reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-04 - Investment in an Office Building, Furniture, and Fixtures - Application to the State Credit Union Board › Section 13-03-04-02 - Procedure for investment in building

Current through Supplement No. 393, July, 2024
Any state-chartered credit union planning to construct or
				  purchase a building shall follow and comply with the following
				  procedure:
1. The board of directors
				shall adopt a resolution to invest in a building, and stating the maximum funds
				to be invested in a lot and building.
2. If the resolution is adopted by a majority
				of the board of directors, and if the resolution involves an investment, which
				exceeds the maximum investment established in section 13-03-04-01, the board of
				directors shall then make application to the North Dakota state credit union
				board for permission to invest in a building. If the investment is within the
				limit established by section 13-03-04-01, the board of directors and management
				will proceed with the project as approved by the board of directors.
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 13-03-04 - Investment in an Office Building, Furniture, and Fixtures - Application to the State Credit Union Board › Section 13-03-04-03 - Application to board to invest in building - Requirements

Current through Supplement No. 393, July, 2024
When applying to the state credit union board for permission
				  to invest in a building which exceeds the limit established in section 13-03-04-01, the following procedures will be followed:
1. The secretary of the credit union will
				certify compliance with the provisions of section 13-03-04-02.
2. The treasurer will certify the amount to
				be invested. The credit union, by letter, will make a special request of the
				state credit union board and state the amount, and the percentage of assets and
				net worth they desire to invest in the lot, building, furniture, fixtures, and
				equipment.
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 13-03-04 - Investment in an Office Building, Furniture, and Fixtures - Application to the State Credit Union Board › Section 13-03-04-04 - Information required to accompany application

Current through Supplement No. 393, July, 2024
The following information must accompany the application:
1. A blueprint or floor plan, stating
				type of construction, location, and information about security provisions
				(vaults, safes, files, alarms), if any.
2. A balance sheet for the month ending
				immediately preceding the application.
3. A year-end operating statement for each of
				the past five years, if operating that long.
4. A schedule stating the amount of
				delinquent loans, and the required reserves, as of the application date.
5. A schedule stating the number
				and amount of loans charged off, and the amount recovered for the past five
				years, if operating that long.
General Authority:
NDCC
				   6-01-04,
				   6-06-06
Law Implemented:
NDCC
				   6-06-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-05 - Mergers › Section 13-03-05-00.1 - Definitions

Current through Supplement No. 393, July, 2024
1. "Continuing credit union" means the credit union whose
				  charter continues upon merging with the merging credit union.
2.
				  "Merging credit union" means the credit union whose charter ceases to exist
				  upon merging with the continuing credit union.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-36, 6-06-37
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-05 - Mergers › Section 13-03-05-01 - Procedure

Current through Supplement No. 393, July, 2024
Any state-chartered credit union planning to merge shall
				  follow and comply with the following procedure:
1. The board of directors of each
				state-chartered credit union shall pass a resolution by a majority of the
				directors, in favor of the merger, stating specific terms, if any.
2. The resolution shall be submitted to the
				entire membership of the affected credit unions at the time of and accompanying
				the notice of a regular or special meeting, and must be approved by a majority
				of the membership of each affected credit union present at the meeting. The
				state credit union board, in the exercise of the board's discretion, may
				suspend this subsection when such suspension is in the best interests of the
				affected credit unions and their members. Alternatively, the commissioner, in
				the exercise of the commissioner's discretion, may temporarily suspend this
				subsection until after approval is obtained from the state credit union board,
				if the merging credit union is federally chartered.
3. An application to merge must be filed with
				the state credit union board to approve the merger by the proper officials of
				each of the credit unions.
4. At
				least thirty days prior to the date of consideration of the application by the
				state credit union board, the secretary of the board shall notify all credit
				unions within a seventy-five-mile [120.7-kilometer] radius of the continuing
				credit union's home office and each county in which the merging credit union
				maintains its principal office or a branch. The notice must specify the names
				and locations of both the merging credit union and the continuing credit union,
				and the time and place of the board meeting at which the proposed merger will
				be considered. Interested credit unions will be given an opportunity to comment
				on the proposed merger in writing and at the meeting at which the proposal is
				considered. The board may, when it believes it to be in the public interest,
				request a hearing be held. Notice of hearing on an application will, if
				requested, be at least thirty days prior to the hearing. Notice of the proposed
				merger does not have to be given or a hearing held when the continuing credit
				union is to receive assistance from the national credit union
				administration.
5. All laws and
				regulations of the national credit union share insurance fund applicable to
				merging insured credit unions must be complied with before the merger is
				consummated.
6. Upon approval of
				the merger, the continuing credit union may elect to assume the field of
				membership of the merging credit union.
General Authority:
NDCC 6-01-04
Law Implemented:
NDCC 6-06-36,
					 6-06-37
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-05 - Mergers › Section 13-03-05-04 - Considerations for approval

Current through Supplement No. 393, July, 2024
In considering the application for merger, the board shall
				  examine and consider all relevant factors including:
1. Whether proper notification has been given
				to all members, unless the membership meeting has been waived by the
				board.
2. The comments of the
				members of each credit union to be merged.
3. The financial condition of the continuing
				credit union.
In the event that a merging credit union is a failing
				  institution under North Dakota Century Code section 6-06-08.2, the board shall
				  have the authority to waive any application requirements or considerations for
				  approval otherwise mandated under rule.
General Authority:
NDCC 6-01-04
Law Implemented:
NDCC 6-06-36, 6-06-37,
					 6-06-08.2
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-05 - Mergers › Section 13-03-05-05 - Prohibitions

Current through Supplement No. 393, July, 2024
Members of the board who are also directors, committee
				  members, or staff of one of the merging credit unions, shall declare a conflict
				  of interest and must abstain from voting on the merger application.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-36, 6-06-37
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-05 - Mergers › Section 13-03-05-06 - Determination by board - Surrender of charter

Current through Supplement No. 393, July, 2024
When section 13-03-05-01 has been completed,
				  the board, by order shall approve or disapprove the proposed merger, within
				  thirty days after receipt of the application or within thirty days after the
				  date of hearing if a hearing is conducted, and so advise the credit unions
				  involved of its decision. If approved, the merging credit union shall surrender
				  its charter to the commissioner, who shall forward it to the secretary of state
				  for cancellation.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-36, 6-06-37
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-05 - Mergers › Section 13-03-05-07 - Compatibility with other laws and rules

Current through Supplement No. 393, July, 2024
Nothing in this chapter shall be deemed to be in conflict
				  with the applicable federal regulation or North Dakota law governing mergers of
				  credit unions.
General Authority: NDCC 6-01-04, 6-06-36, 6-06-37
Law Implemented: NDCC 6-06-36, 6-06-37
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-06 - Credit Union Reserve Funds and Prompt Corrective Action › Section 13-03-06-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Commercial loan" means any loan, line of
				credit, or letter of credit, including any unfunded commitments, and any
				interest a credit union obtains in such loans made by another lender, to
				individuals, sole proprietorships, partnerships, corporations, or other
				business enterprises for commercial, industrial, agricultural, or professional
				purposes, but not for personal expenditure purposes. Excluded from this
				definition are loans made by a corporate credit union; loans made by a credit
				union to another credit union; loans made by a federally insured credit union
				to a credit union service organization; loans secured by a one-to-four family
				residential property, unless meeting the definition of an improved property
				loan; loans fully secured by shares in the credit union making the extension of
				credit or deposits in other financial institutions; loans secured by a vehicle
				manufactured for household use; and loans that would otherwise meet the
				definition of commercial loan and which, when the aggregate outstanding
				balances plus unfunded commitments less any portion secured by shares in the
				credit union to a borrower or an associated borrower, are equal to less than
				fifty thousand dollars.
2. "Credit
				grading system" means the same as credit risk rating system.
3. "Credit risk rating system" means a formal
				process that identifies and assigns a relative credit risk score to each
				commercial loan in a credit union's portfolio, using ordinal ratings to
				represent the degree of risk. The credit risk score is determined through an
				evaluation of quantitative factors based on financial performance and
				qualitative factors based on management, operational, market, and business
				environmental factors.
4. "Improved
				property loan" means an extension of credit secured by one of the following
				types of real property:
a. Farmland,
				ranchland, or timberland committed to ongoing management and agricultural
				production;
b. One-to-four family
				residential property that is not owner-occupied;
c. Residential property containing five or
				more individual dwelling units;
d.
				Completed commercial property; or
e. Other income-producing property that has
				been completed and is available for occupancy and use, except income-producing
				owner-occupied one-to-four family residential property.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-06 - Credit Union Reserve Funds and Prompt Corrective Action › Section 13-03-06-02 - Maintaining an allowance for loan and lease loss account

Current through Supplement No. 393, July, 2024
All credit unions operating under a charter issued by the
				  state of North Dakota shall be required to maintain an allowance for loan and
				  lease loss account in accordance with generally accepted accounting principles
				  and rules of the national credit union administration.
General Authority:
NDCC  6-01-04
Law Implemented:
NDCC  6-06-08.4,
					  6-06-21
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-06 - Credit Union Reserve Funds and Prompt Corrective Action › Section 13-03-06-03 - Calculation

Current through Supplement No. 393, July, 2024
The adequacy of the allowance for loan and lease loss account
				  as required under North Dakota Century Code section  6-06-21 will be based upon
				  generally accepted accounting principles and incorporate the credit union's
				  credit risk rating system as outlined in section 13-03-06-05. The commissioner
				  may require a credit union to put aside additional reserves when funding levels
				  are deemed to be unsafe or unsound as set forth in North Dakota Century Code
				  section  6-06-08.4.
General Authority:
NDCC  6-01-04
Law Implemented:
NDCC  6-06-08.4,
					  6-06-21
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-06 - Credit Union Reserve Funds and Prompt Corrective Action › Section 13-03-06-04 - Prompt corrective action

Current through Supplement No. 393, July, 2024
When the credit union's net worth ratio falls below seven
				  percent after allowing for full and fair disclosure in the allowance for loan
				  and lease loss account, or fails to meet the risk-based capital requirements of
				  part 702 of the national credit union administration's rules and regulations,
				  the credit union is required to meet the prompt corrective action requirements
				  under North Dakota Century Code section 6-06-08.4 and part 702 of the national
				  credit union administration's rules and regulations. Any required reserves to
				  be made under prompt corrective action will be made to the regular reserve
				  account.
General Authority:
NDCC 6-01-04
Law Implemented:
NDCC 6-06-08.4,
					 6-06-21
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-06 - Credit Union Reserve Funds and Prompt Corrective Action › Section 13-03-06-05 - Requirements

Current through Supplement No. 393, July, 2024
The board of directors shall develop a policy requiring risk
				  monitoring and a credit grading system, and management shall establish a
				  process to implement a credit grading system and monitoring to effectively
				  measure and monitor the level of risk in relation to total reserves. The system
				  must:
1. Assign credit risk ratings to
				commercial loans at inception and reviewed as frequently as necessary to
				satisfy the credit union's risk monitoring and reporting policies;
2. Ensure adequate allowance for loan and
				lease loss funding as required by generally accepted accounting
				principles;
3. Include the loan
				classification categories of watch or special mention, substandard, doubtful,
				and loss;
4. Accurately identify
				loan risk ratings and classifications in accordance with accepted industry and
				regulatory guidance and as assigned during examinations;
5. Establish a process for the board of
				directors to oversee the performance of the loan portfolio, including periodic
				reporting to the board of directors aggregate loan portfolio credit risk rating
				levels, trends, loan classifications as a percentage of the credit union's
				total reserves or net worth, and loan concentration levels to net worth in
				relation to established policy limits;
6. Include board of director review of the
				need for independent review and validation of the accuracy of the commercial
				loan credit risk rating system and frequency of such action; and
7. Assess the impact of current market
				conditions and the potential impact of changing market conditions in a stressed
				environment to include:
a. For commercial
				loans, the impact of the changes on the borrower, associated borrowers, and
				credit union's earnings and net worth;
b. Portfolio concentrations greater than one
				hundred percent of credit union net worth in consumer loans with similar
				characteristics, assess the impact of changes on credit union's earnings and
				net worth; and
c. Portfolio
				concentrations greater than one hundred percent of credit union net worth in
				investments with similar characteristics, assess the impact of changes on
				credit union's earnings and net worth.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-08 - Administration of Negotiable or Transferable Instruments of Account › Section 13-03-08-01 - Definitions

Current through Supplement No. 393, July, 2024
Negotiable or transferable instrument of account means an
				  account from which the holder is authorized to withdraw funds by means of a
				  negotiable or transferable instrument or other order.
General Authority:
NDCC
					  6-01-04
Law Implemented:
NDCC
					  6-01-04,
					  6-06-06
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-08 - Administration of Negotiable or Transferable Instruments of Account › Section 13-03-08-02 - Issuance of negotiable or transferable instruments

Current through Supplement No. 393, July, 2024
The board of directors, by resolution, may establish
				  negotiable or transferable instrument accounts with different dividend rates in
				  conformance with the following:
1. Any
				terms and conditions prescribed by the board of directors and concerning the
				issuance and maintenance of negotiable or transferable instrument accounts must
				be consistent with the requirements of this section.
2. Negotiable and transferable instrument
				accounts shall be subject to any notice which may be imposed pursuant to the
				credit union's bylaws.
3. In
				addition to the general requirements applicable to the establishment and
				maintenance of negotiable and transferable instrument accounts, the board of
				directors shall provide for:
a. Surety bond
				coverage.
b. Establishing an
				account agreement with each member that outlines both credit union and member
				responsibilities.
c. Retaining
				copies or photo reproductions of paid instruments or other evidence of paid
				orders of withdrawal on file for a period as required by applicable state
				law.
d. Written operational and
				program specifications on file at the credit union's principal
				office.
e. A share or deposit
				account which is separate and apart from all other accounts held by the member
				to be used for accessing by negotiable or transferable instrument.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-08 - Administration of Negotiable or Transferable Instruments of Account › Section 13-03-08-03 - Credit applications and overdrafts

Current through Supplement No. 393, July, 2024
Consistent with policies established by the board of
				  directors, the credit committee or loan officer shall ensure that a credit
				  application is kept on file for each borrower supporting the decision to make a
				  loan or establish a line of credit. A credit union may advance money to a
				  member to cover an account deficit without having a credit application from the
				  borrower on file if the credit union has a written overdraft policy. The policy
				  must set a cap on the total dollar amount of all overdrafts the credit union
				  will honor consistent with the credit union's ability to absorb losses,
				  establish a time limit not to exceed sixty calendar days for a member either to
				  deposit funds or obtain an approved loan from the credit union to cover each
				  overdraft, limit the dollar amount of overdrafts the credit union will honor
				  per member, and establish the fee , if any, that the credit union will charge
				  members for honoring overdrafts. All overdrafts will be reported on the credit
				  union's financial statements in accordance with generally accepted accounting
				  principles, and will be treated as a loan in determining compliance with
				  subdivision g of subsection 1 of North Dakota Century Code section  6-06-12 and
				  North Dakota Administrative Code  chapter 13-03-06.
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 13-03-10 - Acting as Trustee and Custodian of Pension Plans › Section 13-03-10-01 - Acting as trustee and custodian

Current through Supplement No. 393, July, 2024
A credit union is authorized to act as trustee or custodian,
				  and may receive reasonable compensation for so acting, under any written trust
				  instrument or custodial agreement forming part of a pension plan which
				  qualifies or qualified for specific tax treatment under section 401(d) or 408
				  of the Internal Revenue Code, for its members or groups or organizations of its
				  members, provided the funds of such plans are invested in share accounts or
				  share certificate accounts of the credit union.
All funds held in a trustee or custodial capacity must be
				  maintained in accordance with applicable laws and rules and regulations.
The credit union shall maintain individual records for each
				  participant which show in detail all transactions relating to the funds of each
				  participant or beneficiary.
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 13-03-10 - Acting as Trustee and Custodian of Pension Plans › Section 13-03-10-02 - Appointment of successor trustee or custodian

Current through Supplement No. 393, July, 2024
The plan shall provide for the appointment of a successor
				  trustee or custodian by a person, committee, corporation, or organization other
				  than the credit union or any person acting in one's capacity as a director,
				  employee, or agent of the credit union, upon notice from the credit union or
				  the board that the credit union is unwilling or unable to continue to act as
				  trustee or custodian.
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 13-03-13 - Authorizations › Section 13-03-13-01 - Community development revolving loan program

Current through Supplement No. 393, July, 2024
Credit unions may participate in the national credit union
				  administration's community development revolving loan program for credit unions
				  subject to the rules established under part 705 of the national credit union
				  administration's rules and regulations.
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 13-03-13 - Authorizations › Section 13-03-13-02 - Designation of low-income status - Receipt of secondary capital accounts by low-income designated credit unions

Current through Supplement No. 393, July, 2024
A credit union may be designated as a low-income credit union
				  and may offer secondary capital accounts subject to the rules established by
				  the national credit union administration under part 701.34 of the national
				  credit union administration's rules and regulations.
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 13-03-14 - Field of Membership › Section 13-03-14-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Branch", for the purpose of this chapter, means any
				  credit union facility which is established apart from the principal office
				  where credit union business is transacted, not including remote electronic
				  facilities, such as automated teller facilities, point-of-sale terminals, etc.
2. "Closed charter" means a credit union charter issued to serve
				  groups having a common bond of occupation or association.
3.
				  "Geographical boundaries" means a geographical area that does not extend beyond
				  a seventy-five-mile [120.70-kilometer] radius of the home office.
4. "Home office" means the location or place of business
				  designated by the credit union as its home office which must be located in the
				  credit union field of membership. Such a designation of a home office shall not
				  expand a credit union's field of membership.
5. "Open charter"
				  means a credit union charter issued to serve groups within a geographical
				  boundary.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-06, 6-06-07
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-14 - Field of Membership › Section 13-03-14-02 - Field of membership expansion

Current through Supplement No. 393, July, 2024
1. A North Dakota
				state-chartered credit union may expand its field of membership subject to
				approval of the state credit union board and in accordance with the provisions
				of this chapter and North Dakota Century Code chapter
				 6-06.
2. The state credit union board, when
				considering the expansion of a charter, shall consider the following:
a. If the expansion is for an open charter,
				the exact geographical boundaries, expressed by city, county, township, or
				highway boundaries, or a stated radius from the principal or branch office,
				must be clearly spelled out;
b.
				The negative impact to any other state or federally chartered credit union in
				the expanded area;
c. Any
				expressed opposition to the expansion by any other credit union;
d. The credit union must demonstrate the
				ability to succeed in expanding their field of membership;
e. Relevant public comment in favor of or in
				opposition to expanding the field of membership; and
f. Any other factor that the state credit
				union board deems pertinent.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-14 - Field of Membership › Section 13-03-14-03 - Application to expand field of membership

Current through Supplement No. 393, July, 2024
A credit union wishing to expand its field of membership
				  shall comply with the following:
1.
				Approval to expand the field of membership must be given by the board of
				directors of the credit union by a majority of that board;
2. After approval by the credit union's board
				of directors, application must be made to the state credit union board to
				expand its field of membership. The necessary forms for "application for field
				of membership expansion", including the business plan and the financial impact
				to the credit union and as required in subsection 3, may be secured from the
				department of financial institutions;
3. The application to expand the field of
				membership must be accompanied by the necessary documents for amendment of
				bylaws as required by North Dakota Century Code section  6-06-04;
4. The credit union shall, at least thirty
				days prior to the date of consideration by the state credit union board of an
				open charter application, cause a notice of the proposed field of membership
				expansion to be published in the official newspaper of the county of the credit
				union's home office and each county which is proposed to be included in the
				expanded field of membership. The credit union shall, at least thirty days
				prior to the date of consideration by the state credit union board of a closed
				charter application, cause a notice of the proposed field of membership
				expansion to be published in the eight major newspapers in the state set forth
				in subdivisions a through h of subsection 1 of section 13-01.1-04-01. However,
				if a closed charter credit union intends to limit its expansion into specified
				geographical areas within the state, the notice must only be published in the
				official newspaper of the county or counties affected by the proposed
				expansion; and
5. The notice must
				specify the time and place of the meeting of the state credit union board at
				which the application for the charter expansion will be acted upon. Comments
				may be submitted to the board concerning the application, or a written request
				for an opportunity to be heard before the board may be submitted. The board
				may, when it believes it to be in the public interest, order a hearing to be
				held.
General Authority:
NDCC  6-01-04
Law Implemented:
NDCC  6-06-06,
					  6-06-07
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-14 - Field of Membership › Section 13-03-14-04 - Waiver

Current through Supplement No. 393, July, 2024
The state credit union board, in the exercise of its
				  discretion, may waive the provisions of this chapter when such waiver is in the
				  best interests of a failing institution.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-08.2
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-14 - Field of Membership › Section 13-03-14-05 - Field of membership of continuing credit union in the event of merger

Current through Supplement No. 393, July, 2024
In the event of a merger between credit unions with different
				  fields of membership, the surviving credit union may, at the election of the
				  surviving credit union, expand its field of membership to include the field of
				  membership of the merged credit union.
General Authority:
NDCC 6-01-04
Law Implemented:
NDCC 6-06-06,
					 6-06-07
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-15 - Branching › Section 13-03-15-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Branch", for the purpose of this chapter, means any
				  credit union facility which is established apart from the principal office
				  where credit union business is transacted, not including remote electronic
				  facilities, such as automated teller facilities, point-of-sale terminals,
				  etc.
2. "Closed charter" means a credit union charter issued to
				  serve groups having a common bond of occupation or association.
3.
				  "Geographical boundaries" means the outer perimeters of the area which may be
				  served as expressed in the field of membership authority and may be expressed
				  by city, county, township, or highway boundaries, or a stated radius from the
				  principal office of the credit union.
4. "Open charter" means a
				  credit union charter issued to serve groups within a well-defined rural or
				  urban district.
5. "Principal office" means the location or place
				  of business, or both, in which the credit union was organized and stated on the
				  certificate of organization or any amendments thereto and recorded with the
				  secretary of state.
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 13-03-15 - Branching › Section 13-03-15-02 - Establishment of a branch

Current through Supplement No. 393, July, 2024
1. Any North Dakota
				state-chartered credit union may establish a branch facility subject to
				approval of the state credit union board and in accordance with the provisions
				of this chapter.
2. All branch
				facility advertising and building signs must state the identity of the credit
				union.
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 13-03-15 - Branching › Section 13-03-15-03 - Location of branch

Current through Supplement No. 393, July, 2024
1. Branches of
				"closed charter" credit unions established pursuant to the provisions of this
				chapter must be reasonably necessary in order to properly serve units of the
				field of membership which are not being properly served by the principal credit
				union office. The location of such office shall not be restricted except that,
				in the judgment of the state credit union board, it must be located so as to
				accomplish the above.
2. Branches
				of "open charter" credit unions must be located within the geographical
				boundaries which are authorized by the charter. The establishment of such
				branch facility may not, of itself, expand the geographical boundaries of the
				credit union's field of membership.
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 13-03-15 - Branching › Section 13-03-15-04 - Application to establish a branch

Current through Supplement No. 393, July, 2024
1. A credit union
				wishing to establish a branch shall comply with the following:
a. Approval to establish the branch must be
				given by the board of directors of the credit union by a majority of that
				board; and
b. After approval by the
				credit union's board of directors, application must be made to the state credit
				union board or to the commissioner to establish the branch. The necessary forms
				for "application to establish a branch", including the business plan and the
				financial impact to the credit union, may be secured from the department of
				financial institutions
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-15 - Branching › Section 13-03-15-05 - Waiver

Current through Supplement No. 393, July, 2024
The state credit union board or commissioner, in the exercise
				  of their discretion, may waive the provisions of this chapter when such waiver
				  is in the best interests of a failing institution.
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 13-03-15 - Branching › Section 13-03-15-06 - Notice regarding closing of a branch

Current through Supplement No. 393, July, 2024
Any credit union intending to close a branch shall provide
				  its membership and the commissioner with notice of the closing at least thirty
				  days prior to the closing date.
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 13-03-15 - Branching › Section 13-03-15-07 - Operations during epidemic or emergency - Notice to department

Current through Supplement No. 393, July, 2024
A credit union that operates physical facilities in any area
				  that is experiencing an epidemic or other emergency may adjust the credit
				  union's operations in any manner that is reasonable to protect the credit
				  union's members, employees, assets, or business. Under this section, a credit
				  union may temporarily close or relocate offices, employees, or operations;
				  restrict access to offices or services; and change the manner in which the
				  credit union provides services. A credit union shall notify the department of
				  financial institutions of any actions the credit union takes under the
				  authority of this section if such action results in a closure greater than one
				  business day. The credit union shall give the department notice promptly and in
				  any case within three business days of the credit union's decision to adjust
				  the credit union's operations. The notice must describe the credit union's
				  actions and the expected duration of the credit union's adjusted operations.
				  Unless extended by the commissioner, a credit union's authority to change the
				  credit union's operations under this section may not exceed sixty days.
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 13-03-17 - Excess Deposit Insurance › Section 13-03-17-01 - Authorization

Current through Supplement No. 393, July, 2024
The board of directors of a North Dakota state-chartered
				  credit union may authorize purchase of an excess deposit insurance policy in
				  addition to deposit insurance coverage provided by the national credit share
				  insurance fund for the credit union's members.
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 13-03-17 - Excess Deposit Insurance › Section 13-03-17-02 - Financial information

Current through Supplement No. 393, July, 2024
Prior to purchasing an excess deposit insurance policy, the
				  board of directors shall evaluate the financial condition and rating, if any,
				  of the insurance company by acquiring adequate and current financial
				  information. The board shall, on at least an annual basis, continue to evaluate
				  the company's financial condition and rating.
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 13-03-17 - Excess Deposit Insurance › Section 13-03-17-03 - Notice of termination of insurance

Current through Supplement No. 393, July, 2024
If an excess deposit insurance policy is terminated, either
				  at the request of the credit union or the insurance company, the credit union
				  must notify in writing all members covered by such excess deposit insurance at
				  least ninety days prior to the effective date of termination. The credit union
				  must allow any member affected by the policy termination to withdraw the
				  deposit without the assessment of any fee or early withdrawal penalty.
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 13-03-18 - Disclosure of Customer Information by Financial Institutions › Section 13-03-18-01 - Definitions

Current through Supplement No. 393, July, 2024
As used in this chapter, the terms "customer", "customer
				  information", and "financial institution" have the same meaning as is given to
				  them in North Dakota Century Code section
				   6-08.1-01.
General Authority: NDCC 6-01-04
Law Implemented:
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-18 - Disclosure of Customer Information by Financial Institutions › Section 13-03-18-03 - Joint marketing

Current through Supplement No. 393, July, 2024
A financial institution may not disclose customer information
				  to a nonaffiliated third party under a "joint marketing agreement" as that term
				  is defined by section 502(b)(2) of the federal Financial Services Modernization
				  Act of 1999 [  Pub. L. 106-102; 113 Stat. 1437;
				   15 U.S.C. 6802(b)(2)  ] unless the
				  financial institution has first obtained its customer's written consent for the
				  disclosure. A customer's written consent is not required for marketing that is
				  undertaken by a financial institution on its own behalf or in conjunction with
				  a nonaffiliated party where the financial institution does not share customer
				  information with a nonaffiliated party.
General Authority: NDCC 6-01-04
Law Implemented:
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-18 - Disclosure of Customer Information by Financial Institutions › Section 13-03-18-04 - Customer direction

Current through Supplement No. 393, July, 2024
A financial institution that has received a customer's
				  "opt-in" election after the financial institution has notified the customer of
				  its information sharing practices and policies as required by the federal
				  Financial Services Modernization Act of 1999 [
				   Pub. L. 106-102; 113 Stat. 1437;
				   15 U.S.C. 6802(b)(1)  ] has obtained
				  the customer's direction to share customer information in accordance with and
				  as limited by the customer's opt-in election. This section does not limit the
				  means by which a financial institution may obtain a customer's direction to
				  share customer information with a third party.
General Authority: NDCC 6-01-04
Law Implemented:
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-19 - Leasing › Section 13-03-19-01 - Authorization

Current through Supplement No. 393, July, 2024
A state-chartered credit union may engage in direct leasing,
				  indirect leasing, open-end leasing, or closed-end leasing subject to the
				  limitations prescribed under this chapter.
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 13-03-19 - Leasing › Section 13-03-19-02 - Definitions

Current through Supplement No. 393, July, 2024
For purposes of this rule, the following definitions will
				  apply:
1. "Closed-end lease" means the credit union assumes the risk
				  and responsibility for any difference in the estimated residual value and the
				  actual value of the property at lease end. However, the member is responsible
				  for any excess wear and tear and excess mileage charges as established under
				  the lease.
2. "Direct lease" means the credit union purchases
				  personal property from a vendor, becoming the owner of the property at the
				  request of a member of the credit union and then leases the property to that
				  member
3. "Full payout lease" means a lease in which the lessor's
				  service is limited to the financing of the asset, with the lessee paying all
				  other costs, including maintenance and taxes, and has the option of purchasing
				  the asset at the end of the lease for a nominal price. The lease shall be fully
				  amortized over the term of the lease or lifetime of the asset, whichever is
				  less.
4. "Inception of the lease" means the date of the lease
				  agreement or commitment, if earlier, or the date the lease is purchased by the
				  credit union. For purposes of this definition, a commitment shall be in
				  writing, signed by the parties in interest to the transaction, and shall
				  specifically set forth the principal terms of the transaction.
5.
				  "Independent third-party appraiser" means an individual not involved with the
				  lease transaction, except as the appraiser, with no direct or indirect
				  interest, financial or otherwise, in the property appraised or the parties
				  involved with the transaction. The credit union shall take appropriate steps to
				  ensure the appraiser exercises independent judgment and that the appraisal is
				  adequate.
6. "Indirect lease" means a third party leases property
				  to a member of the credit union and the credit union then purchases the lease
				  from the third party for the purposes of leasing the property to the member.
7. "Lease servicer" means the entity that collects monthly
				  principal and interest payments from the lessee and then forwards the payments
				  to the purchasing credit union or maintains lease records for a fee.
8. "Leasing company" means the enterprise that makes leases or
				  assembles leases for resale to a credit union.
9. "Lessee" means
				  the party using the leased property.
10. "Lessor" means the party
				  owning the leased property.
11. "Open-end lease" means the member
				  of the credit union assumes the risk and responsibility for any difference in
				  the estimated residual value and the actual value of the property at lease end.
12. "Residual value" means the estimated fair value of the leased
				  property at the end of the lease term.
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 13-03-19 - Leasing › Section 13-03-19-03 - Lease requirements

Current through Supplement No. 393, July, 2024
1. The lease must
				be a net lease. In a net lease, your member assumes all the burdens of
				ownership, including maintenance and repair, licensing and registration, taxes,
				and insurance.
2. The lease must
				be a full payout lease. In a full payout lease, you must reasonably expect to
				recoup your entire investment in the leased property, plus the estimated cost
				of financing, from the lessee's payments and the estimated residual value of
				the leased property at the expiration of the lease term.
3. The amount of the estimated residual value
				to satisfy the full payout lease requirement shall not exceed twenty-five
				percent of the original cost of the leased property unless the amount above
				twenty-five percent is guaranteed. Estimated residual value must be reasonable
				in light of the leased property and all circumstances relevant to the leasing
				arrangement.
4. When the credit
				union does not own the leased property in an indirect leasing arrangement, the
				credit union must:
a. Obtain a full
				assignment of the lease. A full assignment is the assignment of all the rights,
				interests, obligations, and title in the lease.
b. Be named as the sole lienholder of the
				leased property.
c. Receive a
				security agreement, signed by the leasing company, granting the credit union a
				sole lien in the leased property and the right to take possession and dispose
				of the leased property in the event of a default by the lessee, a default in
				the leasing company's obligations to the credit union, or a material adverse
				change in the leasing company's financial condition.
d. Take all necessary steps to record and
				perfect the credit union's security interest in the leased property.