reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-01 - Application to banking board required

Current through Supplement No. 393, July, 2024
Whenever any state bank desires to maintain and operate a
				  facility separate from its banking house, or to move a facility previously
				  established to another location, it must apply to the state banking board for
				  such authority.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-13.1
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-02 - Delivery of copies to board

Current through Supplement No. 393, July, 2024
An original and ten copies of the application must be
				  delivered to the state banking board.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-13.1
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-03 - Contents of application

Current through Supplement No. 393, July, 2024
The application must contain the following information:
1. A copy of the applicant bank's
				most recent month-end financial statement.
2. A copy of the applicant bank's yearend
				financial statements for the last two preceding years.
3. The names and addresses of all other banks
				within the trade area of the banking institution's proposed facility.
4. A description of the site of
				the proposed facility.
5. A
				description of the proposed facility and an estimate of the cost of
				establishing and maintaining the facility.
6. A statement relating to the convenience,
				needs, and welfare of the people of the community and area to be served by the
				proposed facility.
7. A statement
				relating to whether other banks will be seriously injured by the approval of
				the application.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-13.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-04 - Availability for inspection

Current through Supplement No. 393, July, 2024
The application must be available for inspection in the
				  office of the commissioner of financial institutions.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-13.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-05 - Publication

Current through Supplement No. 393, July, 2024
Upon filing a completed application, the secretary of the
				  board shall cause to be published notice of application once a week for two
				  successive weeks in the official newspaper of the county where the proposed
				  facility is to be located. The notice of application must also be sent by
				  certified mail by the secretary of the board to all banks and bank facilities,
				  if not sent to the main office, located within the trade area of the banking
				  institution's proposed facility. Within fifteen days of the final notice
				  provided under this section, any bank or person may submit to the board written
				  comments concerning the application or a written request for an opportunity to
				  be heard before the board, or both.
General Authority: NDCC 6-01-04, 6-03-11
Law Implemented: NDCC 6-03-11, 6-03-13.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-05.1 - Joint federal and state publication

Current through Supplement No. 393, July, 2024
Notwithstanding sections 13-02-05-05 and 13-02-05-06, an applicant may
				  elect to publish joint federal and state notice of the application pursuant to
				  the procedural requirements of federal law. Before publication, the applicant
				  shall submit the proposed notice of application to the commissioner for prior
				  approval.
General Authority: NDCC 6-01-04, 6-03-13.1
Law Implemented: NDCC 6-03-13.1
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-06 - Timely submission of written comments - Written request for a hearing - Board's authority to hold hearing

Current through Supplement No. 393, July, 2024
Within fifteen days of the final notice provided pursuant to
				  section 13-02-05-05, any bank or person
				  may submit to the board written comments concerning the application or a
				  written request for an opportunity to be heard before the board, or both. In
				  the absence of a request, 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 6-03-13.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-07 - Setting of date, time, and place for hearing

Current through Supplement No. 393, July, 2024
If a written request for an opportunity to be heard before
				  the board is submitted to the board or if the board, on its own initiative,
				  orders that a hearing be held, the board shall set a date, time, and place for
				  the hearing.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-13.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-08 - Procedure to afford notice of hearing

Current through Supplement No. 393, July, 2024
If a hearing on the application is to be held, the board must
				  issue a notice of hearing and specification of issues to any bank or person
				  which requested in writing that a hearing be held and to any bank or person
				  which has submitted written comments concerning the application. The board must
				  also publish the notice of hearing and specification of issues one time in a
				  newspaper of general circulation in the community where the facility is to be
				  located.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-13.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-09 - Applicant to furnish court reporter and transcript

Current through Supplement No. 393, July, 2024
The applicant shall arrange to have a court reporter or
				  stenographer present at any hearing on an application to establish a separate
				  facility unless approval is provided by the board to arrange for the use of an
				  electronic recording device as a substitute for having a court reporter or
				  stenographer present. Upon request, the applicant shall furnish each member of
				  the board a transcript of the evidence taken before the board.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-13.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-10 - Board to issue findings of fact, conclusions of law, and decision

Current through Supplement No. 393, July, 2024
Within thirty days after the evidence has been received,
				  briefs filed, and arguments closed, or as soon thereafter as possible, the
				  board shall make its findings of fact, conclusions of law, and decision.
General Authority:
NDCC
				   6-01-04
Law Implemented:
NDCC
				   6-03-13.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-05 - Procedure for Establishing a Facility › Section 13-02-05-11 - Procedure on application if no hearing

Current through Supplement No. 393, July, 2024
If no request for a hearing upon an application to establish
				  a separate facility is submitted to the board within the time period specified
				  in section 13-02-05-06, and the board has
				  not, on its own initiative, ordered that a hearing be held, the board shall
				  approve or deny the application by order upon consideration and motion at a
				  regular or special meeting of the board.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-13.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-01 - Authorization of electronic funds transfer centers

Current through Supplement No. 393, July, 2024
The commissioner shall authorize the establishment of
				  customer electronic funds transfer centers by state-chartered banks.
General Authority: NDCC 6-01-04, 6-03-02(8)
Law Implemented: NDCC 6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-01.1 - Notification

Current through Supplement No. 393, July, 2024
Upon notification to the commissioner, a bank may establish a
				  customer electronic funds transfer center that dispenses cash, items of cash
				  value, transfers between accounts, or allows customer account inquiry.
General Authority: NDCC 6-01-04, 6-03-02(8)
Law Implemented: NDCC 6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-02 - Criteria for approval

Current through Supplement No. 393, July, 2024
The criteria for approval of customer electronic funds
				  transfer centers shall be whether or not the establishment of such centers
				  would impair the applicant bank's capital structure. There will be no
				  population or distance criteria applied to such centers.
General Authority:
NDCC
				   6-01-04,
				   6-03-02(8)
Law Implemented:
NDCC
				   6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-03 - Operations, transactions, verification, and insurance

Current through Supplement No. 393, July, 2024
A bank may receive and act upon communications from its
				  customers transmitted through customer electronic funds transfer centers
				  requesting the withdrawal of funds either from the customer's deposit account
				  or from a previously authorized line of credit, or instructing the bank to
				  receive funds to the credit of the customer's accounts or to transfer funds for
				  the customer's benefit. The customer electronic funds transfer center may be
				  established by the bank and operated by the customer or by a third party. In
				  accordance with the customer's request or instruction and subject to
				  verification by the bank, cash or checks may be received and cash may be
				  dispensed at the location of the customer electronic funds transfer center. A
				  customer electronic funds transfer center may be manned or unmanned. A manned
				  customer electronic funds transfer center may not be staffed by a bank
				  employee, except that the bank for a reasonable period of time, not to exceed
				  thirty days initially, and not more than three additional days per month
				  thereafter when necessitated by the employment of new personnel at the customer
				  electronic funds transfer center, may provide an employee to instruct and
				  assist in the operation of the customer electronic funds transfer center. Any
				  transactions initiated at such customer electronic funds transfer center shall
				  be subject to verification by the bank either by direct wire transmission or
				  otherwise. A bank shall provide insurance protection under its bonding program
				  for transactions involving such customer electronic funds transfer center.
General Authority:
NDCC
				   6-01-04,
				   6-03-02(8)
Law Implemented:
NDCC
				   6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-04 - Application for electronic funds transfer center to commissioner required - Contents of application

Current through Supplement No. 393, July, 2024
A customer electronic funds transfer center that accepts
				  deposits may not be established, used, or shared by a bank until thirty days
				  after the bank has sent to the commissioner written application for the
				  proposed establishment or use of such center. The application shall describe
				  with regard to such center:
1. The
				location.
2. A general description
				of the area where located, e.g., shopping center, supermarket, department
				store, etc., and the manner of installation at that location.
3. The manner of operation, including whether
				the center is on direct line, or indirect by other procedures, and describing
				such procedures.
4. The kinds of
				transactions that will be performed.
5. Whether the center will be manned, and if
				so, by whose employee.
6. The
				manufacturer of the equipment to be used and, if owned, the purchase price or,
				if leased, the lease terms and payments and the name of the lessor.
7. Consumer protection procedures, including
				the disclosure of rights and liabilities of consumers and protection against
				wrongful or accidental disclosure of confidential information.
8. The distance from the nearest banking
				house, paying and receiving station, or facility, and from the nearest similar
				center of the applicant bank.
9.
				The distance from the nearest banking house, paying and receiving station, or
				facility, and the nearest similar center of another bank, and the name of such
				other bank or banks within the city or town in which the center is to be
				established.
10. Insurance and the
				security provisions protecting the center and its users.
General Authority: NDCC 6-01-04, 6-03-02(8)
Law Implemented: NDCC 6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-05 - Certified copy of directors' resolution required - Evidence of no impairment of capital required

Current through Supplement No. 393, July, 2024
In addition to the information required by section 13-02-06-04, the application shall
				  be accompanied by a certified copy of the resolution by the bank's board of
				  directors authorizing establishment of the proposed customer electronic funds
				  transfer center and evidence showing that such establishment will not impair
				  the bank's capital.
General Authority:
NDCC
				   6-01-04,
				   6-03-02(8)
Law Implemented:
NDCC
				   6-03-03(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-06 - Approval by commissioner required - Investigation

Current through Supplement No. 393, July, 2024
Before establishing a customer electronic funds transfer
				  center that accepts deposits, the establishing bank must receive the approval
				  of the commissioner. The commissioner's investigation upon an application to
				  establish a customer electronic funds transfer center shall include a review of
				  the applicant bank's capital structure.
General Authority: NDCC 6-01-04, 6-03-02(8)
Law Implemented: NDCC 6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-07 - Notice of change in operations

Current through Supplement No. 393, July, 2024
Written notice must be given to the commissioner and to all
				  sharing banks thirty days before changing any of the operations described in an
				  application previously submitted pursuant to section 13-02-06-04.
General Authority: NDCC 6-01-04, 6-03-02(8)
Law Implemented: NDCC 6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-08 - Joint application - Reporting procedures

Current through Supplement No. 393, July, 2024
A corporation organized by banks or contracting with banks or
				  one or more banks sharing one or more centers may make a joint application to
				  the commissioner, provided that the application includes the information listed
				  in sections 13-02-06-04 and 13-02-06-05. The commissioner
				  reserves the right to adopt different reporting procedures as warranted by the
				  circumstances of a particular network of centers.
General Authority: NDCC 6-01-04, 6-03-02(8)
Law Implemented: NDCC 6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-09 - When no notice required

Current through Supplement No. 393, July, 2024
No notice need be given for any center, device, or machine
				  which:
1. Is used solely to verify a
				customer's credit for purposes of check cashing; or
2. Is a part of a bank's authorized main
				banking house, paying and receiving station, or facility approved by the state
				banking board.
General Authority:
NDCC
				   6-01-04,
				   6-03-02(8)
Law Implemented:
NDCC
				   6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-10 - Limitation of services to existing accounts

Current through Supplement No. 393, July, 2024
Electronic funds transfer services at a customer electronic
				  funds transfer center may be provided only to existing customers of the
				  establishing or sharing bank or banks. No new accounts may be established or
				  solicited at such customer electronic funds transfer center.
General Authority:
NDCC
				   6-01-04,
				   6-03-02(8)
Law Implemented:
NDCC
				   6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-11 - Advertising limitation

Current through Supplement No. 393, July, 2024
No establishing or sharing bank may advertise a shared
				  customer electronic funds transfer center in such a manner as to make it appear
				  that the advertising bank is the only bank offering electronic funds transfer
				  service at the advertised customer electronic funds transfer center.
General Authority:
NDCC
				   6-01-04,
				   6-03-02(8)
Law Implemented:
NDCC
				   6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-12 - Applicant bank to give notice of intent to apply

Current through Supplement No. 393, July, 2024
In order to facilitate sharing of customer electronic funds
				  transfer centers, any bank intending to apply for authorization to establish
				  such a center must, at least thirty days prior to establishing such center,
				  give written notice of such intention to all banks in this state within a
				  fifty-mile [80.47-kilometer] radius of the proposed center.
General Authority:
NDCC
				   6-01-04,
				   6-03-02(8)
Law Implemented:
NDCC
				   6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-06 - Establishment of Customer Electronic Funds Transfer Centers › Section 13-02-06-13 - Pro rata cost sharing criteria and requirements

Current through Supplement No. 393, July, 2024
In order to further facilitate sharing of customer electronic
				  funds transfer centers, the following requirements and criteria shall apply:
1. The establishing bank shall file a
				report with the commissioner of all costs of establishing the center and the
				projected costs of operation.
2.
				The establishing bank shall be prohibited from requiring that other
				participating banks maintain an account with the establishing bank in order to
				share the customer electronic funds transfer center.
3. Any bank may apply to join an existing
				customer electronic funds transfer center at anytime upon compliance with the
				provisions of this chapter.
4. The
				pro rata costs of the initial installation and the first year of operation of a
				customer electronic funds transfer center shall be determined by the respective
				sizes of the participating banks, based upon deposits at the end of the prior
				fiscal year. The pro rata costs for subsequent years shall be determined by the
				relative number of transactions handled for each bank sharing the center.
General Authority: NDCC 6-01-04, 6-03-02(8)
Law Implemented: NDCC 6-03-02(8)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-07 - Branch Offices - State-Chartered Savings and Loan Associations › Section 13-02-07-01 - Approval by banking board required

Current through Supplement No. 393, July, 2024
State-chartered savings and loan associations doing business
				  within the state of North Dakota shall not establish or operate any branch
				  office without first securing the approval of the state banking board as
				  provided under this chapter.
General Authority:
NDCC
				   6-01-04
Law Implemented:
NDCC
				   6-01-01,
				   6-01-04,
				   7-01-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-07 - Branch Offices - State-Chartered Savings and Loan Associations › Section 13-02-07-01.1 - Limitations

Current through Supplement No. 393, July, 2024
State-chartered savings and loan associations are authorized
				  to establish a branch within the same county, or any adjoining county in any
				  city organized under the laws of this state, not having an established banking
				  institution.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-01-01, 6-01-04, 7-01-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-07 - Branch Offices - State-Chartered Savings and Loan Associations › Section 13-02-07-02 - Application - When approved

Current through Supplement No. 393, July, 2024
An order authorizing establishment of a branch office shall
				  be issued by the state banking board if it finds that the applicant has met the
				  requirements of this chapter.
General Authority:
NDCC
				   6-01-04
Law Implemented:
NDCC
				   6-01-01,
				   6-01-04,
				   7-01-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-07 - Branch Offices - State-Chartered Savings and Loan Associations › Section 13-02-07-03 - Application - Hearing - Notice

Current through Supplement No. 393, July, 2024
A savings and loan association desiring to establish a new
				  branch office within the state shall make written application to the state
				  banking board. The commissioner will thereupon set a date for public hearing
				  not later than ninety days from the date of filing. Notice of hearing on an
				  application for a savings and loan branch will be issued as specified in
				  subsection 8 of section 13-01.1-04-01.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-01-01, 6-01-04, 7-01-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-07 - Branch Offices - State-Chartered Savings and Loan Associations › Section 13-02-07-04 - Contents of application - Supporting information andissues

Current through Supplement No. 393, July, 2024
The application and supporting information shall show:
1. That at the time the office will
				be open there will be necessity for the proposed branch in a community to be
				served.
2. That the proposed
				office is adapted to the filling of such need.
General Authority:
NDCC
				   6-01-04
Law Implemented:
NDCC
				   6-01-01,
				   6-01-04,
				   7-01-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-07 - Branch Offices - State-Chartered Savings and Loan Associations › Section 13-02-07-05 - Written statement furnished to protestants

Current through Supplement No. 393, July, 2024
Each protestant making timely filing with the board shall be
				  mailed, or otherwise furnished, a written statement of the issues to be
				  determined as stated in section 13-02-07-04.
General Authority:
NDCC
				   6-01-04
Law Implemented:
NDCC
				   6-01-01,
				   6-01-04,
				   7-01-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-07 - Branch Offices - State-Chartered Savings and Loan Associations › Section 13-02-07-06 - Hearing procedure

Current through Supplement No. 393, July, 2024
Hearing upon the application and any protests, and appeal
				  from any determination made, shall be had in accord with the provisions of
				  North Dakota Century Code chapter
				   28-32.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-01-01, 6-01-04, 7-01-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-09 - Loan Limitation to One Borrower or Concern › Section 13-02-09-01 - Purpose

Current through Supplement No. 393, July, 2024
This chapter is intended to safeguard the depositors of state
				  banking associations by requiring the diversification of loan portfolios and
				  repayment sources.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-59
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-09 - Loan Limitation to One Borrower or Concern › Section 13-02-09-02 - Definitions

Current through Supplement No. 393, July, 2024
In determining the total direct, indirect, or contingent
				  liability of a borrower for purposes of North Dakota Century Code section
				   6-03-59, the following definitions
				  apply:
1. "Contingent liability" includes a potential economic
				  obligation of an enterprise if:
a. It is probable that a liability
				  will be incurred; and
b. The amount of the liability can be
				  reasonably estimated.
2. "Corporation" means any entity organized
				  and incorporated under law, including a limited liability company.
3. "Direct liability" means all obligations of an enterprise for
				  which it has primary responsibility for repayment.
4. "Indirect
				  liability" includes a potential economic obligation of an enterprise if:
a. It is probable that a liability will be incurred; and
b. The amount of the liability can be reasonably estimated.
5. "Limited partnership" means a partnership formed by two or more
				  persons having one or more general partners and one or more limited partners,
				  and includes a limited liability partnership.
6. "Parent
				  corporation" means a corporation which owns or controls one or more
				  subsidiaries.
7. "Probable" means that a future event or events
				  that would cause a contingency to become a liability are likely to occur.
8. "Subsidiary" means a corporation which is owned or controlled
				  by a parent corporation.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-59
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-09 - Loan Limitation to One Borrower or Concern › Section 13-02-09-03 - Liabilities of a borrower

Current through Supplement No. 393, July, 2024
1. Standby letters
				of credit must be included in determining the total direct, indirect, or
				contingent liability of a borrower who is a beneficiary of the standby letter
				of credit.
2. The obligations of a
				general partnership must be included in determining the total direct, indirect,
				or contingent liability of each general partner of the partnership.
3. The obligations of a limited partnership
				must be included, to the extent of each limited partner's share of ownership of
				the limited partnership, in determining the total direct, indirect, or
				contingent liability of each limited partner of the limited partnership, if one
				of the conditions of subsection 4 of section 13-02-09-04 exists. The entire
				obligation of a limited partnership must be included in determining the total
				direct, indirect, or contingent liability of the general partner of a limited
				partnership.
4. An extension of
				credit to a borrower which is participated in by the banking association to a
				third party with recourse must be included in determining the total direct,
				indirect, or contingent liability of that borrower.
5. If an extension of credit is secured by a
				pledged certificate of deposit drawn on the lending bank and payable to the
				borrower, the face value of the certificate of deposit or the borrower's
				obligation secured by the certificate of deposit, whichever is less, may not be
				considered in determining the total liability of a borrower.
6. If an extension of credit which is
				transferred by the banking association to a third party without recourse fails
				to comply with applicable call report instructions to be treated as a sale, the
				extension of credit must be considered in determining the total direct,
				indirect, or contingent liability of that borrower. Transfers that do not meet
				the conditions for sale treatment must be accounted for according to prevailing
				call report instructions.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-59
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-09 - Loan Limitation to One Borrower or Concern › Section 13-02-09-04 - Loans to corporations and principals

Current through Supplement No. 393, July, 2024
1. Obligations
				of a parent corporation must be combined with obligations of subsidiary
				corporations in which the parent owns or controls a twenty-five percent or more
				interest, if one of the conditions in subsection 4 exists.
2. Obligations of subsidiary corporations
				must be combined, if one of the conditions in subsection 4 exists.
3. Except as provided in subsection 5,
				obligations of an individual who owns or controls a twenty-five percent or more
				interest in a corporation must be combined with the obligations of said
				corporation, if one of the conditions in subsection 4 exists.
4. Combining under this section is required
				if:
a. The primary source of repayment for
				the obligation is the profits or cash flow of the same individual, parent
				corporation, or other subsidiary.
b. One or more loans is for the accommodation
				of the individual, parent corporation, or other subsidiary.
c. The borrowing corporations are not
				separate concerns, in reality, but merely departments or divisions of a single
				enterprise.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-09 - Loan Limitation to One Borrower or Concern › Section 13-02-09-05 - Loans to members of a partnership or association

Current through Supplement No. 393, July, 2024
Where persons are engaged in a common enterprise, whether in
				  the form of a partnership, joint venture, or other association, and
				  individually borrowed funds are to be used in that enterprise, the loans must
				  be considered as a single extension of credit, unless the bank has established
				  that the enterprise is not the source of repayment.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-59
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-10 - Authorizations › Section 13-02-10-01 - Investment in securities

Current through Supplement No. 393, July, 2024
The state banking board authorizes state banks to invest in
				  investment securities or instruments in accordance with investment
				  authorizations issued for national banks by the comptroller of the currency,
				  subject to the same limitations or restrictions, if any.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-38, 6-03-47.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-10 - Authorizations › Section 13-02-10-02 - Effective date of authority to invest

Current through Supplement No. 393, July, 2024
The authority for state banks to invest in investment
				  securities or instruments must be the date the investments are effective for
				  national banks unless the state banking board shall otherwise direct within
				  ninety days of the state banking board receiving notification of proposed
				  adjustments.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-38, 6-03-47.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-11 - Minimum Guidelines for Report of Examining Committee › Section 13-02-11-01 - Purpose

Current through Supplement No. 393, July, 2024
This chapter is intended to establish minimum guidelines for
				  the report of examining committee or examination by the board of directors,
				  annual independent certified public accountant audit, or auditors of the bank
				  holding company, or examination by internal audit control system for report of
				  examining committee pursuant to section
				   6-03-69. While the guidelines set
				  forth in this chapter are deemed to be minimum procedures, additional
				  procedures may be deemed prudent as determined to meet the individual needs of
				  the bank by its directors. This chapter is further intended to safeguard the
				  depositors of state banking associations by the establishment of procedures and
				  provide accurate evaluations of the assets and liabilities of the bank.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-69
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-11 - Minimum Guidelines for Report of Examining Committee › Section 13-02-11-02 - Report of examining committee

Current through Supplement No. 393, July, 2024
Examinations conducted by the board of directors, its
				  examining committee, or auditors of the bank holding company, or examination by
				  an internal audit control system for its annual report, may include the
				  following minimum procedures to comply with the report requirement of section
				   6-03-69. An independent certified
				  public accountant or accounting firm retained by the bank to perform the annual
				  report of examining committee examination requirement, may review bank internal
				  procedures or controls covering the following minimum procedures. In the
				  absence of any internal procedures or controls, the determination or review of
				  the following minimum procedures may be performed by the board of directors or
				  its examining committee, auditors of the bank holding company, or internal
				  audit control system:
1. Bank
				operations and asset accounts:
a. Determine
				if bank reconciliations of all general ledger accounts are performed on a
				timely basis and are accurate for all major accounts.
b. Determine if the bank has written policies
				and procedures that are periodically reviewed and are being followed concerning
				major areas of bank operations. Also determine if internal controls are
				adequate and are being following.
c. Balance nonledger assets and review files.
d. Determine if other real estate
				owned (OREO) was written to its value at the time title of property was taken,
				and is currently carried at an amount not in excess of the value of the
				property. Review all transactions to ensure they are proper.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-12 - Interstate Banking › Section 13-02-12-01 - Scope

Current through Supplement No. 393, July, 2024
To establish requirements for a reciprocating state bank
				  holding company making an application to acquire or organize a North Dakota
				  state or national bank and demonstrating how they will meet the credit needs
				  for business expansion of the local community or trade area in which the bank
				  and any facilities, stations, or banking houses are located.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-08.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-12 - Interstate Banking › Section 13-02-12-02 - Definitions

Current through Supplement No. 393, July, 2024
1. "Family farm" means agricultural real estate operated and
				  owned or leased by a farmer, or other organization authorized to own or lease
				  land used for farming or ranching under North Dakota Century Code chapter
				   10-06, where the majority of the
				  labor necessary to operate the farm is performed by the farmer and the farmer's
				  family, if any.
2. "Farmer" means a resident of North Dakota whose
				  principal occupation is or will be the production of an agricultural commodity
				  or livestock on a family farm if granted a loan.
3. "Investments
				  in community development" means equity and debt instruments of corporations or
				  projects designed primarily to promote community welfare such as economic
				  rehabilitation and development of low income areas.
4. "Low and
				  moderate income housing" means housing defined under section 8 of the United
				  States Housing Act of 1937, and the regulations adopted under the Act.
5. "Student education loans" means those loans made to individuals
				  under federal or state guidelines and direct loans for the purposes of
				  financing education.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-08.3
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-12 - Interstate Banking › Section 13-02-12-03 - Developmental loans

Current through Supplement No. 393, July, 2024
Developmental loans include loans or investments made to
				  residents of North Dakota in the Bank's trade area for the following purposes:
1. Operating loans for farmers and
				family farms;
2. Loans made to
				create or expand farm and nonfarm businesses;
3. Loans guaranteed by the small business
				administration or farmers home administration;
4. Investments in community development
				corporations or projects;
5. Low
				or moderate income housing loans;
6. Student education loans;
7. Loans made in distressed areas;
8. Loans made under the Bank of North
				Dakota's agricultural loan programs, including family farm loans, farm
				operating loans, conservation reserve program enhancement loans, and the rural
				rehabilitation corporation loan fund; and
9. Loans made under the Bank of North
				Dakota's commercial loan programs, including business development loans, small
				business concern loans, microbusiness loans, tourism and recreation investment
				program, oil and gas development loans, match loans, partnership in assisting
				community expansion loans, and agriculture partnership in assisting community
				expansion loans.
The board may designate distressed areas. The determination
				  of a distressed area will be made on the area's unemployment rate, economic
				  conditions, and credit needs.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-08.3-02
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-12 - Interstate Banking › Section 13-02-12-04 - Application

Current through Supplement No. 393, July, 2024
The application by the reciprocating bank holding company
				  must contain a statement demonstrating a commitment to meet credit needs of the
				  existing or proposed trade area. The applicant's statement must include a
				  commitment for a level of developmental loans by number and amount, and a
				  commitment to provide annual reports of developmental loans. Failure to set
				  forth a plan to establish a percentage of developmental loans to total loans at
				  a level no less than the percentage of developmental loans to total loans of
				  the applicant's consolidated statement with all of its banking subsidiaries may
				  constitute grounds for disapproval under subsection 5 of North Dakota Century
				  Code section
				   6-08.3-03. The description of
				  developmental loans must be filed on an annual basis together with the
				  description of net new funds.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-08.3-02
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-12 - Interstate Banking › Section 13-02-12-08 - Divestiture

Current through Supplement No. 393, July, 2024
Failure to maintain the required level and percentage of
				  developmental loans may constitute grounds for divestiture or cease and desist
				  proceedings under North Dakota Century Code section
				   6-08.3-07.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-08.3-07
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-13 - Mergers › Section 13-02-13-01 - Consolidation or merger

Current through Supplement No. 393, July, 2024
Any two or more banking institutions may consolidate or merge
				  upon making application and subject to approval by the state banking board. An
				  application to consolidate or merge is not required when a state-chartered
				  banking institution is not the survivor. A banking institution proposing to
				  purchase assets and assume the liabilities of another banking institution must
				  be considered a consolidation or merger and subject to an application under
				  this chapter.
General Authority: NDCC 6-01-04, 6-03-11
Law Implemented: NDCC 6-03-11
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-13 - Mergers › Section 13-02-13-02 - Application

Current through Supplement No. 393, July, 2024
An original and ten copies of the application to consolidate
				  or merge must be filed with the board. In lieu of an original application, the
				  state banking board will accept a copy of the application submitted to the
				  federal deposit insurance corporation. An application must contain the
				  following.
1. Plan of reorganization
				or merger;
2. Copy of notice of
				shareholder meeting to ratify merger or consolidation;
3. Copy of shareholders' minutes showing
				ratification of merger by the shareholders who own at least two-thirds of the
				outstanding capital stock;
4. Pro
				forma balance sheet of the resultant bank;
5. Any proposed changes of executive
				officers;
6. Description of any
				proposed changes to the bank's business plan, hours of operation, fees, terms
				for deposit and loan accounts, board of directors; and
7. Any other information determined by the
				commissioner or board to be necessary.
The board or commissioner may return an application whenever
				  it is determined that the application fails to address in a prima facie manner
				  the requirements of North Dakota Century Code section 6j03-11 and 6j03-14.1 or
				  this section. When an application is so returned by the board or commissioner,
				  it does not constitute a filing of an application.
General Authority: NDCC 6-01-04, 6-03-11
Law Implemented: NDCC 6-03-11
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-13 - Mergers › Section 13-02-13-03 - Publication

Current through Supplement No. 393, July, 2024
Upon filing a completed application, the secretary of the
				  board shall cause to be published notice of application for two successive
				  weeks in the official newspaper of the county where the proposed consolidated
				  or merged banking institutions are located including the locations of any
				  paying and receiving stations, or banking houses or offices. The notice of
				  application must also be sent by certified mail by the secretary of the board
				  to all banks located within the trade area of the banking institutions proposed
				  to be consolidated or merged. Within ten days of the final notice provided
				  under this section, any bank or party may submit to the board written comments
				  concerning the application or a written request for an opportunity to be heard
				  before the board, or both. In the case where a failing banking institution is
				  to be consolidated or merged, the board or commissioner may waive the notice of
				  application requirements.
General Authority: NDCC 6-01-04, 6-03-11
Law Implemented: NDCC 6-03-11
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-13 - Mergers › Section 13-02-13-03.1 - Joint federal and state publication

Current through Supplement No. 393, July, 2024
Notwithstanding section 13-02-13-03, an applicant may
				  elect to publish joint federal and state notice of the application pursuant to
				  the procedural requirements of federal law. Before publication, the applicant
				  shall submit the proposed notice of application to the commissioner for prior
				  approval.
General Authority: NDCC 6-01-04, 6-03-11
Law Implemented: NDCC 6-03-11