North Dakota Administrative Code

Repealed effective September 1, 1982. 2

The state banking board authorizes state banks to pay interest on deposits in accordance with all interest rate authorizations adopted by the board of governors of the federal reserve system pursuant to the provisions of section 19 of the Federal Reserve Act, 12 CFR Part 217 (als…

Each banking association shall have on hand at all times in available funds a percentage of its deposits which shall equal the amount of reserves required of it by the board of governors of the federal reserve system. History: Amended effective April 1, 1981. General Authority: N…

Unless the context otherwise requires, terms used in this chapter shall have the following meanings: 1. "Active account" means any checking account which has four or more entries in each month. 2. "Dormant account" means any account, including savings accounts, which has had no a…

Monthly statements of each active account, including statements, canceled checks, and other documents supporting charges to each account, will be available for delivery upon request as soon as possible after the close of each month's business. Delivery will be made by mail or cal…

Not later than forty-five days after the close of the month all undelivered statements of active accounts, including canceled checks and other documents supporting changes to each account, will be mailed to the customer. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-01-…

Monthly statements of inactive accounts, including statements, canceled checks, and other documents supporting charges to each account, will be available upon request as soon as possible after the close of each month. Delivery may be made by mail or call at the option of the asso…

At least every twelve months statements of all inactive accounts, including canceled checks and other documents supporting charges to each account, will be mailed to the customer. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-01-04

All dormant accounts will be under control of two officers of the bank. A dormant account register will be maintained, subject to the supervision of the officers assigned to control these accounts. Entries in the register will be reconciled to the total of the register at least e…

Statement of balance of each savings account which is not dormant will be mailed or delivered at least each twelve months. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-01-04 2

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. History: Amended effective August 1, 1996. General Au…

An original and ten copies of the application must be delivered to the state banking board. History: Amended effective May 1, 1996. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-03-13.1

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 with…

The application must be available for inspection in the office of the commissioner of financial institutions. History: Amended effective May 1, 1996; June 1, 2002. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-03-13.3

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…

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 t…

Board's authority to hold hearing. 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 bot…

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. History: Amended effective May 1, 1996. 2 General Aut…

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. T…

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 repo…

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

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 ap…

The commissioner shall authorize the establishment of customer electronic funds transfer centers by state-chartered banks. History: Amended effective October 1, 1991. General Authority: NDCC 6-01-04, 6-03-02(8) Law Implemented: NDCC 6-03-02(8)

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. History: Effective August 1, 1995. General Authority: NDCC 6-01-04, 6-…

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…

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 t…

Contents of application. 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…

capital required. 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 2 establishment of the proposed customer electronic funds transfer center and …

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 …

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. History: Amended effective October 1, 1991. General Authority: NDCC 6-01-0…

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 re…

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 boar…

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 Au…

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…

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 wi…

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 operati…

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 Implem…

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. History: Effective May 1, 1993. General Authority:…

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

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…

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. 1 General Authority: NDCC 6-01-04 La…

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

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. History: Amended effective May 1, 1993. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-01-01, 6-0…

This chapter is intended to safeguard the depositors of state banking associations by requiring the diversification of loan portfolios and repayment sources. History: Effective September 1, 1986. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-03-59

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 t…

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, indir…

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 comb…