reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-25 - Supervisory Committee Audits and Verifications › Section 13-03-25-03 - Audit responsibility of the supervisory committee

Current through Supplement No. 393, July, 2024
1.
Annual audit requirement.
A
				credit union is required to obtain an annual supervisory committee audit or
				financial statement audit that occurs at least once every calendar year (period
				of performance) and must cover the period elapsed since the last audit period
				(period effectively covered).
2.
Financial statement audit.
Any credit union with assets greater
				than twenty-five million dollars as of its previous year-end call report must
				obtain an annual audit of its financial statements performed in accordance with
				GAAS by an independent person who is licensed to do so in this state. Any
				credit union with assets less than twenty-five million dollars may also choose
				this option. Prior to obtaining a financial statement audit, the credit union
				will make a good-faith attempt to obtain a copy of the peer review report of
				the auditing firm directly from the auditing firm to ensure the firm's auditing
				practices and procedures are in conformance with GAAS.
3.
Supervisory committee audit.
Any credit union with assets less than twenty-five million dollars, if not
				obtaining a financial statement audit, must obtain or perform a supervisory
				committee audit. This audit:
a. Must be
				completed by a qualified independent party such as a supervisory committee,
				board of directors, internal auditor, accounting professional, or others who
				can demonstrate qualifications and independence.
b. Must at a minimum document a review of:
(1) Board of director minutes to determine
				whether there are any material changes to the credit union's activities or
				condition that are relevant to the areas to be reviewed in the audit.
(2) Test and confirm material asset and
				liability accounts, including:
(a)
				Loans;
(b) Cash on
				deposit;
(c) Investments;
(d) Shares; and
(e) Borrowings.
(3) Test material equity, income, and expense
				accounts.
(4) Test for unrecorded
				liabilities.
(5) Review key
				internal controls, including:
(a) Bank
				reconciliation procedures;
(b) Cash
				controls;
(c) Dormant account
				controls;
(d) Wire and automated
				clearing house transfer controls;
(e) Loan approval and disbursement
				procedures;
(f) Controls over
				accounts of employees and officials; (g) Other real estate owned; and (h)
				Foreclosed and repossessed assets.
(6) Test the mathematical accuracy of the
				allowance for loan and lease losses account and ensure the methodology is
				properly applied.
(7) Test loan
				delinquency and charge-offs.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-25 - Supervisory Committee Audits and Verifications › Section 13-03-25-04 - Requirements for verification of accounts

Current through Supplement No. 393, July, 2024
1.
Verification obligation.
The supervisory committee, at least every
				two years, shall cause the accounts of members to be verified against the
				records of the treasurer of the credit union.
2.
Methods.
Any ofthe following
				methods may be used to verify members' passbooks and accounts, as appropriate:
a. Controlled verification. A controlled
				verification of one hundred percent of members' share and loan accounts.
b. Statistical method. A sampling
				method which provides for:
(1) Random
				selection;
(2) A sample which is
				representative of the population from which it is selected;
(3) An equal choice of selecting each dollar
				in the population;
(4) Sufficient
				accounts in both number and scope on which to base conclusions concerning
				management's financial reporting objectives; and
(5) Additional procedures to be performed if
				evidence provided by confirmations alone is not sufficient.
c. Nonstatistical method. When the
				verification is performed by an independent person licensed by the state, the
				auditor may choose among the sampling methods set forth in subdivisions a and b
				and nonstatistical sampling methods consistent with GAAS if such methods
				provide for:
(1) Sufficient accounts in both
				number and scope on which to base conclusions concerning management's financial
				reporting objectives to provide assurance that the general ledger accounts are
				fairly stated in relation to the financial statements taken as a whole;
(2) Additional procedures to be
				performed by the auditor if evidence provided by confirmations alone is not
				sufficient; and
(3) Documentation
				of the sampling procedures used and of their consistency with GAAS, to be
				provided to the commissioner of the department of financial institutions upon
				request.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-25 - Supervisory Committee Audits and Verifications › Section 13-03-25-05 - Assistance from outside, compensated person

Current through Supplement No. 393, July, 2024
1.
Unrelated to officials.
A compensated auditor who performs a
				supervisory committee audit on behalf of a credit union may not be related by
				blood or marriage to any management employee, member of either the board of
				directors, the supervisory committee, or the credit committee, or loan officer
				of that credit union.
2.
Engagement letter.
The engagement of a compensated auditor to
				perform all or a portion of the scope of a financial statement audit or
				supervisory committee audit shall be evidenced by an engagement letter. In all
				cases, the engagement must be contracted directly with the supervisory
				committee. The engagement letter must be signed by the compensated auditor and
				acknowledged therein by the supervisory committee prior to commencement of the
				engagement.
3.
Contents of
				letter.
The engagement letter shall:
a.
				Specify the terms, conditions, and objections of the engagement;
b. Identify the basis of accounting to be
				used;
c. If a supervisory committee
				guide audit, include an appendix setting forth the procedures to be
				performed;
d. Specify the rate of,
				or total, compensation to be paid for the audit;
e. Provide that upon completion of the
				engagement letter, the auditor shall deliver to the supervisory committee a
				written report of the audit and notice in writing, either within the report or
				communicated separately, of any internal control reportable conditions or
				irregularities or illegal acts, if any, which come to the auditor's attention
				during the normal course of the audit, i.e., no notice required if none
				noted;
f. Specify a target date of
				delivery of the written reports with such delivery date enabling the credit
				union to meet its annual audit requirements;
g. Certify that department of financial
				institution staff or national credit union administration staff, or both, will
				be provided unconditional access to the complete set of original working
				papers, either at the offices of the credit union or at a mutually agreed-upon
				location, for purposes of inspections; and
h. Acknowledge that working papers shall be
				retained for a minimum of three years from the date of the written
				report.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-25 - Supervisory Committee Audits and Verifications › Section 13-03-25-06 - Audit report and working paper maintenance and access

Current through Supplement No. 393, July, 2024
1.
Audit report.
Upon
				completion or receipt, or both, of the written report of a financial statement
				audit or a supervisory committee audit, the supervisory committee must verify
				that the audit was performed and reported in accordance with the terms of the
				engagement letter prescribed herein. The supervisory committee must submit the
				reports to the board of directors and provide a summary of the results of the
				audit to the members of the credit union orally or in writing at the next
				annual meeting of the credit union. If a member so requests, the supervisory
				committee shall provide the member access to the full audit report. If the
				department of financial institutions or the national credit union
				administration so requests, the supervisory committee shall provide either the
				department of financial institutions or national credit union administration a
				copy of each of the audit reports it receives or produces.
2.
Working papers.
The
				supervisory committee shall be responsible for preparing and maintaining, or
				making available, a complete set of original working papers supporting each
				supervisory committee audit. The supervisory committee shall, upon request,
				provide the department of financial institutions or national credit union
				administration staff unconditional access to such working papers, either at the
				offices of the credit union or at a mutually agreed-upon location, for purposes
				of inspecting such working papers.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-25 - Supervisory Committee Audits and Verifications › Section 13-03-25-07 - Sanctions for failure to comply with this chapter

Current through Supplement No. 393, July, 2024
Failure of a supervisory committee or its independent
				  compensated auditor or other person, or any of them, to comply with the
				  requirements of this section, or the terms of the engagement letter required by
				  this section, is ground for:
1. The
				commissioner to reject the supervisory committee audit and provide a reasonable
				opportunity to correct deficiencies;
2. The commissioner to impose the remedies
				available in section 13-03-25-08, provided any of the
				conditions specified therein is present; and
3. The national credit union administration
				board to seek formal administrative sanctions against the supervisory committee
				or its independent, compensated auditor, or both, pursuant to section 206(r) of
				the Federal Credit Union Act [
				 12 U.S.C. 1786(r)  ].
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-25 - Supervisory Committee Audits and Verifications › Section 13-03-25-08 - Statutory audit remedies for credit unions

Current through Supplement No. 393, July, 2024
1.
Audit
				by alternative licensed person.
The state credit union board may compel
				a credit union to obtain a supervisory committee audit which meets the minimum
				requirements of section 13-03-25-03 and which is performed
				by an independent person who is licensed by the state for any fiscal year in
				which any of the following three conditions is present:
a. The supervisory committee has not obtained
				an annual financial statement audit or performed a supervisory committee audit;
b. The supervisory committee has
				obtained a financial statement audit or performed a supervisory committee audit
				which does not meet the requirements of this chapter; or
c. The credit union has experienced serious
				and persistent recordkeeping deficiencies as defined in subsection 3.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-26 - Interest Rate Risk › Section 13-03-26-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Gap analysis"
				is a simple interest rate risk measurement method that reports the mismatch
				between rate sensitive assets and rate sensitive liabilities over a given time
				period. Gap can only suffice for simple balance sheets that primarily consist
				of short-term bullet type investments and non-mortgage-related
				assets.
2. "Income simulation" is
				an interest rate risk measurement method used to estimate earnings exposure to
				changes in interest rates. An income simulation analysis projects interest
				cashflows of all assets, liabilities, and off-balance sheet instruments in a
				credit union's portfolio to estimate future net interest income over a chosen
				time frame. Simulations typically include evaluations under a base-case
				scenario, and instantaneous parallel rate shocks, and may include alternate
				interest rate scenarios.
3.
				"Interest rate risk" means the risk that changes in market rates will adversely
				affect a credit union's net economic value or earnings or both. Interest rate
				risk generally arises from a mismatch between the timing of cashflows from
				fixed rate instruments, and interest rate resets of variable rate instruments,
				on either side of the balance sheet. As interest rates change, earnings or net
				economic value may decline.
4. "Net
				economic value" measures the effect of interest rates on the market value of
				net worth by calculating the present value of assets minus the present value of
				liabilities. This calculation measures the long-term interest rate risk in a
				credit union's balance sheet at a fixed point in time. By capturing the impact
				of interest rate changes on the value of all future cashflows, net economic
				value provides a comprehensive measurement of interest rate risk. Net economic
				value computations demonstrate the economic value of net worth under current
				interest rates and shocked interest rate scenarios.
General Authority:
NDCC  6-01-04
Law Implemented:
NDCC
					  6-06-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-26 - Interest Rate Risk › Section 13-03-26-02 - Interest rate risk policy and program requirements

Current through Supplement No. 393, July, 2024
1. Any credit union
				that has assets of less than fifty million dollars must maintain a basic
				written policy that provides a credit union board-approved framework for
				managing interest rate risk.
2. Any
				credit union that has assets of fifty million dollars or more is required to
				have an interest rate risk policy and program that incorporates the following
				elements into their interest rate risk program:
a. Board-approved interest rate risk
				policy.
b. Oversight by the board
				of directors and implementation by management.
c. Risk measurement systems assessing the
				interest rate risk sensitivity of earnings and asset and liability
				values.
d. Internal controls to
				monitor adherence to interest rate risk limits.
e. Decisionmaking that is informed and guided
				by interest rate risk measures.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-27 - Liquidity and Contingency Funding Plans › Section 13-03-27-01 - Policy requirements

Current through Supplement No. 393, July, 2024
1. Any credit union
				that has assets of less than fifty million dollars shall maintain a basic
				written policy that provides a credit union board-approved framework for
				managing liquidity and a list of contingent liquidity sources that can be
				employed under adverse circumstances.
2. Any credit union that has assets of fifty
				million dollars or more shall establish and document a contingency funding plan
				that meets the requirements of subsection 4.
3. In addition to the requirement specified
				in subsection 2 to establish and maintain a contingency funding plan, any
				credit union that has assets of two hundred fifty million dollars or more shall
				establish and document access to at least one contingent federal liquidity
				source for use in times of financial emergency and distressed economic
				circumstances. These credit unions shall conduct advance planning and periodic
				testing to ensure contingent funding sources are readily available when needed.
				A credit union subject to this subsection may demonstrate access to a
				contingent federal liquidity source by:
a.
				Maintaining regular membership in the central liquidity facility, as described
				in 12 CFR part 725;
b. Maintaining
				membership in the central liquidity facility through an agent, as described in
				12 CFR part 725; or
c. Establishing
				borrowing access at the federal reserve discount window by filing the necessary
				lending agreements and corporate resolutions to obtain credit from a federal
				reserve bank pursuant to 12 CFR part 201.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-28 - Loan Workouts, Loan Modifications, and Nonaccrual Policy › Section 13-03-28-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Cash basis"
				method of income recognition is set forth in generally accepted accounting
				principles and means while a loan is in nonaccrual status, some or all of the
				cash interest payments received may be treated as interest income on a cash
				basis as long as the remaining recorded investment in the loan, after
				charge-off of identified losses, if any, is deemed to be fully
				collectible.
2. "Charge-off" means
				a direct reduction (credit) to the carrying amount of a loan carried at
				amortized cost resulting from uncollectability with a corresponding reduction
				(debit) of the allowance for loan and lease loss account. Recoveries of loans
				previously charged off should be recorded when received.
3. "Cost recovery" method of income
				recognition means equal amounts of revenue and expense are recognized as
				collections are made until all costs have been recovered, postponing any
				recognition of profit until that time.
4. "Credit grading system" means a formal
				process that identifies and assigns a relative credit score to each commercial
				loan as set forth under  chapter 13-03-06.
5. "Deferral" means deferring a contractually
				due payment on a closed-end loan without affecting the other terms, including
				maturity, of the loan. The account is shown current upon granting the
				deferral.
6. "Extension" means
				extending monthly payments on a closed-end loan and rolling back the maturity
				by the number of months extended. The account is shown current upon granting
				the extension. If extension fees are assessed, they should be collected at the
				time of the extension and not added to the balance of the loan.
7. "In the process of collection" means
				collection of the loan is proceeding in due course either:
a. Through legal action, including judgment
				enforcement procedures; or
b. In
				appropriate circumstances, through collection efforts not involving legal
				action which are reasonably expected to result in repayment of the debt or in
				its restoration to a current status in the near future, generally within the
				next ninety days.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-28 - Loan Workouts, Loan Modifications, and Nonaccrual Policy › Section 13-03-28-02 - Loan workout policy and monitoring requirements

Current through Supplement No. 393, July, 2024
1. The
				board and management shall adopt and adhere to an explicit written policy and
				standards that control the use of loan workouts, and establish controls to
				ensure the policy is consistently applied. These policies must:
a. Be commensurate with the size and
				complexity of the credit union;
b.
				Define eligibility requirements, under what conditions the credit union will
				consider a loan workout, including establishing limits on the number of times
				an individual loan may be modified;
c. Ensure credit union makes loan workout
				decisions based on the borrower's renewed willingness and ability to repay the
				loan;
d. Establish sound controls
				to ensure loan workout actions are appropriately structured;
e. Prohibit additional advances to finance
				credit union fees or commissions. Advances to cover third party fees such as
				appraisals or property taxes are permissible;
f. Either prohibit the financing of accrued
				interest into the loan principal also referred to as capitalizing interest or
				require a policy allowing for the capitalization of interest only if it is in
				the best interest of both the borrower and the credit union. If capitalizing of
				interest is allowed, the policy must require:
(1) Compliance with all consumer compliance
				laws and regulations.
(2)
				Documentation showing the borrower's ability to repay the debt.
(3) Provide written and accurate disclosures
				consistent with consumer compliance laws.
(4) Appropriate accounting and reporting of
				the loans accrual and delinquency status.
(5) Consideration on how to apply
				modifications consistently.
(6)
				Consideration for options to allow missed payments to be made at the end of a
				loan to limit delinquency.
(7)
				Safeguards, such as additional board reporting to avoid masking risk in the
				loan portfolio.
(8) Procedures to
				avoid delaying loss recognition resulting in an inaccurate allowance for loan
				and lease losses account or loan valuations.
(9) Procedures to avoid overstating income or
				credit union net worth.
(10)
				Effective internal controls.
g. Require documentation that demonstrates
				the borrower is willing and able to repay the loan; and
h. Require workout loans to be accurately
				classified; for commercial loans be risk rated with the credit union's credit
				grading system; be consistent with accepted industry and regulatory guidance,
				including federal financial institutions examination council's uniform retail
				classification and account management policy; and accurately identify loans for
				impairment testing consistent with generally accepted accounting principles.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-28 - Loan Workouts, Loan Modifications, and Nonaccrual Policy › Section 13-03-28-03 - Past due status workout loans including troubled debt restructure past due status

Current through Supplement No. 393, July, 2024
1. The past due
				status of all loans must be calculated consistent with loan contract terms,
				including amendments made to loan terms through a formal restructure. Credit
				unions shall report delinquency on the call report consistent with this
				policy.
2. Troubled debt
				restructure status must be determined and reported without the application of
				materiality threshold exclusions.
General Authority:
NDCC  6-01-04
Law Implemented:
NDCC
					  6-06-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-28 - Loan Workouts, Loan Modifications, and Nonaccrual Policy › Section 13-03-28-04 - Loan nonaccrual policy and procedures

Current through Supplement No. 393, July, 2024
1. Policy or
				procedure must prohibit the accrual of interest or fees on any loan upon which
				principal or interest has been in default for a period of ninety days or
				more.
2. Policy or procedure must
				require loans to be placed in nonaccrual status if maintained on a cash or cost
				recovery basis under generally accepted accounting principles because of
				deterioration in the financial condition of the borrower, or for which payment
				in full of principal or interest is not expected.
3. Policy or procedure must allow nonaccrual
				noncommercial loan to be restored to accrual status when:
a. Its past due status is less than ninety
				days, generally accepted accounting principles does not require it to be
				maintained on the cash or cost recovery basis, and the credit union is
				plausibly assured of repayment of the remaining contractual principal and
				interest within a reasonable period;
b. When it otherwise becomes both well
				secured and in the process of collection; or
c. The asset is a purchased impaired loan and
				it meets the criteria under generally accepted accounting principles for
				accrual of income under the interest method specified therein.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Debt collector" means any collection agency, employee of
				  a collection agency, and any person engaging, directly or indirectly, in debt
				  collection, and includes any person who sells, or offers to sell, forms
				  represented to be a collection system, device, or scheme, intended or
				  calculated to be used to collect debts and the person is required to be
				  licensed under North Dakota Century Code chapter  13-05.
2. "Debtor"
				  means any person who is subject to debt.
3. "Person" means a person
				  as defined under North Dakota Century Code section
				   1-01-49.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-01,
					  13-05-02
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-02 - Prohibited advertising and communications

Current through Supplement No. 393, July, 2024
No collection agency or debt collector shall:
1. Publish or cause to be published any list
				of debtors, except for credit reporting purposes, advertise or threaten to
				advertise for sale any debt as a means of forcing payment thereof, or use
				similar devices or methods of intimidation.
2. Communicate with debtors in a misleading
				or deceptive manner by using the stationery of a lawyer, forms or instruments
				which only lawyers are authorized to prepare, or instruments which simulate the
				form and appearance of judicial process.
3. Exercise authority on behalf of a creditor
				to employ the services of lawyers unless the creditor has specifically
				authorized the agency in writing to do so, and the agency's course of conduct
				is always consistent with a true relationship of attorney and client between
				the lawyer and the creditor.
4.
				Refuse to return any debt and all valuable papers deposited with a debt upon
				written request of the creditor, claimant, or forwarder after tender of such
				amounts due and owing to the agency within thirty days after such request;
				neglect, refuse, or intentionally fail to account to its clients for all money
				collected within forty-five days from the last day of the month in which the
				same is collected; or refuse or fail to furnish at intervals of not less than
				ninety days upon written request of the claimant or forwarder, a written report
				upon debts received from such claimant or forwarder.
5. In collection letters or publications, or
				in any communication, oral or written, threaten wage garnishment or legal suit
				without an objective intention to engage a lawyer and commence legal action
				upon the debtor's failure to comply with the request or demand made.
6. Use or employ constables, sheriffs, or any
				other officer authorized to serve legal papers in connection with the
				collection of a debt, except when performing their legally authorized
				duties.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-02,
					  13-05-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-03 - Debt collectors - Approval

Current through Supplement No. 393, July, 2024
Licensed collection agencies may only appoint debt collectors
				  who are of good moral character, are knowledgeable in collection agency
				  practices and ethics, have a good credit reputation, and have a reputation for
				  fair and honest dealings. The name and address of a person appointed as a debt
				  collector must be forwarded to the department by the licensed collection
				  agency.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-03(4)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-04 - Prohibited practices

Current through Supplement No. 393, July, 2024
No debt collector may:
1. Perform legal services, furnish legal
				advice, or falsely represent, directly or by implication, that the debt
				collector is an attorney.
2.
				Solicit assignments of claims for the purpose of suit or at the instigation of
				an attorney.
3. Institute judicial
				proceedings on behalf of other persons except on an assigned debt.
4. Communicate with debtors in the name of an
				attorney or upon stationery or other written matter bearing an attorney's
				name.
5. Make any demand for or
				payment of money constituting a share of compensation for services performed or
				to be performed by an attorney in collecting a debt.
6. Violate sections 804 through 810 of the
				Federal Fair Debt Collection Practices Act [
				 Pub. L. 90-321; 91 Stat. 876 through 880;
				 15 U.S.C. 1692 b through
				1692h ].
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-05 - Threats or coercion prohibited

Current through Supplement No. 393, July, 2024
No debt collector may collect or attempt to collect any debt
				  by means of any threat, coercion, or attempt to coerce. Without limiting the
				  general application of the foregoing, no debt collector may:
1. Use, or expressly or implicitly threaten
				the use of violence or other criminal means, to cause harm to the person,
				reputation, or property of any person.
2. Accuse or threaten to accuse any person of
				fraud or any other crime, or any conduct which, if true, would tend to disgrace
				such other person, or in any way subject the person to ridicule or any conduct
				which, if true, would tend to disgrace the person, or in any way subject the
				person to the ridicule or contempt of society.
3. Make to another person, including any
				credit reporting agency, false accusations, or threats of false accusations,
				that a debtor is willfully refusing to pay a just debt.
4. Threaten to sell or assign to another the
				obligation of the debtor with an attending representation or implication that
				the result of such sale or assignment would be that the debtor would lose any
				defense to the debt or would be subjected to harsh, vindictive, or abusive
				collection attempts.
5. Represent
				that nonpayment of any debt will result in the arrest or imprisonment of any
				person or the seizure, garnishment, attachment, or sale of any property or
				wages of any person, unless such action is lawful and the debt collector or
				creditor intends and is legally entitled to bring such action.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-06 - Harassment or abuse prohibited

Current through Supplement No. 393, July, 2024
No debt collector may oppress, harass, or abuse any person in
				  connection with the collection of or attempt to collect any debt alleged to be
				  due and owing by that person or another. Without limiting the general
				  application of the foregoing, no debt collector may:
1. Use profane or obscene language or
				language that is intended to abuse the hearer or reader.
2. Place telephone calls without disclosure
				to the debtor of the caller's true identity, including name and collection
				agency.
3. Cause expense to any
				person in the form of long distance telephone tolls, telegram fees, or other
				charge incurred by a medium of communications, by concealment of the true
				purpose of the notice, letter, message, or communication.
4. Cause a telephone to ring or engage any
				person in telephone conversation repeatedly or continuously, or at unusual
				times or times known to be inconvenient.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-07 - Unreasonable publication prohibited

Current through Supplement No. 393, July, 2024
No debt collector may unreasonably publicize information
				  relating to any alleged indebtedness or debtor. Without limiting the general
				  application of the foregoing, no debt collector may:
1. Communicate any information relating to a
				debtor's indebtedness to any employer or the employer's agent except as
				reasonably necessary for legal process or to effectuate a past judgment
				judicial remedy.
2. Disclose,
				publish, or communicate information relating to a debtor's indebtedness to any
				relative or family member of the debtor, excluding the husband or wife, except
				through proper legal action or process or with the express consent of the
				debtor.
3. Disclose, publish, or
				communicate any information relating to a debtor's indebtedness to any other
				person, by publishing or posting any list of debtors, commonly known as
				deadbeat lists, by advertising for sale any claim to enforce payment of a debt,
				or in any manner other than through proper legal action, process, or
				proceeding.
4. Use any form of
				communication to the debtor, which ordinarily may be seen by any other person,
				that displays or conveys any information about the alleged debt other than the
				return address and phone number of the debt collector.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-08 - Fraudulent, deceptive, or misleading representations prohibited

Current through Supplement No. 393, July, 2024
No debt collector may use any fraudulent, deceptive, or
				  misleading representation or means to collect or attempt to collect debts or to
				  obtain information concerning debtors. Without limiting the general application
				  of the foregoing, no debt collector may:
1. Use any name while engaged in the
				collection of debts other than the debt collector's true name unless the
				assumed name is registered with the department as an alias for the debt
				collector.
2. Make misleading
				representations in any communication made to collect or attempt to collect a
				debt or to obtain or attempt to obtain information about a debtor.
3. Falsely represent that the debt collector
				has information in the debt collector's possession or something of value for
				the debtor in order to solicit or discover information about the
				debtor.
4. Fail to clearly disclose
				the name and full business address of the person to whom the debt has been
				assigned or is owed at the time of making any demand for money.
5. Falsely represent or imply that any debt
				collector is vouched for, bonded by, affiliated with, or is an instrumentality,
				agent, or official of this state or any agency of federal, state, or local
				government.
6. Falsely represent
				the character, extent, or amount of a debt against a debtor, or of its status
				in any legal proceeding.
7. Use,
				distribute, or sell any written communication which simulates or is falsely
				represented to be a document authorized, issued, or approved by a court, an
				official, or any other legally constituted or authorized authority, or which
				creates a false impression about its source, authorization, or
				approval.
8. Represent that an
				existing obligation of the debtor may be increased by the addition of
				attorney's fees, investigation fees, service fees, or any other fees or charges
				when in fact such fees or charges may not legally be added to the existing
				obligation.
9. Falsely represent,
				or give a false impression about the status or true nature of or the services
				rendered by the debt collector or the debt collector's business.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-09 - Unfair or unconscionable means prohibited

Current through Supplement No. 393, July, 2024
No debt collector may use unfair or unconscionable means to
				  collect or attempt to collect any debt. Without limiting the general
				  application of the foregoing, no debt collector may:
1. Seek or obtain any written statement or
				acknowledgment in any form that specifies that a debtor's obligation is one
				incurred for necessaries of life where the original obligation was not in fact
				incurred for such necessaries.
2.
				Seek or obtain any written statement or acknowledgment in any form containing
				an affirmation of any obligation by a debtor who has been declared bankrupt,
				without clearly disclosing the nature and consequences of such affirmation and
				the fact that the debtor is not legally obligated to make such
				affirmation.
3. Collect or attempt
				to collect from the debtor any part or all of the debt collector's fee or
				charge for services rendered.
4.
				Collect or attempt to collect any interest or other charge, fee, or expense
				incidental to the principal obligation unless such interest or incidental fee,
				charge, or expense is expressly authorized by law or by the agreement creating
				the obligation and legally chargeable to the debtor.
5. Communicate with a debtor whenever it
				appears that the debtor is represented by an attorney and the attorney's name
				and address are known unless the attorney has failed to respond to a
				communication within thirty days or the debt collector has been advised by the
				debtor or attorney that the attorney no longer represents the debtor.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-10 - Postal violations prohibited

Current through Supplement No. 393, July, 2024
No debt collector may use, distribute, sell, or prepare for
				  use, any written communication that violates or fails to conform to United
				  States postal laws and regulations.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-11 - Trust account - Deposits - When to be made

Current through Supplement No. 393, July, 2024
The client's share of collections must be deposited into a
				  trust account in a financial institution insured by a federal agency within
				  forty-eight hours.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-07
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-12 - Disbursements from the trust account

Current through Supplement No. 393, July, 2024
Disbursements of twenty-five dollars or more from the trust
				  account to clients must be made no later than thirty days after the monthly
				  closing for the month in which the money was collected. Disbursements of less
				  than twenty-five dollars must be made no later than sixty days after the
				  monthly closing for the month in which any portion of the money was first
				  collected.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-07
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-13 - Receipts for collection of currency and coin

Current through Supplement No. 393, July, 2024
No debt collector may accept currency or coin as payment for
				  a debt without issuing an original receipt to the debtor and maintaining a
				  duplicate receipt as a part of the debt collector's permanent
				  records.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-07
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-02 - Collection Agencies › Section 13-04-02-14 - Statement furnished upon request

Current through Supplement No. 393, July, 2024
A collection agency, upon a written or oral request by the
				  debtor, shall provide a written statement to the debtor indicating the current
				  balance of the remaining debt, the total of all interest charged, and a record
				  of all payments applied to that debt. The statement must include all activity
				  since the debt was turned over to the collection agency or since the date of
				  any previously furnished statement. A collection agency is not required to
				  furnish a requested written statement more frequently than once every six
				  months.
General Authority:
NDCC
					  13-05-06
Law Implemented:
NDCC
					  13-05-07
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-01 - Canon 1

Current through Supplement No. 393, July, 2024
Maintain a high standard of business principles and never be
				  guilty of conduct which will bring reproach upon the industry or the
				  commissioner of financial institutions.
General Authority: NDCC 13-05-06
Law Implemented: NDCC 13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-02 - Canon 2

Current through Supplement No. 393, July, 2024
Not have been engaged or be engaged in any activities
				  supporting or aiding any organization that advocates the overthrow of the
				  constitutionally established government of its country.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-03 - Canon 3

Current through Supplement No. 393, July, 2024
Comply with all city, county, state, and federal laws
				  relating to the ownership and operation of a collection business and provision
				  of collection services.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-04 - Canon 4

Current through Supplement No. 393, July, 2024
Do business under a designation or business name or
				  identification that does not mislead creditors, consumers, or the general
				  public into believing that it is some other type of business than it is.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-05 - Canon 5

Current through Supplement No. 393, July, 2024
Operate under a name or in any manner which does not imply
				  that such agency is a branch of or associated with any department of the
				  federal government or of any state or municipal government, and refrain from
				  using any seal, insignia, envelope, or other device which simulates that of any
				  government department or agency.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-06 - Canon 6

Current through Supplement No. 393, July, 2024
Ensure that all personnel are familiar with the laws under
				  which the collection business is conducted, the rules and regulations, and the
				  code of ethics and that they fully respond to and comply with them.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-07 - Canon 7

Current through Supplement No. 393, July, 2024
Delegate assigned tasks only to qualified personnel.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-08 - Canon 8

Current through Supplement No. 393, July, 2024
Never knowingly misrepresent an institution or organization
				  with which affiliated, nor knowingly represent affiliation with institutions or
				  organizations when such affiliation does not exist.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-09 - Canon 9

Current through Supplement No. 393, July, 2024
Not discriminate on grounds of race, color, creed, or
				  national origin in the selection of creditors represented, in the selection of
				  staff employees, or in dealings with consumers.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-10 - Canon 10

Current through Supplement No. 393, July, 2024
Maintain a sufficiently strong financial position to
				  reasonably assure the agency's continued operation.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-11 - Canon 11

Current through Supplement No. 393, July, 2024
Comply with the guides against debt collection deception of
				  the federal trade commission as they apply to collection agency practices.
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-04 - Consumer Finance › Chapter 13-04-03 - Code of Ethical Conduct › Section 13-04-03-12 - Canon 12

Current through Supplement No. 393, July, 2024
Comply with the Federal Communications Act, with particular
				  attention to sections 203 and 223 as they refer to the use of the telephone.
				  These sections specifically prohibit the use of the telephone in a manner that
				  is for the purpose of and calculated to "frighten, abuse, torment, or harass
				  another" . . . or for . . . "unlawful purpose".
General Authority:
NDCC
				   13-05-06
Law Implemented:
NDCC
				   13-05-06(3)