N.D. Cent. Code § 6-09.15-03.1 — ND Code / Title 6 / Chapter 6-09.15 / Section 6-09.15-03.1
6-09.15-03.1. Loan guarantee for child care facility
Status: in_force

6-09.15-03.1. Loan guarantee for child care facility

A beginning entrepreneur who receives a loan for a child care facility must be a child care

provider.
N.D. Cent. Code § 6-09.9-06 — ND Code / Title 6 / Chapter 6-09.9 / Section 6-09.9-06
6-09.9-06. Agribusinesses
Status: repealed

6-09.9-06. Agribusinesses

Repealed by S.L. 1989, ch. 117, § 4; S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-08.2-07 — ND Code / Title 6 / Chapter 6-08.2 / Section 6-08.2-07
6-08.2-07. Provisions not severable
Status: in_force

6-08.2-07. Provisions not severable

Notwithstanding section 1-02-20, if any provision of this chapter is determined by any court

of competent or final jurisdiction to be invalid or unconstitutional, this entire chapter is void.
N.D. Cent. Code § 6-06-28 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-28
6-06-28. May change place of business
Status: in_force

6-06-28. May change place of business

A credit union may change its place of business on written permission of the commissioner.
N.D. Cent. Code § 6-09.10-08.4 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-08.4
6-09.10-08.4. Payment for assistance
Status: repealed

6-09.10-08.4. Payment for assistance

Repealed by S.L. 1997, ch. 98, § 3.
N.D. Cent. Code § 6-07.1-17 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-17
6-07.1-17. Disposal of property and settling claims
Status: in_force

6-07.1-17. Disposal of property and settling claims

In the course of liquidating a state trust company, the receiver on order of the court entered

with or without hearing may sell all or part of the real and personal property of the state trust

company; borrow money and pledge all or part of the assets of the state trust company to

secure the debt created, except that the receiver may not be held personally liable to repay

borrowed funds; compromise or compound a doubtful or uncollectible debt or claim owed by or

owing to the state trust company; and enter another agreement on behalf of the state trust

company that the receiver considers necessary or proper to the management, conservation, or

liquidation of its assets.
N.D. Cent. Code § 6-08.5-04 — ND Code / Title 6 / Chapter 6-08.5 / Section 6-08.5-04
6-08.5-04. Individuals who may be contacted regarding suspected financial exploitation - Immunity - Exemption from customer consent and notice provisions
Status: in_force

6-08.5-04. Individuals who may be contacted regarding suspected financial

exploitation - Immunity - Exemption from customer consent and notice provisions.

1. A financial service provider may offer to an eligible adult the opportunity to submit and

update periodically a list of individuals the eligible adult authorizes the financial service

provider to contact if the financial service provider has reasonable cause to suspect

the eligible adult is a victim or a target of financial exploitation.

2. Notwithstanding subsection 1, a financial service provider having a good faith belief to

suspect an eligible adult is the victim or target of financial exploitation may convey the

suspicion to one or more of the following individuals, provided the individual is not the

suspected perpetrator:

a. An individual on the list described in subsection 1.

b. A co-owner, additional authorized signatory, or beneficiary on the eligible adult's

account.

c. An attorney-in-fact, trustee, conservator, guardian, or other fiduciary who has

been selected or appointed to manage some or all of the financial affairs of the

eligible adult.

3. If a financial service provider provides information under this section, the financial

service provider may limit the information, such as disclosing only that the financial

service provider has reasonable cause to suspect the eligible adult may be a victim or

target of financial exploitation, without disclosing any other details or confidential

personal information regarding the financial affairs of the eligible adult.

4. The financial service provider may choose not to contact an individual on the list

provided under subsection 1, if the financial service provider suspects the individual is

engaged in financial exploitation.

5. The financial service provider may rely on information provided by the eligible adult in

compiling a list of contact individuals.

6. 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 contacting an

individual or electing not to contact an individual under this section and for actions

taken in furtherance of that determination if the determination is made based on a

good faith belief financial exploitation occurred, was attempted, or is being attempted.

7. Contact with an individual, and any information provided under this section, is exempt

from the customer consent provisions in sections 6-08.1-03 and 6-08.1-04.
N.D. Cent. Code § 6-05-15.1 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-15.1
6-05-15.1. Corporate trustee - Investment of trust funds - Commingling funds
Status: in_force

6-05-15.1. Corporate trustee - Investment of trust funds - Commingling funds

Any trust company may invest all moneys received by it in authorized securities, and shall

be responsible to the owner or beneficiary of a trust for the validity, regularity, quality, value, and

genuineness of these investments and securities so made, and for the safekeeping of the

securities and evidences thereof. When special directions are given in any order, judgment,

decree, will, or other written instrument as to the particular manner or the particular class or kind

of securities or property in which any investment must be made, it shall follow such directions,

and in such case it is not further responsible by reason of the performance of such trust. In all

other cases it may invest funds held in any trust capacity in authorized securities using its best

judgment in the selection thereof, and shall be responsible for the validity, regularity, quality, and

value thereof at the time made, and for their safekeeping. Whether it be the sole trustee or one

of two or more cotrustees, it may invest in fractional parts of, as well as in whole, securities, or

may commingle funds for investment. If it invests in fractional parts of securities or commingles

funds for investment, all of the fractional parts of such securities, or the whole of the funds so

commingled must be owned and held by the trust company in its several trust capacities, and it

is liable for the administration thereof in all respects as though separately invested. Funds so

commingled for investment must be designated collectively as a common trust fund. It may, in

its discretion, retain and continue any investment and security or securities coming into its

possession in any fiduciary capacity. The foregoing applies as well whether a corporation

trustee is acting alone or with an individual cotrustee.
N.D. Cent. Code § 6-09-12 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-12
6-09-12. Interest rates fixed by commission - Time deposits - Limitations - Charges for services
Status: repealed

6-09-12. Interest rates fixed by commission - Time deposits - Limitations - Charges

for services.

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-09.18-05 — ND Code / Title 6 / Chapter 6-09.18 / Section 6-09.18-05
6-09.18-05. Legacy investment for technology fund - Continuing appropriation
Status: in_force

6-09.18-05. Legacy investment for technology fund - Continuing appropriation

The legacy investment for technology fund is a special fund in the state treasury and must

be administered by the department of commerce. All moneys in the fund are appropriated to the

department of commerce on a continuing basis for the purpose of providing legacy investment

technology loans and for administrative expenses. The department of commerce shall deposit in

the legacy investment for technology fund all principal and interest paid on loans made from the

fund. Interest earned on moneys in the fund must be credited to the fund. The fund must be

audited annually pursuant to section 6-09-29, and the cost of the audit must be paid from the

fund.
N.D. Cent. Code § 6-03-70 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-70
6-03-70. Reports - Regular and special - Publication - Penalty
Status: in_force

6-03-70. Reports - Regular and special - Publication - Penalty

Every state banking association shall respond to calls each year, the number to be

determined by the commissioner. The commissioner shall prescribe the forms for such reports

which must be the same forms as those for similar reports called by the federal deposit

insurance corporation. The reports must exhibit in detail, under appropriate headings, the

resources and liabilities of the association at the close of business on a past day specified by

the commissioner, which must be the same day on which similar reports are required by the

federal deposit insurance corporation. Each report must be verified by the oath of the president

or the cashier and attested as correct by at least two of the directors and must be transmitted to

the commissioner within thirty days after receipt of the request for the same. The commissioner

may request an amended call for reports filed in error and may require republication of the call

report containing material errors. At the discretion of the commissioner, a call may be complied

with by submission of a photocopy of the call report submitted to the federal deposit insurance

corporation or federal reserve bank or a printout retrieved from computer facilities in the

department of financial institutions and connected to those of the federal deposit insurance

corporation. The commissioner may call for a special report from any association whenever in

the commissioner's judgment the same is necessary to obtain complete knowledge of the

condition of the association. Every association which fails to make and transmit any report

required by this section shall forfeit and pay to the state treasurer for deposit in the financial

institutions regulatory fund a penalty of two hundred dollars for each delinquency. The

commissioner may waive the penalty for reports filed late, not exceeding three business days

beyond the due date required by this section.
N.D. Cent. Code § 6-05-04.1 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-04.1
6-05-04.1. Right of action against deposit
Status: in_force

6-05-04.1. Right of action against deposit

The security deposited with the department of financial institutions as provided in section

6-05-04 must be held by the department of financial institutions for the benefit of any person

making any transfer or deposit of money or property in the state of North Dakota to or with any

trust company and who suffers loss or damage because of the breach of any trust committed by

such trust company. Any judgment obtained by any such person from any court of competent

jurisdiction may be satisfied from the security deposited with the department of financial

institutions.
N.D. Cent. Code § 6-09-49.1 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-49.1
6-09-49.1. Legacy infrastructure loan fund - Continuing appropriation
Status: in_force

6-09-49.1. Legacy infrastructure loan fund - Continuing appropriation

1. The legacy infrastructure loan fund is a special fund in the state treasury from which

the Bank of North Dakota shall provide loans to political subdivisions, the Garrison

Diversion Conservancy District, and the Lake Agassiz water authority for eligible

infrastructure projects as authorized in this section.

2. The Bank of North Dakota may adopt policies and establish guidelines to administer

the legacy infrastructure loan fund in accordance with this section.

3. A loan made from the legacy infrastructure loan fund must have an interest rate that

does not exceed two percent per year. The maximum term of a loan under this section

is the lesser of thirty years or the useful life of the project.

4. The Bank of North Dakota shall transfer all payments of principal and interest paid on

loans made from the legacy infrastructure loan fund to the legacy fund. The Bank may

use a portion of the interest paid on the outstanding loans as a servicing fee to pay for

administrative costs, which may not exceed one-half of one percent of the amount of

the outstanding loans.

5. An applicant shall issue an evidence of indebtedness as authorized by law.

6. When processing political subdivision loan applications under this section, the Bank of

North Dakota shall calculate the maximum outstanding loan amount per qualified

applicant. The maximum outstanding loan amount for infrastructure projects under

subsection 7 is forty million dollars. The Bank shall consider the ability of the applicant

to repay the loan while processing the application and shall issue loans only to

applicants that provide reasonable assurance of sufficient future income to repay the

loan.

7. Eligible infrastructure projects under this subsection are capital projects to construct

new infrastructure or to replace infrastructure and which provide the fixed installations

necessary for the function of a political subdivision. Capital construction projects

exclude routine maintenance and repair projects, but include:

a. Water treatment plants;

b. Wastewater treatment plants;

c. Sewerlines and waterlines, including lift stations and pumping stations;

d. Water storage systems, including dams, water tanks, and water towers;

e. Storm water infrastructure, including curb and gutter construction;

f. Road and bridge infrastructure, including paved and unpaved roads and bridges;

g. Airport infrastructure;

h. Electricity transmission infrastructure;

i. Natural gas transmission infrastructure;

j. Communications infrastructure;

k. Emergency services facilities, excluding hospitals;

l. Essential political subdivision building and infrastructure; and

m. The Red River valley water supply project.

8. The department of transportation shall approve county road and bridge projects for

purposes of loans under this section and may adopt policies for the review and

approval of projects under this section.

9. For purposes of loans under this subsection, the state water commission shall review

and approve eligible projects to construct new water-related infrastructure or to replace

existing water-related infrastructure which provide the fixed installations necessary for

the function of a political subdivision. The state water commission may adopt policies

for the review and approval of projects under this section. Capital construction projects

exclude routine maintenance and repair projects, but include:

a. Flood control;

b. Conveyance projects;

c. Rural water supply;

d. Water supply; and

e. General water management.
N.D. Cent. Code § 6-09-43 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-43
6-09-43. Health information technology planning loan fund - Appropriation
Status: in_force

6-09-43. Health information technology planning loan fund - Appropriation

1. The health information technology planning loan fund is established in the Bank for the

purpose of providing low-interest loans to health care entities to assist those entities in

improving health information technology infrastructure. This fund is a revolving loan

fund. All moneys transferred into the fund, interest upon moneys in the fund, and

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

disbursement according to this section.

2. The Bank shall make loans from this fund to health care entities as approved by the

health information technology office director in accordance with the criteria established

by the health information technology director under section 54-59-26.

3. The Bank shall administer the health information technology planning loan fund. Funds

in the loan fund may be used for loans as provided under this section and the costs of

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

administering the revolving loan fund maintained under this section.

4. An application for a loan under this section must be made to the health information

technology office. The health information technology office director may approve the

application of a qualified applicant that meets the criteria established by the health

information technology office director. The health information technology office shall

forward approved applications to the Bank. Upon approval of the application by the

Bank, the Bank shall make the loan from the revolving loan fund as provided under

this section.

5. The Bank may do all acts necessary to negotiate loans and preserve security as

deemed necessary, to exercise any right of redemption, and to bring suit in order to

collect interest and principal due the revolving loan fund under mortgages, contracts,

and notes executed to obtain loans under this section. If the applicant's plan for

financing provides for a loan of funds from sources other than the state of North

Dakota, the Bank may make a loan subordinate security interest. The Bank may

recover from the revolving loan fund amounts actually expended by the Bank for legal

fees and to effect a redemption.
N.D. Cent. Code § 6-09-15.7 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15.7
6-09-15.7. Bank may invest in a public venture capital corporation
Status: repealed

6-09-15.7. Bank may invest in a public venture capital corporation

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-01-04.1 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-04.1
6-01-04.1. Removal of officers, directors, and employees of financial corporations or institutions
Status: in_force

6-01-04.1. Removal of officers, directors, and employees of financial corporations or

institutions.

1. The department of financial institutions or the board may issue, upon any current or

former officer, director, or employee of a financial corporation, financial institution, or

credit union subject to its jurisdiction and upon a financial corporation, financial

institution, or credit union involved, an order stating:

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

engaged, in any of the following conduct:

(1) Violating any law, regulation, board order, or written agreement with the

board.

(2) Engaging or participating in any unsafe or unsound practice.

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

of trust or a breach of fiduciary duty.

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

the conduct of the affairs of a financial corporation, financial institution, credit

union, or any other entity licensed by the department of financial institutions.

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

The date for the hearing must be set not less than thirty days after the date the

complaint is served upon the current or former officer, director, or employee of a

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

the department of financial institutions. The current or former officer, director, or

employee may waive the thirty-day notice requirement.

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

current or former officer, director, or employee, the order is final. If a hearing is held

and the board finds that the record so warrants, it may enter a final order. The final

order suspending or removing the current or former officer, director, or employee is

final.

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

issuance on the current or former officer, director, or employee and upon a financial

corporation, financial institution, or credit union. A consent order is effective as agreed.

5. Any current or former officer, director, or employee suspended or removed from any

position pursuant to this section is not eligible, while under suspension or removal, to

be employed or otherwise participate in the affairs of any financial corporation,

financial institution, or credit union or any other entity licensed by the department of

financial institutions until the suspension or removal is terminated by the department of

financial institutions or board.

6. When any current or former officer, director, employee, or other person participating in

the conduct of the affairs of a financial corporation, financial institution, or credit union

is charged with a felony in state or federal court, involving dishonesty or breach of

trust, the commissioner may immediately suspend the person from office or prohibit

the person from any further participation in a financial corporation's, financial

institution's, or credit union's affairs. The order is effective immediately upon issuance

of the order on a financial corporation, financial institution, or credit union and the

person charged, and remains in effect until the criminal charge is finally disposed of or

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

conviction or agreement to plea to lesser charges, or similar state order or judgment is

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

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

preclude the commissioner or the board from pursuing administrative or civil remedies.

7. The commissioner or board may issue upon a current or former officer, director,

employee, or other person participating in the conduct of the affairs of a financial

corporation, financial institution, or credit union an order permanently suspending and

prohibiting the person from participation in a financial corporation's, financial

institution's, or credit union's affairs if convicted of any charge involving dishonesty or

breach of trust in state or federal court. The suspension or removal order is effective

immediately upon issuance on the current or former officer, director, or employee and

upon a financial corporation, financial institution, or credit union.
N.D. Cent. Code § 6-06-09 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-09
6-06-09. Fiscal year of credit unions
Status: in_force

6-06-09. Fiscal year of credit unions

The fiscal year of all credit unions ends December thirty-first.
N.D. Cent. Code § 6-03-50 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-50
6-03-50. Exceptions from restrictive provisions
Status: in_force

6-03-50. Exceptions from restrictive provisions

No law of this state requiring security upon which loans or investments may be made, or

limiting the making of loans to shareholders or members of the lender, or prescribing the nature,

amount or forms of such security, or prescribing or limiting interest rates upon loans or

investments, or prescribing or limiting the period for which loans or investments may be made,

may be deemed to apply to loans or investments made pursuant to sections 6-03-47, 6-03-48,

and 6-03-49.
N.D. Cent. Code § 6-08.2-05 — ND Code / Title 6 / Chapter 6-08.2 / Section 6-08.2-05
6-08.2-05. Designation of agent for service of process
Status: in_force

6-08.2-05. Designation of agent for service of process

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

the secretary of state as its agent for service of process in this state.
N.D. Cent. Code § 6-09-38.1 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-38.1
6-09-38.1. North Dakota achieving a better life experience plan - Administration - Rules - Continuing appropriation
Status: in_force

6-09-38.1. North Dakota achieving a better life experience plan - Administration -

Rules - Continuing appropriation.

The Bank of North Dakota shall adopt rules to administer, manage, promote, and market the

North Dakota achieving a better life experience plan. The Bank shall ensure the North Dakota

achieving a better life experience plan is maintained in compliance with internal revenue service

standards for qualified state disability expense programs. The Bank, as trustee of the North

Dakota achieving a better life experience plan, may impose an annual administrative fee to

recover expenses incurred in connection with operation of the plan. Administrative fees received

by the Bank are appropriated to the Bank on a continuing basis to be used as provided under

this section. Money and assets in North Dakota achieving a better life experience plan accounts

or in qualified achieving a better life experience plan accounts in any state may not be

considered for the purpose of determining eligibility to receive, or the amount of, any assistance

or benefits from local or state means-tested programs.
N.D. Cent. Code § 6-07.1-05 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-05
6-07.1-05. Notice of state trust company closing
Status: in_force

6-07.1-05. Notice of state trust company closing

As soon as reasonably practicable after initiation of the receivership proceeding, the

receiver shall publish notice, in a newspaper of general circulation in each community where the

state trust company's home office and a branch are located. The notice must state that the state

trust company has been closed for liquidation, that creditors and clients must present their

claims for payment on or before a specific date, and that all safe deposit boxholders and bailors

of property left with the state trust company should remove their property not later than a

specified date. The receiver shall select the dates to allow the affairs of the state trust company

to be wound up as quickly as feasible while allowing creditors, clients, and owners of property

adequate time for presentation of claims, withdrawal of accounts, and redemption of property,

but may not select a date before one hundred twenty days after the date of the notice. The

receiver may adjust the dates with the approval of the court with or without republication if

additional time appears needed for these activities. As soon as reasonably practicable given the

state trust company records and the adequacy of staffing, the receiver shall mail to each of the

state trust company's known clients, creditors, safe deposit boxholders, and bailors of property

left for the state trust company, at the mailing address shown on the state trust company

records, an individual notice containing the information required in this section. The receiver

may determine the form and content notices under this section.
N.D. Cent. Code § 6-09.11-07 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-07
6-09.11-07. Insurance requirements
Status: in_force

6-09.11-07. Insurance requirements

The Bank of North Dakota and the originating financial institution shall determine whether a

borrower must obtain insurance on property pledged as security for a loan under this chapter.
N.D. Cent. Code § 6-08.6-02 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-02
6-08.6-02. Scope - Choice of law - Forum
Status: in_force

6-08.6-02. Scope - Choice of law - Forum

1. This chapter applies to a special deposit under an account agreement that states the

intention of the parties to establish a special deposit governed by this chapter,

regardless of whether a party to the account agreement or a transaction related to the

special deposit, or the special deposit itself, has a reasonable relation to this state.

2. The parties to an account agreement may choose a forum in this state for settling a

dispute arising out of the special deposit, regardless of whether a party to the account

agreement or a transaction related to the special deposit, or the special deposit itself,

has a reasonable relation to this state.

3. This chapter does not affect:

a. A right or obligation relating to a deposit other than a special deposit under this

chapter; or

b. The voidability of a deposit or transfer that is fraudulent or voidable under other

law.
N.D. Cent. Code § 6-03-10 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-10
6-03-10. Violation of powers - Penalty
Status: in_force

6-03-10. Violation of powers - Penalty

Any banking association violating the provisions of the preceding sections of this chapter

relating to powers, at the discretion of the state banking board, shall forfeit its charter. Any

officer, director, or employee who knowingly violates or permits the violation of any of such

provisions is guilty of a class B misdemeanor.
N.D. Cent. Code § 6-06-40 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-40
6-06-40. Share insurance exception
Status: in_force

6-06-40. Share insurance exception

A central credit union with corporate shareholdings equal to or in excess of seventy-five

percent of its total assets may by vote of its board of directors elect exemption of insurance of

share and deposit accounts under provisions of title II of the Federal Credit Union Act.
N.D. Cent. Code § 6-06-31 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-31
6-06-31. Notice of dissolution to state examiner - Filing examiner's certificates - When dissolution complete
Status: repealed

6-06-31. Notice of dissolution to state examiner - Filing examiner's certificates - When

dissolution complete.

Repealed by S.L. 1967, ch. 90, § 13.
N.D. Cent. Code § 6-09-45 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-45
6-09-45. Required transfer - Special education contract costs
Status: repealed

6-09-45. Required transfer - Special education contract costs

Repealed by S.L. 2017, ch. 12, § 26.
N.D. Cent. Code § 6-05-22 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-22
6-05-22. Domestic surety companies and agents must obtain certificate from insurance commissioner
Status: repealed

6-05-22. Domestic surety companies and agents must obtain certificate from

insurance commissioner.

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-09-17 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-17
6-09-17. Office of management and budget to issue warrants against transferred funds
Status: repealed

6-09-17. Office of management and budget to issue warrants against transferred

funds.

Repealed by S.L. 1979, ch. 142, § 1.
N.D. Cent. Code § 6-03-24 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-24
6-03-24. Capital stock may be reduced
Status: in_force

6-03-24. Capital stock may be reduced

Any association may reduce its capital stock to any sum not less than the amount required

to authorize the formation of any association by vote of its shareholders owning two-thirds of its

stock. No such reduction may be made, however, until the amount thereof proposed is reported

to the state banking board and its approval in writing obtained. No such reduction may affect the

liability of shareholders for any debts of the association incurred prior to the reduction, and

every such reduction must be certified to and a copy of the certificate filed in the same manner

as for an increase of capital stock before it becomes valid.
N.D. Cent. Code § 6-08.4-05 — ND Code / Title 6 / Chapter 6-08.4 / Section 6-08.4-05
6-08.4-05. Notice and filing requirements
Status: in_force

6-08.4-05. Notice and filing requirements

Any out-of-state bank that proposes a transaction for a branch in this state must notify and

submit a copy of its transaction application to the board not later than the date on which it files

the application with the responsible federal regulatory authority.
N.D. Cent. Code § 6-03-01 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-01
6-03-01. Powers before receipt of certificate of authority
Status: in_force

6-03-01. Powers before receipt of certificate of authority

No association may transact any business, except such as is incidental and necessarily

preliminary to its organization, until it has been authorized by the secretary of state to

commence the business of banking and has received a certificate of authorization, and such

certificate has been returned by the commissioner with the commissioner's certificate that the

capital stock and required surplus have been paid in full, that federal deposit insurance

corporation insurance of deposits has been secured, and that all conditions of the law have

been strictly complied with.
N.D. Cent. Code § 6-09-48 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-48
6-09-48. Funds received in relation to federal student loan program - Administration - Continuing appropriation
Status: in_force

6-09-48. Funds received in relation to federal student loan program - Administration -

Continuing appropriation.

1. The Bank of North Dakota shall administer and manage the funds received in relation

to the federal student loan program under section 2212 of the Health Care and

Education Reconciliation Act of 2010 [Pub. L. 111-152].

2. The funds must be used to support the functions of the Bank related to the educational

mission of the Bank.

3. The funds received by the Bank under subsection 1 are appropriated on a continuing

basis to be used as provided in this section.

4. These funds are not subject to section 54-44.1-11.
N.D. Cent. Code § 6-09-21 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-21
6-09-21. Sale and assignment of note and mortgage - Extension of payments limited
Status: repealed

6-09-21. Sale and assignment of note and mortgage - Extension of payments limited

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-01-01.1 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-01.1
6-01-01.1. Regulatory fund established - Uses - Continuing appropriation (Effective through June 30, 2029)
Status: reserved

6-01-01.1. Regulatory fund established - Uses - Continuing appropriation. (Effective

through June 30, 2029)

1. There is created a special fund designated as the financial institutions regulatory fund.

The amounts received under the following chapters, and any other moneys received

by the department of financial institutions, must be deposited into this fund: chapters

6-01, 6-03, 6-05, 6-06, 6-10, 13-04.1, 13-05, 13-08, 13-09.1, 13-10, and 13-11.

2. All moneys deposited in the financial institutions regulatory fund are reserved for use

by the department of financial institutions to defray the expenses of the department in

the discharge of its administrative and regulatory powers and duties as prescribed by

law, subject to the applicable laws relating to the deposit and expenditure of state

moneys.

3. All moneys in the financial institutions regulatory fund are appropriated on a continuing

basis to the department of financial institutions to carry out its administrative and

regulatory powers and duties within the limits of an annual or biennial budget approved

by the state banking board and state credit union board.

4. The department of financial institutions is responsible for the proper expenditure of

these moneys as provided by law and shall document the revenues and expenditures

of the fund at the time and in the manner required by the office of management and

budget.

5. Any cash balance in the financial institutions regulatory fund after all current biennium

expenditures are met must be carried forward in the financial institutions regulatory

fund for the next succeeding biennium.

6. All moneys derived from the investment of any portion of the financial institutions

regulatory fund must be credited to the fund.

Regulatory fund established - Uses - Appropriation. (Effective after June 30, 2029)

1. There is created a special fund designated as the financial institutions regulatory fund.

The amounts received under the following chapters, and any other moneys received

by the department of financial institutions, must be deposited into this fund: chapters

6-01, 6-03, 6-05, 6-06, 6-10, 13-04.1, 13-05, 13-08, 13-09.1, 13-10, and 13-11.

2. All moneys deposited in the financial institutions regulatory fund are reserved for use

by the department of financial institutions to defray the expenses of the department in

the discharge of its administrative and regulatory powers and duties as prescribed by

law, subject to the applicable laws relating to the appropriation of state funds and to

the deposit and expenditure of state moneys. The department of financial institutions is

responsible for the proper expenditures of these moneys as provided by law.

3. Any cash balance in the financial institutions regulatory fund after all current biennium

expenditures are met must be carried forward in the financial institutions regulatory

fund for the next succeeding biennium.

4. All moneys derived from the investment of any portion of the financial institutions

regulatory fund must be credited to the fund.
N.D. Cent. Code § 6-07.2-10 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-10
6-07.2-10. Rejection of contracts and leases
Status: in_force

6-07.2-10. Rejection of contracts and leases

1. Within one hundred eighty days after the date the commissioner has taken

possession, the receiver may reject:

a. An executory contract to which the closed institution is a party without any further

liability to the closed institution or the receiver; and

b. An obligation of the institution as a lessee of real or personal property.

2. The receiver's election to reject a lease does not create a claim for rent other than rent

accrued to the date of termination.
N.D. Cent. Code § 6-08.6-05 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-05
6-08.6-05. Permissible purpose
Status: in_force

6-08.6-05. Permissible purpose

1. A special deposit must serve at least one permissible purpose stated in the account

agreement from the time the special deposit is created in the account agreement until

termination of the special deposit.

2. If, before termination of the special deposit, the bank or credit union or a court

determines the special deposit no longer satisfies subsection 1, sections 6-08.6-07

through 6-08.6-10 cease to apply to any funds deposited in the special deposit after

the special deposit ceases to satisfy subsection 1.

3. If, before termination of a special deposit, the bank or credit union determines the

special deposit no longer satisfies subsection 1, the bank or credit union may take

action the bank or credit union believes is necessary under the circumstances,

including terminating the special deposit.
N.D. Cent. Code § 6-09.4-19 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-19
6-09.4-19. Remedies on default of municipal securities
Status: in_force

6-09.4-19. Remedies on default of municipal securities

In the event of default by a political subdivision in the payment of interest on or principal of

any municipal securities owned or held by the public finance authority, the public finance

authority may proceed to enforce payment, pursuant to applicable provisions of law, of such

interest or principal or other amount then due and payable.
N.D. Cent. Code § 6-06-38 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-38
6-06-38. Destruction of records
Status: in_force

6-06-38. Destruction of records

No credit union may be required to preserve and retain its records of accounts or files,

except share and deposit files, for a longer period than six years next after the first day of

January of the year following the final date of the termination of such accounts or files. No credit

union may be required to preserve and retain its share and deposit account records and files for

a longer period than two years next after the first day of January of the year following the date of

the death of the shareholder or depositholder. All credit unions shall, however, keep sufficient

records to satisfy the reporting requirements of the escheat and abandoned property laws of the

state.
N.D. Cent. Code § 6-09-31 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-31
6-09-31. Sale of land held by state treasurer as trustee for state
Status: repealed

6-09-31. Sale of land held by state treasurer as trustee for state

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-03-68.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-68.1
6-03-68.1. Settlement of check presented by or through federal reserve bank or Bank of North Dakota
Status: in_force

6-03-68.1. Settlement of check presented by or through federal reserve bank or Bank

of North Dakota.

Except as to any check sent to it as a special collection item, no bank may settle any check

drawn on it otherwise than at par when such check is presented by or through a federal reserve

bank or the Bank of North Dakota.
N.D. Cent. Code § 6-09.13-02 — ND Code / Title 6 / Chapter 6-09.13 / Section 6-09.13-02
6-09.13-02. Loans - Participation by the Bank of North Dakota
Status: in_force

6-09.13-02. 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 6-09.13-03.

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

be not less than fifty percent nor more than eighty percent of the loan amount.

3. The Bank shall adopt rules to implement this chapter.
N.D. Cent. Code § 6-09.4-25 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-25
6-09.4-25. Administrative agreements with state agencies and instrumentalities to issue bonds and other evidences of indebtedness
Status: in_force

6-09.4-25. Administrative agreements with state agencies and instrumentalities to

issue bonds and other evidences of indebtedness.

The public finance authority and any state agency, instrumentality, or officer authorized by

law to issue bonds or other evidences of indebtedness to obtain funds for any authorized

purpose may enter into an administrative agreement. The agreement may delegate to the public

finance authority the power and authority to issue bonds or other evidences of indebtedness on

behalf of the state agency, instrumentality, or officer to obtain funds for any other purpose

authorized by law and may contain such other necessary or expedient terms and conditions as

the industrial commission and the parties to the administrative agreement approve to effect the

issuance of the bonds or other evidences of indebtedness and to aid in the administration or

management of any bond issue after issuance.
N.D. Cent. Code § 6-09.9-03 — ND Code / Title 6 / Chapter 6-09.9 / Section 6-09.9-03
6-09.9-03. Operating loans - Participation by the Bank of North Dakota
Status: in_force

6-09.9-03. Operating loans - Participation by the Bank of North Dakota

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

purchase participation interests in operating loans to farmers. Interest charged on a

participation interest purchased by the Bank under this section may not exceed one

percent less than the Bank's base rate, as it may be established from time to time. The

Bank may charge 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 sixty-five percent of the loan amount or an amount determined by

the Bank, whichever is less. The term of any participation interest purchased under

this section may not exceed one year.

3. The Bank and the originating financial institution shall determine whether a borrower

must obtain insurance on property pledged as security for a loan under this chapter.
N.D. Cent. Code § 6-06-21 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-21
6-06-21. Reserve fund
Status: in_force

6-06-21. Reserve fund

Every credit union, including corporate central credit unions, shall maintain an allowance for

loan and lease loss account in accordance with generally accepted accounting principles and

rules of the national credit union administration. If it is found through an examination that the

allowance for loan and lease loss account is not sufficient in disclosing the exposure to loan

losses, then the credit union will increase the allowance for loan and lease loss account within

thirty days as directed by the commissioner.
N.D. Cent. Code § 6-05-23 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-23
6-05-23. Concurrent undertakings permitted - Losses prorated
Status: repealed

6-05-23. Concurrent undertakings permitted - Losses prorated

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-06-17 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-17
6-06-17. Shares may be issued to minor or in trust
Status: in_force

6-06-17. Shares may be issued to minor or in trust

Shares may be issued and deposits received in the name of a minor, or in trust, in such

manner as the bylaws may provide. The name of the beneficiary must be disclosed to the credit

union.
N.D. Cent. Code § 6-05-20 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-20
6-05-20. Execution and acceptance of bond from surety company - Bond as compliance with law
Status: repealed

6-05-20. Execution and acceptance of bond from surety company - Bond as

compliance with law.

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-03-63 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-63
6-03-63. Interest on deposits - Rates payable - Penalty
Status: in_force

6-03-63. Interest on deposits - Rates payable - Penalty

No state banking association may pay interest on deposits, directly or indirectly, at rates

greater than authorized by the state banking board. The board's authorization of interest rates is

not subject to the public notice and public hearing requirements of chapter 28-32. Any officer,

director, or employee of any association violating the provisions of this section, directly or

indirectly, is guilty of a class B misdemeanor.
N.D. Cent. Code § 6-05.2-01 — ND Code / Title 6 / Chapter 6-05.2 / Section 6-05.2-01
6-05.2-01. Policies and procedures on brokerage placement practices
Status: in_force

6-05.2-01. Policies and procedures on brokerage placement practices

Each banking institution exercising investment discretion with respect to an account must

adopt and follow written policies and procedures intended to ensure that its brokerage

placement practices comply with all applicable laws and regulations. Among other relevant

matters, the written policies and procedures should address when appropriate:

1. The selection of persons to effect securities transactions and the evaluation of the

reasonableness of any brokerage commissions paid to such persons.

2. The acquisition of any services or products, including research services, in return for

brokerage commissions.

3. The allocation of research or other services among accounts, including those which

did not generate commissions to pay for the research or other services.

4. The need, in appropriate instances, to make disclosures concerning the policies and

procedures to prospective and existing customers.
N.D. Cent. Code § 6-03-42 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-42
6-03-42. Capital notes or debentures included in capital - Retirement
Status: in_force

6-03-42. Capital notes or debentures included in capital - Retirement

The term "capital" as used in this title embraces the amount of outstanding capital notes and

debentures legally issued by any banking institution. The capital stock of a banking institution is

unimpaired when the amount of such capital notes and debentures as represented by sound

assets exceeds the impairment as found by the commissioner. The commissioner must approve

of any retirement of any capital notes or debentures and may require the bank to issue some

other form of capital before retiring the capital notes or debentures.
N.D. Cent. Code § 6-08.4-01 — ND Code / Title 6 / Chapter 6-08.4 / Section 6-08.4-01
6-08.4-01. Definitions
Status: in_force

6-08.4-01. Definitions

For purposes of this chapter, unless the context otherwise requires:

1. "Affiliate" means a company that controls, is controlled by, or is under common control

with another company.

2. "Bank" means insured depository institution as defined in 12 U.S.C. 1813(c)(2), but the

term does not include "foreign bank" as defined in 12 U.S.C. 3101(7), except any

foreign bank organized under the laws of a territory of the United States, the deposits

of which are insured by the federal deposit insurance corporation.

3. "Commercial activities" means activities in which a bank holding company, a financial

holding company, a national bank, or a national bank financial subsidiary may not

engage under federal law.

4. "Home state" means:

a. With respect to a national bank, the state in which the main office is located; and

b. With respect to a state bank, the state by which the bank is chartered.

5. "Transaction" means a bank's establishment, operation, and, as applicable, retention

of a bank branch office in a state other than its home state, whether de novo, by

acquisition of a separate branch office, or through a merger of a North Dakota bank

with another bank.
N.D. Cent. Code § 6-03-12 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-12
6-03-12. Transfer of assets on consolidation or merger
Status: in_force

6-03-12. Transfer of assets on consolidation or merger

All of the rights, property, franchises, and interests of the consolidating or merging bank or

trust company are deemed to be transferred to and vested in the bank or trust company into

which it is consolidated or merged without other instrument of transfer. The consolidated bank or

trust company shall hold and enjoy the same and all rights, property, franchises, and interests in

the same manner and to the same extent as were held and enjoyed by the bank or trust

company so consolidated or merged therewith, including the holding and performing by any

bank or trust company of any and all trust and fiduciary relations whatsoever as to and for which

either or any of the banks or trust companies so consolidating or merging may have been

appointed, nominated, or designated by any will, agreement, conveyance, or otherwise, whether

or not such trust or fiduciary relationship has come into being or has taken effect at the time of

the consolidation or transfer. The merging bank or trust company, however, shall transfer all of

its real property to the consolidated bank or trust company by good and sufficient deed of

conveyance, and for that and other purposes, it remains a body corporate until dissolved in the

manner provided in chapter 6-07.2, or if no assets or liabilities remain, until the certificate is

canceled by the secretary of state.
N.D. Cent. Code § 6-09.12-02 — ND Code / Title 6 / Chapter 6-09.12 / Section 6-09.12-02
6-09.12-02. Bank of North Dakota may make loans for oil and gas development projects
Status: in_force

6-09.12-02. Bank of North Dakota may make loans for oil and gas development

projects.

The North Dakota industrial commission shall establish a program through the Bank of

North Dakota for the purpose of participating in loans made by North Dakota financial

institutions for oil and gas development projects undertaken by developers within the state. The

Bank's total participation in any one loan may not exceed one hundred thousand dollars. The

interest on a loan may not be greater than the Bank's base rate as in effect from time to time

and may float.
N.D. Cent. Code § 6-09-18 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-18
6-09-18. Real estate loans - Application - Appraisal - Action on loans
Status: repealed

6-09-18. Real estate loans - Application - Appraisal - Action on loans

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-05-15 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-15
6-05-15. Investment of trust funds
Status: in_force

6-05-15. Investment of trust funds

Any sum of money, which is collected or received by any such corporation in its trust

capacity, and which is not required for the purposes of the trust, or which is not to be accounted

for within one year from the date of collection, receipt, or deposit, must be invested by the

corporation as soon as practicable.

In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing the

property for the benefit of another, the trustee shall exercise the judgment and care under the

circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise

in the management of their own affairs, not in regard to speculation but in regard to the

permanent disposition of their funds, considering the probable income as well as the probable

safety of their capital. Within the limitations of the foregoing standard, the trustee is authorized

to acquire and retain every kind of property, real, personal, or mixed, and every kind of

investment, specifically including but not by way of limitation, bonds, debentures, and other

corporate obligations and stocks, preferred or common, including investment trusts, mutual

funds, money market funds, and other similar funds in which the trustee or any of its affiliates

may have a beneficial interest, which persons of prudence, discretion, and intelligence acquire

or retain for their own account, and within the limitations of the foregoing standard, the trustee

may retain property properly acquired without limitation as to time and without regard to its

suitability for original purchase. The net interest and profits of such investments, less the

reasonable charges and disbursements of the corporation in connection therewith, must be

accounted for and paid over as a part of the trust. The net accumulations of interest and profits

likewise must be invested and reinvested as a part of the principal, and such investments must

be received and allowed in the settlement of the trust.
N.D. Cent. Code § 6-13-02 — ND Code / Title 6 / Chapter 6-13 / Section 6-13-02
6-13-02. Self-critical analysis privilege created - Scope
Status: in_force

6-13-02. Self-critical analysis privilege created - Scope

A compliance self-critical analysis privilege is created to protect the confidentiality of

compliance self-critical analysis documents or communications in regard to their content relating

to voluntary internal compliance audits conducted by financial institutions and persons in regard

to activities regulated under title 6 or federal law, both to conduct voluntary internal audits of its

compliance programs and management systems and to assess and improve compliance with

state and federal statutes, rules, and orders. The compliance self-critical analysis privilege

applies to all litigation or administrative proceedings pending on August 1, 2001.
N.D. Cent. Code § 6-06-16 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-16
6-06-16. Entrance fee - Capital - Lien on shares - Assessment on shares
Status: in_force

6-06-16. Entrance fee - Capital - Lien on shares - Assessment on shares

A credit union may charge such entrance fee as may be provided by its bylaws. Its capital

consists of the entrance fees paid in and the payments made to it by the several members on

shares therein. The credit union has a lien on the shares and deposits of a member for any sum

due to the credit union from that member or for the amount due on any loan endorsed by that

member. A credit union that is a member of the North Dakota credit union league may, by

resolution adopted with a quorum present at a regular or special meeting of the board of

directors of the credit union, annually assess against the share accounts of all members of the

credit union an amount equal to the whole or proportionate part of the annual membership fee

payable to the North Dakota credit union league.
N.D. Cent. Code § 6-08.1-10 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-10
6-08.1-10. Rules
Status: in_force

6-08.1-10. Rules

The state banking board and the state credit union board shall adopt rules to implement

subsection 12 of section 6-08.1-02. The rules must provide at least as much customer

protection as would be provided in the case of disclosure of information under circumstances in

which there has been an opt-out election under title V of the federal Financial Services

Modernization Act of 1999 [Pub. L. 106-102; 113 Stat. 1436].
N.D. Cent. Code § 6-05-24 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-24
6-05-24. Surety company may petition to be relieved from liability - Procedure
Status: repealed

6-05-24. Surety company may petition to be relieved from liability - Procedure

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-02-06 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-06
6-02-06. Hearing by board - Conclusions - Management
Status: in_force

6-02-06. Hearing by board - Conclusions - Management

1. At the time and place stated, and through any sources of information at its command,

the board diligently shall inquire whether the place where such banking association is

proposed to be located is in need of further banking facilities, whether the proposed

association is adapted to the filling of such need, and whether the proposed

incorporators are possessed of such character, integrity, reputation, and financial

standing as shown by a detailed financial statement to be furnished by them, and such

statement to be held confidential by the board, that their connection with the banking

association will be beneficial to the public welfare of the community in which such bank

is proposed to be established. The board shall hear any reasons advanced by the

applicants why they should be permitted to organize the proposed association and any

reasons advanced by any person why such association should not be permitted to be

organized. At the termination of such hearing, the board shall make a statement in

writing of its conclusions and conditions if any, and if it finds that the proposed

association should not be permitted to organize, it 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 in

favor of such organization must be joined in by a majority of all the members of the

board.

2. If the proposed association is permitted to organize, the state banking board shall

inquire into the qualifications of the management of the proposed bank, including

experience with financial institutions and other related experience. The board's inquiry

into the qualifications of management are confidential.
N.D. Cent. Code § 6-09.15-02 — ND Code / Title 6 / Chapter 6-09.15 / Section 6-09.15-02
6-09.15-02. Loan guarantee fund - Administration
Status: in_force

6-09.15-02. Loan guarantee fund - Administration

A beginning entrepreneur loan guarantee fund is created to be used by the Bank of North

Dakota to administer a beginning entrepreneur loan guarantee program to be used in

conjunction with other loan programs. The fund includes moneys appropriated by the legislative

assembly for administration of the program and all earnings, less any administrative charges,

from the investment of those moneys. The Bank may retain any administrative charges

necessary for the administration of the program established by this chapter. The 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 § 6-06.2-14 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-14
6-06.2-14. Membership, voting, meetings, and bylaws
Status: reserved

6-06.2-14. Membership, voting, meetings, and bylaws

1. Each member of the cooperative financial institution is entitled to one vote during

regular or special meetings of the membership.

2. Voting may be conducted in-person or digital as outlined in the cooperative financial

institution's bylaws. Proxy voting is permitted as authorized in the bylaws. A quorum for

a meeting must be defined in the bylaws.

3. Changes to a cooperative financial institution's charter or bylaws require a majority

vote of the membership at an annual or special membership meeting or a two-thirds

majority vote of the board of directors. Fifteen days before consideration of a bylaw

change, the membership or board acting upon the proposed change must be made

aware of the bylaw change under consideration and the day and time of the meeting

the change will be acted upon. No amendment to the bylaws are effective until

reviewed for appropriateness and compliance with applicable law and approved by the

state banking board.

4. A cooperative financial institution shall conduct at least one meeting of the

membership annually. Meetings:

a. Must be noticed at least fifteen days before the meeting date and include the

time, place, and agenda for any items considered at the meeting.

b. May be conducted virtually if permitted within the bylaws.

5. At the annual meeting the membership shall:

a. Fill any vacancies on the board of directors as outlined in the bylaws; and

b. Review the financial conditions of the cooperative financial institution, financial

performance since the prior annual meeting, and the projection for the upcoming

year.

6. Special meetings of the membership may be called by the board of directors as

outlined in the bylaws.

7. The board of directors:

a. May exercise powers of the cooperative financial institution not expressly

reserved for the members.

b. May not be fewer than five or more than fifteen members as outlined in the

bylaws.

c. Must be elected to terms of one to three years and until their successors are

elected, and shall serve staggered terms with approximately one-third of the

board positions up for consideration at any given annual meeting, as outlined in

the bylaws.

d. Must be elected from the membership of the cooperative financial institution, and

nomination shall be made of any member in good standing and following a

nomination process as outlined in the bylaws.

e. Must set the time and place of meetings as outlined in the bylaws, with a

minimum of twenty-four hours' notice required unless waived by all members of

the board.

f. Shall elect from among the elected board members, officers, including the

positions of chair, vice chair, treasurer, and recorder, with duties and

responsibilities as outlined in the bylaws.

g. Must be independent and the majority of board of directors may not be

employees of the cooperative financial institution.

h. Must be made up of at least two members with appropriate banking experience.

i. Must be made up of at least two-thirds members who are both citizens of the

United States and North Dakota residents.

j. May remove a board member as outlined in the bylaws.

8. The board of directors may terminate membership in a cooperative financial institution

for cause as outlined in the bylaws.
N.D. Cent. Code § 6-09.10-10 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-10
6-09.10-10. Mediation - Open records and meetings exception
Status: in_force

6-09.10-10. Mediation - Open records and meetings exception

1. a. Information created, collected, or maintained, by the North Dakota mediation

service, in the course of any formal or informal mediation, is confidential and not

subject to the open records requirements of section 44-04-18. The information

may be released only upon the written consent of all parties to the mediation or

pursuant to an order issued by the court upon a showing of good cause.

b. (1) Mediation communication is confidential and not subject to the open records

requirements of section 44-04-18. Mediation communication may be

released only upon the written consent of all parties to the mediation or

pursuant to an order issued by the court upon a showing of good cause.

(2) For purposes of this subdivision, "mediation communication" means a

written statement, and an oral statement or any nonverbal communication,

either of which must be inscribed on a tangible medium or stored in a

medium that is retrievable in perceivable form, provided the communication

occurs during a mediation or is made for purposes of considering, initiating,

conducting, continuing, or reconvening a mediation.

2. All mediation meetings and meetings involving the board, negotiators, mediators, or

other personnel are confidential, closed meetings and are not subject to the open

meetings requirements of section 44-04-19.
N.D. Cent. Code § 6-03-54 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-54
6-03-54. Pledge - Ratio to assets
Status: in_force

6-03-54. Pledge - Ratio to assets

It is unlawful for any state banking association to pledge or hypothecate more than one and

one-half dollars of the face value of any of its assets for each one dollar of money borrowed,

except with written authority from the commissioner.
N.D. Cent. Code § 6-14-04 — ND Code / Title 6 / Chapter 6-14 / Section 6-14-04
6-14-04. Penalty
Status: in_force

6-14-04. Penalty

A person that willfully violates this chapter is guilty of a class B misdemeanor.
N.D. Cent. Code § 6-05-29 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-29
6-05-29. Duty of commissioner when examination discloses violation of law
Status: in_force

6-05-29. Duty of commissioner when examination discloses violation of law

If it appears to the commissioner from any examination made by the commissioner that any

such corporation has committed a violation of the law or that it is conducting its business in an

unsafe or unauthorized manner, or that the deposit made by it with the department of financial

institutions, as hereinbefore provided, is insufficient to protect the interests of all concerned, the

commissioner, by an order addressed to such corporation, shall direct the discontinuance of

such illegal or unsafe practice, and order it to conform with the requirements of the law or to

make a further deposit with the department of financial institutions in an amount sufficient to

insure the safety of its trusts, deposits, and liabilities. Whenever any corporation refuses to

comply with any such order, or whenever it appears to the commissioner that it is unsafe or

inexpedient for any such corporation to continue to transact business, the commissioner shall

communicate the facts to the attorney general, who thereupon shall institute such proceedings

against any such corporation as the case may require.
N.D. Cent. Code § 6-03-32 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-32
6-03-32. When no bids for purchase of delinquent stock
Status: in_force

6-03-32. When no bids for purchase of delinquent stock

If no bidder who will pay to the association the amount due on the stock and the costs and

expenses of sale for the transfer of the stock to that person appears at the time and place set

for the sale, no sale may be made, and all the shares of the shareholder must be forfeited to the

association together with all amounts previously paid thereon. The association forthwith shall

cancel such shares upon its books and records and shall deduct the same from its capital stock

and immediately shall notify the commissioner in writing of the action taken. The record of the

association's stock book showing the sale or cancellation of stock is prima facie evidence of the

regularity of the proceedings of the sale or cancellation.
N.D. Cent. Code § 6-05-25 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-25
6-05-25. When subscribed capital stock must be paid in
Status: repealed

6-05-25. When subscribed capital stock must be paid in

Repealed by S.L. 2015, ch. 80, § 8.
N.D. Cent. Code § 6-09.11-06 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-06
6-09.11-06. Loan restrictions
Status: in_force

6-09.11-06. Loan restrictions

1. A loan under this chapter may not be greater than the lesser of an amount determined

by the Bank of North Dakota or ninety percent of the appraised value of the security

given for the loan, with the actual percentage to be determined by the Bank. The Bank

may do all things and acts, may require such security, and may establish additional

terms and conditions as is determined necessary to purchase a participation interest in

a loan under this chapter.

2. Except as otherwise provided:

a. A loan under this chapter must be repayable in installments and may have a term

up to thirty years.

b. All or part of a loan under this chapter may be repaid at any time, subject to

conditions set forth in the mortgage.
N.D. Cent. Code § 6-09.9-07 — ND Code / Title 6 / Chapter 6-09.9 / Section 6-09.9-07
6-09.9-07. Rules
Status: in_force

6-09.9-07. Rules

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

implement sections 6-09.9-01 through 6-09.9-05.
N.D. Cent. Code § 6-05-19 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-19
6-05-19. Fidelity insurance and corporate suretyship - Domestic and foreign corporations
Status: repealed

6-05-19. Fidelity insurance and corporate suretyship - Domestic and foreign

corporations.

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-09.16-04 — ND Code / Title 6 / Chapter 6-09.16 / Section 6-09.16-04
6-09.16-04. Loan application - How made
Status: in_force

6-09.16-04. Loan application - How made

All applications for loans under this chapter must be made to the department. The

department may approve the applications of qualified applicants that propose projects that

conform to requirements established under chapter 50-30. The Bank of North Dakota shall

review and approve or reject all loan applications forwarded to the Bank by the department. For

applications approved by the Bank and upon final approval of the application by the department,

loans may be made from the long-term care facility loan fund in accordance with this chapter.
N.D. Cent. Code § 6-09-11 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-11
6-09-11. Bank a clearinghouse
Status: in_force

6-09-11. Bank a clearinghouse

For banks that make the Bank of North Dakota a reserve depositary, it may perform the

functions and render the services of a clearinghouse, including all facilities for providing

domestic and foreign exchange, and may rediscount paper, on such terms as the industrial

commission shall provide.
N.D. Cent. Code § 6-01-03 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-03
6-01-03. State banking board and state credit union board
Status: in_force

6-01-03. State banking board and state credit union board

1. The state banking board consists of the commissioner and six members to be

appointed by the governor, four of whom must each have had at least five years'

experience in an executive capacity in the management of a state bank in the state of

North Dakota, one of whom must have at least five years' experience in an executive

capacity in the management of any state or national bank in North Dakota, and one of

whom must be a laymember from the public at large. The term of office of the

members of the board, other than the commissioner, is for a period of five years. In

case of a vacancy in the board, by death, resignation, or removal of an appointed

member, the vacancy must be filled by appointment by the governor for the unexpired

term. The commissioner is the chairperson of the board and the attorney general is,

ex officio, the attorney for the board. The assistant commissioner shall serve as its

secretary. The board shall hold regular meetings in January, March, May, July,

September, and November of each year and special meetings at the call of the

commissioner in such place as the commissioner may designate within the state of

North Dakota. The members of the board, other than the commissioner, shall receive

one hundred dollars per day while attending meetings, or in the performance of such

special duties as the board may direct. Expense reimbursements for meals, lodging,

and transportation must be at the same rate as those allowed state employees.

2. The state credit union board consists of the commissioner and four members to be

appointed by the governor. Two of the members of the state credit union board must

have at least five years' experience as an officer, director, or committee member of a

North Dakota state-chartered credit union, one member of the board must have had at

least five years' experience as an officer, director, or committee member of a

state-chartered or a federally chartered credit union, and one member of the board

must be a laymember from the public at large. The term of office of appointed board

members is five years. In case of a vacancy in the board, by death, resignation, or

removal of an appointed member, the governor shall appoint an individual to fill the

vacancy for the unexpired term. The commissioner chairs the board and the attorney

general is, ex officio, the attorney for the board. The assistant commissioner shall

serve as its secretary. The members of the state credit union board are entitled to

receive the same remuneration as is provided for the members of the state banking

board. The state credit union board shall hold meetings in March, June, September,

and December of each year and special meetings at the call of the commissioner in

such places as the commissioner may designate within the state.

3. The word "board" when used in this title includes the state banking board and the state

credit union board.
N.D. Cent. Code § 6-08.3-09.1 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-09.1
6-08.3-09.1. Reporting requirements
Status: in_force

6-08.3-09.1. Reporting requirements

An out-of-state bank holding company that filed an application under chapter 6-08.3 which

was approved by the board before September 29, 1995, shall comply with the reporting

requirements of section 6-08.3-09 for a period of five years from the date that the application

was approved or longer if extended by the board due to noncompliance with the requirements of

chapter 6-08.3 or order of the board approving the application.
N.D. Cent. Code § 6-08.6-14 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-14
6-08.6-14. Uniformity of application and construction
Status: in_force

6-08.6-14. Uniformity of application and construction

In applying and construing this chapter, a court shall consider the promotion of uniformity of

the law among the states that enact it.
N.D. Cent. Code § 6-01-21 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-21
6-01-21. State agencies - Examinations - Fees
Status: repealed

6-01-21. State agencies - Examinations - Fees

Repealed by S.L. 1959, ch. 372, § 117.
N.D. Cent. Code § 6-03-67 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-67
6-03-67. Appropriation of deposits unlawful - Exception - Liability therefor
Status: in_force

6-03-67. Appropriation of deposits unlawful - Exception - Liability therefor

Except as provided in sections 6-07.2-09 and 30.1-31-20, it is unlawful for any banking

association to charge any claim which it might have, or the claim of any other person, against a

deposit made with the association, or to appropriate a deposit or any part of the deposit to the

payment of any debt to the association, without legal process or the consent of the depositor.

Any banking association that violates this section is liable to the party aggrieved for any

damages caused by the violation.
N.D. Cent. Code § 6-08.1-02 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-02
6-08.1-02. Exemptions
Status: in_force

6-08.1-02. Exemptions

This chapter does not apply to any of the following:

1. The disclosure of necessary customer information in the preparation, examination,

handling, or maintenance of any customer information by any officer, employee, or

agent of a financial institution having custody of such information or in the examination

of such necessary information by an accountant engaged by the financial institution to

perform an audit.

2. The disclosure of necessary customer information in the examination of any customer

information by or the furnishing of customer information to any officer, employee, or

agent of a financial institution regulatory agency solely for use in the exercise of that

person's duties.

3. The publication of data derived from customer information if the data cannot be

identified to any particular customer or account.

4. Any acts required of the financial institution by the Internal Revenue Code.

5. Disclosures permitted under the Uniform Commercial Code concerning the dishonor of

any negotiable instrument.

6. The exchange in the regular course of business of necessary customer credit

information between a financial institution and other financial institutions or commercial

entities, directly or through a customer reporting agency.

7. The release by the industrial commission, in its capacity as the managing body of the

Bank of North Dakota, of the following:

a. The name of any person who has obtained approval for direct financing or

security, including a loan guarantee or a letter of credit, through the Bank of North

Dakota primarily for purposes other than personal, family, or household purposes.

b. The amount of any financing or security referenced in subdivision a.

c. The amount of any net writeoff or loan forgiveness that the industrial commission

determines is uncollectible.

d. The program under which any financing or security referenced in subdivision a

was made.

8. The disclosure of customer information in the examination, handling, or maintenance

of any customer information by any governmental agency or law enforcement agency

for purposes of verifying information necessary in the licensing process, provided prior

consent is obtained from the licensee and customer.

9. Disclosure of customer information to a law enforcement agency or governmental

agency pursuant to a search warrant or subpoena duces tecum issued in accordance

with applicable statutes or the North Dakota Rules of Criminal Procedure.

10. Disclosure by a financial institution to the agriculture commissioner that it has given a

customer notice of the availability of the North Dakota mediation service.

11. The disclosure by a financial institution to any financial institution or other entity that

controls, is controlled by, or is under common control with the financial institution if the

financial institution or other entity receiving the information complies with section

6-08.1-03.

12. A disclosure of customer information under section 502(e) of the federal Financial

Services Modernization Act of 1999 [Pub. L. 106-102; 113 Stat. 1436; 15 U.S.C.

6802(e)]. A disclosure under this subsection must comply with the rules adopted under

section 6-08.1-10.

13. A disclosure made to the disciplinary board of the North Dakota supreme court or

another state's authority with responsibility for enforcing rules of professional conduct

for lawyers regarding dishonor of an instrument issued against any trust account

maintained by an attorney or law firm, as these terms are defined in section 6-08-16.2.
N.D. Cent. Code § 6-08.1-03 — ND Code / Title 6 / Chapter 6-08.1 / Section 6-08.1-03
6-08.1-03. Duty of confidentiality
Status: in_force

6-08.1-03. Duty of confidentiality

A financial institution may not disclose customer information to a person, governmental

agency, or law enforcement agency unless the disclosure is made in accordance with any of the

following:

1. Pursuant to consent granted by the customer in accordance with this chapter.

2. To a person other than a governmental agency or law enforcement agency pursuant to

valid legal process.

3. To a governmental agency or law enforcement agency pursuant to valid legal process

in accordance with this chapter.

4. For the purpose of reporting a suspected violation of the law in accordance with this

chapter.

5. For the purpose of notifying the agriculture commissioner a financial institution has

notified a customer of the availability of the North Dakota mediation service.

6. As part of the disclosure made of deposits of public corporations with financial

institutions in the security pledge schedule verified by the custodian of securities

pursuant to section 21-04-09.

7. For purposes of reporting suspected exploitation of an eligible adult as defined by

section 12.1-31-07. This subsection may not be construed to impose a duty on a

financial institution to investigate an alleged or suspected exploitation of an eligible

adult or to make a report to a governmental agency or law enforcement agency.

8. For purposes of reporting suspected financial exploitation of an eligible adult under

chapter 6-08.5 to a law enforcement agency, the protection and advocacy project

under chapter 25-01.3, or the department of health and human services. This

subsection may not be construed to impose a duty on a financial institution to

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

the department of health and human services, law enforcement agency, or the

protection and advocacy project.
N.D. Cent. Code § 6-06-25 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-25
6-06-25. Rate of interest - Use of interest - Permanent loan fund loans
Status: repealed

6-06-25. Rate of interest - Use of interest - Permanent loan fund loans

Repealed by S.L. 1965, ch. 90, § 11.
N.D. Cent. Code § 6-10-01 — ND Code / Title 6 / Chapter 6-10 / Section 6-10-01
6-10-01. License required to act as agent for deposits
Status: in_force

6-10-01. License required to act as agent for deposits

No person, partnership, association, corporation, or limited liability company, except as

otherwise authorized by law, may engage in the business of receiving, as agent for another,

moneys for the purpose of deposit in a bank, without first having applied to the commissioner

and received a license so to do.
N.D. Cent. Code § 6-07.1-19 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-19
6-07.1-19. Fiduciary activities
Status: in_force

6-07.1-19. Fiduciary activities

As soon after beginning the receivership proceeding as is practicable, the receiver shall

terminate all fiduciary positions it holds, surrender all property held by it as a fiduciary, and settle

the state trust company's fiduciary accounts. The receiver shall release all segregated and

identifiable fiduciary property held by the state trust company to successor fiduciaries. With the

approval of the court, the receiver may sell the administration of all or substantially all remaining

fiduciary accounts to one or more successor fiduciaries on terms that appear to be in the best

interests of the state trust company's estate and the persons interested in the fiduciary

accounts. If commingled fiduciary funds held by the state trust company as trustee are

insufficient to satisfy all fiduciary claims to the commingled funds, the receiver shall distribute

commingled funds pro rata to all fiduciary claimants of commingled funds based on their

proportionate interests after payment of administrative expenses related solely to the fiduciary

claims. The fictional tracing rule does not apply. The receiver may require certain fiduciary

claimants to file proofs of claim if the records of the state trust company are insufficient to

identify their respective interests.
N.D. Cent. Code § 6-03-44 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-44
6-03-44. Preferred stock included in capital - Reduction of common stock
Status: in_force

6-03-44. Preferred stock included in capital - Reduction of common stock

The preferred stock lawfully issued by a banking institution must be included in determining

whether such banking institution has complied with the minimum capital stock requirements

provided in this title. Such preferred stock may be used in the capital structure of such institution

in the reduction of the common stock or in addition thereto. This section may not be construed

as in any manner decreasing the amount of capital required of an institution under the laws of

this state.
N.D. Cent. Code § 6-01-24 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-24
6-01-24. Supervision of records and fiscal affairs of counties
Status: repealed

6-01-24. Supervision of records and fiscal affairs of counties

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-08-08 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-08
6-08-08. Bank stock held by decedents - Duty of county judge, commissioner, bank officers, and receivers
Status: repealed

6-08-08. Bank stock held by decedents - Duty of county judge, commissioner, bank

officers, and receivers.

Repealed by S.L. 1947, ch. 114, § 1.
N.D. Cent. Code § 6-09-20 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-20
6-09-20. Mortgage and note payable to manager of Bank - Recitals - Recording - Satisfaction and discharge
Status: repealed

6-09-20. Mortgage and note payable to manager of Bank - Recitals - Recording -

Satisfaction and discharge.

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-01-22 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-22
6-01-22. Examination of counties
Status: repealed

6-01-22. Examination of counties

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-09.11-08 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-08
6-09.11-08. Records
Status: in_force

6-09.11-08. Records

Every borrower shall keep records showing the financial condition of the borrower's family

farm.
N.D. Cent. Code § 6-09.8-02 — ND Code / Title 6 / Chapter 6-09.8 / Section 6-09.8-02
6-09.8-02. Beginning farmer loan guarantee program - Administration by the Bank of North Dakota
Status: in_force

6-09.8-02. Beginning farmer loan guarantee program - Administration by the Bank of

North Dakota.

The Bank of North Dakota shall administer the beginning farmer loan guarantee program

established by this chapter.
N.D. Cent. Code § 6-01-05 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-05
6-01-05. Taking of testimony and enforcement of orders
Status: in_force

6-01-05. Taking of testimony and enforcement of orders

The state banking board, the state credit union board, the commissioner, and the deputy

examiners each have the power to subpoena witnesses, administer oaths, and generally to do

and perform any and all acts and things necessary to the complete performance of the powers

and duties imposed upon them in this title, and to enforce the provisions of law relating to

financial corporations, financial institutions, and credit unions. For the purpose of enabling them

to perform all the duties imposed upon them, the provisions of section 27-10-23 are applicable

to their proceedings. Any and all orders made by the issuing board or commissioner are

operative immediately and remain in full force until modified, amended, or annulled by the

issuing board, commissioner, or by a court of competent jurisdiction in an action commenced by

the party against whom such order has been issued.
N.D. Cent. Code § 6-09-15.9 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-15.9
6-09-15.9. Limitations on loans by the Bank of North Dakota - Disclosure of interests in certain loans
Status: in_force

6-09-15.9. Limitations on loans by the Bank of North Dakota - Disclosure of interests

in certain loans.

Notwithstanding any other provision of law, the Bank of North Dakota may not make any

loan or otherwise give its credit to a member of the industrial commission during the member's

term on the industrial commission. Before taking office, a member of the industrial commission

shall file a statement with the Bank of North Dakota indicating any personal interest that that

member has in any loan or loan application in existence or pending at any time during the

member's term on the industrial commission.
N.D. Cent. Code § 6-10-05 — ND Code / Title 6 / Chapter 6-10 / Section 6-10-05
6-10-05. Rules and regulations
Status: in_force

6-10-05. Rules and regulations

The commissioner is authorized to prescribe such rules and regulations for the operating of

such business as in the commissioner's judgment, from time to time, may be necessary for the

protection of the depositors dealing with such licensee, and has the power to require

compliance therewith.
N.D. Cent. Code § 6-05.2-06 — ND Code / Title 6 / Chapter 6-05.2 / Section 6-05.2-06
6-05.2-06. Self-dealing
Status: in_force

6-05.2-06. Self-dealing

1. Funds held by a banking institution as fiduciary may not be invested in stock or

obligations of, or property acquired from, the banking institution or its directors,

officers, or employees, or individuals with whom there exists such a connection, or

organizations in which there exists such an interest, as affects the exercise of the best

judgment of the banking institution in acquiring the property, or in stock or obligations

of, or property acquired from, affiliates of the banking institution or their directors,

officers, or employees, unless authorized by the instrument creating the relationship or

as authorized by law.

2. Property held by a banking institution as fiduciary may not be sold or transferred, by

loan or otherwise, to the banking institution or its directors, officers, or employees, or to

individuals with whom there exists such a connection, or organizations in which there

exists such an interest, as affects the exercise of the best judgment of the banking

institution in selling or transferring the property, or to affiliates of the banking institution

or their directors, officers, or employees except:

a. As authorized by the instrument creating the relationship or as authorized by law;

b. When the banking institution has been advised in writing by its counsel or auditor

that it has incurred as a fiduciary a contingent or potential liability and desires to

relieve itself of that liability, a sale or transfer may be made with the approval of

the board of directors, provided that the banking institution, upon consummation

of the sale or transfer, makes reimbursement in cash at no loss to the account;

c. To purchase at market value, defaulted investment funds; or

d. Where ordered by the board.

3. Funds held by a banking institution as fiduciary may not be invested by the purchase

of stock or obligations of the banking institution or its affiliates unless authorized by the

instrument or as authorized by law. If the retention of stock or obligations of the

banking institution or its affiliates is authorized by the instrument creating the

relationship, by court order, or by law it may exercise rights to purchase its own stock

or securities convertible into its own stock when offered pro rata to stockholders. When

the exercise of rights or receipt of a stock dividend results in fractional share holdings,

additional fractional shares may be purchased to complement the fractional shares so

acquired.

4. A banking institution may sell assets held by it as fiduciary in one account to itself as

fiduciary in another account if the transaction is fair to both accounts and if the

transaction is not prohibited by the terms of any governing instrument.

5. A banking institution may make a loan to an account from the funds belonging to

another account when the making of a loan to a designated account is authorized by

the instrument creating the account from which the loan is made.

6. A banking institution may make a loan to an account and may take, as security for the

loan, assets of the account provided the transaction is fair to the account.
N.D. Cent. Code § 6-01-04.3 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-04.3
6-01-04.3. Assessment of civil money penalties
Status: in_force

6-01-04.3. Assessment of civil money penalties

1. The commissioner or the board may assess a civil money penalty against a financial

institution, financial corporation, or credit union, or an officer, director, employee,

agent, or person participating in the conduct of the affairs of the financial corporation,

financial institution, or credit union upon finding one or more of the following:

a. Failure to comply with a permanent or temporary cease and desist order that has

been voluntarily consented to or issued pursuant to section 6-01-04.2;

b. Failure to comply with a final order that has been voluntarily consented to or

issued following formal proceedings under chapter 28-32;

c. Payment of dividends in violation of section 6-03-36;

d. Loans and leases to one borrower or concern which exceed the limitations set

forth in sections 6-03-59 and 6-03-59.1;

e. Loans to directors, officers, and employees in violation of section 6-03-60;

f. The intentional filing of inaccurate or misleading call reports required by section

6-03-70 or 6-06-08;

g. Violations of loan limitations under subsection 1 of section 6-06-12 or title 12,

chapter 7, Code of Federal Regulations, subchapter A, part 723, as amended

February 5, 2019;

h. Loans in violation of section 6-06-14.1; or

i. Failure to file notice of change of control under section 6-08-08.1.

2. The commissioner or the board commences administrative proceedings to assess civil

money penalties by serving a complaint on the respondent stating the factual basis for

the commissioner's or board's belief that a violation has occurred and the amount of

civil penalties that the complaint seeks to impose. The complaint must contain a notice

of an opportunity for an administrative hearing conducted under chapter 28-32. The

date for the hearing must be set not less than thirty days after the date the complaint is

served upon the respondent. If assessment of civil money penalties are proposed

based on conditions described in subdivisions c through i of subsection 1, a complaint

may not be filed unless the respondent has been provided with prior orders,

examination reports, or other written communications, and has willfully refused to take

corrective action that the respondent was capable of taking at the time.

3. If the respondent fails to answer the complaint within twenty days of its service, the

commissioner or board may enter an order imposing civil money penalties upon the

respondent. If a hearing is held and the board concludes that the record so warrants,

the board may enter an order imposing civil money penalties upon the respondent.

The assessment order is effective and enforceable immediately upon service or upon

a date specified in the order, and remains effective and enforceable until it is stayed,

modified, terminated, or set aside by action of the board or a reviewing court.

4. In determining the amount of civil penalty imposed, the commissioner or board shall

consider whether good faith was exercised, and the gravity of the violation and any

previous violations. The commissioner or board may not impose a civil money penalty

in excess of one hundred thousand dollars for each occurrence and one thousand

dollars per day for each day that the violation continues after service of an order. Any

civil money penalties collected under this section must be paid to the department of

financial institutions and deposited in the financial institutions regulatory fund.
N.D. Cent. Code § 6-03-49 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-49
6-03-49. Federal housing administrator - Insured bonds and notes - Debentures - Security for deposits
Status: in_force

6-03-49. Federal housing administrator - Insured bonds and notes - Debentures -

Security for deposits.

Notes and bonds insured and debentures issued by the federal housing administrator are

eligible as collateral to secure the deposit of public or other funds, as deposits with any public

official or department, and for investment of capital, surplus, reserve, or other funds where such

investment is limited to designated securities.
N.D. Cent. Code § 6-09.14-01 — ND Code / Title 6 / Chapter 6-09.14 / Section 6-09.14-01
6-09.14-01. Definitions
Status: in_force

6-09.14-01. Definitions

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

1. "Business" means a corporation, limited liability company, partnership, individual, or

association involved in manufacturing, processing, value-added processing, and

targeted industries as defined by the Bank of North Dakota.

2. "Community" means the city or county in which an eligible business is located, or a

local development corporation, community organization, or any other group whose

interest is in the economic growth of the area.

3. "Partnership in assisting community expansion fund" or "fund" means a fund

established to buy down the interest rate on loans to businesses under this chapter.
N.D. Cent. Code § 6-03-13.3 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-13.3
6-03-13.3. Facts considered for approval
Status: in_force

6-03-13.3. Facts considered for approval

1. Whenever any bank desires to maintain and operate a facility separate and apart from

its banking house, pursuant to section 6-03-13.1, or to move a facility previously

established to another location, it shall apply to the commissioner or the comptroller of

the currency, as the case may be, for such authority and provide the commissioner

with such relevant information as the commissioner may reasonably request. In

determining whether to approve the application for such facility, the commissioner shall

take into consideration:

a. The convenience, needs, and welfare of the people of the community and area

served; and

b. The financial strength of the bank in relation to the cost of establishing and

maintaining such separate facility.

2. Upon approval by the commissioner or state banking board of a merger application

under section 6-03-11, the former main office and facilities of the banking institutions

being merged will become facilities of the surviving banking institution and the banking

institution is not required to file an application under this section.

3. If the commissioner's decision with respect to an application is unfavorable, the

applicant bank may appeal the decision to the state banking board by filing a notice of

appeal with the commissioner within twenty days after the commissioner has notified

the applicant bank of the decision.
N.D. Cent. Code § 6-09.16-06 — ND Code / Title 6 / Chapter 6-09.16 / Section 6-09.16-06
6-09.16-06. Powers of Bank of North Dakota
Status: in_force

6-09.16-06. Powers of Bank of North Dakota

The Bank of North Dakota may do all acts or things necessary to negotiate loans and

preserve security under this chapter, including the power to take such security as deemed

necessary, to exercise any right of redemption, and to bring suit in order to collect interest and

principal due the loan fund under mortgages, contracts, and notes executed to obtain loans

under the provisions of this chapter. If the applicant's plan for financing provides for a loan of

funds from sources other than the state of North Dakota, the Bank of North Dakota may take a

subordinate security interest. The Bank may recover from the loan fund amounts actually

expended by it for legal fees and to effect a redemption.
N.D. Cent. Code § 6-09-23 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-23
6-09-23. Partial release and satisfaction of mortgages assigned to state treasurer
Status: repealed

6-09-23. Partial release and satisfaction of mortgages assigned to state treasurer

Repealed by S.L. 1967, ch. 91, § 2.
N.D. Cent. Code § 6-08-16.2 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-16.2
6-08-16.2. Issuing check without account - Financial liability - Penalty - Exceptions
Status: in_force

6-08-16.2. Issuing check without account - Financial liability - Penalty - Exceptions

1. As used in this section unless the context otherwise requires:

a. "Account" means any account at a bank or depository from which an instrument

could legally be paid.

b. "Dishonor" is synonymous with "nonpayment".

c. "Instrument" means any check, draft, electronic funds transfer authorization, or

order for the payment of money.

d. "Issues" means draws, utters, electronically authorizes, or delivers.

2. A person that, for that person or as agent or representative of another, willfully as

defined in section 12.1-02-02 issues any instrument is guilty of a class C felony if that

person has been previously convicted of issuing an instrument without an account

pursuant to section 6-08-16.1, and at the time of issuing the instrument the drawer

does not have an account with the bank or depository on which the instrument is

drawn.

3. A person that, for that person or an agent or representative of another, willfully as

defined in section 12.1-02-02 issues any instrument is guilty of a class C felony if the

instrument was for at least one thousand dollars or that person, agent, or

representative of another, issues more than one instrument for which the aggregate

total of all instruments issued exceeds one thousand dollars, and at the time of issuing

the instrument, the drawer does not have an account with the bank or depository on

which the instrument is drawn.

4. A person that issues an instrument under subsection 2 or 3 is liable for collection fees

or costs not in excess of forty dollars per instrument which are recoverable by the

holder of the instrument, or the holder's agent or representative. If the state's attorney

or holder determines the person identified as the issuer of the instrument did not issue

the instrument in violation of this section but instead is the victim of fraud, that state's

attorney or holder shall provide the holder or the holder's agent or representative

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

agent or representative may not collect fees or costs under this subsection. The holder

of the instrument or the holder's agent or representative is entitled to bring a civil

action to recover a civil penalty. The civil penalty is payment to the holder of the

instrument of the lesser of two hundred dollars or three times the amount of each

instrument.

5. An agent acting for the receiver of an instrument issued in violation of this section may

present the instrument to the state's attorney for prosecution if the holder or the

holder's agent or representative mailed a notice under subsection 6. During the first

one hundred twenty days after the drawer received notice under this subsection the

state's attorney shall accept the instrument presented by the agent. A criminal

complaint for violating this section must be executed within one hundred twenty days

after the drawer receives notice from the holder of a no-account or closed-account

instrument or the holder's agent or representative.

6. A notice of dishonor may be mailed by the holder of the instrument upon dishonor or

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

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

mailing. The notice must be in substantially the following form:

Notice of Dishonored Instrument

Date ________________________________________________

Name of Issuer ________________________________________

Street Address ________________________________________

City and State _________________________________________

You are according to law notified that an instrument dated ______,

_____________, drawn on the ________________ Bank of

_______________ in the amount of _______________ has been

returned unpaid with the notation the payment has been refused

because (of nonsufficient funds) (the drawer does not have an

account). Within ten days from the receipt of this notice,

you must pay or tender to ________________________________

(Holder or agent or representative)

sufficient moneys to pay such instrument in full and any collection

fees or costs not in excess of forty dollars.

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

possibility of a civil action to recover any collection fees or costs authorized by this

section.
N.D. Cent. Code § 6-08.5-05 — ND Code / Title 6 / Chapter 6-08.5 / Section 6-08.5-05
6-08.5-05. Refusal to accept power of attorney - Immunity
Status: in_force

6-08.5-05. Refusal to accept power of attorney - Immunity

1. A financial service provider may refuse to accept an acknowledged power of attorney if

the financial service provider has a good faith belief to suspect the principal is or may

be the victim or target of financial exploitation by the agent or individual acting for or

with the agent.

2. 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 refusing to

accept a power of attorney or for accepting a power of attorney under this section and

for actions taken in furtherance of that determination if the determination was based on

a good faith belief financial exploitation occurred, was attempted, or was being

attempted.
N.D. Cent. Code § 6-06-08 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-08
6-06-08. State credit union board to supervise credit unions - Reports - Examinations - Fees
Status: in_force

6-06-08. State credit union board to supervise credit unions - Reports -

Examinations - Fees.

1. Credit unions and the permanent loan funds of credit unions, if any, are under the

supervision of the commissioner. Credit unions shall report to the commissioner when

called by the commissioner and at least four times each year. The commissioner shall

prescribe the forms for the reports. At the discretion of the commissioner, a call may be

complied with by submission of a copy of the call report electronic mail directly to the

department of financial institutions or by other electronic means of transmission. The

call reports are due within thirty days of the call, or according to the deadlines

published on the form NCUA 5300, whichever comes first. The commissioner may call

for special reports from any credit union whenever in the commissioner's judgment it is

necessary to obtain complete knowledge of the condition of the credit union. Every

credit union that fails to make and transmit any report required in pursuance of this

section shall forfeit and pay to the state a penalty of up to five hundred dollars for each

day of delinquency, not to exceed two thousand five hundred dollars. At the discretion

of the commissioner, all or part of this penalty may be waived if the reports are

submitted within three days after the due date required by this section.

2. Credit unions must be examined at least once each twenty-four months by the

commissioner. In lieu of the examinations herein required, the commissioner may

accept any examination made or obtained by the national credit union administration

and may conduct a joint examination with the national credit union administration.

3. If it is determined through an examination or otherwise that the credit union is violating

the provisions of this chapter, or is insolvent, the state credit union board may serve

notice on the credit union of its intention to revoke the charter. If such violations

continue for a period of fifteen days after such notice, the board may revoke the

charter and take possession of the business and property of such credit union and

shall maintain possession then until such time as it permits the reinstatement of the

charter and the continuation of business by the credit union, or until its affairs finally

are liquidated. The board may take similar action if any required report remains in

arrears for more than fifteen days.

4. Every state credit union placed under the jurisdiction and control of the state credit

union board and the commissioner by the provisions of this title shall pay a semiannual

assessment. This assessment is to be determined by the state credit union board as

necessary to fund that portion of the department's budget relating to the regulation of

state-chartered credit unions. The assessment must be paid to the state treasurer

within thirty days of each June thirtieth and December thirty-first. The state treasurer

shall report the payments of fees to the commissioner, and if any credit union is

delinquent more than twenty days in making payment, the board may seek other

administrative remedies until payment of the amount due. The commissioner may

assess a penalty of one percent of the outstanding assessment fee for each day that

the penalty is delinquent. All fees and penalties under this section must be paid to the

state treasurer and deposited in the financial institutions regulatory fund.

5. If the commissioner determines more than one visit, inspection, or examination is

necessary to promote the safety and soundness of a credit union during a

twelve-month period, the credit union shall pay to the department a fee for the time

used by the commissioner or other person designated by the commissioner in

supervising, filing, and corresponding in connection with each additional visit,

inspection, or examination and report of examination and for time used by each

examiner or other person in making and otherwise preparing and typing the reports of

examination provided for under this section. Fees for the visit, inspection, or

examination must be charged by the department of financial institutions at an hourly

rate to be set by the commissioner, sufficient to cover all reasonable expenses of the

department associated with the visit, inspection, or examination provided for by this

section. A credit union shall pay this fee within ten days of receiving a billing from the

commissioner. Fees must be deposited in the financial institutions regulatory fund.
N.D. Cent. Code § 6-01-17 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-17
6-01-17. Semiannual assessments of banks and interstate branches
Status: in_force

6-01-17. Semiannual assessments of banks and interstate branches

Every state banking association and banking institution under the jurisdiction and control of

the commissioner and the commissioner's deputy examiners by this title, including the Bank of

North Dakota and every branch of an out-of-state state bank, shall pay a semiannual

assessment. This assessment is to be determined by the state banking board as necessary to

fund that portion of the department's budget relating to the regulation of state-chartered banks

and branches of out-of-state state banks, including the authority to enter cooperative fee sharing

agreements and assessment of associated travel costs with other state bank supervisors. Fees

for the examination of a trust department must be computed in accordance with section 6-05-28.

The assessment must be paid to the department of financial institutions within thirty days of

each June thirtieth and December thirty-first. If any such corporation or institution or branch is

delinquent more than twenty days in making such payment, the board may seek other

administrative remedies of such delinquent corporation, institution, or branch until payment of

the amount due. The commissioner may assess a penalty of one percent of the outstanding

assessment fee for each day that the assessment fee is delinquent. All fees and penalties under

this section must be deposited with the state treasurer and deposited in the financial institutions

regulatory fund.
N.D. Cent. Code § 6-03-30 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-30
6-03-30. Shareholder's liability - Limitation - Publication of notice
Status: repealed

6-03-30. Shareholder's liability - Limitation - Publication of notice

Repealed by omission from this code.
N.D. Cent. Code § 6-06-08.4 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-08.4
6-06-08.4. Prompt corrective action
Status: in_force

6-06-08.4. Prompt corrective action

1. For purposes of this section, the net worth categories are defined as:

a. Well capitalized. A credit union with a net worth ratio of seven percent or greater

which meets any applicable risk-based net worth requirement.

b. Adequately capitalized. A credit union with a net worth ratio six percent or more

but less than seven percent which meets any applicable risk-based net worth

requirement as defined by the state credit union board by rule.

c. Undercapitalized. A credit union with a net worth ratio of four percent or more but

less than six percent or fails to meet any risk-based net worth requirement.

d. Significantly undercapitalized. A credit union with a net worth ratio of two percent

or more but less than four percent, fails to increase its net worth, or fails to submit

or materially implement a net worth restoration plan.

e. Critically undercapitalized. A credit union with a net worth ratio less than

two percent.

2. A credit union may be reclassified into the next subordinate net worth category by the

commissioner or the state credit union board if it is determined that the credit union is

in an unsafe or unsound condition or has not corrected unsafe or unsound practices of

which it was, or should have been, aware. The board or commissioner may order a

credit union that is adequately capitalized, undercapitalized, significantly

undercapitalized, or critically undercapitalized to take prompt corrective action to

increase the credit union's net worth. Additionally, the order may require a credit union

that is undercapitalized, significantly undercapitalized, or critically undercapitalized to

submit an acceptable net worth restoration plan to the commissioner. A credit union

may request a hearing before the state credit union 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

undercapitalized credit union that has no reasonable prospect of becoming adequately

capitalized or a critically undercapitalized credit union, the commissioner or board may

take possession of the credit union or appoint a conservator or liquidating agent for the

credit union in accordance with chapter 6-07.2.
N.D. Cent. Code § 6-09.4-01 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-01
6-09.4-01. Title
Status: in_force

6-09.4-01. Title

This chapter must be known as the "North Dakota Public Finance Authority Act".
N.D. Cent. Code § 6-06-08.2 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-08.2
6-06-08.2. Failing institution - Emergency powers - Hearing - Order - Appeal
Status: in_force

6-06-08.2. Failing institution - Emergency powers - Hearing - Order - Appeal

Whenever the state credit union board determines that a merger or acquisition of any of the

credit unions under its supervision is necessary because the institution's equity is impaired, it is

conducting its business in an unsafe, unsound, or unauthorized manner, or it is endangering the

interests of shareholders, creditors, or the public, whether or not the institution is insolvent, the

state credit union board may, without a hearing, declare an emergency and declare that the

institution is a failing institution. Upon such declaration, the state credit union board may

authorize the commissioner of financial institutions to immediately take possession of the

institution. The board is authorized to do all things necessary to continue service to the affected

community, including any merger or acquisition under this chapter or otherwise.

An institution which is the subject of such a board declaration may ask for a hearing before

the state credit union board within five days after service of the state credit union board's

declaration upon it. The application for a hearing must be granted and the hearing must be held

not later than ten days after the application is filed. A complete record of the hearing must be

established and maintained. On the basis of the hearing, the board shall enter a final order. The

institution may appeal the order to the district court of the county in which the credit union is

located within ten days after the order is served upon it. The appeal is governed by chapter

28-32 except that the board has ten days after service of the notice of appeal to certify the

record, and the district court shall hear the appeal as expeditiously as possible.
N.D. Cent. Code § 6-08.3-10 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-10
6-08.3-10. Public information and participation - Notice
Status: repealed

6-08.3-10. Public information and participation - Notice

Repealed by S.L. 1995, ch. 79, § 25.
N.D. Cent. Code § 6-09.10-08 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-08
6-09.10-08. Home-quarter - Appraised value
Status: repealed

6-09.10-08. Home-quarter - Appraised value

Repealed by S.L. 2011, ch. 83, § 15.
N.D. Cent. Code § 6-02-05 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-05
6-02-05. Acknowledgment of organization certificate - Application for certificate of authority - Notice of hearing
Status: in_force

6-02-05. Acknowledgment of organization certificate - Application for certificate of

authority - Notice of hearing.

The organization certificate must be acknowledged before a notary public, and, the

acknowledged certificate must be authenticated by the seal of the notary. The authenticated

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

present the same to the secretary of state, with application for the issuance of a certificate of

authority. Upon receiving such organization certificate, the board shall cause notice of the

application to be published in the official newspaper of the county within which such association

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

where the board will hear the application and must specify that any person objecting the

application may appear and show cause why such application should not be approved. Upon

the consolidation of banks, acquisition pursuant to chapter 6-07.2, or the conversion of a

national bank to a state bank, notice of such hearing need not be given.
N.D. Cent. Code § 6-06-11 — ND Code / Title 6 / Chapter 6-06 / Section 6-06-11
6-06-11. Annual meetings - Election of directors - Election or appointment of committees
Status: in_force

6-06-11. Annual meetings - Election of directors - Election or appointment of

committees.

1. The organization meeting of the members of a credit union shall be the first annual

meeting. At its annual meeting, its members shall elect a board of directors of not less

than five members and a credit committee of not less than three members, unless the

bylaws of the credit union provide that the credit union may not have a credit

committee. A supervisory committee of not less than three members must be elected

at the annual meeting, unless the bylaws of the credit union provide that the

supervisory committee members be appointed by the board of directors of the credit

union or the bylaws provide that the credit union may not have a supervisory

committee. In the event the bylaws do not provide for a supervisory committee, then

the duties and powers of a supervisory committee, as described in section 6-06-15,

are the responsibility of the board of directors. The directors and committee members

if any, shall hold office for such terms, respectively, as provided by the bylaws of the

credit union and until their successors qualify. A record of the names and addresses of

the officers and members of the board and committees must be filed with the

commissioner within ten days after their election or appointment. Notice of any change

in membership on the board or committees by appointment to fill an unexpired term or

otherwise must be filed with the commissioner within ten days of such change. The

notice requirement is satisfied if the national credit union association's call report

profile is updated within the ten-day reporting requirement.

2. If the bylaws of the credit union provide for a credit committee, then pursuant to the

provisions of the bylaws, the board of directors may appoint or the members may elect

a credit committee which consists of an odd number of members of the credit union,

but which may not include more than one loan officer. The method used must be set

forth in the bylaws.

3. If the credit committee is dispensed with in the bylaws, a credit manager, under the

general supervision of the board of directors, may be empowered to approve or

disapprove loans subject to the policies and conditions prescribed by the board of

directors. The president or other qualified senior management official may serve as the

credit manager. If a credit manager is provided in lieu of an elected credit committee,

the credit manager may appoint one or more loan officers with the power to approve or

disapprove loans, and may establish an internal credit committee comprised of

designated credit union staff with the power to approve or disapprove loans, subject to

such limitations or conditions as the credit manager and board of directors prescribes.
N.D. Cent. Code § 6-08-16.3 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-16.3
6-08-16.3. Consolidation of offenses - Dishonored checks
Status: in_force

6-08-16.3. Consolidation of offenses - Dishonored checks

When the same person commits two or more offenses under sections 6-08-16, 6-08-16.1,

and 6-08-16.2 in more than one county of this state, the offenses may be combined and

prosecution may be brought in any county in which one of the dishonored checks was issued.
N.D. Cent. Code § 6-03-13.5 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-13.5
6-03-13.5. National bank, federal savings association, or state savings and loan association conversion to state bank
Status: in_force

6-03-13.5. National bank, federal savings association, or state savings and loan

association conversion to state bank.

A national bank, federal savings association, or state savings and loan association located

in this state which follows the procedure prescribed by federal law to convert into a state bank

must be granted a state charter if it meets the provisions of the North Dakota Century Code for

the incorporation and chartering of a new state bank. Any requirement that shares must be paid

in cash may be satisfied by the exchange of shares of the converted state bank for those of the

converting national bank, federal savings association, or state savings and loan association,

which may be valued at no more than their fair cash market value. The procedure for

incorporation of a state bank may be modified by the board to the extent made necessary by the

difference between an ordinary incorporation and a conversion and no public hearing need be

held on a conversion application. A national bank, federal savings association, or state savings

and loan association proposing to convert into a state-chartered bank shall grant the

commissioner discretionary authority to conduct an examination. The commissioner shall set

fees for the examination at an hourly rate sufficient to cover all reasonable expenses of the

department of financial institutions associated with the examination. Fees must be collected by

the commissioner, transferred to the state treasurer, and deposited in the financial institutions

regulatory fund.
N.D. Cent. Code § 6-06.2-10 — ND Code / Title 6 / Chapter 6-06.2 / Section 6-06.2-10
6-06.2-10. Application for conversion
Status: in_force

6-06.2-10. Application for conversion

1. A banking institution, credit union, or financial institution may be converted to a

cooperative financial institution under this chapter through submission of an

application, which must include:

a. A statement of the results of the vote to approve the conversion, along with

affidavits of the president or vice president and secretary;

b. A completed form, prescribed by the commissioner, requesting an amendment to

the organization certificate;

c. A copy of the executed bylaws to establish the cooperative financial institution;

d. An application fee, as established by the commissioner by rule; and

e. An affirmation from the organization granting discretionary authority to the

commissioner to conduct an examination before the conversion date.

2. The commissioner shall set fees for an examination at an hourly rate sufficient to cover

all reasonable expenses of the department associated with the examination. Fees

must be collected by the commissioner, transferred to the state treasurer, and

deposited in the financial institutions regulatory fund.

3. When the commissioner determines all requirements have been met, the

commissioner shall notify the applicant and the state banking board. The board shall

instruct the secretary of state to issue an amended organization certificate for the

converted organization to operate as a cooperative financial institution. After issuance

of the amended organization certificate, the organization becomes a cooperative

financial institution and ceases to operate as originally organized. The cooperative

financial institution is vested with all assets of the prior organization and is responsible

for all of the obligations of the converted organization to the same extent as though the

conversion had not taken place.
N.D. Cent. Code § 6-09-33 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-33
6-09-33. Bank of North Dakota to administer assets of rural rehabilitation corporation
Status: repealed

6-09-33. Bank of North Dakota to administer assets of rural rehabilitation corporation

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-03-29 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-29
6-03-29. Responsibility of shareholders - Double liability
Status: repealed

6-03-29. Responsibility of shareholders - Double liability

Repealed by S.L. 1953, ch. 96, § 3.
N.D. Cent. Code § 6-08.6-09 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-09
6-08.6-09. Injunction or similar relief
Status: in_force

6-08.6-09. Injunction or similar relief

A court may enjoin, or grant similar relief that would have the effect of enjoining, a bank or

credit union from paying a depositor or beneficiary only if payment would constitute a material

fraud or facilitate a material fraud with respect to a special deposit.
N.D. Cent. Code § 6-03-13.2 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-13.2
6-03-13.2. Further limitations upon facility
Status: repealed

6-03-13.2. Further limitations upon facility

Repealed by S.L. 1991, ch. 86, § 4.
N.D. Cent. Code § 6-08-26 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-26
6-08-26. Requirements of foreign bank or trust company serving as fiduciary in state
Status: in_force

6-08-26. Requirements of foreign bank or trust company serving as fiduciary in state

Before qualifying or serving in this state in any fiduciary capacity as defined in section

6-08-25, such bank or trust company shall file in the office of the secretary of state a filing fee of

fifty dollars, a copy of its charter certified by its secretary, and a power of attorney designating

the said secretary of state or the secretary of state's successor in office as the person upon

whom all notices and processes issued by any court of this state may be served in any action or

proceeding relating to any trust, estate, or matter within this state in respect of which such bank

or trust company is acting in any fiduciary capacity with like effect as personal service on such

bank or trust company. Such power of attorney is irrevocable so long as any such liability

remains outstanding against such bank or trust company in this state. Upon receipt of such

notice or process with a filing fee of twenty-five dollars, it is the duty of the said secretary of

state forthwith to forward the same by registered or certified mail to such bank or trust company

at the address stated in the said power of attorney, and such bank or trust company shall

comply with the provisions of chapter 6-05, insofar as the provisions of said chapter pertain to

banks or trust companies.
N.D. Cent. Code § 6-05.2-02 — ND Code / Title 6 / Chapter 6-05.2 / Section 6-05.2-02
6-05.2-02. Administration of fiduciary powers
Status: in_force

6-05.2-02. Administration of fiduciary powers

1. The board of directors is responsible for the proper exercise of fiduciary powers by the

banking institution. All pertinent matters, including the determination of policies, the

investment and disposition of property held in a fiduciary capacity, and the direction

and review of the actions of all officers, employees, and committees used by the

banking institution in the exercise of its fiduciary powers, are the responsibility of the

board. In discharging this responsibility, the board of directors may assign, by action

duly entered in the minutes, the administration of any of the banking institution's

fiduciary powers as it may consider proper to assign to its directors, officers,

employees, or committees as it may designate.

2. No fiduciary account may be accepted without the prior approval of the board of

directors, or of the directors, officers, or committees to whom the board may have

designated the performance of that responsibility. A written record must be made of all

acceptances and of the relinquishment or closing out of all fiduciary accounts. Upon

the acceptance of an account for which the banking institution has investment

responsibilities, a prompt review of the assets must be made. The board must ensure

that at least once during every calendar year, and within fifteen months of the last

review, all the assets held in or for each fiduciary account where the banking institution

has investment responsibilities are reviewed to determine the advisability of retaining

or disposing of the trust assets.

3. All officers and employees taking part in the operating of trust activities must be

adequately bonded.

4. Every banking institution exercising fiduciary powers must designate, employ, or retain

legal counsel who is readily available to pass upon fiduciary matters and to advise the

banking institution as to its trust activities.

5. Every banking institution exercising fiduciary powers must adopt written policies and

procedures to ensure that the federal securities laws are complied with in connection

with any decision or recommendation to purchase or sell any security. The policies and

procedures, in particular, must ensure the banking institution may not use inside

information in connection with any decision or recommendation to purchase or sell any

security.
N.D. Cent. Code § 6-02-01 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-01
6-02-01. Compliance with chapters required - Penalty for noncompliance
Status: in_force

6-02-01. Compliance with chapters required - Penalty for noncompliance

1. No person, firm, company, copartnership, or corporation, either domestic or foreign,

not organized under this chapter or authorized to take on banking powers under this

section, except national banking corporations, banks organized under the laws of

another state, domestic or foreign bank holding companies, their affiliates, bona fide

financial institution trade associations and their affiliates, and the Bank of North

Dakota, may make use of or display in connection with its business, in signs,

letterheads, advertising, or in any other way, such words as "bank", "banker", or

"banking", or any other word or words of like import, nor may any person or concern

do or perform anything in the nature of the business of a bank until and unless such

business is regularly organized or authorized under this chapter. Upon written request,

the commissioner may grant an exemption to this section if the commissioner finds

that use of the words "bank", "banker", or "banking", or words of like import, are not

reasonably likely to cause confusion or lead the public to believe that the person

requesting the exemption is a bank, holding company, trade association, or affiliate

authorized under this section or is conducting a business subject to the jurisdiction of

the department. In granting an exemption under this section, the commissioner may

restrict or condition the exemption and use of the name or word or the activities of an

exempt person as the commissioner considers appropriate to protect the public

interest.

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

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

reason of its rights under such charter this section may not be enforced against it

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

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

contrary to or in violation of this section. Any person, firm, or corporation which, by

reason of an existing charter right under any law or statute in effect prior to July 1,

1931, may be held by the courts not to be affected by this section and which therefore

refuses to comply with this section, during the period of noncompliance, shall

prominently and continuously display in plain, legible, and clearly discernible lettering

on all of its signs, stationery, circulars, and advertising, and in all of its printed or

written matter, the following words and language: "NOT UNDER THE SUPERVISION

OF THE STATE BANKING BOARD OR THE COMMISSIONER OF FINANCIAL

INSTITUTIONS". Such language must be displayed as prominently thereon as is other

matter therein.

3. Any person, firm, company, copartnership, or corporation, domestic or foreign,

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

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

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

restraining any such person, firm, company, copartnership, or corporation from further

using such words, terms, or phrases in violation of this section or from further

transacting business in such way or manner as to lead the public to believe that its

business is in whole or in part of the nature of a bank, or that it is under the

supervision of the state banking board or the commissioner.
N.D. Cent. Code § 6-08.2-06 — ND Code / Title 6 / Chapter 6-08.2 / Section 6-08.2-06
6-08.2-06. Limitations
Status: in_force

6-08.2-06. Limitations

1. The authority granted by this chapter does not authorize the acquiring entity to resell,

reassign, merge, or transfer stock or assets of any state or national bank or bank

holding company acquired under this chapter except as permitted under the laws of

this state.

2. This chapter does not limit or restrict the rights of a charitable trust to sell, assign,

merge, or transfer the stock or assets of any state or national bank or bank holding

company owned directly or indirectly by the charitable trust under the provisions of any

existing or hereafter adopted state or federal law or regulation.

3. This chapter does not permit the sale, assignment, merger, or transfer by a charitable

trust that directly or indirectly owns banks in Minnesota as well as in North Dakota of

the stock or assets of any state or national bank or bank holding company located in

this state if the sale, assignment, merger, or transfer by the charitable trust would be

prohibited under the laws of Minnesota.
N.D. Cent. Code § 6-09.10-04.1 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-04.1
6-09.10-04.1. Liability
Status: in_force

6-09.10-04.1. Liability

The board, commissioner, administrator, negotiators, mediators, and other personnel are

not subject to any liability arising from any actions or omissions in attempting to reach a

settlement.
N.D. Cent. Code § 6-01-17.2 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-17.2
6-01-17.2. Additional assessment of banks and interstate branches
Status: in_force

6-01-17.2. Additional assessment of banks and interstate branches

If the commissioner determines that more than one visit, inspection, or examination is

necessary to promote the safety and soundness of a state banking association or a branch of

an out-of-state state bank during a twelve-month period, the state banking association or branch

shall pay to the state treasurer a fee for the time used by the commissioner or other person

designated by the commissioner in supervising, filing, and corresponding in connection with

each additional visit, inspection, or examination and report of examination and for time used by

each deputy examiner, or other person in making and otherwise preparing and typing the

reports of examination herein provided for. Fees for the visit, inspection, or examination must be

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

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

visit, inspection, or examination provided for by this section. A state banking association or

branch of an out-of-state state bank shall pay such assessment or fee within ten days of

receiving a billing from the commissioner. Fees must be deposited in the financial institutions

regulatory fund. The state treasurer shall report the payments of fees to the commissioner, and

if any corporation or institution or branch is delinquent more than twenty days in making the

payment, the board may make an order suspending the functions of the delinquent corporation

or institution or branch until payment of the amount due. The commissioner may assess a

penalty of five dollars a day additional for the delay. The state banking board may waive or

postpone the collection of this special assessment if the assessment would place an undue

burden on the state banking association or branch.
N.D. Cent. Code § 6-03-76 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-76
6-03-76. Records search reimbursement
Status: in_force

6-03-76. Records search reimbursement

Any financial institution authorized to do business in this state must be reimbursed as

follows for all records searches done at the request of any state agency or any branch of the

state government except the department of health and human services. Further, any federal

agency or any branch of the federal government must also make such reimbursement if

authorized to do so:

1. For search and processing time at the rate of thirty dollars per hour per person,

computed on the basis of seven dollars and fifty cents per quarter hour, limited to the

total amount of personnel time spent in locating, retrieving, reproducing, packaging,

and preparing for shipment documents or information requested.

2. For making copies of duplicates of required or requested documents at the rate of

fifteen cents per page.

3. For making copies of photographs, films, and other materials at the actual cost

incurred by the financial institution.

The financial institution must be reimbursed for all actual mailing or transportation expenses

incurred in conveying the requested or required materials to the requesting agency. The

reimbursement provisions of this section shall not apply to standard confirmations.
N.D. Cent. Code § 6-03-15.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-15.1
6-03-15.1. Temporary relocation of bank operations
Status: in_force

6-03-15.1. Temporary relocation of bank operations

In the event of an emergency or other temporary relocation, a bank shall notify the

commissioner to relocate its main banking house or facility until the former location is repaired

to allow bank operations to resume. No notice or public hearing need be held to act upon the

temporary relocation request. The bank shall give the commissioner notice of the bank's

decision to relocate promptly and in any case within three days in the event of an emergency,

and at least thirty days prior for other temporary relocations. The notice must describe the

bank's actions and the expected duration of the bank's relocation. Unless extended by the

commissioner, a bank's authority to change the bank's location under this section may not

exceed sixty days. Notice of the bank's intention to temporarily relocate must be provided to

customers at least ten days before the relocation.
N.D. Cent. Code § 6-15-03 — ND Code / Title 6 / Chapter 6-15 / Section 6-15-03
6-15-03. Investigation of financial entities
Status: in_force

6-15-03. Investigation of financial entities

1. Any person may allege violations under this chapter to the attorney general. The

attorney general may investigate alleged violations under this chapter and shall

provide a written notice to any person in violation. A person that has received a written

notice from the attorney general must cease the use of a firearms code within thirty

calendar days.

2. The attorney general may pursue, and a court may order, an injunction against any

person if the person fails to cease the use of a firearms code after the expiration of

thirty days from receipt of written notice.

3. If a court issues an injunction under this section, the court shall award the attorney

general reasonable expenses, including reasonable attorney's fees and costs.

4. If the attorney general finds a financial entity willfully violated this chapter, the attorney

general shall assess a fee of ten thousand dollars per transaction. Fees collected

under this section must be deposited into the merchant code violation fund. A financial

entity desiring to appeal the attorney general's finding of a violation under this chapter

may appeal the finding in accordance with chapter 28-32.

5. Information disclosed to a federal government entity is not a defense to any civil action

filed under this section, unless the disclosure or action is required by federal law or

regulation.
N.D. Cent. Code § 6-08.4-06.1 — ND Code / Title 6 / Chapter 6-08.4 / Section 6-08.4-06.1
6-08.4-06.1. Reciprocity required
Status: in_force

6-08.4-06.1. Reciprocity required

To the extent a state imposes a restriction on the ability of a North Dakota bank to establish,

acquire, or retain a branch in that state, that restriction must apply to the establishment,

acquisition, or retention of a branch in this state by the out-of-state bank.
N.D. Cent. Code § 6-08-07 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-07
6-08-07. Liability of bank on forged or raised check restricted
Status: repealed

6-08-07. Liability of bank on forged or raised check restricted

Repealed by S.L. 1965, ch. 296, § 32.
N.D. Cent. Code § 6-07.1-08 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-08
6-07.1-08. Rights fixed
Status: in_force

6-07.1-08. Rights fixed

The rights and liabilities of state trust company liquidation and of a client, creditor, officer,

director, manager, managing participant, employee, shareholder, participant, agent, or other

person interested in the state trust company's estate are fixed on the date of closing of the state

trust company for liquidation, except as otherwise directed by the court or as expressly provided

by this chapter.
N.D. Cent. Code § 6-07.2-07 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-07
6-07.2-07. Presentation of claims - Notice of claims procedure - Rejection of claims - Statute of limitations
Status: in_force

6-07.2-07. Presentation of claims - Notice of claims procedure - Rejection of claims -

Statute of limitations.

1. All parties having claims against the closed institution shall present the claims of the

parties supported by proof to the receiver within one hundred eighty days after the

commissioner has taken possession. This period may be extended by written

agreement between the claimant and the receiver. The receiver shall cause notice of

the claims procedures prescribed by this section to be made public and mailed to each

person whose name appears as a creditor upon books of the institution at the person's

last address of record. Within one hundred eighty days following receipt of the claim,

the receiver shall notify in writing any claimant whose claim has been rejected. Notice

is effective when mailed. A claimant whose claim has been rejected by the receiver

may petition a court for a hearing on the claim within sixty days from the date the claim

was rejected. The claim of a party against the closed institution must be disallowed,

other than any portion of the claim which was allowed by the receiver, as of the end of

the sixty-day period if the party having the claim fails to:

a. Request an administrative review of any claim by the receiver in accordance with

proper procedure; or

b. File suit on the claim, or continue an action commenced before the appointment

of the receiver, before the end of the sixty-day period.

2. The disallowance is final, and the claimant has no further rights or remedies with

respect to the claim.
N.D. Cent. Code § 6-03-56 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-56
6-03-56. Unlawful borrowing, rediscounting, endorsing, pledging by officers, employees, and accessories - Penalty
Status: in_force

6-03-56. Unlawful borrowing, rediscounting, endorsing, pledging by officers,

employees, and accessories - Penalty.

Any officer, director, agent, or employee of any state banking association who borrows

money for, or on behalf or in the name of such association or obligates any such association

upon rediscounted paper, or pledges any of the assets of such association in violation of the

provisions of this chapter is guilty of a class A misdemeanor and is personally liable to the

association for any loss it sustains on account of such illegal action, but no such violation may

affect the validity of any loan, endorsement, or pledge in the hands of any federal reserve bank

or federal lending agency or commercial bank correspondent who loaned money to the

association or discounted its paper in good faith and in reliance upon a certified copy of a

resolution complying with section 6-03-52.
N.D. Cent. Code § 6-05-05 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-05
6-05-05. Certificate of deposit
Status: in_force

6-05-05. Certificate of deposit

Whenever any such corporation assigns, transfers, and delivers to the commissioner, or a

designated agent, the securities described in section 6-05-04 and all evidences of such

investment, the commissioner, or a designated agent, shall execute and deliver to the

corporation a certificate of such deposit, and thereupon, the said corporation may commence

and carry on business under the provisions of this chapter. The commissioner, or a designated

agent, shall hold the said securities so deposited with the commissioner or agent as collateral

security for the depositors and creditors of the corporation, and for the faithful execution of any

trusts which may be imposed lawfully upon and accepted by such corporation. The corporation

from time to time may withdraw the said securities or any part thereof from the commissioner, or

a designated agent, upon depositing with the commissioner or agent other securities of equal

amount and value and of the kinds specified in section 6-05-04. Until otherwise ordered by a

court of competent jurisdiction, the said commissioner, or a designated agent, shall pay over to

such corporation the interest and dividends which the commissioner or agent collects upon such

securities. Any corporation having a larger deposit with the commissioner, or a designated

agent, than is required by this chapter must be allowed at any time to withdraw its excess

deposit.
N.D. Cent. Code § 6-03-06 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-06
6-03-06. Sale of real estate loans
Status: in_force

6-03-06. Sale of real estate loans

In selling or disposing of loans made upon real estate security, no association has power to

guaranty the payment or collection thereof except as necessary to sell residential mortgage

loans on the secondary market, and any such guaranty made in violation of this provision is not

binding on the association but is upon the officer or other person making the same.
N.D. Cent. Code § 6-01-18 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-18
6-01-18. Reports and examinations of institutions by federal deposit insurance corporation, other state supervisors, or federal reserve system
Status: in_force

6-01-18. Reports and examinations of institutions by federal deposit insurance

corporation, other state supervisors, or federal reserve system.

The commissioner may accept, in lieu of any examination authorized or required by this title

to be conducted by the department of any banking institution, the examination that may have

been made of the institution within a reasonable period by the federal deposit insurance

corporation, any other state supervisor, or the federal reserve system, if a copy of the

examination is furnished to the commissioner. The commissioner also may accept any report

relative to the condition of any banking institution which may have been obtained by that

corporation or system within a reasonable period in lieu of any similar report that the

commissioner is authorized by this title to require of the institution, if a copy of the report is

furnished to the commissioner. The commissioner may furnish to the corporation or system, or

to any official or examiner, a copy or copies of any or all examinations made of any banking

institutions and of any or all reports made by them, and may give access to and disclose to the

corporation or system, or any official or examiner, any and all information possessed by the

office of the commissioner with reference to the conditions or affairs of any institution insured

with the federal deposit insurance corporation. This section does not limit the duty of any

banking institution in this state, the deposits of which are to any extent insured under the

provisions of the federal Act creating the federal deposit insurance corporation, or of any

amendment of or substitution for that Act, to comply with the provisions of that Act, its

amendments or substitutions, or the requirements of the corporation relative to examinations

and reports, nor limit the powers of the commissioner with reference to examinations and

reports under this title.
N.D. Cent. Code § 6-09.10-08.5 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-08.5
6-09.10-08.5. Alternatives to litigation - Cooperation with other service providers
Status: repealed

6-09.10-08.5. Alternatives to litigation - Cooperation with other service providers

Repealed by S.L. 1997, ch. 98, § 3.
N.D. Cent. Code § 6-05.2-04 — ND Code / Title 6 / Chapter 6-05.2 / Section 6-05.2-04
6-05.2-04. Audit of trust activities
Status: in_force

6-05.2-04. Audit of trust activities

A committee of directors, exclusive of any active officers of the bank, must, at least once

during each calendar year and within fifteen months of the last audit, make suitable audits of the

trust activities or cause suitable audits to be made by auditors responsible to the board of

directors, and must ascertain whether the trust activities have been administered in accordance

with law and sound fiduciary principles. The board of directors may, instead of the periodic audit,

adopt an adequate continuous audit system. A report of the audits and examination required

under this section, together with any action taken, must be noted in the minutes of the board of

directors.
N.D. Cent. Code § 6-09.7-01 — ND Code / Title 6 / Chapter 6-09.7 / Section 6-09.7-01
6-09.7-01. Guarantee loan program - Administration - Advisory board
Status: in_force

6-09.7-01. Guarantee loan program - Administration - Advisory board

The Bank of North Dakota shall administer the state guarantee loan program as provided in

this chapter. The advisory board of directors to the Bank of North Dakota appointed pursuant to

chapter 6-09.1 shall act in an advisory capacity concerning the program.
N.D. Cent. Code § 6-01-14 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-14
6-01-14. Deputies controlled by commissioner - Reports
Status: in_force

6-01-14. Deputies controlled by commissioner - Reports

Each deputy examiner provided for in this title is under the direct orders and instructions of

the commissioner, and shall report to the commissioner during or immediately after the

completion of each examination of each financial corporation, financial institution, or credit union

examined by the deputy examiner, together with such recommendations and suggestions as the

deputy examiner may deem advisable. Such report must be in such form as may be prescribed

by the commissioner, the state banking board, or state credit union board.
N.D. Cent. Code § 6-09.18-02 — ND Code / Title 6 / Chapter 6-09.18 / Section 6-09.18-02
6-09.18-02. Legacy investment for technology committee - Membership - Meetings
Status: in_force

6-09.18-02. Legacy investment for technology committee - Membership - Meetings

1. The legacy investment for technology committee consists of:

a. The commissioner or the commissioner's designee who shall serve as the

chairperson of the committee and is a nonvoting member of the committee;

b. Three members representing active venture capital firms, private entities, or

angel capital funds;

c. One member with finance-related experience, knowledge, or education; and

d. Three members from the private sector with expertise in the diversification

sectors.

2. The commissioner, in consultation with the president of the Bank of North Dakota,

shall appoint the members of the committee. The term of office of the appointed

members of the committee is four years, and the terms must be staggered so that no

more than one of the members' terms appointed under subdivisions b and c of

subsection 1 expires each year, and so that no more than one of the members' terms

appointed under subdivision d of subsection 1 expires each year. Each term of office

commences on the first day of July. Members serve at the pleasure of the

commissioner and may be reappointed for additional terms. Members of the

committee may not invest or otherwise participate in applied research,

experimentation, or operational testing associated with a loan awarded under this

chapter. If a committee member appointed under subdivision b of subsection 1 ceases

to represent an active venture capital firm, private entity, or angel capital fund, that

individual's membership on the committee ceases immediately and the commissioner,

in consultation with the president of the Bank of North Dakota, shall appoint a new

member to the committee for the remainder of the term.

3. A committee member representing the private sector is eligible to receive

compensation in an amount not exceeding one hundred thirty-five dollars per day and

travel and expense reimbursement as provided by law for state officers for attending

meetings of the committee.

4. The committee shall meet as necessary to make loan recommendations and provide

ongoing review of research, development, and commercialization activities.
N.D. Cent. Code § 6-07.1-03 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-03
6-07.1-03. Nature and duration of receivership
Status: in_force

6-07.1-03. Nature and duration of receivership

The court may not require a bond from the commissioner as receiver. Any reference in this

chapter to the receiver is a reference to the commissioner as receiver and any successors in

office or an independent receiver appointed at the request of the commissioner. The acts of the

receiver are the acts of the state trust company in liquidation and this state and its political

subdivisions are not liable and may not be held accountable for any debt or obligation of a state

trust company in receivership. The receiver has all the powers of the directors, managers,

managing participants, officers, and shareholders or participants of the state trust company as

necessary to support an action taken on behalf of the state trust company. A state trust

company receivership must be administered continuously for the length of time necessary to

complete its purposes, and the period prescribed by other law limiting the time for the

administration of receiverships or of corporate affairs generally does not apply.
N.D. Cent. Code § 6-09.7-02 — ND Code / Title 6 / Chapter 6-09.7 / Section 6-09.7-02
6-09.7-02. Powers and duties of the Bank of North Dakota
Status: in_force

6-09.7-02. Powers and duties of the Bank of North Dakota

The Bank of North Dakota may take, hold, and administer, on behalf of the state from any

source, any property, or any interest in the property, and the income therefrom, either absolutely

or in trust, for any purpose of the state guarantee loan program; provided, that no guarantee

obligation of the Bank is payable out of any moneys of the Bank except those made available to

the Bank under this chapter. The Bank shall establish the types of projects and ventures eligible

to be guaranteed under this chapter.
N.D. Cent. Code § 6-05-26 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-26
6-05-26. Increase in capital stock - Action by stockholders - Report to state banking board
Status: in_force

6-05-26. Increase in capital stock - Action by stockholders - Report to state banking

board.

The capital stock of such a corporation may be increased from time to time by a majority

vote of its stockholders. Such action may be taken at any regularly called general or special

meeting held upon sixty days' notice, when in the notice of such meeting the object thereof has

been set out fully. No such increase of capital stock is valid unless paid in, in cash, and reported

to the state banking board in writing, verified by the oath of the president, secretary, or

managing officer of the corporation.
N.D. Cent. Code § 6-02-08 — ND Code / Title 6 / Chapter 6-02 / Section 6-02-08
6-02-08. Certificate and authorization published
Status: repealed

6-02-08. Certificate and authorization published

Repealed by S.L. 1969, ch. 101, § 1.
N.D. Cent. Code § 6-09.4-27 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-27
6-09.4-27. Confidentiality of certain public finance authority records
Status: in_force

6-09.4-27. Confidentiality of certain public finance authority records

Commercial or financial information of a contracting party provided to the public finance

authority as part of any qualified small issue bonds or municipal industrial revenue bonds

purchased or issued by the public finance authority, whether obtained directly or indirectly, are

confidential records. Confidential records do not include routine credit inquiries; records required

to be disclosed by due legal process; the name, address, and contact information of a

contracting party; or the amount loaned to a contracting party.
N.D. Cent. Code § 6-14-02 — ND Code / Title 6 / Chapter 6-14 / Section 6-14-02
6-14-02. Civil liability - Attorney's fees
Status: in_force

6-14-02. Civil liability - Attorney's fees

A person that violates this chapter is civilly liable to the bank, trust company, savings

association, savings bank, or affiliate for each unlawful use of a name or logo in the amount of

one thousand dollars or actual damages, whichever is greater, plus reasonable attorney's fees.
N.D. Cent. Code § 6-09-27 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-27
6-09-27. Civil actions on Bank transactions - Name of parties - Service - Venue
Status: in_force

6-09-27. Civil actions on Bank transactions - Name of parties - Service - Venue

1. Civil actions may be brought against the state of North Dakota on account of claims for

relief claimed to have arisen out of transactions connected with the operation of the

Bank of North Dakota upon condition that the provisions of this section are complied

with. In such actions, the state must be designated as "The State of North Dakota,

doing business as The Bank of North Dakota". The actions may be brought in the

same manner and are subject to the same provisions of law as other civil actions. The

action must be brought in Burleigh County except as provided in section 28-04-01 or

except as provided in subsection 2.

2. If the Bank seeks to participate in a loan that involves multiple banks and if the loan

documents require the Bank to agree that civil actions will be commenced in a state

outside of North Dakota, the Bank may agree to venue outside of North Dakota if

approved by the attorney general.
N.D. Cent. Code § 6-05-12 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-12
6-05-12. Court bonds not required
Status: in_force

6-05-12. Court bonds not required

Any such corporation is not required to give any bond or security in connection with the

execution of any trust, or in any suit, action, or special proceeding, during the performance of

any such trust, in any court in this state.
N.D. Cent. Code § 6-01-26 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-26
6-01-26. Special state examiner
Status: repealed

6-01-26. Special state examiner

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-01-30 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-30
6-01-30. Reports of commissioner - Contents
Status: in_force

6-01-30. Reports of commissioner - Contents

The commissioner shall report to the governor the result of the commissioner's examination

of any public office or state institution and also shall make a report on any particular matter

connected therewith at any time when required to do so by the governor.
N.D. Cent. Code § 6-09.11-04 — ND Code / Title 6 / Chapter 6-09.11 / Section 6-09.11-04
6-09.11-04. Loans to farmers - Purposes
Status: in_force

6-09.11-04. Loans to farmers - Purposes

The following purposes are eligible to be funded by bond proceeds or loan participations

under this chapter:

1. Purchasing agricultural real estate;

2. Constructing, repairing, altering, or adding to any farm buildings on agricultural real

estate owned or purchased by the farmer;

3. Making permanent improvements to agricultural real estate owned or purchased by

the farmer for the purpose of increasing the productive value of the land or promoting

conservation of the soil;

4. Purchasing farm equipment;

5. Purchasing livestock;

6. Paying off and discharging mortgages, encumbrances, and other charges or liens

against or on the agricultural real or personal property owned or purchased by the

farmer; and

7. Restructuring operating debt carryover.
N.D. Cent. Code § 6-10-08 — ND Code / Title 6 / Chapter 6-10 / Section 6-10-08
6-10-08. Penalty
Status: in_force

6-10-08. Penalty

Any person violating the provisions of this chapter is guilty of a class A misdemeanor.
N.D. Cent. Code § 6-14-01 — ND Code / Title 6 / Chapter 6-14 / Section 6-14-01
6-14-01. Unlawful use of name or logo
Status: in_force

6-14-01. Unlawful use of name or logo

A person may not use the name or logo of any bank, trust company, savings association, or

savings bank or of an affiliate of such financial institution in connection with the sale,

distribution, offer for sale, advertisement, or promotion of any product or service without first

obtaining the written consent of the bank, trust company, savings association, savings bank, or

affiliate. A person may not use the name or logo of a bank, trust company, savings association,

savings bank, or affiliate in a manner that will make it difficult to understand or will mislead an

individual about the source of origin, affiliation, or sponsorship of a product or service or about

the true identity source of a communication regardless of the nature of the communication.
N.D. Cent. Code § 6-07.1-04 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-04
6-07.1-04. Contest of liquidation
Status: in_force

6-07.1-04. Contest of liquidation

A state trust company, acting through a majority of its directors, managers, or managing

participants, may intervene in the action filed by the commissioner to challenge the

commissioner's closing of the state trust company and to enjoin the commissioner or other

receiver from liquidating its assets. The intervenors must file the intervention not later than the

second business day after the closing of the state trust company, excluding legal holidays. The

court may issue an ex parte order restraining the receiver from liquidating state trust company

assets pending a hearing on the injunction. The receiver shall comply with the restraining order

but may petition the court for permission to liquidate an asset as necessary to prevent its loss or

diminution pending the outcome of the injunction. The court shall hear this action as quickly as

possible and shall give it priority over other business. The state trust company or receiver may

appeal the court's judgment as in other civil cases, except that the receiver shall retain all state

trust company assets pending a final appellate court order even if the commissioner does not

prevail in the district court. If the commissioner prevails in the district court, liquidation of the

state trust company may proceed unless the district court or appellate court orders otherwise. If

liquidation is enjoined or stayed pending appeal, the district court retains jurisdiction to permit

liquidation of an asset as necessary to prevent its loss or diminution pending the outcome of the

appeal.
N.D. Cent. Code § 6-08.3-02.1 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-02.1
6-08.3-02.1. Application to acquire a state-chartered or national bank
Status: in_force

6-08.3-02.1. Application to acquire a state-chartered or national bank

An out-of-state bank holding company may acquire a North Dakota state-chartered or

national bank pursuant to the approval process applicable for in-state acquisitions and under the

conditions of this chapter. An out-of-state bank holding company shall provide notice to the

board at the time an application or notice is filed with the applicable federal regulatory agency to

acquire a North Dakota bank. Notwithstanding any provision to the contrary in this title, an

out-of-state bank holding company that owned a depository institution as defined in section

6-08.3-01, the main office of which was located in this state on January 1, 1997, may reorganize

that depository institution's North Dakota operations as a newly chartered state or national bank

in this state.
N.D. Cent. Code § 6-08.5-02 — ND Code / Title 6 / Chapter 6-08.5 / Section 6-08.5-02
6-08.5-02. Eligible adult financial exploitation prevention - Duration of refusal or hold - Notification and reporting - Immunity
Status: in_force

6-08.5-02. Eligible adult financial exploitation prevention - Duration of refusal or hold -

Notification and reporting - Immunity.

1. If a financial service provider has a good faith belief to suspect financial exploitation

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

refuse a financial transaction or hold a financial transaction on an account:

a. Belonging to the eligible adult;

b. On which the eligible adult is a beneficiary, including a trust, guardianship, or

conservatorship account; or

c. Belonging to a person suspected of perpetrating financial exploitation.

2. A financial service provider may refuse a financial transaction or hold a financial

transaction under this section if the department of health and human services or a law

enforcement agency provides information to the financial service provider

demonstrating it is reasonable to believe financial exploitation occurred, was

attempted, or is being attempted.

3. Subsection 2 does not require a financial service provider to refuse a financial

transaction or hold a financial transaction if provided with information by the

department of health and human services or a law enforcement agency alleging

financial exploitation occurred, was attempted, or is being attempted. Except as

ordered by a court, a financial service provider may determine whether to refuse a

financial transaction or hold a financial transaction based on the information available

to the financial service provider.

4. A financial service provider refusing a financial transaction or holding a financial

transaction based on a good faith belief to suspect financial exploitation occurred, was

attempted, or is being attempted shall:

a. Except with regard to an account administered by a bank or trust company in a

fiduciary capacity, make a reasonable effort to notify, orally or in writing, one or

more parties authorized to transact business on the account; and

b. Report the incident to the department of health and human services, if the

incident involves financial exploitation of a vulnerable adult as defined in section

50-25.2-01.

5. Notice under this section is not required to be provided to a party authorized to

conduct business on the account if the party is the suspected perpetrator of financial

exploitation.

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

provider, is immune from all criminal, civil, and administrative liability:

a. For refusing or not refusing a financial transaction, or for holding or not holding a

financial transaction under this section; or

b. For actions taken in furtherance of the determination made under subdivision a, if

the determination is based upon a good faith belief financial exploitation occurred,

was attempted, or is being attempted.
N.D. Cent. Code § 6-09.4-10.1 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-10.1
6-09.4-10.1. Legacy sinking and interest fund - Debt service requirements - Public finance authority
Status: in_force

6-09.4-10.1. Legacy sinking and interest fund - Debt service requirements - Public

finance authority.

There is created in the state treasury the legacy sinking and interest fund. The fund consists

of all moneys deposited in the fund under section 54-27-32. Moneys in the fund may be spent

by the public finance authority pursuant to legislative appropriations to meet the debt service

requirements for evidences of indebtedness issued by the authority for transfer to the Bank of

North Dakota for allocations to infrastructure projects and programs.
N.D. Cent. Code § 6-09-29 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-29
6-09-29. Examinations and audit reports
Status: in_force

6-09-29. Examinations and audit reports

1. The state auditor shall contract with an independent certified public accounting firm for

an annual audit of the Bank of North Dakota in accordance with generally accepted

government auditing standards. On request of the state auditor, the industrial

commission shall assist the state auditor in the auditing firm selection process, but the

selection of the auditing firm is the state auditor's responsibility. The auditor selected

shall prepare an audit report that includes financial statements presented in

accordance with the audit and accounting guide for banks and savings institutions

issued by the American institute of certified public accountants. The auditor also shall

prepare audited financial statements for inclusion in the comprehensive annual

financial report for the state.

2. The separate programs and funds administered by the Bank must be audited annually.

The audits may be conducted by the state auditor or an independent certified public

accounting firm. The audits of the separate programs and funds administered by the

Bank may be combined into one comprehensive audit if combining the audits provides

cost savings and efficiencies.

3. The state auditor may conduct performance audits of the Bank of North Dakota,

including the separate programs and funds administered by the Bank. The auditor

shall report the results of the audit to the industrial commission and to the legislative

assembly. The Bank of North Dakota or its separate programs and funds shall pay the

costs of the performance audit.

4. The department of financial institutions, through the commissioner, shall examine the

Bank of North Dakota at least once each twenty-four months and conduct any

investigation of the Bank which may be necessary. The commissioner shall report the

examination results, and the results of any necessary investigation, to the industrial

commission as soon as practicable and to the legislative assembly. The department of

financial institutions shall charge a fee for any examination or investigation at an hourly

rate to be set by the commissioner, sufficient to cover all reasonable expenses of the

department associated with the examinations and investigations provided for by this

section.
N.D. Cent. Code § 6-01-28 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-28
6-01-28. Public and private officers to aid examiner - Examiner's authority on investigation
Status: repealed

6-01-28. Public and private officers to aid examiner - Examiner's authority on

investigation.

Repealed by S.L. 1967, ch. 376, § 63.
N.D. Cent. Code § 6-03-55 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-55
6-03-55. Powers of pledgee of bank assets
Status: in_force

6-03-55. Powers of pledgee of bank assets

Holders of pledged or hypothecated notes or other evidences of indebtedness pledged by

state banking associations have the right to collect and enforce payment, and to renew or

extend the time of payment thereof for a period not longer than fifteen months, if no endorser,

guarantor, or joint maker would be released by such renewal or extension. Such holders also

have the right:

1. To accept from the makers of such pledged or hypothecated notes or other evidences

of debt, security, or additional security for the payment thereof.

2. To execute and give discharges and releases of instruments and securities to the

maker upon payment in full thereof.

3. To sell, assign, and transfer any note with the security pledged therefor.

The pledgee is entitled to be reimbursed from the pledged assets, or from the proceeds of the

sale thereof, for the reasonable and necessary expenses incurred and expended in collecting,

renewing, securing, and otherwise protecting the assets pledged or hypothecated to the

pledgee.
N.D. Cent. Code § 6-08.6-03 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-03
6-08.6-03. Variation by agreement or amendment
Status: in_force

6-08.6-03. Variation by agreement or amendment

1. The effect of sections 6-08.6-01 through 6-08.6-05, 6-08.6-07 through 6-08.6-10, and

6-08.6-13 may not be varied by agreement, except as provided in those sections.

Subject to subsection2, the effect of sections 6-08.6-06, 6-08.6-11, and 6-08.6-12 may

be varied by agreement.

2. A provision in an account agreement or other record that substantially excuses liability

or substantially limits remedies for failure to perform an obligation under this chapter is

not sufficient to vary the effect of a provision of this chapter.

3. If a beneficiary is a party to an account agreement, the bank or credit union and the

depositor may amend the agreement without the consent of the beneficiary only if the

agreement expressly permits the amendment.

4. If a beneficiary is not a party to an account agreement and the bank or credit union

and the depositor know the beneficiary has knowledge of the agreement's terms, the

bank or credit union and the depositor may amend the agreement without the consent

of the beneficiary only if the amendment does not adversely and materially affect a

payment right of the beneficiary.

5. If a beneficiary is not a party to an account agreement and the bank or credit union

and the depositor do not know whether the beneficiary has knowledge of the

agreement's terms, the bank or credit union and the depositor may amend the

agreement without the consent of the beneficiary only if the amendment is made in

good faith.
N.D. Cent. Code § 6-05-32 — ND Code / Title 6 / Chapter 6-05 / Section 6-05-32
6-05-32. Foreign corporation doing fidelity or surety business to pay tax - To whom paid - How determined
Status: repealed

6-05-32. Foreign corporation doing fidelity or surety business to pay tax - To whom

paid - How determined.

Repealed by S.L. 1983, ch. 332, § 26.
N.D. Cent. Code § 6-09.8-04 — ND Code / Title 6 / Chapter 6-09.8 / Section 6-09.8-04
6-09.8-04. Application for guarantee
Status: repealed

6-09.8-04. Application for guarantee

Repealed by S.L. 2019, ch. 54, § 13.
N.D. Cent. Code § 6-08-12 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-12
6-08-12. False statements or entries - Felony
Status: repealed

6-08-12. False statements or entries - Felony

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 6-03-59.1 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-59.1
6-03-59.1. Leasing of personal property - Limitation on term and amount
Status: in_force

6-03-59.1. Leasing of personal property - Limitation on term and amount

A bank may become the owner and lessor of personal property upon the specific request of

and for the use of a customer. The term of the lease may not exceed twenty years and all such

leases must provide for the payment of at least annual rentals, the total of which must at least

equal the cost to the bank of the personal property so leased. The total leasing obligation or

rentals to a bank will be a part of the total liability limitations of any borrower as set forth in

section 6-03-59.
N.D. Cent. Code § 6-09.15-03 — ND Code / Title 6 / Chapter 6-09.15 / Section 6-09.15-03
6-09.15-03. Application for guarantee - Term - Annual fee
Status: in_force

6-09.15-03. Application for guarantee - Term - Annual fee

A lender may apply to the Bank of North Dakota for a loan guarantee for a loan amount to

be determined by the Bank. The Bank may approve a guarantee of a loan of up to five thousand

dollars to a beginning entrepreneur for use by the beginning entrepreneur for accounting, legal,

and business planning and other consulting or advisory services in planning for the

establishment of a qualified revenue-producing enterprise. The Bank may approve a guarantee

of a loan of up to twenty-five thousand dollars to a beginning entrepreneur without requiring the

beginning entrepreneur to provide collateral for the loan. The term of a loan guarantee may not

exceed five years. The Bank may charge a lender an annual fee during the term of a loan

guarantee. Total outstanding guarantees under this program at the time of issuance may not

exceed five percent of the Bank's tier one capital as defined by the department of financial

institutions.
N.D. Cent. Code § 6-09.9-04 — ND Code / Title 6 / Chapter 6-09.9 / Section 6-09.9-04
6-09.9-04. Participation loans by private financial institutions
Status: in_force

6-09.9-04. Participation loans by private financial institutions

1. The industrial commission may adopt rules relating to the maximum rate of interest

charged on the portion of the operating loan retained by a participating financial

institution.

2. All participation interests purchased are subject to the review and approval of the

Bank.
N.D. Cent. Code § 6-07.2-12 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-12
6-07.2-12. Appointment of successor fiduciary and representative proceedings
Status: in_force

6-07.2-12. Appointment of successor fiduciary and representative proceedings

1. The receiver may appoint one or more successors to any or all of the rights,

obligations, assets, deposits, agreements, and trusts held by the closed institution as

trustee, administrator, executor, guardian, agent, and all other fiduciary or

representative capacities. The approval may be obtained in connection with the

proceedings authorized under section 6-07.2-06.

2. A successor's duties and obligations begin upon appointment to the same extent

binding upon the closed institution and as though the successor had originally

assumed the duties and obligations. Specifically, a successor must be appointed to

administer trusteeships, administrations, executorships, guardianships, agencies, and

other fiduciary or representative proceedings to which the closed institution is named

or appointed in wills, whenever probated, or to which it is appointed by any other

instrument or court order, or by operation of law.

3. This section does not impair any right of the grantor or beneficiaries of trust assets to

secure the appointment of a substituted trustee or manager.

4. Within thirty days after appointment, a successor shall give written notice, insofar as

practical, that the successor has been appointed in accordance with applicable law to

all interested parties named in:

a. The books and records of the closed institution; and

b. Trust documents held by the successor.
N.D. Cent. Code § 6-09-03 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-03
6-09-03. Industrial commission may acquire property by purchase or eminent domain - Investment in banking house and furnishings
Status: repealed

6-09-03. Industrial commission may acquire property by purchase or eminent domain

- Investment in banking house and furnishings.

Repealed by S.L. 1989, ch. 110, § 11.
N.D. Cent. Code § 6-09.4-11 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-11
6-09.4-11. Additional reserves and funds
Status: in_force

6-09.4-11. Additional reserves and funds

The public finance authority may establish such additional and further reserves or such

other funds or accounts as may be, in its discretion, necessary, desirable, or convenient to

further the accomplishment of the purposes of the public finance authority to comply with the

provisions of any agreement made by or any resolution of the public finance authority.
N.D. Cent. Code § 6-07.2-14 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-14
6-07.2-14. Actions for enforcement or rights, demands, or claims vested in an institution or its shareholders of creditors
Status: in_force

6-07.2-14. Actions for enforcement or rights, demands, or claims vested in an

institution or its shareholders of creditors.

Notwithstanding any other provision of state law, the receiver may, within five years from the

date of closing of the institution, institute and maintain, in the name of the receiver, any action or

proceeding for the enforcement of any right, demand, or claim that is vested in the institution.
N.D. Cent. Code § 6-03-59.2 — ND Code / Title 6 / Chapter 6-03 / Section 6-03-59.2
6-03-59.2. Lease financing of public facilities
Status: in_force

6-03-59.2. Lease financing of public facilities

A state-chartered bank may purchase or construct a municipal building, school building, or

other similar public facility and, as holder of legal title, lease the facility to a municipality or other

public authority having resources sufficient to make all rental payments as they become due.

The lease agreement must provide that the lessee will become the owner of the building or

facility upon the expiration of the lease. All leases provided in accordance with this section must

be subject to the bank's legal lending limit.
N.D. Cent. Code § 6-09.7-06 — ND Code / Title 6 / Chapter 6-09.7 / Section 6-09.7-06
6-09.7-06. Procedure on default of guaranteed loan
Status: in_force

6-09.7-06. Procedure on default of guaranteed loan

Whenever it appears to the satisfaction of the Bank of North Dakota that a guaranteed loan

is in default, and the eligible lender has certified this fact to the Bank, the Bank shall reimburse

the eligible lender making the loan from the reserve fund to the extent the loan was guaranteed

by the fund. Whenever payment of the guaranteed principal balance of any guaranteed loan is

demanded of the Bank, the note and accompanying evidence of the loan must be tendered to

the Bank in manner and form to confer good title so that the loan may be collected by the Bank

as it may determine according to law. No statute of limitations may be used as a defense

against collection, through court proceedings, of any loan guaranteed under this chapter.
N.D. Cent. Code § 6-07.1-09 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-09
6-07.1-09. Depositories
Status: in_force

6-07.1-09. Depositories

The receiver may deposit funds collected on behalf of the state trust company estate in the

Bank of North Dakota or one or more depository institutions in this state. If receivership funds

deposited in an account at a depository institution exceed the maximum insured amount, the

receiver shall require the excess deposit to be adequately secured through pledge of securities

or otherwise, without approval of the court.
N.D. Cent. Code § 6-07.1-21 — ND Code / Title 6 / Chapter 6-07.1 / Section 6-07.1-21
6-07.1-21. Filing claims
Status: in_force

6-07.1-21. Filing claims

A person who has a claim against the estate of a state trust company in liquidation must file

proof of claim pursuant to rules adopted by the state banking board. The priority of disposition of

assets from the estate of a state trust company must be in accordance with the order of each

class as provided by this section. Every claim in each class must be paid in full, or adequate

funds must be retained for that payment, before the members of the next class receive any

payment. A subclass may not be established within a class, except for a preference or

subordination within a class expressly created by contract or other instrument in the articles of

association. Assets must be distributed in the following order of priority: administrative

expenses; approved claims of secured trust deposits; approved claims of secured creditors;

approved claims by beneficiaries insufficient to satisfy all fiduciary claims to commingled

fiduciary funds or missing fiduciary property and approved claims of clients of the state trust

company; other approved claims of general creditors not falling within a higher priority under this

section; approved claims of a type described above that were not filed within the period

prescribed; and claims of capital note or debenture holders or holders of similar obligations and

proprietary claims of shareholders, participants, or other owners accorded the terms established

by issue, class, or series. After completion of the liquidation, any unclaimed property remaining

in the hands of the receiver must be considered abandoned property.
N.D. Cent. Code § 6-09.10-05 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-05
6-09.10-05. Interest rate buydowns by the board
Status: repealed

6-09.10-05. Interest rate buydowns by the board

Repealed by S.L. 2011, ch. 83, § 15.
N.D. Cent. Code § 6-07.2-11 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-11
6-07.2-11. Subrogation of federal deposit insurance agency to right of depositors
Status: in_force

6-07.2-11. Subrogation of federal deposit insurance agency to right of depositors

If a federal deposit insurance agency pays or makes available for payment the insured

deposit liabilities of a closed institution, the federal deposit insurance agency, whether or not the

federal deposit insurance agency acts as receiver, must be subrogated by operation of law to all

rights of depositors against the closed institution relating to claims for deposits so paid by the

federal deposit insurance agency to the extent necessary to enable the federal deposit

insurance agency, under federal law, to make insurance payments available to depositors of

closed institutions.
N.D. Cent. Code § 6-09.10-08.3 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-08.3
6-09.10-08.3. Eligible farmers and small business persons
Status: repealed

6-09.10-08.3. Eligible farmers and small business persons

Repealed by S.L. 1997, ch. 98, § 3.
N.D. Cent. Code § 6-09-16 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-16
6-09-16. Funds transferred to state departments - How credited by state treasurer
Status: repealed

6-09-16. Funds transferred to state departments - How credited by state treasurer

Repealed by S.L. 1979, ch. 142, § 1.
N.D. Cent. Code § 6-09-35 — ND Code / Title 6 / Chapter 6-09 / Section 6-09-35
6-09-35. Confidentiality of Bank records - Exempt records
Status: in_force

6-09-35. Confidentiality of Bank records - Exempt records

1. The following records of the Bank of North Dakota are confidential:

a. Commercial or financial information of a customer, whether obtained directly or

indirectly, except for routine credit inquiries or unless required by due legal

process. As used in this subsection, "customer" means any person who has

transacted or is transacting business with, or has used or is using the services of,

the Bank of North Dakota, or for whom the Bank of North Dakota has acted as a

fiduciary with respect to trust property.

b. Internal or interagency memorandums or letters which would not be available by

law to a party other than in litigation with the Bank.

c. Information contained in or related to examination, operating, or condition reports

prepared by, on behalf of, or for the use of a state or federal agency responsible

for the regulation or supervision of any Bank activity.

d. Information obtained from the state department of financial institutions which

would not be available from that agency under section 6-01-07.1.

e. The report by a Bank officer or member of the Bank's advisory board of directors

concerning personal financial statements.

2. The following records of the Bank of North Dakota are exempt:

a. Bond insurance coverage, including excess bond insurance coverage.

b. Cyber liability coverage, including excess cyber liability coverage.
N.D. Cent. Code § 6-09.10-11 — ND Code / Title 6 / Chapter 6-09.10 / Section 6-09.10-11
6-09.10-11. Agriculture commissioner - Authorization to receive and expend moneys
Status: in_force

6-09.10-11. Agriculture commissioner - Authorization to receive and expend moneys

The agriculture commissioner may receive and expend any public or nonpublic moneys that

become available for the purpose of defraying the expenses of the North Dakota mediation

service.
N.D. Cent. Code § 6-08.3-12 — ND Code / Title 6 / Chapter 6-08.3 / Section 6-08.3-12
6-08.3-12. Reporting of loans
Status: repealed

6-08.3-12. Reporting of loans

Repealed by S.L. 1995, ch. 79, § 25.
N.D. Cent. Code § 6-07.2-02 — ND Code / Title 6 / Chapter 6-07.2 / Section 6-07.2-02
6-07.2-02. When possession terminates
Status: in_force

6-07.2-02. When possession terminates

If the commissioner has taken possession of the business and property of an institution

under the provisions of section 6-07.2-01, the commissioner shall hold possession of the

business and property until the affairs of the institution have been finally liquidated as provided

in this chapter, unless the institution has undertaken the voluntary liquidation of the affairs of the

institution under this chapter, or either the federal deposit insurance corporation, or any

successor federal deposit insurance agency, or the national credit union association, or any

successor federal deposit insurance agency, has been appointed receiver.
N.D. Cent. Code § 6-08-24.1 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-24.1
6-08-24.1. Disposition of certain unclaimed accounts
Status: repealed

6-08-24.1. Disposition of certain unclaimed accounts

Repealed by S.L. 1975, ch. 425, § 29.
N.D. Cent. Code § 6-08.6-01 — ND Code / Title 6 / Chapter 6-08.6 / Section 6-08.6-01
6-08.6-01. Definitions
Status: in_force

6-08.6-01. Definitions

In this chapter:

1. "Account agreement" means an agreement that:

a. Is in a record between a bank or credit union and one or more depositors;

b. May have one or more beneficiaries as additional parties; and

c. States the intention of the parties to establish a special deposit in accordance

with this chapter.

2. "Bank" means a trust company or a person engaged in the business of banking as

defined in section 6-01-02.

3. "Beneficiary" means a person that:

a. Is identified as a beneficiary in an account agreement; or

b. If not identified as a beneficiary in an account agreement, may be entitled to

payment from a special deposit:

(1) Under the account agreement; or

(2) On termination of the special deposit.

4. "Contingency" means an event or circumstance stated in an account agreement which

is not certain to occur but must occur before the bank or credit union is obligated to

pay a beneficiary.

5. "Creditor process" means attachment, garnishment, levy, notice of lien, sequestration,

or similar process issued by or on behalf of a creditor or other claimant.

6. "Depositor" means a person that establishes or funds a special deposit.

7. "Good faith" means honesty in fact and observance of reasonable commercial

standards of fair dealing.

8. "Knowledge" of a fact means:

a. With respect to a beneficiary, actual knowledge of the fact; or

b. With respect to a bank or credit union holding a special deposit:

(1) If the bank or credit union:

(a) Has established a reasonable routine for communicating material

information to an individual to whom the bank or credit union has

assigned responsibility for the special deposit; and

(b) Maintains reasonable compliance with the routine, actual knowledge

of the fact by that individual; or

(2) If the bank or credit union has not established and maintained reasonable

compliance with a routine described in paragraph 1 or otherwise exercised

due diligence, implied knowledge of the fact that would have come to the

attention of an individual to whom the bank or credit union has assigned

responsibility for the special deposit.

9. "Obligated to pay a beneficiary" or "obligation to pay a beneficiary" means a

beneficiary is entitled under the account agreement to receive from the bank or credit

union a payment when:

a. A contingency has occurred; and

b. The bank or credit union has knowledge the contingency has occurred.

10. "Permissible purpose" means a governmental, regulatory, commercial, charitable, or

testamentary objective of the parties stated in an account agreement. The term

includes an objective to:

a. Hold funds:

(1) In escrow, including for a purchase and sale, lease, buyback, or other

transaction;

(2) As a security deposit of a tenant;

(3) That may be distributed to a person as remuneration, retirement or other

benefit, or compensation under a judgment, consent decree, court order, or

other decision of a tribunal; or

(4) For distribution to a defined class of persons after identification of the class

members and their interest in the funds;

b. Provide assurance with respect to an obligation created by contract, including

earnest money to ensure a transaction closes;

c. Settle an obligation that arises in the operation of a payment system, securities

settlement system, or other financial market infrastructure;

d. Provide assurance with respect to an obligation that arises in the operation of a

payment system, securities settlement system, or other financial market

infrastructure; or

e. Hold margin, other cash collateral, or funds that support the orderly functioning of

financial market infrastructure or the performance of an obligation with respect to

the infrastructure.

11. "Person" means an individual, estate, business or nonprofit entity, government or

governmental subdivision, agency, or instrumentality, or other legal entity. The term

includes a protected series, however denominated, of an entity if the protected series

is established under law that limits, or limits if conditions specified under law are

satisfied, the ability of a creditor of the entity or of any other protected series of the

entity to satisfy a claim from assets of the protected series.

12. "Record" means information:

a. Inscribed on a tangible medium; or

b. Stored in an electronic or other medium and retrievable in perceivable form.

13. "Special deposit" means a deposit that satisfies section 6-08.6-04.

14. "State" means a state of the United States, the District of Columbia, Puerto Rico, the

United States Virgin Islands, or any other territory or possession subject to the

jurisdiction of the United States. The term includes an agency or instrumentality of the

state.
N.D. Cent. Code § 6-08-19 — ND Code / Title 6 / Chapter 6-08 / Section 6-08-19
6-08-19. Punishment for offenses when corporation or association is convicted
Status: repealed

6-08-19. Punishment for offenses when corporation or association is convicted

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 6-09.13-05 — ND Code / Title 6 / Chapter 6-09.13 / Section 6-09.13-05
6-09.13-05. Interest rate buydown
Status: in_force

6-09.13-05. Interest rate buydown

The Bank of North Dakota may use moneys in the agriculture partnership in assisting

community expansion fund to reduce the interest rate on loans made under this chapter.
N.D. Cent. Code § 6-01-04.5 — ND Code / Title 6 / Chapter 6-01 / Section 6-01-04.5
6-01-04.5. Investigation of bank holding companies
Status: in_force

6-01-04.5. Investigation of bank holding companies

The department may investigate a bank holding company that owns or controls a North

Dakota state chartered financial institution upon the commissioner's receipt of information

material to the safety and soundness of the bank holding company, and may pursue and impose

penalties under sections 6-01-04.1, 6-01-04.2, and 6-01-04.3 against such a bank holding

company.
N.D. Cent. Code § 6-09.4-21 — ND Code / Title 6 / Chapter 6-09.4 / Section 6-09.4-21
6-09.4-21. Presumption of validity
Status: in_force

6-09.4-21. Presumption of validity

After issuance, all bonds of the public finance authority are conclusively presumed to be

fully authorized and issued under the laws of the state, and any person or governmental unit is

estopped from questioning their authorization, sale, issuance, execution, or delivery by the

public finance authority.