N.D. Cent. Code § 6-03-47 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-47
6-03-47. Investment in loans and obligations secured by federal or state government
Status: in_force

6-03-47. Investment in loans and obligations secured by federal or state government

Banks, trust companies, the Bank of North Dakota, building and loan associations,

insurance companies, and other organizations in this state whose mortgage lending is regulated

by law, or that are duly qualified federal housing administration mortgagees, are authorized to

make, buy, or sell any loan, advances of credit, and obligations representing loans and

advances of credit that are insured or guaranteed, or where there is a commitment to insure or

guarantee, in part or in full, or conditionally, by the United States, its instrumentalities, this state,

or its instrumentalities.
N.D. Cent. Code § 6-09-32 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-32
6-09-32. Bank may adopt rules governing sales
Status: repealed

6-09-32. Bank may adopt rules governing sales

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-09-50 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-50
6-09-50. North Dakota financial center - Lease rates - Payments in lieu of taxes (Contingent effective date - See note)
Status: in_force

6-09-50. North Dakota financial center - Lease rates - Payments in lieu of taxes

(Contingent effective date - See note)

The North Dakota financial center is a building that is owned by the Bank of North Dakota

and is adjacent to the building in which the Bank of North Dakota is housed. The Bank of North

Dakota shall lease the space in the North Dakota financial center to other state agencies based

on market rate lease prices. The Bank of North Dakota shall make payments in lieu of property

taxes in the manner and according to the conditions and procedures that would apply if the

building were privately owned.
N.D. Cent. Code § 6-09.10-04 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-04
6-09.10-04. Request for assistance - Negotiation - Mediation
Status: in_force

6-09.10-04. Request for assistance - Negotiation - Mediation

A farmer, creditor, person dealing with a farmer, person eligible for mediation with an agency

of the United States department of agriculture, a landowner, or an owner, lessee, or lessor of

mineral interests may request assistance from the North Dakota mediation service. Upon receipt

of the request, and upon consent of all parties to mediation, the administrator of the North

Dakota mediation service may assign a negotiator or mediator to assist the parties in reaching a

voluntary settlement.
N.D. Cent. Code § 6-03-19 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-19
6-03-19. Cancellation of station permit on application to board
Status: repealed

6-03-19. Cancellation of station permit on application to board

Repealed by S.L. 1995, ch. 79, § 24.
N.D. Cent. Code § 6-09-52 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-52
6-09-52. Bulk propane storage tank revolving loan fund - Continuing appropriation - Audit and costs of administration
Status: in_force

6-09-52. Bulk propane storage tank revolving loan fund - Continuing appropriation -

Audit and costs of administration.

1. The bulk propane storage tank revolving loan fund is a special fund in the state

treasury from which the Bank of North Dakota shall provide loans to propane retailers

to purchase and install storage containers to be used for the bulk storage of propane.

The Bank shall administer the propane storage tank revolving loan fund.

2. To be eligible for this loan program, the applicant must be a propane retailer

conducting business in the state and submit an application to the Bank which must:

a. Detail the proposed project, including the location of the storage container within

the state;

b. Demonstrate the need and viability of the project; and

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

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. A loan provided under this section:

a. May not exceed the lesser of five hundred thousand dollars or eighty-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 fifteen years.

5. In processing 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 total of five hundred thousand dollars in outstanding

loans under this section.

6. The Bank shall deposit in the bulk propane storage tank revolving loan fund all

payments of interest and principal paid under loans made from the bulk propane

storage tank 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. All money 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.

7. The Bank may adopt policies and establish guidelines to administer this loan program

in accordance with this section and to supplement and leverage funds in the bulk

propane storage tank revolving loan fund. Additionally, the Bank may adopt policies

allowing participation by local financial institutions.

8. The bulk propane storage tank revolving loan fund must be audited in accordance with

section 6-09-29 or shall engage with an independent public auditor to perform the

necessary procedure to ensure compliance 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.
N.D. Cent. Code § 6-03-48 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-48
6-03-48. Investment in notes or bonds secured by insured mortgage - Debentures of federal housing administrator authorized
Status: in_force

6-03-48. Investment in notes or bonds secured by insured mortgage - Debentures of

federal housing administrator authorized.

Banks, savings banks, trust companies, savings and loan associations, executors,

administrators, guardians, trustees, and other fiduciaries, the state of North Dakota and its

political subdivisions, institutions, and agencies thereof, and all other persons, associations, and

corporations subject to the laws of this state may invest the funds and moneys in their custody

or possession eligible for investment in notes or bonds secured by mortgage or deed of trust

insured by the federal housing administrator, in debentures issued by the federal housing

administrator, and in securities issued by national mortgage associations.
N.D. Cent. Code § 6-15-02 — ND Code / Title 6 / Chapter 6-15 / Section 6-15-02
6-15-02. Merchant codes - Limitations
Status: in_force

6-15-02. Merchant codes - Limitations

1. Except for those records kept during the regular course of a criminal investigation and

prosecution or merchant marketing campaigns, a government entity or any official,

agent, or employee of the state, or any other person, may not willfully keep or cause to

be kept any list, record, or registry of privately owned firearms or firearm owners.

2. A financial entity or its agent may not require the use of a firearms code in a manner

that distinguishes a firearms retailer located in this state from a general merchandise

retailer or a sporting goods retailer.

3. A financial entity may not engage in the following discriminatory conduct:

a. Declining a lawful payment card transaction based solely on the assignment of a

firearms code; or

b. Taking any action against a customer which is intended to suppress or track

lawful commerce involving firearms or ammunition.

4. Nothing in this section may impair the financial entity's actions related to dispute

processing, fraud management, protecting transaction integrity from concerns related

to illegal activities, breach, cyber risks, or to comply with state or federal law.
N.D. Cent. Code § 6-03-05 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-05
6-03-05. Loans on real estate - Regulation - Limitation
Status: in_force

6-03-05. Loans on real estate - Regulation - Limitation

1. Before any real estate loan equal to or more than four hundred thousand dollars is

made, an appraisal must be conducted by a licensed or certified appraiser if required

by the federal Financial Reform, Recovery, and Enforcement Act of 1989 [Pub. L.

101-73; 103 Stat. 512; 12 U.S.C. 3332 et seq.].

2. Before any real estate loan that does not meet the requirements of subsection 1 is

made, a bank must obtain an appropriate evaluation of real property collateral for

transactions if an appraisal by a licensed or certified appraiser is not obtained.

3. Regardless of the value of a real estate loan, the commissioner may issue an order

requiring an appraisal by a licensed or certified appraiser when necessary to address

safety and soundness concerns. Any real estate loan made must conform to

loan-to-value limits as established by rule by the state banking board under chapter

28-32.
N.D. Cent. Code § 6-05.2-07 — ND Code / Title 6 / Chapter 6-05.2 / Section 6-05.2-07
6-05.2-07. Custody of investments
Status: in_force

6-05.2-07. Custody of investments

1. The investment of each account must be kept separate from the assets of the banking

institution and must be placed in the joint custody or control of not less than two of the

officers or employees of the banking institution designated for that purpose by the

board of directors or by one or more officers designated by the board. The banking

institution may permit the investments of a fiduciary account to be deposited

elsewhere.

2. Except for commingled investments, the investments of each account must be kept

separate from those of all other accounts or adequately identified as the property of

the relevant account.
N.D. Cent. Code § 6-08-09 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-09
6-08-09. Banking association officers - Punishment for violation of duty - Penalty
Status: in_force

6-08-09. Banking association officers - Punishment for violation of duty - Penalty

Any officer of any banking association violating, or knowingly permitting to be violated, any

provision of this title, violation of which has not specifically been designated as a crime, is guilty

of a class B misdemeanor.
N.D. Cent. Code § 6-01-23 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-23
6-01-23. Examinations of county treasurers
Status: repealed

6-01-23. Examinations of county treasurers

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-06-33 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-33
6-06-33. Liquidation by the commissioner
Status: in_force

6-06-33. Liquidation by the commissioner

If the commissioner finds that a credit union is insolvent when the commissioner receives

notice of its intention to dissolve, or if a credit union in the process of voluntary dissolution is not

liquidated completely and its assets distributed within three years after the special meeting at

which the dissolution was voted, the commissioner shall take possession of the books, records,

and assets of the union and proceed to complete the liquidation in the manner provided in this

title for the liquidation of closed banks.
N.D. Cent. Code § 6-06-39 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-39
6-06-39. Share scaledown
Status: repealed

6-06-39. Share scaledown

Repealed by S.L. 2005, ch. 86, § 16.
N.D. Cent. Code § 6-05-04 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-04
6-05-04. Surety deposit investments required - Securities in which investment may be made
Status: in_force

6-05-04. Surety deposit investments required - Securities in which investment may be

made.

Every corporation organized under this chapter and every foreign corporation before

engaging in similar comparable activities within this state shall either deposit with any federal

reserve bank, the Bank of North Dakota, or any other custodian approved by the commissioner,

securities as provided by this section or pledge a certificate of deposit as provided by this

section. The deposit or pledge may not be less than fifty thousand dollars or less than one-sixth

of the par value of the capital stock of the corporation, whichever is the greater. However, a

corporation is not required to deposit or pledge more than five hundred thousand dollars. The

deposit certificate or pledge agreement must authorize the commissioner to cause the deposit,

in part or in whole, to be transferred to the commissioner upon the commissioner's demand. An

original of the deposit certificate or pledge must be furnished to the commissioner. The deposit

or pledge must be:

1. Bonds of the United States or of this state;

2. Bonds of other states which have the approval of the commissioner of financial

institutions;

3. Bonds or obligations of any township, school district, city, or county within this state,

whose total bonded indebtedness does not exceed five percent of the then assessed

valuation thereof;

4. Bonds or promissory notes secured by first mortgages or deeds of trust upon

unencumbered real estate situated within the state of North Dakota worth two and

one-half times the amount of the obligation so secured;

5. Obligations issued, assumed, or guaranteed by the international bank for

reconstruction and development or the African development bank;

6. United States treasury bills or notes of an agency thereof;

7. Certificates of deposit fully insured by the federal deposit insurance corporation from

banks located within this state; or

8. Certificates of deposit issued by the Bank of North Dakota.
N.D. Cent. Code § 6-03-20 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-20
6-03-20. Impairment of capital - Notice to commissioner - Penalty
Status: in_force

6-03-20. Impairment of capital - Notice to commissioner - Penalty

The president, cashier, or other officer in active charge of any state banking association

shall notify the commissioner immediately by certified mail of any impairment of capital or

reduction of capital stock thereof, and any such officer failing so to do is guilty of a class B

misdemeanor.
N.D. Cent. Code § 6-08.6-12 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-12
6-08.6-12. Term and termination
Status: in_force

6-08.6-12. Term and termination

1. Unless otherwise provided in the account agreement, a special deposit terminates five

years after the date the special deposit was first funded.

2. Unless otherwise provided in the account agreement, if the bank or credit union cannot

identify or locate a beneficiary entitled to payment when the special deposit is

terminated, and a balance remains in the special deposit, the bank or credit union shall

pay the balance to the depositor as a beneficiary.

3. A bank or credit union that pays the remaining balance as provided under subsection 2

has no further obligation with respect to the special deposit.
N.D. Cent. Code § 6-13-03 — ND Code / Title 6 / Chapter 6-13 / Section 6-13-03
6-13-03. Compliance self-critical analysis document not discoverable or admissible
Status: in_force

6-13-03. Compliance self-critical analysis document not discoverable or admissible

Except as provided in this chapter, a compliance self-critical analysis audit document is

privileged information and is not discoverable or admissible evidence in any legal action in any

civil, criminal, or administrative proceeding. The privilege is a matter of substantive law of this

state and is not merely a procedural matter governing administrative, civil, or criminal

procedures in the courts of this state.
N.D. Cent. Code § 6-08.6-07 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-07
6-08.6-07. Property interest of depositor or beneficiary
Status: in_force

6-08.6-07. Property interest of depositor or beneficiary

1. A depositor or a beneficiary does not have a property interest in the special deposit

itself.

2. The only property interest with respect to a special deposit is the right to receive

payment if the bank or credit union is obligated to pay a beneficiary. Any property

interest under this subsection is determined under other law.
N.D. Cent. Code § 6-08-06 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-06
6-08-06. Banks exempt from attachment and execution
Status: in_force

6-08-06. Banks exempt from attachment and execution

Every banking association in this state is exempt from the legal process of attachment and

execution. If any bank fails, neglects, or refuses to pay any valid final judgment or decree that

may be rendered against it by any court of competent jurisdiction, not properly stayed by an

appeal bond within the time prescribed by statute or an order of court after rendition thereof, the

state banking board shall declare such bank insolvent or in failing circumstances and forthwith

shall cause a receiver to be appointed to wind up its affairs.
N.D. Cent. Code § 6-09.11-11 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-11
6-09.11-11. Rules
Status: in_force

6-09.11-11. Rules

The industrial commission may adopt such rules and guidelines as are necessary to

implement sections 6-09.11-01 through 6-09.11-09.
N.D. Cent. Code § 6-03-39 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-39
6-03-39. Investment in federal reserve bank stock authorized
Status: in_force

6-03-39. Investment in federal reserve bank stock authorized

A bank shall have authority to invest such part of its funds in stock of the federal reserve

bank of this district as may be necessary to permit the bank to become a member of the federal

reserve association, and such stock may be carried as a part of the bank's assets.
N.D. Cent. Code § 6-08-32 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-32
6-08-32. Funds transfers - Disclosure to financial institution required
Status: in_force

6-08-32. Funds transfers - Disclosure to financial institution required

A person may not direct, cause, arrange, or permit a transfer of funds by wire or automated

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

the funds transfer unless the person has first disclosed to the financial institution the fact that

the account is not owned by the intended beneficiary of the funds transfer and has obtained the

express, written consent of the financial institution for each transfer. A person who directs,

causes, arranges, or permits a transfer of funds by wire or automated clearinghouse into a

financial institution account that is not owned by the intended beneficiary of the funds transfer

may not withdraw the funds without the written consent of the accountholder and may not

recover from the financial institution any damages, costs, or expenditures, including reasonable

attorney's fees, incurred in connection with the transfer or the use or withdrawal of the

transferred funds by the owner of the account.
N.D. Cent. Code § 6-03-27 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-27
6-03-27. List of shareholders to be kept and filed
Status: in_force

6-03-27. List of shareholders to be kept and filed

1. The president of every banking institution formed pursuant to the provisions of this

title, at all times, shall keep a true and correct list of the names and post-office

addresses of all shareholders of such banking institution, with the amount of stock held

by each, the date of transfer, and to whom transferred, which list shall be verified on

the thirty-first day of December of each year. A copy of the verified list shall be filed in

the office of the commissioner on the same date.

2. The commissioner may request at least annually a list of all shareholders of a bank

holding company controlling a state-chartered banking institution.
N.D. Cent. Code § 6-09-37 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-37
6-09-37. Sale and leasing of acquired agricultural real estate
Status: in_force

6-09-37. Sale and leasing of acquired agricultural real estate

The sale and leasing of agricultural real estate with an appraised value of ten thousand

dollars or more acquired by the Bank of North Dakota through foreclosure or deed in lieu of

foreclosure must be done in accordance with chapter 15-07 or 15-09 and policies adopted by

the industrial commission. The sale and leasing of agricultural real estate with an appraised

value of less than ten thousand dollars, acquired by the Bank of North Dakota through

foreclosure or deed in lieu of foreclosure, may be done in a manner as the Bank determines is

appropriate given the circumstances. In the case of a lease by the party holding the right of

redemption, that party has the right to purchase at any time.
N.D. Cent. Code § 6-05-08 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-08
6-05-08. Corporate powers
Status: in_force

6-05-08. Corporate powers

A corporation, when qualified as provided by section 6-05-04, may:

1. Acquire, lease, purchase, own, hold, use, improve, mortgage, sell, and convey such

real estate and personal property as may be necessary for the convenient transaction

of its business. It may acquire real estate by foreclosure or upon compromise or

settlement of prior mortgages held by it either as absolute owner or as trustee and

may dispose of the same. No part of the capital, deposits, trust funds, or property

owned or held by it, in trust or otherwise, may be invested in real estate except as

herein authorized, unless the investment is made under and by virtue of a particular

contract, or instrument, or order, judgment, or decree of court, which confers a special

power or authority so to do, and then only with, or to the extent of, the moneys or

funds thereby provided and belonging to such particular trust. Such corporation is

authorized to purchase notes, bonds, mortgages, and other evidences of

indebtedness, and other securities, subject to the limitations imposed upon banking

associations as to investments, and to convert the same into cash and other

securities.

2. Act as trustee under will, agreement, court order, or otherwise, and act as fiscal agent

and transfer agent.

3. Take, accept, and hold on deposit for savings account or for safekeeping, or in escrow,

or for investment, any and all moneys, bonds, stocks, and other securities, or personal

property whatsoever. When any savings deposit has been received from a minor, the

repayment of the deposit to the minor or the minor's order is a complete discharge of

such corporation from any further liability therefor. Whenever any officer or person,

public or private, or any fiduciary, is authorized to pay into or deposit in any court any

moneys, securities, or personal property whatsoever, the same instead of being

deposited with or paid into court may be paid into or deposited with any corporation

organized and acting under this chapter which may be designated for that purpose by

the court having jurisdiction of the subject matter, or by the person owning or

controlling such property. Whenever any fiduciary deposits any moneys, securities, or

any personal property whatsoever, belonging to the fiduciary's trust, with any

corporation qualified and acting under this chapter and takes a receipt of such

corporation therefor, the fiduciary and the fiduciary's sureties thereafter are relieved

from all liability therefor until the same again shall be delivered to the fiduciary by such

corporation.

4. Act as assignee, receiver, administrator, executor, guardian, or conservator.

5. Provide by its bylaws and regulations for the payment of interest or dividends, for the

investment of moneys, and conditions for repaying or withdrawing the same. It may

borrow money upon the security of its own property or credit.

6. Act as agent and attorney in fact in all respects as a natural person could do.

7. Make, compile, and certify abstracts of title of real estate upon the conditions

prescribed by the laws of this state relating to abstracters to ensure the validity and

genuineness of titles to real property.

8. Notwithstanding any other provision of law and subject to approval by the state

banking board, engage in any fiduciary activity in which a federally chartered financial

institution that is granted fiduciary powers may engage.
N.D. Cent. Code § 6-01-19 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-19
6-01-19. Commissioner to keep bank record
Status: in_force

6-01-19. Commissioner to keep bank record

The commissioner shall keep a bank record wherein must be recorded the name and

location of each bank in the state, its capitalization and changes thereof, its officers, its

shareholders and addresses thereof, and its reserve agents, and changes of the same, and the

commissioner shall keep in docket form such other proceedings as may have been had relative

to such bank by the state banking board and by the commissioner.
N.D. Cent. Code § 6-06-15 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-15
6-06-15. Duties and powers of supervisory committee
Status: in_force

6-06-15. Duties and powers of supervisory committee

The supervisory committee, by a majority vote, may call a special meeting of the members

of the credit union to consider any matter which it wishes to submit to the membership. The

supervisory committee shall:

1. Fill vacancies in the committee's own membership.

2. Make an examination of the affairs of the credit union, including an audit of the credit

union's books, at least annually, and the committee may submit such report to the

members of the credit union at a meeting called for that purpose by the committee

whenever the committee deems such action necessary.

3. Make an annual audit and report and submit the audit and report at the annual

meeting of the credit union.

4. Suspend any officer, director, or member of any committee when by unanimous, not

including the person who is being considered for suspension, vote of the committee,

such action is determined to be necessary to the proper conduct of the credit union,

but upon taking such action, the committee shall call the members of the credit union

together immediately to act on the suspension, and the members at the meeting may

sustain the suspension and remove the officer permanently or may reinstate the

officer, director, or committee member.

5. The commissioner may reject a supervisory committee examination or audit if the

examination or audit is determined to be unsatisfactory.

If the bylaws do not provide for the election or appointment of a supervisory committee, the

duties and powers described above are the responsibility of and delegated to the board of

directors.
N.D. Cent. Code § 6-03-43 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-43
6-03-43. Preferred stock authorized - Notice to and consent of stockholders
Status: in_force

6-03-43. Preferred stock authorized - Notice to and consent of stockholders

Any banking institution, with the consent of the commissioner and upon the written consent

of all of its stockholders, or by vote of its stockholders owning a majority of the stock of such

institution, may issue preferred stock of one or more classes in such amount, upon such

conditions and limitations and with such par value as shall be approved by the commissioner.

When it is necessary to call a meeting of the stockholders to approve the issuance of preferred

stock, the board of directors of the institution shall cause notice of the meeting to be served on

each stockholder by registered or certified mail addressed to the stockholder's last-known

post-office address at least sixty days prior to the meeting. After an institution has been

authorized to issue preferred stock, its board of directors may make necessary amendments to

the articles of incorporation of the institution. Notice to and approval by the stockholders of an

institution which has not issued common stock is not required before preferred stock may be

issued.
N.D. Cent. Code § 6-09-26.1 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-26.1
6-09-26.1. Execution of instruments
Status: repealed

6-09-26.1. Execution of instruments

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-08.3-09 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-09
6-08.3-09. Reports
Status: in_force

6-08.3-09. Reports

A reciprocating state bank holding company that directly or indirectly, through any

subsidiary, acquires a bank pursuant to this chapter shall file with the board copies of all regular

and periodic reports that the bank holding company is required to file under section 13 or 15(d)

of the Securities and Exchange Act of 1934, as amended [ch. 404; 48 Stat. 881; 15 U.S.C. 78m

and 78o(d)], but excluding any portions not available to the public, and such other reports as the

board may require by rule.
N.D. Cent. Code § 6-03-61 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-61
6-03-61. Excessive loan - Validity - Penalty - Personal liability
Status: in_force

6-03-61. Excessive loan - Validity - Penalty - Personal liability

Whenever a state banking association allows any person, copartnership, or corporation to

become indebted to it, directly or indirectly, in excess of the amount, exclusive of interest,

permitted by this title, the officer, director, or employee thereof willfully permitting or approving

such loan is guilty of a class B misdemeanor, and in addition thereto, is liable personally to the

association for the amount of such loan in excess of the statutory limit. Unauthorized loans,

however, are not invalid.
N.D. Cent. Code § 6-07.1-07 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-07
6-07.1-07. Title and receiver
Status: in_force

6-07.1-07. Title and receiver

The receiver has title to all the state trust company's property, contracts, and rights of

action, wherever located, beginning on the date the state trust company is closed for liquidation.

The rights of the receiver have priority over all liens that arise after the date of the closing of the

state trust company for liquidation.
N.D. Cent. Code § 6-08.4-02 — ND Code / Title 6 / Chapter 6-08.4 / Section 6-08.4-02
6-08.4-02. Interstate branches
Status: in_force

6-08.4-02. Interstate branches

Subject to section 6-08.4-06, the responsible federal regulatory authority may approve a

transaction under the Federal Deposit Insurance Act [Pub. L. 81-967; 64 Stat. 87; 12 U.S.C.

1811 et seq.].
N.D. Cent. Code § 6-13-06 — ND Code / Title 6 / Chapter 6-13 / Section 6-13-06
6-13-06. Waiver of privilege by financial institution - Grounds for determination of privilege - Civil, administrative, or criminal proceedings
Status: in_force

6-13-06. Waiver of privilege by financial institution - Grounds for determination of

privilege - Civil, administrative, or criminal proceedings.

1. The self-critical analysis privilege does not apply to the extent that it is expressly

waived by the financial institution that prepared or caused to be prepared the

compliance self-critical analysis audit document.

2. In a civil or administrative proceeding, a court of record, after an in camera review,

may require disclosure of material for which the privilege is asserted, if the court

determines one of the following:

a. The privilege is asserted for a fraudulent purpose; or

b. The material is not subject to the privilege.

3. In a criminal proceeding, a court of record, after an in camera review, may require

disclosure of material for which the privilege is asserted, if the court determines one of

the following:

a. The privilege is asserted for a fraudulent purpose;

b. The material is not subject to the privilege; or

c. The material contains evidence relevant to commission of a criminal offense, and

all three of the following factors are present:

(1) The commissioner, state's attorney, or attorney general has a compelling

need for the information;

(2) The information is not otherwise available; and

(3) The commissioner, state's attorney, or attorney general is unable to obtain

the substantial equivalent of the information by any other means without

incurring prohibitive cost and delay.
N.D. Cent. Code § 6-06-21.2 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-21.2
6-06-21.2. Agricultural loan amortization and deferral
Status: in_force

6-06-21.2. Agricultural loan amortization and deferral

Expired under S.L. 1989, ch. 99, § 3.
N.D. Cent. Code § 6-08-36 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-36
6-08-36. Automated teller machines - Definitions - International charges - Application
Status: in_force

6-08-36. Automated teller machines - Definitions - International charges - Application

1. In this section:

a. "Automated teller machine" means any electronic information processing device

or electronic funds transfer facility located in this state that accepts or disposes

cash in connection with a credit, deposit, or other account. "Automated teller

machine" does not include a device that is used solely to facilitate check

guarantees or check authorizations, or that is used in connection with the

acceptance or dispensing of cash on a person-to-person basis.

b. "Foreign account" means an account with a financial institution located outside

the United States.

2. An agreement to operate or share an automated teller machine may not prohibit an

owner or operator of the automated teller machine from imposing on an individual who

conducts a transaction using a foreign account an access fee or surcharge that is not

otherwise prohibited under federal or state law.

3. This section first applies to agreements entered into, modified, or renewed after

August 1, 2009.
N.D. Cent. Code § 6-01-13 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-13
6-01-13. Commissioner - Appointment of assistant commissioner and assignment of titles within the department
Status: in_force

6-01-13. Commissioner - Appointment of assistant commissioner and assignment of

titles within the department.

The commissioner may appoint, remove, and assign appropriate titles to such deputy

examiners and such other employees as in the commissioner's judgment may be necessary for

the proper discharge of the business of the department of financial institutions. The

commissioner may select and designate one of said deputy examiners to be the assistant

commissioner to act during the absence or disability of the commissioner, and in such cases the

assistant commissioner so designated has charge of the office and shall administer its affairs.

The assistant commissioner shall perform such duties as may be prescribed by the

commissioner.
N.D. Cent. Code § 6-09.7-05 — ND Code / Title 6 / Chapter 6-09.7 / Section 6-09.7-05
6-09.7-05. Establishment and maintenance of adequate guarantee funds - Use of strategic investment and improvements fund (Effective through June 30, 2027)
Status: in_force

6-09.7-05. Establishment and maintenance of adequate guarantee funds - Use of

strategic investment and improvements fund. (Effective through June 30, 2027)

The Bank of North Dakota shall establish and at all times maintain an adequate guarantee

reserve fund in a special account in the Bank. The Bank may request the director of the office of

management and budget to transfer funds from the strategic investment and improvements fund

created by section 15-08.1-08 to maintain one hundred percent of the guarantee reserve fund

balance. Transfers from the strategic investment and improvements fund may not exceed a total

of one hundred forty million dollars. Moneys in the guarantee reserve fund are available to

reimburse lenders, including the Bank, for guaranteed loans in default. The securities in which

the moneys in the reserve fund may be invested must meet the same requirements as those

authorized for investment under the state investment board. The income from such investments

must be made available for the costs of administering the state guarantee loan program and

income in excess of that required to pay the cost of administering the program must be

deposited in the reserve fund. The amount of reserves for all guaranteed loans must be

determined by a formula that will assure, as determined by the Bank, an adequate amount of

reserve.

Establishment and maintenance of adequate guarantee funds - Use of strategic

investment and improvements fund. (Effective after June 30, 2027) The Bank of North

Dakota shall establish and at all times maintain an adequate guarantee reserve fund in a special

account in the Bank. The Bank may request the director of the office of management and

budget to transfer funds from the strategic investment and improvements fund created by

section 15-08.1-08 to maintain one hundred percent of the guarantee reserve fund balance.

Transfers from the strategic investment and improvements fund may not exceed a total of one

hundred sixty million dollars. Moneys in the guarantee reserve fund are available to reimburse

lenders, including the Bank, for guaranteed loans in default. The securities in which the moneys

in the reserve fund may be invested must meet the same requirements as those authorized for

investment under the state investment board. The income from such investments must be made

available for the costs of administering the state guarantee loan program and income in excess

of that required to pay the cost of administering the program must be deposited in the reserve

fund. The amount of reserves for all guaranteed loans must be determined by a formula that will

assure, as determined by the Bank, an adequate amount of reserve.
N.D. Cent. Code § 6-09-01 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-01
6-09-01. Purpose and establishment of Bank of North Dakota
Status: in_force

6-09-01. Purpose and establishment of Bank of North Dakota

For the purpose of encouraging and promoting agriculture, commerce, and industry, the

state of North Dakota shall engage in the business of banking, and for that purpose shall

maintain a system of banking owned, controlled, and operated by it, under the name of the Bank

of North Dakota.
N.D. Cent. Code § 6-09-13 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-13
6-09-13. Collection items must be paid to Bank of North Dakota at par - Violation a misdemeanor
Status: repealed

6-09-13. Collection items must be paid to Bank of North Dakota at par - Violation a

misdemeanor.

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 6-07.1-11 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-11
6-07.1-11. New lawsuits
Status: in_force

6-07.1-11. New lawsuits

Except as otherwise provided in this section, the court in which the receivership proceeding

is pending under this chapter has exclusive jurisdiction to hear and determine all actions or

proceedings instituted by or against the state trust company or receiver after the receivership

proceeding starts. The receiver may file in any jurisdiction an ancillary suit that may be helpful to

obtain jurisdiction or venue over a person or property. Exclusive venue of an action or

proceeding instituted against the receiver or the receiver's designated agent, including an

employee of the department, which asserts personal liability on the part of the receiver or

designated agent lies in Burleigh County, North Dakota.
N.D. Cent. Code § 6-08.2-03 — ND Code / Title 6 / Chapter 6-08.2 / Section 6-08.2-03
6-08.2-03. Offer to purchase minority stock required
Status: in_force

6-08.2-03. Offer to purchase minority stock required

Any bank holding company owned by a charitable trust that sells, assigns, merges, or

transfers the stock of any bank or bank holding company pursuant to this chapter shall

communicate to and offer to purchase the stock of any minority stockholder of the bank or bank

holding company. The offer must be made to minority stockholders at least sixty days before the

date of the sale and must extend thirty days after the sale of the bank or bank holding company.

The offer must remain open for at least ninety days or for the same period as that which is

offered to minority stockholders of the company's banks located in other states, whichever

period is greater. The offer to purchase minority stock in banks in this state must be based on at

least the same criteria, standards, and formula as may be used by the bank holding company in

computing an offer to purchase the minority stock of its banks in other states. The resulting offer

to purchase must be on the same or better terms as any previous offer made by the bank

holding company except for those previous offers made by reason of repurchase options

between the bank holding company and the stockholder. Such repurchase options may not be

used as a basis for determining the offer to purchase other minority stock.
N.D. Cent. Code § 6-08.2-04 — ND Code / Title 6 / Chapter 6-08.2 / Section 6-08.2-04
6-08.2-04. Grants requirement - Commitment - Reports to attorney general
Status: in_force

6-08.2-04. Grants requirement - Commitment - Reports to attorney general

Any charitable trust that divests itself of any interest pursuant to this chapter shall file a

commitment with the attorney general prior to any divestiture that the charitable trust will,

subject to the provisions of the trust instrument pursuant to which the trust was created,

continue to make grants under the provisions of the trust to recipients within this state. The

charitable trust must report annually to the attorney general describing the grants made by the

charitable trust to all recipients in the previous year. Upon the basis of such information, or other

information that may be brought to the attorney general's attention, the attorney general may

initiate further investigation and ensure compliance with the requirements of this section.
N.D. Cent. Code § 6-09-15.8 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15.8
6-09-15.8. Bank of North Dakota may make loans for improvement of facilities under the control of the parks and recreation department
Status: repealed

6-09-15.8. Bank of North Dakota may make loans for improvement of facilities under

the control of the parks and recreation department.

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-03-02.3 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-02.3
6-03-02.3. Parity for state and national banks
Status: in_force

6-03-02.3. Parity for state and national banks

Subject to authorization by the state banking board, acting by order or rule, a state bank has

the same powers as a national bank and may engage directly or indirectly in any activity in

which a bank could engage if the state bank were nationally chartered.
N.D. Cent. Code § 6-09.10-08.2 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-08.2
6-09.10-08.2. Legal and tax service contract requirements
Status: repealed

6-09.10-08.2. Legal and tax service contract requirements

Repealed by S.L. 1997, ch. 98, § 3.
N.D. Cent. Code § 6-09.12-01 — ND Code / Title 6 / Chapter 6-09.12 / Section 6-09.12-01
6-09.12-01. Definitions
Status: in_force

6-09.12-01. Definitions

In this chapter, unless the context otherwise requires:

1. "Developer" means a resident of this state or a corporation generating fifty percent or

more of its income within this state.

2. "Oil and gas development" means oil and gas well reworking operations; oil and gas

well recompletion operations; oil and gas enhanced recovery operations, including

secondary and tertiary recovery operations; and purchase of producing oil and gas

wells.

3. "Oil and gas development project" means a project financed under this chapter.
N.D. Cent. Code § 6-03-65 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-65
6-03-65. Deposit in trust - To whom paid
Status: in_force

6-03-65. Deposit in trust - To whom paid

Whenever any deposit is made with any banking association by any person in trust for

another and no other or further notice of the existence and terms of a legal and valid trust has

been given in writing to the bank, in the event of the death of the trustee, the deposit, or any part

thereof, together with the dividends or interest thereon, may be paid to the person for whom the

deposit was made.
N.D. Cent. Code § 6-09.4-16 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-16
6-09.4-16. Tax exemptions
Status: in_force

6-09.4-16. Tax exemptions

All property of the public finance authority and all bonds issued under this chapter must be

deemed to be serving essential public and governmental purposes and such property and such

bonds so issued, their transfer and the income therefrom, including any profits made on the sale

thereof, shall at all times be exempt from state, county, and municipal taxes of any and all kinds.
N.D. Cent. Code § 6-03-17 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-17
6-03-17. Transaction of business at and regulation of station
Status: repealed

6-03-17. Transaction of business at and regulation of station

Repealed by S.L. 1995, ch. 79, § 24.
N.D. Cent. Code § 6-06-18 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-18
6-06-18. Interest rates
Status: repealed

6-06-18. Interest rates

Repealed by S.L. 1997, ch. 78, § 16.
N.D. Cent. Code § 6-08.5-03 — ND Code / Title 6 / Chapter 6-08.5 / Section 6-08.5-03
6-08.5-03. Reporting to a law enforcement agency or the department of health and human services - Immunity
Status: in_force

6-08.5-03. Reporting to a law enforcement agency or the department of health and

human services - Immunity.

1. If a financial service provider, or an employee, officer, or director of a financial service

provider has a good faith belief to suspect financial exploitation of an eligible adult

occurred, was attempted, or is being attempted, the financial service provider, or an

employee, officer, or director of a financial service provider may report the information

to a law enforcement agency or the department of health and human services.

2. This section does not impose a duty on a financial institution to investigate a

suspected financial exploitation of an eligible adult or to make a report to a law

enforcement agency or the department of health and human services.

3. A financial service provider, or an employee, officer, or director of a financial service

provider, is immune from all criminal, civil, and administrative liability for reporting or

not reporting under this section if the determination is made based on a good faith

belief that financial exploitation occurred, was attempted, or is being attempted.
N.D. Cent. Code § 6-01-04.4 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-04.4
6-01-04.4. Prompt corrective action
Status: in_force

6-01-04.4. Prompt corrective action

The commissioner or board may enter an order if the commissioner or board finds that a

state bank is undercapitalized, significantly undercapitalized, or critically undercapitalized. For

the purpose of this section, undercapitalized, significantly undercapitalized, and critically

undercapitalized have the same definition as found in title 12, Code of Federal Regulations,

part 324, section 403, as amended April 15, 2016. The order may require an undercapitalized

state bank to take prompt corrective action as the commissioner or board determines

reasonable to bring the bank to an adequately capitalized condition, including the submission

and implementation of an acceptable capital restoration plan. A bank may request a hearing

before the state banking board within ten days of the order to review the factual basis used to

issue the request for prompt corrective action. The decision made by the board during this

hearing is final. If a hearing is not requested, the initial decision of the commissioner or board is

final. For a significantly or critically undercapitalized state bank, the commissioner or board may

issue a temporary cease and desist order appointing a receiver in accordance with chapter

6-07.2.
N.D. Cent. Code § 6-09-34 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-34
6-09-34. Electronic fund transfer systems
Status: in_force

6-09-34. Electronic fund transfer systems

The Bank of North Dakota may establish, under such rules and regulations as adopted by

the industrial commission, a system to provide fund transfer services to its customers and to the

customers of state-chartered and federally chartered banks located within the state of North

Dakota, and to other financial institutions otherwise authorized to utilize the services of

electronic fund transfer systems, to acquire such equipment as is necessary to establish

electronic fund transfer systems, and to make such reasonable charges for services rendered to

other banks hereunder as may be established by the industrial commission.
N.D. Cent. Code § 6-09-10 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-10
6-09-10. Guaranty of deposits - Exemption from all taxation
Status: in_force

6-09-10. Guaranty of deposits - Exemption from all taxation

All deposits in the Bank of North Dakota are guaranteed by the state. Such deposits are

exempt from state, county, and municipal taxes of any and all kinds.
N.D. Cent. Code § 6-06-22 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-22
6-06-22. Permanent loan fund - Amount - How obtained - Ownership
Status: repealed

6-06-22. Permanent loan fund - Amount - How obtained - Ownership

Repealed by S.L. 1965, ch. 90, § 11.
N.D. Cent. Code § 6-08-03 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-03
6-08-03. Taxation of banks
Status: in_force

6-08-03. Taxation of banks

Domestic banks must be taxed upon the same basis only as banks organized and existing

under and by virtue of the laws of the United States of America, it being the purpose, design,

and intent of this section to place state banks in a position of parity and equality with national

banks in matters of taxation.
N.D. Cent. Code § 6-09.11-03 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-03
6-09.11-03. Loans - Participation by the Bank of North Dakota
Status: in_force

6-09.11-03. Loans - Participation by the Bank of North Dakota

1. The Bank of North Dakota may make available an appropriate amount of funds to

purchase participation interests in loans made by financial institutions for the purposes

as set forth in section 6-09.11-04.

a. Interest charged on a participation interest purchased by the Bank under this

section may not be greater than one percent less than the Bank's base rate as in

effect from time to time and may float.

b. A loan may be a fixed rate at the Bank's then current base rate for up to ten

years. The rate during the remaining term of the loan floats at the Bank's base

rate as in effect from time to time.

c. However, the interest rate may not exceed eleven percent during the course of

the loan. The Bank may charge for necessary and reasonable fees as determined

by the industrial commission.

2. The amount of a participation interest purchased by the Bank under this section may

not be greater than the lesser of an amount determined by the Bank or ninety percent

of the loan amount.
N.D. Cent. Code § 6-09.4-09 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-09
6-09.4-09. Pledges
Status: in_force

6-09.4-09. Pledges

Any pledge of revenue or of a revenue agreement under chapter 40-57 made by the

industrial commission as security for public finance authority bonds is valid and binding from

time to time when the pledge is made. The industrial commission may also pledge assets of the

Bank of North Dakota as security for public finance authority bonds. The revenues or other

moneys so pledged and thereafter received by the public finance authority are immediately

subject to the lien of such pledge without any physical delivery thereof or further act, and the

lien of any such pledge is valid and binding as against all parties having claims of any kind in

tort, contract, or otherwise against the public finance authority, regardless of whether such

parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is

created need be filed or recorded, except in the records of the public finance authority.
N.D. Cent. Code § 6-03-64 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-64
6-03-64. Payment of deposits made by fiduciaries, officers, minors, and associations
Status: in_force

6-03-64. Payment of deposits made by fiduciaries, officers, minors, and associations

Deposits made by a person as executor, administrator, guardian, conservator, or in any

other representative capacity or official position, with a bank, are payable to that person in such

capacity, or if made to an account upon which a minor may order payments as an account

owner, may be paid to the minor although the minor has no guardian or conservator or if the

minor has a guardian or conservator, it is not necessary to obtain the consent of the guardian or

conservator to such payment, but a payment order or receipt or acquittance authorized by the

minor is valid and binding. Deposits made by a corporation, association, or society are payable

to any person authorized by its board of directors or trustees to receive the same.
N.D. Cent. Code § 6-10-04 — ND Code / Title 6 / Chapter 6-10 / Section 6-10-04
6-10-04. Agent must deposit funds as directed
Status: in_force

6-10-04. Agent must deposit funds as directed

A licensee operating a business under the terms of this chapter may not loan any of the

moneys given into the licensee's custody by any depositor for deposit in a bank, but shall

promptly transfer said funds to the bank designated by the depositor, and each depositor has

the right to designate the bank in which the depositor desires such moneys deposited.
N.D. Cent. Code § 6-01-04 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-04
6-01-04. Powers and duties of the state banking board and state credit union board (Effective through June 30, 2029)
Status: in_force

6-01-04. Powers and duties of the state banking board and state credit union board

(Effective through June 30, 2029)

1. The state banking board may adopt rules for the government of financial institutions

and trust companies mentioned in section 6-01-01 to the extent the rules do not

conflict with any law of this state or of the United States. The state banking board shall

make and enforce such orders as are necessary or proper to protect the public and the

depositors or creditors of those financial institutions and trust companies.

2. The same powers are given to the state credit union board with reference to credit

unions as are granted to the state banking board with reference to financial institutions

and trust companies named in this chapter.

3. The state banking board and state credit union board shall hold a joint meeting to

consider any budget recommendations from the commissioner. Upon consideration of

a budget recommendation, the boards shall approve an annual or biennial budget for

the department of financial institutions, including the number of full-time equivalent

positions. A majority of the members of each board must be present to constitute a

quorum for the joint meeting, and approval by a majority of the members present of

each board is required to approve an annual or biennial budget for the department of

financial institutions.

Powers and duties of the state banking board and state credit union board. (Effective

after June 30, 2029) The state banking board may adopt rules for the government of financial

institutions and trust companies mentioned in section 6-01-01 to the extent the rules do not

conflict with any law of this state or of the United States. The state banking board shall make

and enforce such orders as are necessary or proper to protect the public and the depositors or

creditors of those financial institutions and trust companies.

The same powers are given to the state credit union board with reference to credit unions

as are granted to the state banking board with reference to financial institutions and trust

companies named in this chapter.
N.D. Cent. Code § 6-03-47.2 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-47.2
6-03-47.2. Investments of state banks
Status: in_force

6-03-47.2. Investments of state banks

In addition to the other powers authorized by law under this title, any state banking

association may invest its funds in:

1. Bonds, notes, or debentures of any corporation that have been rated in one of the four

highest rating categories by a nationally recognized statistical rating organization

registered with the securities and exchange commission. In the case of different

ratings from different rating organizations, the lower rating applies. If a nationally

recognized statistical rating organization has not rated the security, the bank shall

determine that the security is the credit equivalent of a security rated in the four

highest rating categories by a nationally recognized statistical rating organization. This

includes documentation demonstrating that the issuer of the security has an adequate

capacity to meet financial commitments under the security for the projected life of the

asset or exposure and the issuer has adequate capacity to meet financial

commitments if the risk of default by the obligor is low and the full and timely

repayment of principal and interest is expected. The aggregate par value of

investments issued by any one corporation may not exceed twenty-five percent of

unimpaired capital and surplus at the time of purchase.

2. Equity and debt instruments of corporations or projects designed primarily to promote

community welfare such as economic rehabilitation and development of low-income

areas, subject to approval and regulation of the state banking board but not to exceed

for the total of all investments under this subsection, ten percent of the combined

capital and surplus of the banking association.

3. Investments, in either equity or debt instruments or securities, offered by small

business investment companies organized and licensed by the small business

administration under the Small Business Investment Company Act of 1958 [Pub. L.

85-699; 72 Stat. 689; 15 U.S.C. 661 et seq.], and the Small Business Enhancement

Act of 1992 [Pub. L. 102-366; 106 Stat. 1007-1020; 15 U.S.C. 661 et seq.], and any

amendments thereto.
N.D. Cent. Code § 6-01-01 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-01
6-01-01. Management and control - State department of financial institutions - Local ordinances preempted
Status: in_force

6-01-01. Management and control - State department of financial institutions - Local

ordinances preempted.

The state department of financial institutions is under the supervision of the state banking

board, state credit union board, and a chief officer designated as the commissioner of financial

institutions. The state department of financial institutions has charge of the execution of all laws

relating to state banks, trust companies, credit unions, building and loan associations, mutual

investment corporations, mutual savings corporations, banking institutions, and other financial

corporations, exclusive of the Bank of North Dakota. A local governing body may not adopt or

enforce a resolution or an ordinance regulating a financial institution, financial corporation, or

credit union.
N.D. Cent. Code § 6-08-08.1 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-08.1
6-08-08.1. Sale or purchase of associations, banking institutions, or holding companies - Notification to commissioner - Hearing
Status: in_force

6-08-08.1. Sale or purchase of associations, banking institutions, or holding

companies - Notification to commissioner - Hearing.

1. No person, acting directly or indirectly or through or in concert with one or more other

persons, may purchase or otherwise acquire control of an association or banking

institution unless the state banking board or commissioner has been given prior written

notice by application of the proposed disposition or acquisition. The written application

must include such information as the state banking board shall specify. The transaction

may not be consummated before the board or commissioner has granted approval.

2. The applicant shall publish notice of the application as required by the board by rule.

3. The commissioner shall determine if the application is complete and notify the

applicant of the determination. If the commissioner determines the application is

incomplete, the commissioner shall request additional information deemed necessary

to complete the application.

4. If not approved by the commissioner, the commissioner shall submit the application to

the board. The board may approve or disapprove the application if the board

determines that:

a. The character, reputation, general fitness, financial standing, and responsibility of

the persons proposed as new stockholders, directors, or officers is such that the

interests of the other stockholders, depositors, and creditors of the institution and

the public generally will be jeopardized by the change in control and

management.

b. The qualifications of management do not include adequate experience with

financial institutions or other approved related experience.

5. Within three business days after the board's decision to disapprove an application, the

board shall notify the applicant in writing of the disapproval. The notice must provide a

statement of the basis for the disapproval.

6. Within twenty days after receipt of the notice of disapproval, the applicant may request

a hearing on the disapproval. The board must conduct a hearing, if requested, under

the provisions of chapter 28-32. At the conclusion of the hearing, the board shall by

order approve or disapprove the application on the basis of the record at the hearing.

7. For purposes of this section, "control" means ownership or control, directly, indirectly,

or through the actions of one or more persons of the power to vote twenty-five percent

or more of any class of voting securities of an association, banking institution,

controlling bank holding company, or the direct or indirect power to control in any

manner the election of a majority of the directors of an association or banking

institution, or to direct the management or policies of an association or banking

institution, whether by individuals, corporations, limited liability companies,

partnerships, trusts, or other entities or organizations of any type.

8. The following acquisitions of voting securities of a North Dakota state chartered bank,

which would otherwise require submission of an application under this section, are not

subject to the application requirements if the acquiring person notifies the

commissioner within ninety days after the acquisition and provides any relevant

information requested by the commissioner: acquisition of voting securities through

inheritance; acquisition of voting securities as a bona fide gift; and acquisition of voting

securities in satisfaction of a debt previously contracted in good faith. This subsection

does not limit the authority of the commissioner to require a party to submit a written

application to the board under subsection 1.

9. This section does not apply to a cooperative financial institution.
N.D. Cent. Code § 6-06.2-13 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-13
6-06.2-13. Review by commissioner
Status: in_force

6-06.2-13. Review by commissioner

The commissioner shall review the process for the conversion member vote and procedures

applicable to the member vote. The commissioner shall report the commissioner's findings to

the state banking board. If the commissioner or the state banking board disapproves of the

methods by which the conversion member vote was taken or procedures applicable to the

member vote, the member vote must be retaken as directed by the commissioner or the state

banking board.
N.D. Cent. Code § 6-03-33 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-33
6-03-33. Loans on shares prohibited - Disposal of stock acquired
Status: in_force

6-03-33. Loans on shares prohibited - Disposal of stock acquired

No association or banking institution may make any loan or discount on the security of the

shares of its own stock or of the stock of any holding company which controls the association or

banking institution, nor be a purchaser or holder of any such shares, unless such security or

purchase is necessary to prevent loss upon a debt previously contracted in good faith. Stock so

acquired must be sold or disposed of at public or private sale within thirty days after it is

acquired, and if not sold within such time, it must be canceled and deducted from the capital

stock of the association, banking institution, or holding company, and the association, banking

institution, or holding company shall notify the commissioner in writing of such cancellation. For

the purpose of this section, "control" means ownership, or control directly, indirectly, or through

the actions of one or more persons of the power to vote twenty-five percent or more of any class

of voting securities of the association or banking institution, of the power to control in any

manner the election of a majority of the directors of the association or banking institution, or to

direct the management or policies of the association or banking institution.
N.D. Cent. Code § 6-09.4-05 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-05
6-09.4-05. Participation voluntary - Agreement to participate
Status: in_force

6-09.4-05. Participation voluntary - Agreement to participate

Participation by a political subdivision is entirely voluntary and no political subdivision may

be required to sell its bond issues to the public finance authority. Notwithstanding any other

state law applicable to the issuance of bonds, a political subdivision desiring to participate in the

public finance authority may enter into an agreement with the public finance authority for the

purchase by the public finance authority of a bond issue or issues of the political subdivision,

including the purchase by the public finance authority of an issue or issues of refunding bonds,

which refunding bonds may be required by the agreement to be issued at a rate or rates of

interest higher or lower than that of the bond issue or issues to be refunded.
N.D. Cent. Code § 6-08.3-08 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-08
6-08.3-08. Supervision - Examinations
Status: in_force

6-08.3-08. Supervision - Examinations

The commissioner may enter into cooperative and reciprocal agreements with federal or

other state bank regulatory authorities for exchange or acceptance of reports of examination

and other records from the authorities in lieu of conducting examinations of acquiring

reciprocating state bank holding companies. The commissioner may enter into joint actions with

federal or other state bank regulatory authorities to carry out responsibilities under this chapter

and assure compliance with the laws of this state.
N.D. Cent. Code § 6-09.4-03 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-03
6-09.4-03. Definitions
Status: in_force

6-09.4-03. Definitions

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

1. "Bondholder" or "holder" or any similar term when used with reference to a bond of the

public finance authority means any person who is the bearer of any outstanding bond

of the public finance authority.

2. "Bonds" or "bond" means evidences of indebtedness of the public finance authority

issued pursuant to this chapter.

3. "Fully marketable form" means a municipal security duly executed and accompanied

by an approving legal opinion of a counsel whose opinions are generally accepted by

the public finance authority or other purchasers of municipal securities.

4. "Municipal security" means an evidence of indebtedness issued by a political

subdivision, including a clean renewable energy bond issued under 26 U.S.C. 54

[Pub. L. 109-58; 119 Stat. 991], and a revenue agreement entered into by a

contracting party as those terms are used in chapter 40-57, but does not generally

include an evidence of indebtedness issued pursuant to chapter 40-57 other than an

evidence of indebtedness that qualifies as a qualified small issue bond as defined

under 26 U.S.C. 144(a) [Pub. L. 99-514; 100 Stat. 2606], as amended, and regulations

promulgated and officially proposed to be promulgated thereunder, or as an "exempt

facility bond" as defined under 26 U.S.C. 142(a)(4), (5), or (6) [Pub. L. 99-514;

100 Stat. 2606], as amended, and regulations promulgated and officially proposed to

be promulgated thereunder, issued to provide one of the following:

a. A facility for the furnishing of water.

b. A wastewater facility.

c. A solid waste disposal facility.

5. "Political subdivision" means:

a. A local governmental unit created by statute or by the Constitution of North

Dakota for local governmental or other public purposes.

b. The department of environmental quality, or any other state agency or authority,

or any member-owned association or publicly owned and nonprofit corporation:

(1) Operating any public water system that is subject to chapter 61-28.1.

(2) Operating any facility, system, or other related activity that is eligible for

financial assistance under chapter 61-28.2.

c. The Bank of North Dakota for purposes of the revolving loan fund program

established by chapter 61-28.2.

d. The state water commission for purposes of the revolving loan fund program

established by chapter 61-28.1.

e. A qualified borrower within the meaning of 26 U.S.C. 54(j)(5) [Pub. L. 109-58;

119 Stat. 995].

f. The Garrison Diversion Conservancy District or any successor entity or

improvement district created under chapter 61-24.8 to finance or refinance

irrigation and water supply projects.

g. The Lake Agassiz water authority, for use in financing the construction,

acquisition, extension, expansion, alteration, betterment, maintenance, or

renovation of a project under section 61-39-16.

6. "Public finance authority" means the public finance authority created by section

6-09.4-04.

7. "Required debt service reserve" means the amount required to be on deposit in the

reserve fund.

8. "Reserve fund" means the public finance authority reserve fund or funds created as

provided in section 6-09.4-10.

9. "Revenues" means any or all fees, charges, moneys, profits, payments of principal of

or interest on municipal securities, investment income, revenues, appropriations, and

all other income derived or to be derived by the public finance authority under this

chapter.
N.D. Cent. Code § 6-01-21.2 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-21.2
6-01-21.2. Municipal agencies, park boards, school districts - Examinations - Fees - Alternative audits
Status: repealed

6-01-21.2. Municipal agencies, park boards, school districts - Examinations - Fees -

Alternative audits.

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-03-38 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-38
6-03-38. Assets not to be used in other business - Exceptions - Penalty
Status: in_force

6-03-38. Assets not to be used in other business - Exceptions - Penalty

Except as otherwise authorized under this title, a bank may not employ its money or other

assets as principal, directly or indirectly, in trade or commerce, nor may a bank employ or invest

any of its assets or funds in the stock of any corporation, limited liability company, bank,

partnership, firm, or association. However, to the extent a bank subject to the laws of the federal

government is permitted to do so, a state bank may purchase shares of stocks, or any other

type of securities offered by small business investment companies organized and licensed

under Public Law No. 85-699, known as the Small Business Investment Company Act of 1958

[72 Stat. 689; 15 U.S.C. 661 et seq.], and the Small Business Equity Enhancement Act of 1992

[Pub. L. 102-366; 106 Stat. 1007-1020; 15 U.S.C. 661 et seq.], and any amendments thereto, or

chapter 10-30, but in no event may any state bank hold securities of small business investment

companies in an amount determined by the state banking board, but in no event more than ten

percent of the bank's capital and surplus. A bank may not invest the bank's assets or funds in

speculative margins of stock, bonds, grain, provisions, produce, or other commodities, except

that it is lawful for a bank to make advances for grain or other products in store or in transit to

market. A bank may invest in subsidiary organizations, when the activities of such organizations

are incidental or complementary to the bank's activities, with the specific approval of the state

banking board for each such subsidiary. The state banking board has the same power to make

rules for the subsidiary organizations, and to examine the organizations' records and affairs, as

it has for other financial corporations under section 6-01-04. If the state banking board

determines that such investments would be detrimental to the interests of a bank's depositors,

the state banking board may direct the bank to divest itself of such subsidiary investments. Any

officer, director, or employee of any bank who invests or uses the bank's funds contrary to this

title is guilty of a class A misdemeanor.
N.D. Cent. Code § 6-09-15.1 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15.1
6-09-15.1. Loans to general fund authorized - Continuing appropriation - Report
Status: in_force

6-09-15.1. Loans to general fund authorized - Continuing appropriation - Report

The state treasurer and the director of the office of management and budget may, when the

balance in the state general fund is insufficient to meet legislative appropriations, borrow from

the Bank of North Dakota in an amount that at no time exceeds the total principal amount of fifty

million dollars with principal maturity not to extend beyond the biennium in which the borrowing

occurs. As a condition precedent to the loan, the state treasurer must request and obtain a

statement from the director of the office of management and budget and state tax commissioner

certifying that anticipated general fund revenues for the balance of the biennium in which the

loan is taken will exceed the principal amount and interest on the loan. The state industrial

commission may in turn direct the Bank of North Dakota to make loans to the state general fund

at such rates of interest as the industrial commission may prescribe. The state treasurer and the

director of the office of management and budget shall establish a repayment plan for the

repayment of the principal upon maturity and the interest when due. The office of management

and budget shall report to the budget section of the legislative management regarding any loans

obtained pursuant to this section.
N.D. Cent. Code § 6-08-15 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-15
6-08-15. Slander or libel of bank or credit union - Safe deposit, annuity, surety, or trust company - Aiding or abetting - Penalty - Liability for damages
Status: in_force

6-08-15. Slander or libel of bank or credit union - Safe deposit, annuity, surety, or

trust company - Aiding or abetting - Penalty - Liability for damages.

Any person who willfully and maliciously makes, circulates, or transmits to another or to

others, any false statement, rumor, or suggestion, written, printed, or by word of mouth, which

directly or by inference is derogatory to the financial condition, or which affects the solvency or

financial standing, of any state or national bank, of any state or federal credit union, or of any

annuity, safe deposit, surety, or trust company authorized to do business in this state, or who

counsels, aids, procures, or induces another to start, transmit, or circulate any such false

statement or rumor, is guilty of a class A misdemeanor, and in addition thereto is liable in

damages to such association, or corporation, or the receiver thereof, to be recovered in a civil

action brought for that purpose.
N.D. Cent. Code § 6-03-40 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-40
6-03-40. Investment in capital stock of certain agricultural credit corporations authorized - Limitations
Status: repealed

6-03-40. Investment in capital stock of certain agricultural credit corporations

authorized - Limitations.

Repealed by S.L. 1947, ch. 108, § 1.
N.D. Cent. Code § 6-14-03 — ND Code / Title 6 / Chapter 6-14 / Section 6-14-03
6-14-03. Injunction
Status: in_force

6-14-03. Injunction

A court may enjoin the use of a name or logo which violates this chapter. An action for

injunction under this section is in addition to any other remedy that may be available.
N.D. Cent. Code § 6-01-15 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-15
6-01-15. Officers and employees to be disinterested
Status: in_force

6-01-15. Officers and employees to be disinterested

1. No officer or employee of this department may have any interest, directly or indirectly,

in any financial corporation or financial institution within the jurisdiction of the

department of financial institutions, nor in any corporation or institution engaged wholly

or in part in the writing or issuing of bonds of or for any such corporation or institution

or any officer or employee thereof. Provided, however, this prohibition does not apply

to membership in a state-chartered credit union or cooperative financial institution.

2. For purposes of this section, "interest" means ownership of or investment in such

corporations or institutions.
N.D. Cent. Code § 6-09.10-08.6 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-08.6
6-09.10-08.6. Assumption of powers and duties of credit review board
Status: repealed

6-09.10-08.6. Assumption of powers and duties of credit review board

Repealed by S.L. 1997, ch. 98, § 3.
N.D. Cent. Code § 6-09-41 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-41
6-09-41. Livestock loan guarantee program - Establishment - Rules
Status: in_force

6-09-41. Livestock loan guarantee program - Establishment - Rules

Expired under S.L. 2005, ch. 57, § 5.
N.D. Cent. Code § 6-02-09 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-09
6-02-09. Renewal charter
Status: in_force

6-02-09. Renewal charter

A renewal charter must not be granted to any association until satisfactory evidence has

been furnished to the state banking board that the capital and surplus of the association seeking

to renew its charter conforms to the requirements of this title relating to new banking

associations, that its articles of incorporation have been amended to comply with this title as

necessary, and that its required capital and surplus are paid in.
N.D. Cent. Code § 6-09.14-03 — ND Code / Title 6 / Chapter 6-09.14 / Section 6-09.14-03
6-09.14-03. Fund - Purpose - Interest rate buydown
Status: in_force

6-09.14-03. Fund - Purpose - Interest rate buydown

Moneys in the partnership in assisting community expansion fund must be used for the

purpose of buying down the interest rate on loans made by a lead financial institution in

participation with the Bank of North Dakota. The Bank of North Dakota's participation may not

exceed eighty percent nor be less than fifty percent of the total loans. If the loan is approved by

the lenders and there is evidence of the community's commitment and ability to fund its portion

of the buydown, the fund's participation in the buydown must automatically be approved. The

community's contribution of direct cash, loans, equity investments, land, property, or

infrastructure may count toward the community's funding of its portion of the buydown.
N.D. Cent. Code § 6-08-29 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-29
6-08-29. Annual escrow account statement
Status: in_force

6-08-29. Annual escrow account statement

Each banking institution and credit union that maintains an escrow account for the payment

of taxes, assessments, insurance premiums, and other charges upon the mortgagor's residence

shall furnish annually each mortgagor with a detailed statement showing all debits and credits to

the escrow account.
N.D. Cent. Code § 6-08.3-03 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-03
6-08.3-03. Disapproval - Grounds
Status: repealed

6-08.3-03. Disapproval - Grounds

Repealed by S.L. 1995, ch. 79, § 25.
N.D. Cent. Code § 6-13-05 — ND Code / Title 6 / Chapter 6-13 / Section 6-13-05
6-13-05. Submission to commissioner
Status: in_force

6-13-05. Submission to commissioner

1. Upon request of the commissioner, a financial institution must submit a compliance

self-critical analysis audit document to the commissioner, or the commissioner's

designee, as a confidential document under the provisions of section 6-01-07, without

waiving the privilege set forth in this chapter to which the financial institution would

otherwise be entitled. However, the provisions of section 6-01-07 permitting the

commissioner to release confidential documents and make them accessible to federal

financial institution regulatory agencies does not apply to the compliance self-critical

analysis audit documents voluntarily submitted. To the extent the commissioner has

the authority to compel the disclosure of a compliance self-critical analysis audit

document under other provisions of applicable law, any report furnished to the

commissioner may not be provided to any other person or entity and must be

accorded the same confidentiality and other protections as provided above for

voluntarily submitted documents. Any use of a compliance self-critical analysis audit

document furnished as a result of a request of the commissioner, whether under a

claim of authority to compel disclosure or not, is limited to determining whether any

disclosed defects in a financial institution's policies or procedures or inappropriate

treatment of customers has been remedied or that an appropriate plan for their remedy

is in place. The commissioner may not impose any type of administrative fine or

penalty as to any area addressed or matter covered in a compliance self-critical

analysis audit document furnished at the commissioner's request, except when there is

clear and convincing evidence that the financial institution failed to undertake

reasonable corrective action, eliminate inappropriate treatment of customers, or failed

to implement an appropriate plan to rectify any noncompliance with state and federal

statutes, rules, and orders.

2. A financial institution's compliance self-critical analysis audit document submitted to

the commissioner remains subject to all applicable statutory or common-law privileges,

including the work product doctrine, attorney-client privilege, or the subsequent

remedial measures exclusion. A compliance self-critical analysis audit document

submitted to and in the possession of the commissioner remains the property of the

financial institution and is not subject to any disclosure or production under section

44-04-18.

3. Disclosure of a compliance self-critical analysis audit document to a governmental

agency, whether voluntary or pursuant to compulsion of law, does not constitute a

waiver of the privilege with respect to any other person or any other governmental

agency.
N.D. Cent. Code § 6-08-20 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-20
6-08-20. Penalties - How recovered
Status: in_force

6-08-20. Penalties - How recovered

All penalties provided for in this title, to which any association or corporation may become

subject, must be recovered on complaint of the commissioner before any court of competent

jurisdiction, and all penalties so recovered must be paid into the state treasury.
N.D. Cent. Code § 6-09.13-04 — ND Code / Title 6 / Chapter 6-09.13 / Section 6-09.13-04
6-09.13-04. Agriculture partnership in assisting community expansion fund established - Continuing appropriation
Status: in_force

6-09.13-04. Agriculture partnership in assisting community expansion fund

established - Continuing appropriation.

The agriculture partnership in assisting community expansion fund is hereby established

and is a revolving fund, and all moneys transferred into the fund, interest upon fund moneys,

and payments to the fund are hereby appropriated for the purposes of section 6-09.13-05. After

December 31, 1992, moneys may be transferred between this fund and the partnership in

assisting community expansion fund established in section 6-09.14-02. This fund is not subject

to section 54-44.1-11. 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 § 6-08-31 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-31
6-08-31. Electronic funds transfer fees
Status: in_force

6-08-31. Electronic funds transfer fees

The operator of any electronic funds transfer facility providing for electronic funds transfer in

this state may impose a transaction fee for the use of an electronic funds transfer facility if the

imposition of the fee is disclosed at the time and in a manner that allows the user to terminate or

cancel the transaction without incurring the transaction fee. The fee may be in addition to any

other charge imposed by the operator at an electronic funds transfer facility or by any other

financial institution. The name of the owner of an automated teller machine must be shown on

each automated teller machine located separate from a financial institution.
N.D. Cent. Code § 6-09-04 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-04
6-09-04. Commission to employ president and employees - Compensation, operation, and maintenance expenditures limited to appropriations, revenue, or capital
Status: in_force

6-09-04. Commission to employ president and employees - Compensation, operation,

and maintenance expenditures limited to appropriations, revenue, or capital.

The industrial commission shall appoint a president, and may appoint and employ such

subordinate officers, employees, and agents as it may judge expedient and in the interests of

the state, and shall define the duties, designate the titles, and fix the compensation of all such

persons. The commission may designate the president or other officers or employees as its

agent in respect to the functions of the Bank, subject to its supervision, limitation, and control.

The total compensation of such appointees and employees, together with other expenditures for

the operation and maintenance of the Bank, shall remain within the appropriation, revenues, or

capital lawfully available for such purposes.
N.D. Cent. Code § 6-06.2-12 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-12
6-06.2-12. Adoption of rules
Status: in_force

6-06.2-12. Adoption of rules

The commissioner may adopt rules necessary to carry out the conversion of a banking

institution, credit union, or other financial institution to or from a cooperative financial institution

under this chapter.
N.D. Cent. Code § 6-09.4-15 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-15
6-09.4-15. Bonds as legal investments and security
Status: in_force

6-09.4-15. Bonds as legal investments and security

Notwithstanding any restrictions contained in any other law, the state and all public officers,

boards, and agencies, and political subdivisions and agencies thereof, all national banking

associations, state banks, trust companies, savings banks and institutions, savings and loan

associations, investment companies, and other persons carrying on a banking business, and all

executors, administrators, guardians, trustees, and other fiduciaries, may legally invest any

sinking funds, moneys, or other funds belonging to them or within their control in any bonds

issued by the public finance authority pursuant to this chapter, and the bonds are authorized

security for any and all public deposits.
N.D. Cent. Code § 6-07.1-06 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-06
6-07.1-06. Inventory
Status: in_force

6-07.1-06. Inventory

As soon as reasonably practicable given the condition of the state trust company records

and the adequacy of staffing, the receiver shall prepare a comprehensive inventory of the state

trust company's assets for filing with the court. The inventory must be open to inspection.
N.D. Cent. Code § 6-07.2-04 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-04
6-07.2-04. Appointment of receiver - Restrictions on proceedings, liens, or credits - Bonding
Status: in_force

6-07.2-04. Appointment of receiver - Restrictions on proceedings, liens, or credits -

Bonding.

1. After taking possession of the business and property of the institution, the

commissioner may appoint the appropriate federal deposit insurance agency or other

qualified party as the receiver of the closed institution. If the federal deposit insurance

corporation or national credit union association accepts appointment as receiver, the

federal deposit insurance corporation or national credit union association is not

required to post bond.

2. Upon appointment as receiver, title to all assets of the institution vests in the receiver

without the execution of any instruments of conveyance, assignment, transfer, or

endorsement. If no other receiver is appointed as provided in this chapter, the

commissioner shall act as receiver and has all of the powers and duties of a receiver

as provided in this chapter.

3. Except as otherwise provided, the sole and exclusive right to liquidate and terminate

the affairs of an institution is vested in the receiver appointed under this section, and

another receiver, assignee, trustee, or liquidating agent may not be appointed by any

court or any other person.

4. After the commissioner has taken possession of the business and property of an

institution, a suit, action, or other proceeding at law or in equity may not be

commenced or prosecuted against the institution upon any debt, obligation, claim, or

demand. All such claims may be brought against the receiver.

5. A person holding any of the property or credits of the institution does not have a lien or

charge against the property or credits for any payment, advance, or clearance made

after the commissioner has taken possession. A lien may not attach to any of the

assets or property of the institution by reason of the entry of any judgment recovered

against the institution after the commissioner has taken possession of the institution's

business and property.

6. Every receiver appointed by the commissioner, except a federal deposit insurance

agency, before entering upon the discharge of the receiver's duties and before

proceeding to liquidate the affairs of any institution, may be required by the

commissioner to furnish a bond. Such bond must be approved as to form and amount

by the commissioner. The cost of such bond must be paid from the assets of the

institution being liquidated.
N.D. Cent. Code § 6-08-05 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-05
6-08-05. Bank officer or employee overdrawing own account guilty of misdemeanor
Status: repealed

6-08-05. Bank officer or employee overdrawing own account guilty of misdemeanor

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 6-09-19 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-19
6-09-19. Conditions of real estate mortgage - Extension of payments
Status: repealed

6-09-19. Conditions of real estate mortgage - Extension of payments

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-02-03 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-03
6-02-03. Capital stock, surplus, and federal deposit insurance requirements
Status: in_force

6-02-03. Capital stock, surplus, and federal deposit insurance requirements

1. The capital stock of any banking association organized after June 30, 1987, must be

not less than one hundred thousand dollars. In addition to such capital requirements,

there must be subscribed and paid in at the time of organization a surplus of not less

than fifty thousand dollars. This subsection does not apply to cooperative financial

institutions.

2. The state banking board may require such additional capital, surplus, and undivided

profits as it may determine necessary to properly serve the area and to protect the

public interest.

3. All of the capital stock and surplus of every association must be paid in before it is

authorized to commence business and evidence of such payment either in actual

money or a deposit in a previously approved correspondent bank must be furnished to

the commissioner before the certificate of authority may be delivered to it.

4. A banking association shall secure federal deposit insurance corporation insurance of

deposits before it is authorized to commence business. Evidence of securing such

insurance must be furnished to the commissioner before the certificate of authority

may be delivered to the banking association.
N.D. Cent. Code § 6-13-08 — ND Code / Title 6 / Chapter 6-13 / Section 6-13-08
6-13-08. Privilege - Burden of proof - Stipulation
Status: in_force

6-13-08. Privilege - Burden of proof - Stipulation

A financial institution asserting the compliance self-critical analysis privilege set forth in this

chapter has the burden of demonstrating the applicability of the privilege. Once a financial

institution has established the applicability of the privilege, a party seeking disclosure has the

burden of proving that the privilege is asserted for a fraudulent purpose. The commissioner,

state's attorney, or attorney general seeking disclosure of the privilege has the burden of proving

the elements set forth in subdivisions a and c of subsection 3 of section 6-13-06.

The parties may at any time stipulate in proceedings under section 6-13-06 or 6-13-07 to

entry of an order directing whether the specific information contained in a compliance

self-critical analysis audit document is or is not subject to the privilege provided under this

chapter. Any such stipulation may be limited to the instant proceeding and, absent specific

language to the contrary, is not applicable to any other proceeding.
N.D. Cent. Code § 6-09-53 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-53
6-09-53. Economic diversification research fund - Report to legislative management
Status: in_force

6-09-53. Economic diversification research fund - Report to legislative management

1. There is created in the state treasury the economic diversification research fund. The

fund consists of all moneys deposited in or transferred to the fund pursuant to

legislative action. Moneys in the fund may be spent by the Bank of North Dakota

pursuant to legislative appropriations to provide grants to institutions under the control

of the state board of higher education for economic diversification research.

2. In consultation with representatives of North Dakota state university and the university

of North Dakota, the Bank, in consultation with the state board of higher education,

shall award grants to institutions under the control of the state board of higher

education. The bank must award ninety percent of the funds available each biennium

to North Dakota state university and the university of North Dakota with equal amounts

awarded to each institution. The remaining funding must be awarded to the other

institutions under the control of the state board of higher education, as determined by

the board. The state board of higher education may not award more than fifty percent

of the available funding during the first year of the biennium. The Bank of North Dakota

shall distribute the grant funding as awarded by the state board of higher education.

3. The state board of higher education shall develop guidelines for the economic

diversification research grants. The purpose of the grants is to stimulate economic

activity across the state through innovation of new technology, concepts, and products;

to promote job creation and career and wage growth; to enhance health care

outcomes; to address loss of revenue and jobs in communities with economies that

depend primarily on the fossil fuel industry; and to provide experiential learning

opportunities for students. Research projects may be initiated by an institution under

the control of the state board of higher education or by the private sector. The

guidelines must include consideration for research projects with matching funds and

provisions for grant oversight by an internal advisory committee and an external

advisory committee.

4. The state board of higher education shall develop reporting requirements for the

institutions under the control of the board. The reporting requirements must include

criteria for assessing performance outcomes related to the grants. The state board of

higher education shall compile the reports and submit a comprehensive report

annually to the legislative management. The comprehensive report must include

information on how the research efforts by each institution align with the state's

priorities, how the institutions collaborate when appropriate, and how the outcomes of

the research meet established performance expectations.
N.D. Cent. Code § 6-07.2-06 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-06
6-07.2-06. Sale of assets - Assumptions of deposit liabilities by new institution
Status: in_force

6-07.2-06. Sale of assets - Assumptions of deposit liabilities by new institution

The receiver may sell all or any part of the institution's assets to one or more other state or

federally chartered depository institution or to a federal deposit insurance agency in the

receiver's corporate capacity. The receiver may also borrow from a federal deposit insurance

agency an amount necessary to facilitate the assumption of deposit liabilities by a newly

chartered or existing state or federally chartered depository institution, assigning any part or all

of the assets of the institution as security for the loan.
N.D. Cent. Code § 6-09.10-02.1 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-02.1
6-09.10-02.1. Additional duties of board
Status: in_force

6-09.10-02.1. Additional duties of board

In addition to other powers and duties enumerated in this chapter, the board shall:

1. Establish policy for the North Dakota mediation service.

2. Recommend policies and procedures to the industrial commission regarding farm loan

programs of the Bank of North Dakota.
N.D. Cent. Code § 6-06-20 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-20
6-06-20. Borrowings of directors and committee members limited - Repayment of loans
Status: in_force

6-06-20. Borrowings of directors and committee members limited - Repayment of

loans.

A director or member of any committee may not borrow from the credit union in which the

director or member holds office more than one hundred thousand dollars plus pledged shares

and deposits less any loan balance therein, unless the application is approved by three-fourths

of the other members of the board of directors. The director or member may guarantee or

endorse paper for other borrowers. A borrower may repay the borrower's loan in whole or in part

on any day that the office of the credit union is open for business.
N.D. Cent. Code § 6-08.1-07 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-07
6-08.1-07. Cost reimbursement
Status: in_force

6-08.1-07. Cost reimbursement

Any governmental agency, law enforcement agency, or person requiring or requesting

access to customer information shall pay to the financial institution that assembles or provides

the customer information a fee for reimbursement of reasonably necessary costs which have

been directly incurred by the financial institution. A financial institution must deliver the customer

information sought as soon as reasonably possible notwithstanding any dispute concerning the

amount of reimbursement due under this section. A separate action may be maintained by the

financial institution against the governmental agency, law enforcement agency, or person

requesting access for recovery of reasonable reimbursement. The financial institution may not

charge the state auditor for customer information requested when performing an audit; however,

the financial institution may charge the entity being audited by the state auditor for the

information requested.
N.D. Cent. Code § 6-03-46 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-46
6-03-46. Exchange of preferred stock for capital notes or debentures
Status: in_force

6-03-46. Exchange of preferred stock for capital notes or debentures

Any banking institution, after first obtaining the consent and approval of the commissioner,

may exchange its preferred stock for its capital notes or debentures.
N.D. Cent. Code § 6-15-04 — ND Code / Title 6 / Chapter 6-15 / Section 6-15-04
6-15-04. Merchant code violation fund - Continuing appropriation
Status: in_force

6-15-04. Merchant code violation fund - Continuing appropriation

There is created in the state treasury the merchant code violation fund. The fund consists of

all money deposited in the fund under this chapter. Moneys in the fund are appropriated to the

attorney general on a continuing basis for disbursement to individuals harmed by a violation of

this chapter, subject to approval by the attorney general, and administrative expenses. An

individual harmed by a violation under this chapter may submit a request to the attorney general

for a disbursement of five thousand dollars from the fund, and the attorney general shall review

all requests for disbursement submitted under this chapter. The attorney general may use

money remaining in the fund after disbursements to defray the costs of administering and

enforcing this chapter.
N.D. Cent. Code § 6-06.2-07 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-07
6-06.2-07. Hearing by board - Conclusions - Management - Confidentiality
Status: in_force

6-06.2-07. Hearing by board - Conclusions - Management - Confidentiality

1. At the hearing, the board shall inquire whether the originating members have the

character, integrity, reputation, and financial standing shown by a detailed financial

statement, to demonstrate the establishment of the proposed cooperative financial

institution will be beneficial to the public welfare of the community where the

cooperative financial institution will be located. The board shall keep financial

statement furnished by the originating members confidential.

2. The board shall inquire into the qualifications of the management of the proposed

cooperative financial institution, including any experience with financial institutions and

other related experience. The board shall keep any inquiry into the qualifications of the

proposed management confidential.

3. The board shall hear any reasons advanced by the originating members as to why the

members should be permitted to organize the cooperative financial institution.

4. At the conclusion of the hearing, the board shall make a statement in writing of its

conclusions and conditions, if any, and if it finds the proposed cooperative financial

institution may not be permitted to organize, the board shall state the reasons why. If

approval is granted, a copy of the board's order must be attached to the organization

certificate and both must be presented to the secretary of state. A determination to

approve the organization of the cooperative financial institution must be joined by a

majority of all the members of the board.
N.D. Cent. Code § 6-05-15.4 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-15.4
6-05-15.4. Multiple offices or places of business - Application to state banking board - Hearing
Status: in_force

6-05-15.4. Multiple offices or places of business - Application to state banking board -

Hearing.

1. A trust company may establish and maintain for itself and its operating subsidiary

organizations one or more offices or places of business within this state, throughout

the United States, in foreign countries, or in dependencies or insular possessions of

the United States upon written application to the department of financial institutions.

Additional branches in the United States may be approved by the commissioner, while

all other branches must be approved by the state banking board. The application must

include the information specified by the board.

2. Notice of the application to establish and maintain an office or place of business must

be published as required by the state banking board.

3. The commissioner shall determine if the application is complete and shall notify the

trust company of the determination. If the commissioner determines the application is

incomplete, the commissioner shall request the additional information necessary to

complete the application. The commissioner or state banking board either shall

approve the application or shall notify the trust company that a hearing on the

application will be required.

4. Any hearing required by the commissioner or state banking board must be

commenced and concluded by issuance of an order of the board.

5. The commissioner or state banking board may disapprove the application if the

commissioner or board find:

a. The establishment and maintenance of the office or place of business will

jeopardize the solvency of the trust company; or

b. The operation of more than one office or place of business by the trust company

will place the company in an unsafe and unsound condition.

6. If a North Dakota chartered trust company desires to move a branch previously

established to another location, the trust company shall apply to the commissioner for

such authority and provide the commissioner with such relevant information as the

commissioner may reasonably request.
N.D. Cent. Code § 6-09.13-01 — ND Code / Title 6 / Chapter 6-09.13 / Section 6-09.13-01
6-09.13-01. Definitions
Status: in_force

6-09.13-01. Definitions

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

1. "Agriculture partnership in assisting community expansion fund" means a fund

established to buy down the interest rate on loans to on-farm businesses under this

chapter.

2. "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.

3. "Farm business" means any business conducted by the farmer or farmer's family,

which is integrated into the farm operation and is intended to supplement farm income

to allow the farmer to continue farming. The term may include nontraditional

agricultural, manufacturing, processing, value-added processing, targeted service

industries, or other activities calculated to produce income, and subsurface field tiling

projects.

4. "Farmer" means a resident of North Dakota whose principal occupation is the

production of an agricultural commodity or livestock on a family farm.

5. "On-farm business" means any farm business located on a family farm. If a farmer can

demonstrate compelling economic reasons for locating a business in a community

adjacent to the family farm and financial assistance under this chapter will not give the

farmer an unfair economic advantage over a similar non-farm business, the business

may qualify as on-farm.
N.D. Cent. Code § 6-03-15.2 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-15.2
6-03-15.2. Operations during epidemic or emergency - Notice to commissioner
Status: in_force

6-03-15.2. Operations during epidemic or emergency - Notice to commissioner

A bank that operates physical facilities in any area that is experiencing an epidemic or other

emergency may adjust the bank's operations in any manner that is reasonable to protect the

bank's customers, employees, assets, or business. Under this section a bank may temporarily

close or relocate offices, employees, or operations; restrict access to offices or services; and

change the manner in which the bank provides banking services. A bank shall notify the

commissioner of any actions the bank takes under the authority of this section. The bank shall

give the commissioner notice promptly and in any case within three business days of the bank's

decision to adjust the bank's operations. The notice must describe the bank's actions and the

expected duration of the bank's adjusted operations. Unless extended by the commissioner, a

bank's authority to change the bank's operations under this section may not exceed sixty days.
N.D. Cent. Code § 6-03-47.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-47.1
6-03-47.1. Investment in loans secured by federal or state government
Status: repealed

6-03-47.1. Investment in loans secured by federal or state government

Repealed by S.L. 1969, ch. 112, § 1.
N.D. Cent. Code § 6-05.1-04 — ND Code / Title 6 / Chapter 6-05.1 / Section 6-05.1-04
6-05.1-04. Trust offices of subsidiary trust companies
Status: in_force

6-05.1-04. Trust offices of subsidiary trust companies

A subsidiary trust company may establish and maintain for itself and its subsidiary entities

one or more offices or places of business within this state, throughout the United States, in

foreign countries, or in dependencies or insular possessions of the United States. The

regulatory process by which a subsidiary trust company obtains authority to establish and

maintain offices in addition to a main office must be the same as the process that applies to a

trust company under chapter 6-05.
N.D. Cent. Code § 6-07.1-02 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-02
6-07.1-02. Involuntary closing
Status: in_force

6-07.1-02. Involuntary closing

After closing a state trust company, the commissioner shall place a sign at its main entrance

stating that the state trust company has been closed. A correspondent bank of the closed state

trust company may not pay an item drawn on the account of the closed state trust company

which is presented for payment after the correspondent has received actual notice of closing

unless it previously certified the item for payment. As soon as practicable after posting the sign

at the state trust company's main entrance, the commissioner shall file a copy of the notice of

the action to close a state trust company in district court in the county where the state trust

company's home office is located. The court in which the notice is filed shall docket it as a case

styled, "In re liquidation of ____", inserting the name of the state trust company. As soon as this

notice is filed, the court has constructive custody of all the state trust company's assets, and any

action initiated which seeks to directly or indirectly affect state trust company assets is

considered to be an intervention in the receivership proceeding. Venue for an action instituted to

effect, contest, or otherwise intervene in the liquidation of a state trust company is Burleigh

County, North Dakota, except on a motion filed and served concurrently with or before the filing

of the answer, the court, on a finding of good cause, may transfer the action to the county of the

state trust company's home office.
N.D. Cent. Code § 6-01-12 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-12
6-01-12. Bonds of commissioner and deputies
Status: repealed

6-01-12. Bonds of commissioner and deputies

Repealed by S.L. 1999, ch. 113, § 24.
N.D. Cent. Code § 6-08-16.4 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-16.4
6-08-16.4. Return of paid checks to the issuer
Status: in_force

6-08-16.4. Return of paid checks to the issuer

When the holder, or its agent or representative, of a check receives full payment for the

amount of a check issued without sufficient funds or credit, or without account, the check must

be returned to the issuer upon the payment of any civil penalty assessed if the issuer appears

and requests the return of the check or the issuer furnishes a self-addressed stamped envelope.
N.D. Cent. Code § 6-06-08.1 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-08.1
6-06-08.1. Additional assessments of credit unions
Status: repealed

6-06-08.1. Additional assessments of credit unions

Repealed by S.L. 1989, ch. 96, § 20.
N.D. Cent. Code § 6-09.11-02 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-02
6-09.11-02. Industrial commission - Powers and duties - Bonds
Status: repealed

6-09.11-02. Industrial commission - Powers and duties - Bonds

Repealed by S.L. 2019, ch. 54, § 13.
N.D. Cent. Code § 6-06-35 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-35
6-06-35. Conversion from state to federal credit union and from federal to state credit union and from state credit union to a cooperative financial institution
Status: in_force

6-06-35. Conversion from state to federal credit union and from federal to state credit

union and from state credit union to a cooperative financial institution.

1. A state credit union may be converted into a federal credit union under the laws of the

United States by complying with the following requirements:

a. The proposition for such conversion must first be approved, and a date set for a

vote thereon by the members either at a meeting to be held on such date or by

written ballot to be filed on or before such date, by a majority of the directors of

the state credit union. Written notice of the proposition and of the date set for the

vote must then be delivered in person to each member or mailed to each member

at the address for such member appearing on the records of the credit union, not

more than thirty nor less than seven days prior to such date. Approval of the

proposition for conversion must be by the affirmative vote of two-thirds of the

members present at the meeting.

b. A statement of the results of the vote, verified by the affidavits of the president or

vice president and the secretary, must be filed with the state credit union board

within ten days after the vote is taken.

c. Promptly after the vote is taken and in no event later than ninety days thereafter,

if the proposition for conversion was approved by such vote, the credit union shall

take such action as may be necessary under the applicable federal law to make it

a federal credit union, and within ten days after receipt of the federal credit union

charter there must be filed with the state credit union board a copy of the charter

thus issued. Upon such filing, the credit union must cease to be a state credit

union.

d. Upon ceasing to be a state credit union, such credit union is no longer subject to

any of the provisions of the North Dakota credit union law. The successor federal

credit union is vested with all of the assets and shall continue to be responsible

for all of the obligations of the state credit union to the same extent as though the

conversion had not taken place.

2. a. A federal credit union, organized under the laws of the United States may be

converted into a state credit union by:

(1) Complying with all federal requirements requisite to enabling it to convert to

a state credit union or to cease being a federal credit union;

(2) Filing with the state credit union board proof of such compliance,

satisfactory to the commissioner;

(3) Filing with the commissioner an organization certificate and bylaws, both in

triplicate, as required by section 6-06-02; and

(4) Granting discretionary authority to the commissioner to conduct an

examination prior to the conversion date.

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.

b. When the commissioner has been satisfied that all of such requirements and all

other requirements of the North Dakota law have been complied with, the

commissioner shall notify the applicants and the state credit union board of that

fact, and the board shall instruct the secretary of state to issue a charter in

accordance with section 6-06-02. Upon issuance of the charter, the federal credit

union shall become a state credit union and ceases to be a federal credit union.

The state credit union is vested with all of the assets and shall continue to be

responsible for all of the obligations of the federal credit union to the same extent

as though the conversion had not taken place.

3. A credit union may convert to a cooperative financial institution following the

procedures outlined in chapter 6-06.2.
N.D. Cent. Code § 6-09.9-01 — ND Code / Title 6 / Chapter 6-09.9 / Section 6-09.9-01
6-09.9-01. Short title
Status: in_force

6-09.9-01. Short title

This chapter may be known as the Family Farm Survival Act of 1985.
N.D. Cent. Code § 6-01-07 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-07
6-01-07. Records of state banking board, state credit union board, and commissioner
Status: in_force

6-01-07. Records of state banking board, state credit union board, and commissioner

The state banking board and state credit union board shall keep a full and complete record

of all their proceedings and of all orders made by them. The records and the proceedings of the

boards and commissioner are open in accordance with sections 44-04-18 and 44-04-19. All

reports, except supervisory reports of examination, made by or filed with the board or the

commissioner relating to any financial institution, must be open to inspection and examination

by stockholders, shareholders, depositors, creditors, and sureties on any bonds of any such

institution or on the bonds of any officer or employee thereof, subject, however, to the following

restrictions:

1. A stockholder, shareholder, depositor, creditor, or surety of any institution desiring to

inspect the information specified above of any institution shall make a written request

for the inspection.

2. A written request must:

a. Specify the information to which access is requested; and

b. Give the reasons for the request.

3. Upon written request, the commissioner, or any person designated in writing by the

commissioner, may disclose information specified in subsection 1 of section 6-01-07.1

only upon determining and to the extent that good cause exists for the disclosure.

4. Either prior to or at the time of any disclosure, the commissioner or designee shall

impose such terms and conditions as the commissioner deems necessary to protect

the confidential nature of the information, the financial integrity of the financial

institution to which the information relates, and the legitimate privacy interests of any

individual named in the information.
N.D. Cent. Code § 6-09.11-10 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-10
6-09.11-10. Credit review board
Status: repealed

6-09.11-10. Credit review board

Repealed by S.L. 2011, ch. 83, § 15.
N.D. Cent. Code § 6-01-04.2 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-04.2
6-01-04.2. Cease and desist orders
Status: in_force

6-01-04.2. Cease and desist orders

1. The department of financial institutions or the board may issue and serve upon a

financial corporation, financial institution, or credit union subject to its jurisdiction a

complaint stating the factual basis for the department's or board's belief that the

financial corporation, financial institution, or credit union is engaging in any of the

following conduct:

a. An unsafe or unsound practice.

b. A violation in the past or on a continuing basis of any law, regulation, order, or

written agreement entered into with the board or department of financial

institutions.

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