North Dakota Administrative Code

Repealed effective January 1, 2007.

Repealed effective January 1, 2007.

Repealed effective January 1, 2007. 2

1. "Branch", for the purpose of this chapter, means any credit union facility which is established apart from the principal office where credit union business is transacted, not including remote electronic facilities, such as automated teller facilities, point-of-sale terminals, …

1. A North Dakota state-chartered credit union may expand its field of membership subject to approval of the state credit union board and in accordance with the provisions of this chapter and North Dakota Century Code chapter 6-06. 2. The state credit union board, when considerin…

A credit union wishing to expand its field of membership shall comply with the following: 1. Approval to expand the field of membership must be given by the board of directors of the credit union by a majority of that board; 2. After approval by the credit union's board of direct…

The state credit union board, in the exercise of its discretion, may waive the provisions of this chapter when such waiver is in the best interests of a failing institution. History: Effective April 1, 1988; June 1, 2002. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-06…

In the event of a merger between credit unions with different fields of membership, the surviving credit union may, at the election of the surviving credit union, expand its field of membership to include the field of membership of the merged credit union. 2 History: Effective Ja…

1. "Branch", for the purpose of this chapter, means any credit union facility which is established apart from the principal office where credit union business is transacted, not including remote electronic facilities, such as automated teller facilities, point-of-sale terminals, …

1. Any North Dakota state-chartered credit union may establish a branch facility subject to approval of the state credit union board and in accordance with the provisions of this chapter. 2. All branch facility advertising and building signs must state the identity of the credit …

1. Branches of "closed charter" credit unions established pursuant to the provisions of this chapter must be reasonably necessary in order to properly serve units of the field of membership which are not being properly served by the principal credit union office. The location of …

1. A credit union wishing to establish a branch shall comply with the following: a. Approval to establish the branch must be given by the board of directors of the credit union by a majority of that board; and b. After approval by the credit union's board of directors, applicatio…

The state credit union board or commissioner, in the exercise of their discretion, may waive the provisions of this chapter when such waiver is in the best interests of a failing institution. History: Effective April 1, 1988; amended effective April 1, 2022. General Authority: ND…

Any credit union intending to close a branch shall provide its membership and the commissioner with notice of the closing at least thirty days prior to the closing date. History: Effective January 1, 2013. General Authority: NDCC 6-01-04 2 Law Implemented: NDCC 6-06-06…

A credit union that operates physical facilities in any area that is experiencing an epidemic or other emergency may adjust the credit union's operations in any manner that is reasonable to protect the credit union's members, employees, assets, or business. Under this section, a …

The board of directors of a North Dakota state-chartered credit union may authorize purchase of an excess deposit insurance policy in addition to deposit insurance coverage provided by the national credit share insurance fund for the credit union's members. History: Effective Oct…

Prior to purchasing an excess deposit insurance policy, the board of directors shall evaluate the financial condition and rating, if any, of the insurance company by acquiring adequate and current financial information. The board shall, on at least an annual basis, continue to ev…

If an excess deposit insurance policy is terminated, either at the request of the credit union or the insurance company, the credit union must notify in writing all members covered by such excess deposit insurance at least ninety days prior to the effective date of termination. T…

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. History: Effective June 1, 2004. General Authority: NDCC 6-01-04 Law Implemented:

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.…

A state-chartered credit union may engage in direct leasing, indirect leasing, open-end leasing, or closed-end leasing subject to the limitations prescribed under this chapter. History: Effective January 1, 2007. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-06-06

For purposes of this rule, the following definitions will apply: 1. "Closed-end lease" means the credit union assumes the risk and responsibility for any difference in the estimated residual value and the actual value of the property at lease end. However, the member is responsib…

1. The lease must be a net lease. In a net lease, your member assumes all the burdens of ownership, including maintenance and repair, licensing and registration, taxes, and insurance. 2. The lease must be a full payout lease. In a full payout lease, you must reasonably expect to …

The board of directors of the credit union will formulate and maintain a written lease policy. At a minimum, the lease policy should address the following: 1. Identify acceptable lease servicers and lessors, for purchased leases only. 2. Establish aggregate volume of paper to be …

A credit union's investment in purchased leases from a single leasing company or affiliated leasing companies shall not exceed ten percent of the net worth of the credit union. History: Effective January 1, 2007. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-06-06

A credit union may appeal to the state credit union board for an increase in the limitation in purchased leases under section 13-03-19-05. History: Effective January 1, 2007. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-06-06 4…

For purposes of this section: 1. "Associated borrower" means any other person or entity with a shared ownership, investment, or other pecuniary interest in a business or commercial endeavor with the borrower. This means any person or entity named as a borrower or debtor in a loan…

1. Subject to the provisions of this section, any state-chartered credit union may participate in making loans with eligible organizations within the limitations of the board of directors' written participation loan policies, provided it meets the requirements of this subsection.…

A credit union may seek a waiver from any of the limitations in subdivision f of subsection 1 of section 13-03-20-02. A credit union shall submit a written request to the commissioner containing an explanation for the purpose of the waiver. The commissioner may request the credit…

For purposes of this section: 1. "Eligible obligation" means a loan or group of loans. 2. "Student loan" means a loan granted to finance the borrower's attendance at an institution of higher education or at a vocational school, which is secured by and on which payment of the outs…

1. Purchase. a. A credit union may purchase, in whole or in part, within the limitations of the board of directors' written purchase policies: (1) Eligible obligations of its members, originating from any source in the United States, if either they are loans it is empowered to gr…

The following definitions apply to this chapter: 1. "Adjusted trading" means selling an investment to a counterparty at a price above its current fair value and simultaneously purchasing or committing to purchase from the counterparty another investment at a price above its curre…

A credit union may invest in the following types of investments: 1. Bonds of the United States without limitation in securities issued as direct obligations of the United States government or any agency thereof and in any trust established for investing directly or collectively i…

A credit union cannot invest in the following types of investments: 1. Any privately issued collateralized mortgage obligation or real estate mortgage investment conduit. 2. Any zero coupon investment with a maturity date that is more than ten years from the settlement date. 3. A…

1. Regular way settlement and delivery versus payment basis. A credit union may only contract for the purchase or sale of a security as long as the delivery of the security is by regular way settlement and the transaction is accomplished on a delivery versus payment basis. 2. Fed…

A credit union may not engage in adjusted trading or short sales. 6 History: Effective January 1, 2007. General Authority: NDCC 6-01-04 Law Implemented: NDCC 6-06-06

A credit union's board of directors must establish written investment policies consistent with North Dakota Century Code chapter 6-06, this part, and other applicable laws and regulations and must review this policy at least annually. These policies may be a part of a broader ass…

1. Credit unions must comply with all generally accepted accounting principles applicable to reports or statements required to be filed with the national credit union administration. 2. A credit union must maintain documentation for each investment transaction for as long as it h…

A credit union must retain discretionary control over its purchase and sale of investments. A credit union has not delegated discretionary control to an investment adviser when the credit union reviews all recommendations from investment advisers and is required to authorize a re…

A credit union must conduct and document a credit analysis on an investment and the issuing entity before purchasing it, except for investments issued or fully guaranteed as to principal and interest by the United States government or its agencies, enterprises, or corporations or…

A credit union's board of directors must receive notice as soon as possible, but no later than the next regularly scheduled board meeting, of any investment that either is outside of board policy after 8 purchase or has failed a requirement of this chapter. The board of directors…

1. A credit union may purchase and sell investments through a broker-dealer as long as the broker-dealer is registered as a broker-dealer with the securities and exchange commission under the Securities Exchange Act of 1934 [15 U.S.C. 781 et seq.] or is a depository institution w…

1. A credit union's purchased investments and repurchase collateral must be in the credit union's possession, recorded as owned by the credit union through the federal reserve book entry system, or held by a board-approved safekeeper under a written custodial agreement that requi…

1. Before purchasing or selling a security, a credit union must obtain either price quotations on the security from at least two broker-dealers or a price quotation on the security from an industry-recognized information provider. This requirement to obtain price quotations does …

1. At least monthly, a credit union must prepare a written report setting forth, for each security held, the fair value and dollar change since the prior month-end, with summary information for the entire portfolio. 2. At least quarterly, a credit union must prepare a written rep…

A state-chartered credit union may invest in any other investment or engage in any other investment activity that a federal-chartered credit union may invest in or engage in subject to an application to the state credit union board and approval from the state credit union board, …

1. A state-chartered credit union may enter into derivatives that: a. Are for the purpose of managing interest rate risk; b. Denominated in United States dollars; c. Based on domestic interests; and d. Not used to create structured liability offerings for members or nonmembers. 2…

Credit unions may invest in charitable donation accounts provided: 1. The charitable donation account is structured as a hybrid charitable and investment vehicle used to provide charitable contributions and donations to a qualified charity. 2. The maximum book value of investment…