reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-13 - Mergers › Section 13-02-13-04 - Criteria for state banking board consideration for approval

Current through Supplement No. 393, July, 2024
When deciding whether to approve an application to
				  consolidate or merge, the board shall examine and consider all relevant factors
				  including:
1. Whether proper
				notification has been given to all shareholders;
2. Whether at least two-thirds of the
				shareholders have ratified the plan of reorganization or merger;
3. Whether the resultant bank has adequate
				capital;
4. Whether the needs of
				the community to be served will still be met; and
5. The adequacy and competence of management.
When a hearing has not been conducted and the board denies
				  the application to consolidate or merge, the applicant may, within fifteen days
				  after receipt of disapproval, petition the board for a hearing. Unless the
				  board determines that the application to consolidate or merge is frivolous or
				  incomplete, the petition for hearing must be granted. After the hearing is
				  conducted, the board shall issue an order to approve or disapprove the
				  application on the basis of the record made at the hearing.
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 13-02-13-05 - Hearing

Current through Supplement No. 393, July, 2024
A public hearing by the board may be required on applications
				  to merge or consolidate whenever the board or commissioner determines that it
				  is in the public interest to hold such a hearing or whenever a bank or party's
				  request for an opportunity to be heard is granted. Notice of hearing on an
				  application will, if required, be issued at least thirty days prior to the
				  hearing on the application. The notice of hearing must be published by the
				  secretary of the board 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 hearing 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.
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 13-02-14 - Life Insurance › Section 13-02-14-01 - Definitions

Current through Supplement No. 393, July, 2024
"Key person" means the chairman of the board, the president,
				  each vice president, the cashier, the secretary, the treasurer, or any other
				  employee or director of a bank or bank holding company whose absence for an
				  extended period of time would result in a significant loss of net income for
				  the bank, unless such key person is excluded, by resolution of the board of
				  directors or by the bylaws of the bank or bank holding company, from
				  participation, other than in the capacity of a director, in policymaking
				  functions of the bank or bank holding company, and the key person does not
				  actually participate in policymaking functions of the bank or bank holding
				  company.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-14 - Life Insurance › Section 13-02-14-02 - Authority to purchase life insurance

Current through Supplement No. 393, July, 2024
Banks may purchase and hold an interest in individual or
				  group life insurance policies on the life of its key persons, directors, and
				  borrowers, and may purchase life insurance in connection with compensation and
				  benefit plans for its officers, directors, and employees, subject to the
				  limitations in this chapter. The bank is not authorized to purchase policies if
				  the board's basis for its insurable interest is primarily based upon the
				  employee or director being a shareholder of the bank or bank holding company.
				  Funding for the payment of compensation and benefit plans may be made or split
				  in a joint manner between the bank, employee, director, or bank holding company
				  as in "split dollar" or other insurance plans.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-14 - Life Insurance › Section 13-02-14-03 - Limitations

Current through Supplement No. 393, July, 2024
1. A bank is not authorized to purchase life
				insurance policies for the bank's own account as an investment.
2. Except as provided in subsections 3 and 4,
				the bank's purchase of life insurance policies underwritten by one company
				cannot exceed fifteen percent of the bank's tier 1 capital.
3. The bank's purchase of any life insurance
				policy underwritten by one company for key person purposes cannot exceed
				twenty-five percent of the bank's capital stock and surplus as measured by the
				policy's cash surrender value.
4.
				The bank's purchase of any life insurance policy underwritten by one company on
				a director cannot exceed ten percent of the bank's capital stock and surplus as
				measured by the policy's cash surrender value.
5. The bank's purchase of life insurance
				policies from all carriers in the aggregate cannot exceed twenty-five percent
				of the bank's tier 1 capital. This limit shall apply to the initial purchase of
				life insurance policies as measured by the amount of premium and to subsequent
				purchases as measured by the sum of the cash surrender value of earlier
				purchases plus the amount of premium committed toward subsequent purchases.
6. The bank is not authorized to
				purchase life insurance policies for the primary purpose of providing estate
				planning benefits for bank insiders unless it is part of a reasonable
				compensation package.
7. The
				bank's authority to hold life insurance on any key person ceases when the key
				person is no longer employed by the bank, or no longer meets the definition of
				key person.
8. The bank's
				authority to hold life insurance on a director ceases when that director is no
				longer a member of the board of directors and there is no liability or
				obligation under director compensation and benefit plans.
9. The bank's authority to purchase life
				insurance on borrowers is subject to the following:
a. The face value of the life insurance
				policy cannot exceed the borrower's obligation to the bank.
b. The bank has not charged off nor is
				expected to charge off the borrower's obligation.
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-14 - Life Insurance › Section 13-02-14-04 - Financial information

Current through Supplement No. 393, July, 2024
Prior to purchasing a 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 6-03-02
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-14 - Life Insurance › Section 13-02-14-05 - Documentation

Current through Supplement No. 393, July, 2024
1. In purchasing life insurance for key
				person purposes, the bank's board of directors must adequately document in its
				minutes the basis for its insurable interest and the basis for the amount of
				insurance. The bank's board of directors must also document in its minutes the
				basis for determining how that employee or director meets the definition of a
				key person.
2. In purchasing life
				insurance in connection with compensation and benefit plans for employees,
				officers, and directors, the bank's board of directors must approve and
				document such plans or programs including the reasonableness of the plans or
				programs.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-14 - Life Insurance › Section 13-02-14-06 - Waiver

Current through Supplement No. 393, July, 2024
The state banking board or commissioner may waive any
				  limitation or restriction in this chapter.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02, 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-15 - Loan Production Offices › Section 13-02-15-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Bank funds" means cash or any check whereby the drawer
				  and drawee are the lending bank, including a cashier's check.
2.
				  "Core banking activity" includes receiving deposits, paying checks, or lending
				  money.
3. "Loan production office" means an office which is apart
				  from the main bank, facility, or interstate branch, where loans are solicited
				  but money is not lent.
4. "Money" is "lent" only when the borrower
				  receives loan proceeds in person directly from bank funds either:
a. At the lending bank or its operating subsidiary; or
b. At a facility established by the lending bank or its operating
				  subsidiary.
5. "Receipt of bank funds representing loan proceeds"
				  does not include delivery of bank funds directly by a third party provided it
				  does not occur at a place established by the bank or its operating subsidiary.
6. "Third party" is a person who customarily delivers loan
				  proceeds directly from bank funds under accepted industry practice such as an
				  attorney or escrow agent at a real estate closing.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-15 - Loan Production Offices › Section 13-02-15-02 - Authorization of loan production offices

Current through Supplement No. 393, July, 2024
The commissioner may authorize the establishment of
				  intrastate and interstate loan production offices by North Dakota
				  state-chartered banks. In determining whether to approve the application for a
				  loan production office, the commissioner shall take into consideration the
				  following:
1. Whether the applicant
				bank is at least adequately capitalized per the most recently filed report of
				condition and income;
2. The
				volume of loans that applicant anticipates generating;
3. The information provided pursuant to
				section 13-02-15-04; and
4. Any other information the commissioner
				deems appropriate.
If an application for the establishment of a loan production
				  office is denied by the commissioner, the applicant bank may appeal the
				  decision of the commissioner to the state banking board.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-15 - Loan Production Offices › Section 13-02-15-03 - Limitation

Current through Supplement No. 393, July, 2024
Loan production offices may not be established when the
				  establishment of such offices would impair the applicant bank's capital
				  structure. There are no population or geographic restrictions applied to such
				  offices in the state of North Dakota. This chapter does not prohibit the
				  establishment of a loan production office in North Dakota by banks located in
				  other states provided the other state allows a North Dakota state-chartered
				  bank to establish a loan production office in the other state.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-15 - Loan Production Offices › Section 13-02-15-04 - Permissible activities

Current through Supplement No. 393, July, 2024
Loan production offices are limited to the following
				  activities:
1. Soliciting loans on
				behalf of a bank.
2. Assembling
				credit information.
3. Conducting
				property inspections and appraisals.
4. Securing title information.
5. Preparing applications for loans,
				including making credit decisions provided money is not lent at the loan
				production office.
6. Any other
				activity which does not constitute a core banking activity as determined by the
				state banking board.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-15 - Loan Production Offices › Section 13-02-15-05 - Loan production office application

Current through Supplement No. 393, July, 2024
A loan production office may not be established, or operated,
				  by a state-chartered bank until after the bank has submitted a written
				  application to the commissioner or board and received a certificate of
				  authority to operate such office. The application must describe with regard to
				  the loan production office the following:
1. The location.
2. A general description of the area where
				located, e.g., shopping center, supermarket, department store, etc.
3. The proposed activity for the location.
4. Whether the location will be
				staffed, and if so, the nature of employee compensation, whether an employee of
				the bank or a fee and commission basis.
5. Description as to the types of loans to be
				solicited.
6. Any other
				information the commissioner determines necessary.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-15 - Loan Production Offices › Section 13-02-15-06 - Revocation of certificate of authority

Current through Supplement No. 393, July, 2024
The commissioner may revoke the certificate of authority for
				  a loan production office where it has been determined a loan production office
				  has engaged in any activity not specifically provided for in section 13-02-15-04.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-15 - Loan Production Offices › Section 13-02-15-07 - Appeal

Current through Supplement No. 393, July, 2024
A bank whose certificate of authority has been revoked may
				  appeal the commissioner's decision for consideration of the board if the appeal
				  is filed within fifteen days after receipt of notice of certificate revocation.
				  Consideration of the board must occur within sixty days after the date the
				  appeal is filed.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-16 - Trust Powers › Section 13-02-16-01 - Authorization

Current through Supplement No. 393, July, 2024
A banking association receiving approval by the board to
				  exercise trust powers may exercise trust powers at its main banking house,
				  banking house or office, paying and receiving stations, and drive-in and walkup
				  facility locations. Only one application is required for a banking association.
				  Trust powers granted by the board prior to the effective date of this chapter
				  for the bank's separate banking house locations shall be considered to
				  heretofore apply to all locations.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02(13), 6-03-13.1, 6-03-17, 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-16 - Trust Powers › Section 13-02-16-02 - Application

Current through Supplement No. 393, July, 2024
An original and ten copies of the application to exercise
				  trust powers must be filed with the board. In lieu of an original application,
				  the board may accept a copy of the application submitted to the federal deposit
				  insurance corporation or federal reserve system. The applicant must provide any
				  additional information determined by the commissioner or board to be relevant.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02(13), 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-16 - Trust Powers › Section 13-02-16-03 - Criteria for approval

Current through Supplement No. 393, July, 2024
The applicant must demonstrate that the proposed trust
				  committee and officers have experience commensurate with the trust powers being
				  requested. Upon granting trust powers, the board may require the applicant to
				  commit to a training program of trust schools and seminars acceptable to the
				  board. The board may also direct the applicant to enter into a training
				  agreement with another trust company or bank.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02(12), 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-16 - Trust Powers › Section 13-02-16-04 - Publication

Current through Supplement No. 393, July, 2024
Upon filing an application, the secretary of the board shall
				  cause to be published notice of the application for two successive weeks in the
				  official newspaper of the county of the main banking house, and all locations.
				  The notice of application must also be sent by certified mail by the secretary
				  of the board to all banks and trust companies located within the banking trade
				  area association within ten days of final publication provided under this
				  section. Any party must submit to the board written comments concerning the
				  application, or a written request for an opportunity to be heard or both, no
				  later than ten days after the date of final publication.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02(12), 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-16 - Trust Powers › Section 13-02-16-04.1 - Joint federal and state publication

Current through Supplement No. 393, July, 2024
Notwithstanding section 13-02-16-04, 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, 6-03-02(12)
Law Implemented: NDCC 6-03-02(12), 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-16 - Trust Powers › Section 13-02-16-05 - Hearing

Current through Supplement No. 393, July, 2024
A public hearing by the board may be required on an
				  application for trust powers whenever the board or commissioner determines that
				  it is in the public interest to hold such a hearing or whenever an interested
				  party's request for an opportunity to be heard is granted. Notice of hearing on
				  an application must, if required, be issued at least forty-five days prior to
				  the hearing on an application. The notice of hearing must be published by the
				  secretary of the board for two successive weeks in the official newspaper of
				  the county of the main banking house, banking houses or offices, drive-in and
				  walkup facilities, or paying and receiving stations are located. The notice of
				  hearing must also be sent by certified mail by the secretary of the board to
				  all banks and trust companies located within the banking association's trade
				  area.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02(12), 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-17 - Sale or Purchase of Associations, Banking Institutions, or Holding Companies › Section 13-02-17-01 - 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 in the official
				  newspaper of the county where the association, banking institution, or holding
				  company is principally located. The notice must specify the name of the
				  association, banking institution, or holding company, and the number of shares
				  to be sold or purchased, or in any manner transferred, and the number of total
				  outstanding shares. The notice must also provide that written comments may be
				  submitted to the board, and the application may be requested or reviewed in the
				  office of the department. Any party must submit written comments concerning the
				  application to the board no later than ten days after the date of publication.
				  The notice may be included with any notice for a similar application submitted
				  to the federal deposit insurance corporation or the federal reserve board.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-08-08.1(2)
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-18 - Discontinuance of a Facility › Section 13-02-18-01 - Publication

Current through Supplement No. 393, July, 2024
Upon filing a completed application, the bank shall cause to
				  be published notice of application once a week for two successiveweeks in the
				  official newspaper of the county where the facility is located. The notice must
				  invite comments be sent to the board. Any person must submit written comments
				  concerning the application to the board no later than thirty days after the
				  date of final publication. The notice may be included with any notice for a
				  branch closing required by the federal deposit insurance corporation or the
				  federal reserve 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 13-02-19 - Trust Companies › Section 13-02-19-01 - Application

Current through Supplement No. 393, July, 2024
An original and ten copies of the application to organize a
				  trust company must be filed with the board. In lieu of an original application,
				  the board will accept a copy of the application submitted to the federal
				  deposit insurance corporation. The application must clearly indicate the types
				  of trust services to be performed. The application must specify the location as
				  to where the trust company is proposed to be located. The applicant must
				  provide any additional information determined by the commissioner or board to
				  be necessary.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-19 - Trust Companies › Section 13-02-19-02 - Criteria for approval

Current through Supplement No. 393, July, 2024
The applicant must demonstrate that the proposed trust
				  committee and officers have experience commensurate with the trust powers being
				  requested. Upon granting trust powers, the board may require the applicant to
				  commit to a training program of trust schools and seminars acceptable to the
				  board. The board may also direct the applicant to enter into a training
				  agreement with another trust company or bank.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-19 - Trust Companies › Section 13-02-19-03 - Equity capital

Current through Supplement No. 393, July, 2024
The minimum equity capital for organization of a trust
				  company is five hundred thousand dollars. The board may require additional
				  equity capital whenever the proposed location of the trust company, the amount
				  of fiduciary assets projected for the trust company, the amount of direct
				  investments by the trust company, or other relevant financial projections so
				  indicate. The minimum equity capital level set by the board will be such as
				  necessary to ensure that the applicant is adapted to the filling of the need to
				  establish trust services.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-19 - Trust Companies › Section 13-02-19-04 - Publication and hearing

Current through Supplement No. 393, July, 2024
A notice of hearing on an application must be issued at least
				  forty-five days prior to the hearing on an application. The notice of hearing
				  must be published by the secretary of the board for two successive weeks in the
				  official newspaper of the county where the proposed trust company is to be
				  located. The notice of hearing must also be sent by certified mail by the
				  secretary of the board to all banks and trust companies located within the
				  trade area of the trust company.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-05-01
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-20 - Loans Secured Primarily by Real Estate › Section 13-02-20-01 - Scope

Current through Supplement No. 393, July, 2024
This chapter applies to loans that are dependent primarily
				  upon real estate security.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-05
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-20 - Loans Secured Primarily by Real Estate › Section 13-02-20-03 - Loan-to-value limitations

Current through Supplement No. 393, July, 2024
Except as provided in this section and section 13-02-20-04:
1. Loans secured by raw land may not exceed a
				sixty-five percent loan-to-value ratio.
2. Loans made for land development may not
				exceed a seventy-five percent loan-to-value ratio.
3. Construction loans for commercial,
				multifamily, condominiums, cooperatives, and other nonresidential property may
				not exceed an eighty percent loan-to-value ratio.
4. Construction loans for one-to-four family
				residential real property may not exceed an eighty-five percent loan-to-value
				ratio.
5. Improved property loans
				may not exceed an eighty-five percent loan-to-value ratio.
6. Owner-occupied one-to-four family and home
				equity loans may not exceed a ninety percent loan-to-value ratio. However, such
				loans may exceed the ninety percent loan-to-value limit provided the amount
				above this limitation is government guaranteed, or has an appropriate credit
				enhancement in the form of either mortgage insurance or readily marketable
				collateral.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-05
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-20 - Loans Secured Primarily by Real Estate › Section 13-02-20-04 - Excluded transactions

Current through Supplement No. 393, July, 2024
The loan-to-value ratios established in this chapter do not
				  apply to loans that are insured or guaranteed, or where there is a commitment
				  to insure or guarantee, in part or in full, or conditionally, by the United
				  States, its instrumentalities, this state, or its instrumentalities.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-05
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-20 - Loans Secured Primarily by Real Estate › Section 13-02-20-05 - Exceptions

Current through Supplement No. 393, July, 2024
Exceptions may be made for the consideration of loan requests
				  from credit worthy borrowers. However, any exceptions from the loan-to-value
				  limits should not exceed, when aggregated with all other loans in excess of the
				  loan-to-value limits, one hundred percent of total equity capital and reserves.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-05
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-21 - Disclosure of Customer Information by Financial Institutions › Section 13-02-21-01 - 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 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-21 - Disclosure of Customer Information by Financial Institutions › Section 13-02-21-03 - 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 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-21 - Disclosure of Customer Information by Financial Institutions › Section 13-02-21-04 - 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 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-22 - Deposit Production Offices › Section 13-02-22-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Deposit production office" means an office which is apart
				  from the bank's main office, facility, or interstate branch where deposits are
				  solicited but are not received, nor are withdrawals paid or loans made.
2. "Impairment of capital" means the tier 1 leverage capital ratio
				  in the bank's most recent quarterly report of condition and income is less than
				  five percent.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-22 - Deposit Production Offices › Section 13-02-22-02 - Authorization of deposit production offices

Current through Supplement No. 393, July, 2024
The commissioner may authorize the establishment of deposit
				  production offices by state-chartered banks. In determining whether to approve
				  the application for a deposit office the commissioner shall take into
				  consideration the following:
1.
				Whether the applicant bank is at least adequately capitalized per the most
				recently filed report of condition and income;
2. The volume of deposits that applicant
				anticipates generating;
3. The
				information provided pursuant to section 13-02-22-05; and
4. Any other information the commissioner
				deems appropriate.
If an application for the establishment of a deposit
				  production office is denied by the commissioner, the applicant bank may appeal
				  the decision of the commissioner to the state banking board.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-22 - Deposit Production Offices › Section 13-02-22-03 - Limitation

Current through Supplement No. 393, July, 2024
Deposit production offices may not be established when the
				  establishment of such offices would impair the applicant bank's capital
				  structure. There are no population or geographic restrictions applied to such
				  offices in the state of North Dakota.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-22 - Deposit Production Offices › Section 13-02-22-04 - Permissible activities

Current through Supplement No. 393, July, 2024
Deposit production offices are limited to the following
				  activities:
1. Soliciting deposits on
				behalf of a bank, facility, or interstate branch.
2. Providing information about deposit
				products.
3. Assisting persons in
				completing forms and related documents to open a deposit account and forwarding
				the forms and documents to the main bank, facility, or interstate branch.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-22 - Deposit Production Offices › Section 13-02-22-05 - Deposit production office application

Current through Supplement No. 393, July, 2024
A deposit production office may not be established or
				  operated by a state-chartered bank until after the bank has submitted a written
				  application to the commissioner or board and received a certificate of
				  authority to operate such office. The application must describe with regard to
				  the deposit production office the following:
1. The location.
2. A general description of the area where
				located, e.g., shopping center, supermarket, department store, etc.
3. The proposed activity for the location.
4. Whether the location will be
				staffed and, if so, the nature of employee compensation, whether an employee of
				the bank or a fee and commission basis.
5. Description as to the types of deposits to
				be solicited.
6. Any other
				information the commissioner determines necessary.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-22 - Deposit Production Offices › Section 13-02-22-06 - Revocation of certificate of authority

Current through Supplement No. 393, July, 2024
The commissioner may revoke the certificate of authority for
				  a deposit production office where it has been determined a deposit production
				  office has engaged in any activity not specifically provided for in section 13-02-22-04.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-02 - Banking and Savings and Loan Associations › Chapter 13-02-22 - Deposit Production Offices › Section 13-02-22-07 - Appeal

Current through Supplement No. 393, July, 2024
A bank whose certificate of authority has been revoked may
				  appeal the commissioner's decision for consideration of the board if the appeal
				  is filed within fifteen days after receipt of notice of certificate revocation.
				  Consideration of the board must occur within sixty days after the date the
				  appeal is filed.
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-01.1 - [Repealed] › Section 13-03-01.1-01

Current through Supplement No. 393, July, 2024
General Authority: NDCC 6-01-04, 28-32-02
Law Implemented: NDCC 6-01-01, 6-01-04, 28-32-05
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-01.1 - [Repealed] › Section 13-03-01.1-02

Current through Supplement No. 393, July, 2024
General Authority:
NDCC
					  6-01-04,
					  28-32-02
Law Implemented:
NDCC
					  6-01-01,
					  6-01-04
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-01.1 - [Repealed] › Section 13-03-01.1-03

Current through Supplement No. 393, July, 2024
General Authority: NDCC 6-01-04, 28-32-02
Law Implemented: NDCC 6-01-01, 6-01-04, 28-32-05
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-02 - Limiting and Restricting the Amount That May be Loaned on Real Property Security › Section 13-03-02-01 - Aggregate limited to percent of paid-in shares and deposits - Type of lien [Repealed]

Current through Supplement No. 393, July, 2024
North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-02 - Limiting and Restricting the Amount That May be Loaned on Real Property Security › Section 13-03-02-02 - Requirements for advancement of money on security of real property

Current through Supplement No. 393, July, 2024
No state-chartered credit union may advance money on security
				  of real property until the following requirements are met:
1. The mortgage has been properly signed and
				recorded in the office of the county recorder where the real property is
				located.
2. The credit union must
				verify that the mortgagor has the right to convey the real property and the
				credit union must determine the order of priority of the lien established by
				the mortgage.
3. For real estate
				loans equal to or more than one million dollars or four hundred thousand
				dollars for residential real estate not insured, an appraisal must be conducted
				by a licensed or certified appraiser if required under 12 Code of Federal
				Regulations part 722.
4. For real
				estate loans that do not meet the requirements of subsection 3, a credit union
				must obtain an appropriate evaluation of real property collateral for
				transactions if an appraisal by a licensed or certified appraiser is not
				obtained.
5. Regardless of the
				value of a real estate loan, the commissioner may issue an order requiring an
				appraisal by a licensed or certified appraiser when necessary to address safety
				and soundness concerns.
6. Adequate
				casualty fire and tornado insurance has been obtained and is maintained
				throughout the life of the loan with a mortgage clause for the benefit of the
				credit union.
7. A note for the
				amount of the loan has been signed by the mortgagor or mortgagors consistent
				with the terms of the mortgage.
8.
				The credit union may make exceptions to subsections 2, 3, and 6 of this section
				if the mortgage is taken as an abundance of caution as set forth in  12 CFR 722.3, and the value of the real property security is not used as part of the
				analysis of the borrower's credit worthiness.
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 13-03-02 - Limiting and Restricting the Amount That May be Loaned on Real Property Security › Section 13-03-02-03 - Length of term - Amortization - Limitation on amount of percent of appraised value

Current through Supplement No. 393, July, 2024
1. All amortized
				loans secured by real property shall be limited to a term of forty years, and
				an amount of ninety percent of the appraised value of the real estate being
				mortgaged as security for the loan.
2. When a loan specified in subsection 1 is
				insured by private mortgage insurance, the permissible amount shall not exceed
				the amount that is covered by the insurance.
3. When a loan specified in subsection 1 is
				insured by private mortgage insurance, the permissible amount shall be extended
				to no more than ninety-five percent.
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 13-03-02 - Limiting and Restricting the Amount That May be Loaned on Real Property Security › Section 13-03-02-06 - Exemption from restrictive provisions

Current through Supplement No. 393, July, 2024
The limitations set out in sections 13-03-02-02 and 13-03-02-03 shall not apply to any
				  federally guaranteed loan, however, such loans must conform to all federal
				  requirements for the making of the guaranteed loan.
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 13-03-02 - Limiting and Restricting the Amount That May be Loaned on Real Property Security › Section 13-03-02-07 - Exceptions

Current through Supplement No. 393, July, 2024
A credit union may make an exception to the loan-to-value
				  limits under section 13-03-02-03 for loans from
				  creditworthy borrowers. However, a credit union may not make such an exception
				  if the loan would exceed one hundred fifty percent of the credit union's net
				  worth when the loan is aggregated with all other loans in excess of the
				  loan-to-value limits.
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 13-03-03 - Investment in First Lien, Public Utility, Industrial, Corporation, or Association Bonds, Notes, or Other Evidences of Debt Issued by Corporations Located in the United States of America › Section 13-03-03-01 - Individual investment limitation - Total investment limitation

Current through Supplement No. 393, July, 2024
No credit union organized and operating under the laws of
				  North Dakota shall invest more than ten percent, in the aggregate, of the total
				  paid in shares and deposits of the credit union in first lien, public utility,
				  industrial, corporation, or association bonds, or notes issued by corporations
				  located in the United States of America, unless an exemption is granted by the
				  state credit union board. In determining whether to grant an exemption, the
				  board shall consider the following:
1.
				The net worth ratio of the credit union;
2. The capital, asset quality, management,
				earnings, liquidity, and sensitivity to market risk (CAMELS) rating of the
				credit union;
3. The experience of
				the credit union's management; and
4. Other factors deemed pertinent by the
				board.
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 13-03-03 - Investment in First Lien, Public Utility, Industrial, Corporation, or Association Bonds, Notes, or Other Evidences of Debt Issued by Corporations Located in the United States of America › Section 13-03-03-02 - Applicability

Current through Supplement No. 393, July, 2024
Section 13-03-03-01 shall not apply to a
				  credit union's direct loans to members. A credit union's participation in a
				  loan originating with another lender shall be considered a loan for purposes of
				  this chapter. Participation loans are subject to the provisions of  13-03-20.
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 13-03-03 - Investment in First Lien, Public Utility, Industrial, Corporation, or Association Bonds, Notes, or Other Evidences of Debt Issued by Corporations Located in the United States of America › Section 13-03-03-03 - Investment in other evidences of debt

Current through Supplement No. 393, July, 2024
A state-chartered credit union may invest in other evidences
				  of debt, issued by corporations located in the United States of America, upon
				  approval from the state credit union board.
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 13-03-04-01 - Maximum investment in fixed assets to be determined by state credit union board

Current through Supplement No. 393, July, 2024
No credit union organized and operating under the laws of
				  North Dakota shall invest more than the greater of six percent of assets or
				  fifty percent of net worth, but not to exceed ten percent of assets, in a
				  credit union land and building and other fixed assets, without first applying
				  for and obtaining approval from the state credit union board.
General Authority:
NDCC 6-01-04
Law Implemented:
NDCC
					 6-06-06