.

3. The board shall adopt a procedure through which all interested persons, including

banking institutions and credit unions, are afforded reasonable opportunity to submit

data, views, or arguments, orally or in writing; to obtain a hearing; and to intervene as

a party to a proceeding concerning a proposed application for a credit union to expand

the credit union's field of membership.
N.D. Cent. Code § 6-05-31 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-31
6-05-31. Service on foreign corporation doing fidelity and surety business
Status: repealed

6-05-31. Service on foreign corporation doing fidelity and surety business

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-06-02 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-02
6-06-02. Manner of organization of credit unions
Status: in_force

6-06-02. Manner of organization of credit unions

A credit union must be organized in the following manner:

1. The applicants shall execute a certificate of organization, in triplicate, by the terms of

which they agree to be bound, stating the name and the location of the proposed credit

union, the names and addresses of the subscribers to the certificate and the number

of shares subscribed by each, and the par value of the shares of the credit union,

which may not exceed fifty dollars each. The commissioner shall prescribe the

application form.

2. The applicants shall prepare and execute proposed bylaws, in triplicate, for the

general governance of the credit union consistent with the provisions of this chapter.

3. The certificate and the proposed bylaws, both executed in triplicate, must be

forwarded to the commissioner.

4. The applicants shall apply for, secure, and maintain national credit union

administration insurance of accounts.

5. The board, within thirty days after the receipt of the certificate and bylaws, shall

determine whether they comply and are consistent with this chapter.

6. The board shall instruct the secretary of state to issue a charter, which must be

attached to the certificate of organization and returned, together with the bylaws, to the

applicants upon payment of a filing fee of thirty dollars to the secretary of state.

7. Evidence of securing national credit union administration insurance must be furnished

to the commissioner before the charter may be released to the applicant credit union.

After the provisions of this section have been complied with, the association becomes a body

corporate and is known as a credit union.
N.D. Cent. Code § 6-05-28 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-28
6-05-28. Examination by commissioner - Fees - Power over business, officers, and employees
Status: in_force

6-05-28. Examination by commissioner - Fees - Power over business, officers, and

employees.

The commissioner shall make a full, true, complete, and accurate examination and

investigation of the affairs of each corporation doing business under this chapter as often as the

commissioner deems necessary. Such examination may be made without previous notice to the

corporation to be examined. Fees for such examinations must be charged by the department of

financial institutions at an hourly rate to be set by the commissioner, sufficient to cover all

reasonable expenses of the department associated with the examinations provided for by this

section. Fees must be paid to the department of financial institutions and deposited in the

financial institutions regulatory fund. The commissioner, in the commissioner's discretion, may

accept, in lieu of any examination authorized or required by this title to be conducted by the

department of financial institutions, the examination that may have been made of such

institution within a reasonable period by the federal reserve bank or federal deposit insurance

corporation, if a copy of such examination is furnished to the commissioner. The commissioner

shall assume and exercise over each such corporation and its business, officers, directors, and

employees all the power and authority conferred upon the commissioner over financial or

moneyed corporations or associations.
N.D. Cent. Code § 6-07.2-09 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-09
6-07.2-09. Payment of claims
Status: in_force

6-07.2-09. Payment of claims

1. All claims against the institution's estate, proved to the receiver's satisfaction or

approved by the circuit court, must be paid in the following order:

a. Administration expenses, including compensation of each regular officer or

employee of the receiver for the time actually devoted to the liquidation of the

institution at an amount not to exceed the compensation paid to the officer or

employee for the performance of the officer's or employee's regular duties; actual

expenses of each regular officer and employee necessarily incurred in the

performance of the officer's or employee's duties; compensation and expenses of

any special representative, assistant, accountant, agent, or attorney employed by

the receiver; court costs; and if the commissioner is acting as receiver, such

reasonable general overhead expenses as may be incurred by the commissioner

in the liquidation of the affairs of the institution which shall be ascertained,

determined, and fixed by the commissioner.

b. Claims given priority under other provisions of state or federal law.

c. Deposit obligations, except that notwithstanding sections 6-03-67 and 41-04-31, if

a depositor is indebted to an insolvent bank, the insolvent bank has a right to

setoff against the depositor's account.

d. Other general liabilities.

e. Debt subordinated to the claims of depositors and general creditors.

f. Equity capital securities.

g. For credit unions and cooperative financial institutions, pro rata distribution to

members computed based on the total amount in each member's deposit

accounts as of the date of liquidation.

2. Interest on a claim may not be paid until all claims within the same class have received

the full principal amount of claim.
N.D. Cent. Code § 6-09.4-12 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-12
6-09.4-12. Participation by public finance authority in bonds held by Bank of North Dakota
Status: in_force

6-09.4-12. Participation by public finance authority in bonds held by Bank of North

Dakota.

The public finance authority may issue its bonds from time to time in an amount sufficient to

purchase municipal securities held by the Bank of North Dakota at a price established by mutual

agreement between the public finance authority and the Bank of North Dakota.
N.D. Cent. Code § 6-06-14.1 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-14.1
6-06-14.1. Loans - How made - Security - Meetings and duties of loan administration - Preferential loans
Status: in_force

6-06-14.1. Loans - How made - Security - Meetings and duties of loan administration -

Preferential loans.

1. The duty of loan administration falls to the credit committee if the bylaws establish a

credit committee, or to the credit manager appointed by the board of directors if the

bylaws do not provide for a credit committee. At a minimum, loan administration must

include:

a. Oversight over all loans.

b. Performance of loan-related duties as often as necessary, and in the case of a

credit committee, a meeting at least once each month. Each member of the credit

committee must receive prior notice of the time and location of a meeting.

c. Loan applications, notes, security instruments, and all other loan documentation

necessary to execute the transaction on forms approved by the committee or

credit manager which set forth the purpose for which the loan is desired, the

security, if any, which is offered, and such other data as the committee or credit

manager may require.

d. Documentation that the loan complies with board of directors-approved loan

policies, including policy limits on the maximum unsecured loans to one borrower

and the limit on maximum total loans to a borrower.

e. Documented approval or denial of the loan by the majority of the entire credit

committee or by the credit manager, except that the credit committee or credit

manager may appoint and delegate to one or more loan officers the power to

approve loans up to the limit established by the board of directors.

f. Sufficient segregation of duties to limit risk or error if possible. At a minimum, an

individual may not disburse funds of the credit union for any loan that has been

approved by that individual in that individual's capacity as a loan officer.

2. Not more than one member of the credit committee may be appointed as a loan officer,

unless credit union bylaws provide for a board of directors-appointed credit manager

and the credit committee is made up of credit union employees appointed by the credit

manager.

3. Every loan by a credit union to, or guaranteed by, its directors, officers, managers, and

committee members must:

a. Be current as outlined on the terms of the loan agreement.

b. Be made on substantially the same terms, including interest rates, fee structure,

and collateral, as those prevailing at the time for comparable transactions with

other persons.

c. Be written in strict conformity with the credit union's policies, rules, and

regulations.

4. An exception may be made for a loan otherwise prohibited by this section if the loan is

directly related to a retirement investment benefit plan for credit union employees.
N.D. Cent. Code § 6-08.1-01 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-01
6-08.1-01. Definitions
Status: in_force

6-08.1-01. Definitions

As used in this chapter:

1. "Customer" means any person that is a resident of or is domiciled in this state and

which has transacted or is transacting business with or has used or is using the

services of a financial institution, or for which a financial institution has acted as a

fiduciary with respect to trust property.

2. "Customer information" means either of the following:

a. Any original or any copy of any records held by a financial institution pertaining to

a customer's relationship with the financial institution.

b. Any information derived from a record described in this subsection.

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

federal laws relating to financial institutions, including, without limitation, a bank,

including the Bank of North Dakota, a savings bank, a trust company, a savings and

loan association, or a credit union.

4. "Financial institution regulatory agency" means any of the following:

a. The federal deposit insurance corporation.

b. The federal savings and loan insurance corporation.

c. The national credit union administration.

d. The federal reserve board.

e. The United States comptroller of the currency.

f. The department of financial institutions.

g. The federal home loan bank board.

5. "Governmental agency" means any agency or department of this state, or any

authorized officer, employee, or agent of an agency or department of this state.

6. "Law enforcement agency" means any agency or department of this state or of any

political subdivision of this state authorized by law to enforce the law and to conduct or

engage in investigations or prosecutions for violations of law.
N.D. Cent. Code § 6-01-10 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-10
6-01-10. Commissioner to keep records and make reports - Biennial report - Report to the legislative assembly (Effective through June 30, 2029)
Status: in_force

6-01-10. Commissioner to keep records and make reports - Biennial report - Report to

the legislative assembly. (Effective through June 30, 2029)

1. The assistant commissioner shall act as secretary and keep all proper records and

files pertaining to the duties and work of the department of financial institutions and the

proceedings of the board. The commissioner shall report to the board annually,

touching on all the commissioner's official acts and those of the deputy examiners,

giving abstracts of statistics and of the conditions of the various institutions to which

the commissioner's duties relate, and making such recommendations and suggestions

as the commissioner may determine proper.

2. The state banking board shall submit a biennial report to the governor and the

secretary of state in accordance with section 54-06-04. In addition to any requirements

established pursuant to section 54-06-04, the banking board's report must include a

summary or abstract of the reports of the commissioner.

3. The commissioner shall report to the state credit union board annually in the same

manner as this section provides for the commissioner's report to the state banking

board. The state credit union board shall submit a biennial report to the governor and

the secretary of state in accordance with section 54-06-04, and in addition, the credit

union board's report must include a summary or abstract of the reports of the

commissioner.

4. The biennial reports of the state banking board and the state credit union board shall

be published in the form of a combined biennial report of the department of financial

institutions. The biennial report of the department shall be submitted to the governor

and the secretary of state in accordance with section 54-06-04. The biennial report of

the department must include all other biennial reports which the commissioner or the

boards are required by law to submit to the governor and the office of management

and budget.

5. The commissioner shall prepare and present a report to the house and senate

appropriations committees of the legislative assembly during each regular legislative

session at the time and in the manner directed by the chairmen of the committees. The

report must include a summary of the department's activities during the current

biennium, a statement of the department's revenues and expenditures for the prior

biennium and the current biennium to date, and any other information requested by the

chairmen of the committees.

Commissioner to keep records and make reports - Biennial report. (Effective after

June 30, 2029)

1. The assistant commissioner shall act as secretary and keep all proper records and

files pertaining to the duties and work of the department of financial institutions and the

proceedings of the board. The commissioner shall report to the board annually,

touching on all the commissioner's official acts and those of the deputy examiners,

giving abstracts of statistics and of the conditions of the various institutions to which

the commissioner's duties relate, and making such recommendations and suggestions

as the commissioner may determine proper.

2. The state banking board shall submit a biennial report to the governor and the

secretary of state in accordance with section 54-06-04. In addition to any requirements

established pursuant to section 54-06-04, the banking board's report must include a

summary or abstract of the reports of the commissioner.

3. The commissioner shall report to the state credit union board annually in the same

manner as this section provides for the commissioner's report to the state banking

board. The state credit union board shall submit a biennial report to the governor and

the secretary of state in accordance with section 54-06-04, and in addition, the credit

union board's report must include a summary or abstract of the reports of the

commissioner.

4. The biennial reports of the state banking board and the state credit union board shall

be published in the form of a combined biennial report of the department of financial

institutions. The biennial report of the department shall be submitted to the governor

and the secretary of state in accordance with section 54-06-04. The biennial report of

the department must include all other biennial reports which the commissioner or the

boards are required by law to submit to the governor and the office of management

and budget.
N.D. Cent. Code § 6-13-09 — ND Code / Title 6 / Chapter 6-13 / Section 6-13-09
6-13-09. Nonapplication of privilege
Status: in_force

6-13-09. Nonapplication of privilege

The self-critical analysis privilege set forth in this chapter does not extend to:

1. Documents, communications, data, reports, or other information expressly required to

be collected, developed, maintained, or reported to a regulatory agency pursuant to

this title, or other federal or state law;

2. Information obtained by observation or monitoring by any regulatory agency; or

3. Information obtained from a source independent of the compliance audit.
N.D. Cent. Code § 6-08.4-08 — ND Code / Title 6 / Chapter 6-08.4 / Section 6-08.4-08
6-08.4-08. Powers of industrial bank
Status: in_force

6-08.4-08. Powers of industrial bank

An industrial bank may not accept deposits or make loans at a commercial location unless

the industrial bank is owned by a financial holding company as defined in 12 U.S.C. 1841(p).

For purposes of this section, "commercial location" means a location owned, operated, leased,

or otherwise controlled by an entity that derives fifteen percent or more of its annual gross

revenues, on a consolidated basis, including all affiliates of the entity, from engaging, on an

ongoing basis, in activities that are not financial in nature or incidental to a financial activity

during at least three of the prior four calendar quarters, as determined by the department of

financial institutions.
N.D. Cent. Code § 6-07.1-14 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-14
6-07.1-14. Subpoena
Status: in_force

6-07.1-14. Subpoena

In addition to the authority granted by law to the receiver relating to the taking of a

deposition of a witness in a civil action, the receiver may request the court ex parte to issue a

subpoena to compel the attendance and testimony of a witness before the receiver and the

production of a book, account, record, paper, or correspondence, or other record relating to the

receivership estate. For this purpose, the receiver or the receiver's designated representative

may administer an oath or affirmation, examine a witness, or receive evidence. The court has

statewide subpoena power and may compel attendance and production of a record before the

receiver at the state trust company, the office of the receiver, or another location. In case of

disobedience of a subpoena, or of the contumacy of a witness appearing before the receiver or

the receiver's designated representative, the receiver may request and the court may issue an

order requiring the person subpoenaed to obey the subpoena, give evidence, or produce any

record relating to the matter in question.
N.D. Cent. Code § 6-09-02 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-02
6-09-02. Industrial commission to operate Bank - Business of Bank
Status: in_force

6-09-02. Industrial commission to operate Bank - Business of Bank

The industrial commission shall operate, manage, and control the Bank of North Dakota,

locate and maintain its places of business, of which the principal place must be within the state,

and make and enforce orders, rules, regulations, and bylaws for the transaction of its business.

The business and financial transactions of the Bank, in addition to other matters specified in this

chapter, may include anything that any bank or bank holding company lawfully may do, except

as it is restricted by the provisions of this chapter. This provision may not be held in any way to

limit or qualify either the powers of the industrial commission granted by or the functions of said

Bank as defined in this chapter. The powers of the industrial commission and the functions of

the Bank must be implemented through actions taken and policies adopted by the industrial

commission.
N.D. Cent. Code § 6-08-34 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-34
6-08-34. Documenting customer identity
Status: in_force

6-08-34. Documenting customer identity

Notwithstanding any other provision of law, a financial institution, trust company, or credit

union may make and retain a copy of any motor vehicle operator's license, permit, or nondriver's

photo identification card used in connection with the process of verifying the identity of a

customer or potential customer.
N.D. Cent. Code § 6-08-01 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-01
6-08-01. Banks to have official number
Status: in_force

6-08-01. Banks to have official number

Each bank organized under the laws of this state must be numbered and shall receive from

the secretary of state an official number, and the secretary of state shall notify each bank of its

official number and also shall file a list of banks and their numbers with the commissioner.
N.D. Cent. Code § 6-08.6-08 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-08
6-08.6-08. When creditor process is enforceable against bank or credit union
Status: in_force

6-08.6-08. When creditor process is enforceable against bank or credit union

1. Subject to subsection 2, creditor process with respect to a special deposit is not

enforceable against the bank or credit union holding the special deposit.

2. Creditor process is enforceable against the bank or credit union holding a special

deposit with respect to an amount the bank or credit union is obligated to pay a

beneficiary or a depositor if the process:

a. Is served on the bank or credit union;

b. Provides sufficient information to allow the bank or credit union to identify the

depositor or the beneficiary from the bank's or credit union's books and records;

and

c. Gives the bank or credit union a reasonable opportunity to act on the process.

3. Creditor process served on a bank or credit union before it is enforceable against the

bank or credit union under subsection 2 does not create a right of the creditor against

the bank or credit union or a duty of the bank or credit union to the creditor. Other law

determines whether creditor process creates a lien enforceable against the beneficiary

on a contingent interest of a beneficiary, including a depositor as a beneficiary, even if

not enforceable against the bank or credit union.
N.D. Cent. Code § 6-06-13 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-13
6-06-13. Officers - Elections - Duties
Status: in_force

6-06-13. Officers - Elections - Duties

At their organizational meeting and within thirty days following each annual meeting of the

members, the directors shall elect from their own number an executive officer, who may be

designated as chairman of the board or president, a vice chairman of the board or one or more

vice presidents, a treasurer, and a secretary. The treasurer and the secretary may be the same

individual. The persons so elected are the executive officers of the corporation. The terms of the

officers must be one year, or until their successors are chosen and have duly qualified. The

duties of the officers must be prescribed in the bylaws. The board of directors may employ an

officer in charge of operations whose title must be president, chief executive officer, general

manager, or any combination thereof, or, in lieu thereof, the board of directors may designate

the treasurer or an assistant treasurer to act as general manager and be in active charge of the

affairs of the credit union.
N.D. Cent. Code § 6-01-25 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-25
6-01-25. Supervision of books and accounts of public institutions and private institutions with which state has dealings
Status: in_force

6-01-25. Supervision of books and accounts of public institutions and private

institutions with which state has dealings.

The commissioner shall assume and exercise constant supervision over the books and

financial accounts of the several public offices and institutions which the commissioner is

authorized to examine. The commissioner shall prescribe and enforce a correct and uniform

method of keeping financial accounts in such offices and institutions, shall recommend a form

for warrants or for order-checks which must conform so far as consistent with statutory and

charter requirements to approved banking practice, in order to facilitate handling of such

instruments by banks and other depositories, and shall instruct the proper officer of each of said

institutions in the due performance of the officer's duties concerning the same. The

commissioner has authority to examine the books and accounts of all private institutions with

which the state has any dealings so far only as the same relate to such dealings. If any public

officer having control of any such office or institutions fails or refuses to comply with the

directions of the commissioner, the commissioner shall report the facts to the governor and to

the manager of the state bonding fund, and such refusal constitutes grounds for removal from

office and cancellation of the bond of such officer.
N.D. Cent. Code § 6-03-72 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-72
6-03-72. Certification of checks, drafts, and orders - Penalty
Status: in_force

6-03-72. Certification of checks, drafts, and orders - Penalty

It is unlawful for an officer, clerk, or agent of any state banking association to certify any

check, draft, or order drawn upon the association unless the person drawing the same has on

deposit with the association at the time of such certification an amount of money equal to the

amount specified therein, and upon such certification, the amount of such certified check, draft,

or order must be immediately charged against the account of such drawer. Any officer or

employee of any banking association who willfully violates the provisions of this section is guilty

of a class B misdemeanor.
N.D. Cent. Code § 6-03-14 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-14
6-03-14. Paying and receiving stations authorized
Status: repealed

6-03-14. Paying and receiving stations authorized

Repealed by S.L. 1995, ch. 79, § 24.
N.D. Cent. Code § 6-03-13.6 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-13.6
6-03-13.6. Branch conversions
Status: in_force

6-03-13.6. Branch conversions

Notwithstanding section 6-03-13.1, any bank organized under chapter 6-02, any national

bank doing business in this state, or any bank established in this state by any bank holding

company doing business in this state as of January 1, 1995, may convert a branch of a federal

savings and loan association located in this state which was in existence as of March 1, 1995,

purchased by the bank between January 1, 1995, and August 1, 1996, into a facility of the bank

to be maintained at the same branch location if the acquisition and conversion does not violate

the deposit limitations provisions contained in sections 6-08-30 and 6-08.3-03.1 and the

acquisition and conversion of the branch is approved by the appropriate regulatory agencies.
N.D. Cent. Code § 6-03-18 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-18
6-03-18. When station must be discontinued - Revocation of permit
Status: repealed

6-03-18. When station must be discontinued - Revocation of permit

Repealed by S.L. 1995, ch. 79, § 24.
N.D. Cent. Code § 6-08.4-06 — ND Code / Title 6 / Chapter 6-08.4 / Section 6-08.4-06
6-08.4-06. Powers
Status: in_force

6-08.4-06. Powers

1. An out-of-state state-chartered bank that establishes, acquires, and retains one or

more branches in this state under this chapter may conduct any activities at the branch

or branches that are authorized under the laws for North Dakota state banks, except to

the extent those activities may be prohibited by the laws, rules, or orders of the home

state applicable to the out-of-state state-chartered bank.

2. A North Dakota state-chartered bank may conduct any activities at any branch outside

this state which are permissible for an out-of-state state-chartered bank where the

branch is located, except to the extent those activities are expressly prohibited by

North Dakota law, rule, or order.

3. A bank may not establish or maintain a branch in this state on the premises or property

or within one mile [1.60 kilometers] of the premises or property of an affiliate if the

affiliate engages in commercial activities.
N.D. Cent. Code § 6-09-30 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-30
6-09-30. Repayment of moneys appropriated for Bank to state
Status: repealed

6-09-30. Repayment of moneys appropriated for Bank to state

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-06-08.3 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-08.3
6-06-08.3. Examination of credit union computer servicers
Status: in_force

6-06-08.3. Examination of credit union computer servicers

The commissioner may conduct an examination or inspect the records and operation of any

computer servicer providing data processing services for any credit union under the department

of financial institutions' jurisdiction.
N.D. Cent. Code § 6-06-05 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-05
6-06-05. Use of credit union and corporate central credit union restricted - Forfeiture
Status: in_force

6-06-05. Use of credit union and corporate central credit union restricted - Forfeiture

It is unlawful for any person, association, copartnership, or corporation, domestic or foreign,

except corporations organized in accordance with the provisions of this chapter, to use the

words "credit union", "corporate central credit union", or "central credit union" in their name or

title, and any person, association, copartnership, or corporation violating this section shall forfeit

to the state one hundred dollars for every day, or part thereof, during which such violation

continues. The commissioner may recover such forfeited sums in a civil action and shall deposit

any sums recovered or collected with the state treasurer. Only one "corporate central credit

union" or "central credit union" may be organized under this chapter, and no other credit union

may use the term "corporate central" or "central" as part of its name. The North Dakota credit

union league, any chapter, affiliate, or subsidiary of this league, and any political action

committee formed by credit unions organized under this chapter or federal law or a political

action committee formed by the North Dakota credit union league are specifically exempt from

this restriction.
N.D. Cent. Code § 6-03-26 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-26
6-03-26. Meeting not required when all stockholders agree in writing to increase or reduction
Status: in_force

6-03-26. Meeting not required when all stockholders agree in writing to increase or

reduction.

If all the stockholders of an association agree in writing to an increase or reduction in its

capital stock, no meeting need be called for the purpose of effecting the increase or reduction.

The directors shall file such written agreement, together with the certificate required under

sections 6-03-23 and 6-03-24, with the secretary of state, who thereupon shall issue the

secretary of state's certificate that the provisions of this title have been complied with.
N.D. Cent. Code § 6-03-16 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-16
6-03-16. Investigation and procedure on application to establish station
Status: repealed

6-03-16. Investigation and procedure on application to establish station

Repealed by S.L. 1995, ch. 79, § 24.
N.D. Cent. Code § 6-09-09 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-09
6-09-09. Deposits may be received from any source - Deposits to credit in other banks
Status: repealed

6-09-09. Deposits may be received from any source - Deposits to credit in other

banks.

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-02-04 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-04
6-02-04. Organization certificate - Contents
Status: in_force

6-02-04. Organization certificate - Contents

The persons uniting to form such an organization shall prepare an organization certificate,

bearing their signatures, which must state specifically:

1. The name assumed by such association, and such name may not be the name of any

other bank in this state, nor of any bank heretofore incorporated in the state of North

Dakota.

2. The place where the business of discount and deposit is to be carried on.

3. The amount of the capital stock and the number of shares into which the same must

be divided.

4. The names and places of residence of the shareholders and the number of shares

held by each of them.

5. The respective dates at which such bank shall commence and terminate business.