North Dakota Administrative Code

A financial institution that has not received a customer's express consent or opt-in election may disclose customer information to a third party only as provided by subsections 1 through 11 of North Dakota Century Code section 6-08.1-02, North Dakota Century Code section 6-08.1-0…

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. 68…

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.…

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 …

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 …

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. History: Effective July 1, 2009. …

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 accoun…

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…

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. History: Effective July 1, 2009. General Authority: …

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…

Repealed effective August 1, 1998.

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 …

value. 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 mor…

Repealed effective January 1, 2013.

Repealed effective November 1, 1985.

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. History: Effective June 1, 1979; amended effective June 1, 1983; N…

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 loa…

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 …

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 chapter 13-03-20…

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. History: Effective January 1, 2007. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-06-06…

board. 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 fi…

Any state-chartered credit union planning to construct or purchase a building shall follow and comply with the following procedure: 1. The board of directors shall adopt a resolution to invest in a building, and stating the maximum funds to be invested in a lot and building. 2. I…

When applying to the state credit union board for permission to invest in a building which exceeds the limit established in section 13-03-04-01, the following procedures will be followed: 1. The secretary of the credit union will certify compliance with the provisions of section …

The following information must accompany the application: 1. A blueprint or floor plan, stating type of construction, location, and information about security provisions (vaults, safes, files, alarms), if any. 2. A balance sheet for the month ending immediately preceding the appl…

1. "Continuing credit union" means the credit union whose charter continues upon merging with the merging credit union. 2. "Merging credit union" means the credit union whose charter ceases to exist upon merging with the continuing credit union. History: Effective August 1, 1993.…

Any state-chartered credit union planning to merge shall follow and comply with the following procedure: 1. The board of directors of each state-chartered credit union shall pass a resolution by a majority of the directors, in favor of the merger, stating specific terms, if any. …

Repealed effective August 1, 1993.

Repealed effective August 1, 1993.

In considering the application for merger, the board shall examine and consider all relevant factors including: 1. Whether proper notification has been given to all members, unless the membership meeting has been waived by the board. 2. The comments of the members of each credit …

Members of the board who are also directors, committee members, or staff of one of the merging credit unions, shall declare a conflict of interest and must abstain from voting on the merger application. History: Effective August 1, 1993. General Authority: NDCC 6-01-04 Law Implem…

When section 13-03-05-01 has been completed, the board, by order shall approve or disapprove the proposed merger, within thirty days after receipt of the application or within thirty days after the date of hearing if a hearing is conducted, and so advise the credit unions involve…

Nothing in this chapter shall be deemed to be in conflict with the applicable federal regulation or North Dakota law governing mergers of credit unions. History: Effective August 1, 1993. General Authority: NDCC 6-01-04, 6-06-36, 6-06-37 Law Implemented: NDCC 6-06-36, 6-06-37 3…

1. "Commercial loan" means any loan, line of credit, or letter of credit, including any unfunded commitments, and any interest a credit union obtains in such loans made by another lender, to individuals, sole proprietorships, partnerships, corporations, or other business enterpri…

All credit unions operating under a charter issued by the state of North Dakota shall be required to maintain an allowance for loan and lease loss account in accordance with generally accepted accounting principles and rules of the national credit union administration. History: A…

The adequacy of the allowance for loan and lease loss account as required under North Dakota Century Code section 6-06-21 will be based upon generally accepted accounting principles and incorporate the credit union's credit risk rating system as outlined in section 13-03-06-05. T…

When the credit union's net worth ratio falls below seven percent after allowing for full and fair disclosure in the allowance for loan and lease loss account, or fails to meet the risk-based capital requirements of part 702 of the national credit union administration's rules and…

The board of directors shall develop a policy requiring risk monitoring and a credit grading system, and management shall establish a process to implement a credit grading system and monitoring to effectively measure and monitor the level of risk in relation to total reserves. Th…

Negotiable or transferable instrument of account means an account from which the holder is authorized to withdraw funds by means of a negotiable or transferable instrument or other order. History: Effective August 1, 1981. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-0…

The board of directors, by resolution, may establish negotiable or transferable instrument accounts with different dividend rates in conformance with the following: 1. Any terms and conditions prescribed by the board of directors and concerning the issuance and maintenance of neg…

Consistent with policies established by the board of directors, the credit committee or loan officer shall ensure that a credit application is kept on file for each borrower supporting the decision to make a loan or establish a line of credit. A credit union may advance money to …

A credit union is authorized to act as trustee or custodian, and may receive reasonable compensation for so acting, under any written trust instrument or custodial agreement forming part of a pension plan which qualifies or qualified for specific tax treatment under section 401(d…

The plan shall provide for the appointment of a successor trustee or custodian by a person, committee, corporation, or organization other than the credit union or any person acting in one's capacity as a director, employee, or agent of the credit union, upon notice from the credi…

Credit unions may participate in the national credit union administration's community development revolving loan program for credit unions subject to the rules established under part 705 of the national credit union administration's rules and regulations. History: Effective March…

low-income designated credit unions. A credit union may be designated as a low-income credit union and may offer secondary capital accounts subject to the rules established by the national credit union administration under part 701.34 of the national credit union administration's…

Repealed effective January 1, 2007.

Repealed effective January 1, 2007.

Repealed effective January 1, 2007.

Repealed effective January 1, 2007. 1

Repealed effective January 1, 2007.

Repealed effective January 1, 2007.