Title 6 — Banks and Banking
45 chapters · 536 sections in this title.
N.D.C.C. § 6-03-37.1 Bank loans of excess reserves
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Obligations representing loans from one business day to the next to any state-chartered bank or national banking association of excess reserve balances from time to time maintained under the provisions of section 6-03-37, as amended, may not be deemed loans or additions to any lo…
N.D.C.C. § 6-03-38 Assets not to be used in other business - Exceptions - Penalty
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Except as otherwise authorized under this title, a bank may not employ its money or other assets as principal, directly or indirectly, in trade or commerce, nor may a bank employ or invest any of its assets or funds in the stock of any corporation, limited liability company, bank…
N.D.C.C. § 6-03-39 Investment in federal reserve bank stock authorized
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A bank shall have authority to invest such part of its funds in stock of the federal reserve bank of this district as may be necessary to permit the bank to become a member of the federal reserve association, and such stock may be carried as a part of the bank's assets. 6-03-40. …
N.D.C.C. § 6-03-40.1 Liquidation of investments in agricultural credit corporations - Penalty
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Repealed by S.L. 1969, ch. 108, § 1.
N.D.C.C. § 6-03-41 Issuance of capital notes or debentures - Not subject to double liability
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With the approval of the commissioner, any banking institution, through action by its board of directors taken at any time and without requiring any action by its stockholders, may issue and sell its capital notes or debentures. All capital notes or debentures are subordinate and…
N.D.C.C. § 6-03-42 Capital notes or debentures included in capital - Retirement
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The term "capital" as used in this title embraces the amount of outstanding capital notes and debentures legally issued by any banking institution. The capital stock of a banking institution is unimpaired when the amount of such capital notes and debentures as represented by soun…
N.D.C.C. § 6-03-43 Preferred stock authorized - Notice to and consent of stockholders
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Any banking institution, with the consent of the commissioner and upon the written consent of all of its stockholders, or by vote of its stockholders owning a majority of the stock of such institution, may issue preferred stock of one or more classes in such amount, upon such con…
N.D.C.C. § 6-03-44 Preferred stock included in capital - Reduction of common stock
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The preferred stock lawfully issued by a banking institution must be included in determining whether such banking institution has complied with the minimum capital stock requirements provided in this title. Such preferred stock may be used in the capital structure of such institu…
N.D.C.C. § 6-03-45 Preferred stock - Rights of holders - Nonassessable
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The holders of preferred stock are entitled to all rights and privileges and are subject to all limitations and restrictions with respect to dividends, voting, conversion rights, control of management, retirement and replacement of stock, rights and preferences in case of liquida…
N.D.C.C. § 6-03-46 Exchange of preferred stock for capital notes or debentures
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Any banking institution, after first obtaining the consent and approval of the commissioner, may exchange its preferred stock for its capital notes or debentures.
N.D.C.C. § 6-03-47 Investment in loans and obligations secured by federal or state government
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Banks, trust companies, the Bank of North Dakota, building and loan associations, insurance companies, and other organizations in this state whose mortgage lending is regulated by law, or that are duly qualified federal housing administration mortgagees, are authorized to make, b…
N.D.C.C. § 6-03-47.1 Investment in loans secured by federal or state government
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Repealed by S.L. 1969, ch. 112, § 1.
N.D.C.C. § 6-03-47.2 Investments of state banks
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In addition to the other powers authorized by law under this title, any state banking association may invest its funds in: 1. Bonds, notes, or debentures of any corporation that have been rated in one of the four highest rating categories by a nationally recognized statistical ra…
N.D.C.C. § 6-03-47.3 Bank investment in investment company shares
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Financial institutions under the jurisdiction of the state banking board may invest in shares of investment companies registered under the Investment Companies Act of 1940 and which invest only in investments otherwise permitted under this chapter. The state banking board may iss…
N.D.C.C. § 6-03-47.4 Bank investment in federal agricultural mortgage corporation stock
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Financial institutions under the jurisdiction of the state banking board may invest in stock and equity instruments of the federal agricultural mortgage corporation. The state banking board may adopt rules governing investments by North Dakota financial institutions in the stock …
N.D.C.C. § 6-03-50 Exceptions from restrictive provisions
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No law of this state requiring security upon which loans or investments may be made, or limiting the making of loans to shareholders or members of the lender, or prescribing the nature, amount or forms of such security, or prescribing or limiting interest rates upon loans or inve…
N.D.C.C. § 6-03-51 Borrowing, normal and emergency - Limitations
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Any state banking association has power to borrow money subject to the limitations of this chapter. Money borrowed from correspondent banks must be evidenced by the promissory note or notes of the borrowing association, and no such association may issue its certificate of deposit…
N.D.C.C. § 6-03-52 Borrowing and rediscounting - Authorization by directors
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No banking association may borrow money, rediscount paper with recourse on it, or pledge securities for money borrowed or rediscounted paper, except in accordance with express authority conferred by resolution of its board of directors indicating the officer or officers who are a…
N.D.C.C. § 6-03-53 Borrowing and rediscounting - Report required
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Whenever a state banking association borrows money or rediscounts with recourse such association shall immediately make a full written report of the transaction to the commissioner upon the commissioner's request, which report must include a full description of all collateral sec…
N.D.C.C. § 6-03-54 Pledge - Ratio to assets
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It is unlawful for any state banking association to pledge or hypothecate more than one and one-half dollars of the face value of any of its assets for each one dollar of money borrowed, except with written authority from the commissioner. 6-03-54.1. Pledges of bank securities to…
N.D.C.C. § 6-03-55 Powers of pledgee of bank assets
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Holders of pledged or hypothecated notes or other evidences of indebtedness pledged by state banking associations have the right to collect and enforce payment, and to renew or extend the time of payment thereof for a period not longer than fifteen months, if no endorser, guarant…
N.D.C.C. § 6-03-57 Foreclosure of pledge contracts
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Except as otherwise provided in chapter 6-07.2, no pledge made by an association may be foreclosed except by an action in equity brought in the district court of the county in which the pledgor association is located, except where assets are pledged by a state banking association…
N.D.C.C. § 6-03-58 Unlawful rediscounts, borrowings, and pledgings
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It is unlawful for any state banking association, either directly or indirectly, to make any rediscount or contract to borrow money, nor may it borrow money, nor pledge or hypothecate, nor contract to pledge or hypothecate, any of its assets except in accordance with the provisio…
N.D.C.C. § 6-03-59 Loan limitation to one borrower or concern
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The total direct, indirect, or contingent liability of any borrower to any state banking association shall not exceed at any time twenty-five percent of the association's tier 1 capital as of the most recent report of condition and income. For the purpose of this section, the tot…
N.D.C.C. § 6-03-59.1 Leasing of personal property - Limitation on term and amount
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A bank may become the owner and lessor of personal property upon the specific request of and for the use of a customer. The term of the lease may not exceed twenty years and all such leases must provide for the payment of at least annual rentals, the total of which must at least …
N.D.C.C. § 6-03-59.2 Lease financing of public facilities
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A state-chartered bank may purchase or construct a municipal building, school building, or other similar public facility and, as holder of legal title, lease the facility to a municipality or other public authority having resources sufficient to make all rental payments as they b…
N.D.C.C. § 6-03-61 Excessive loan - Validity - Penalty - Personal liability
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Whenever a state banking association allows any person, copartnership, or corporation to become indebted to it, directly or indirectly, in excess of the amount, exclusive of interest, permitted by this title, the officer, director, or employee thereof willfully permitting or appr…
N.D.C.C. § 6-03-62 Interest on loans - Rate
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An association may demand and receive for loans on personal security, or for discounting notes, bills, or other evidences of debt, such rate of interest as may be agreed upon, not exceeding the amount authorized by law to be contracted for, and it may receive such interest accord…
N.D.C.C. § 6-03-63 Interest on deposits - Rates payable - Penalty
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No state banking association may pay interest on deposits, directly or indirectly, at rates greater than authorized by the state banking board. The board's authorization of interest rates is not subject to the public notice and public hearing requirements of chapter 28-32. Any of…
N.D.C.C. § 6-03-64 Payment of deposits made by fiduciaries, officers, minors, and associations
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Deposits made by a person as executor, administrator, guardian, conservator, or in any other representative capacity or official position, with a bank, are payable to that person in such capacity, or if made to an account upon which a minor may order payments as an account owner,…
N.D.C.C. § 6-03-65 Deposit in trust - To whom paid
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Whenever any deposit is made with any banking association by any person in trust for another and no other or further notice of the existence and terms of a legal and valid trust has been given in writing to the bank, in the event of the death of the trustee, the deposit, or any p…
N.D.C.C. § 6-03-66 Deposit in two or more names - To whom paid
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Repealed by S.L. 1973, ch. 257, § 82.
N.D.C.C. § 6-03-67 Appropriation of deposits unlawful - Exception - Liability therefor
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Except as provided in sections 6-07.2-09 and 30.1-31-20, it is unlawful for any banking association to charge any claim which it might have, or the claim of any other person, against a deposit made with the association, or to appropriate a deposit or any part of the deposit to th…
N.D.C.C. § 6-03-67.1 Operation without federal deposit insurance prohibited - Liability - Penalty
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No state banking association shall, after July 1, 1978, engage in the business of banking without securing and continuing in force federal deposit insurance corporation insurance of deposits. Any officer or director of any state banking association who violates this section is gu…
N.D.C.C. § 6-03-68 Collection of negotiable instruments by bank - Liability for negligence
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Repealed by S.L. 1965, ch. 296, § 32. 6-03-68.1. Settlement of check presented by or through federal reserve bank or Bank of North Dakota. Except as to any check sent to it as a special collection item, no bank may settle any check drawn on it otherwise than at par when such chec…
N.D.C.C. § 6-03-69 Report of examining committee
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The board of directors shall submit to the commissioner a report of the examining committee on forms provided by the commissioner. The report must reflect the results of a careful and thorough examination of the assets of the bank, including loans and discounts of every nature an…
N.D.C.C. § 6-03-70 Reports - Regular and special - Publication - Penalty
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Every state banking association shall respond to calls each year, the number to be determined by the commissioner. The commissioner shall prescribe the forms for such reports which must be the same forms as those for similar reports called by the federal deposit insurance corpora…
N.D.C.C. § 6-03-71 Bonds of officers and employees
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All officers and employees of any state banking association, before entering upon their duties, shall furnish a bond to the association in the sum and upon the conditions as required by the board of directors in keeping with rules established by the state banking board. All bonds…
N.D.C.C. § 6-03-72 Certification of checks, drafts, and orders - Penalty
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It is unlawful for an officer, clerk, or agent of any state banking association to certify any check, draft, or order drawn upon the association unless the person drawing the same has on deposit with the association at the time of such certification an amount of money equal to th…
N.D.C.C. § 6-03-73 Deferred posting authorized
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Repealed by S.L. 1965, ch. 296, § 32.
N.D.C.C. § 6-03-74 Definitions
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Repealed by S.L. 1965, ch. 296, § 32.
N.D.C.C. § 6-03-75 Varied by agreement
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Repealed by omission from this code.
N.D.C.C. § 6-03-76 Records search reimbursement
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Any financial institution authorized to do business in this state must be reimbursed as follows for all records searches done at the request of any state agency or any branch of the state government except the department of health and human services. Further, any federal agency o…