Title 6 — Banks and Banking

No association may transact any business, except such as is incidental and necessarily preliminary to its organization, until it has been authorized by the secretary of state to commence the business of banking and has received a certificate of authorization, and such certificate…

After an association has made and filed articles of association and an organization certificate, it becomes a body corporate, and as such, and in the name designated in the certificate, it, subject to section 6-03-01, has the power to: 1. Have a perpetual existence, unless it is …

Each banking association has the same power to indemnify as provided for business corporations in section 10-19.1-91.

Certificates of deposit, as defined in section 41-03-04, may only be issued in this state by financial institutions authorized to issue certificates of deposit and chartered to do business in this state under this chapter or as authorized under section 6-06-06.1. Any person viola…

Subject to authorization by the state banking board, acting by order or rule, a state bank has the same powers as a national bank and may engage directly or indirectly in any activity in which a bank could engage if the state bank were nationally chartered.

Repealed by S.L. 1985, ch. 116, § 2.

Every director, when elected or appointed, shall take an oath that the director shall, so far as the duty devolves upon a director, diligently and honestly administer the affairs of the association and will not knowingly violate or willingly permit to be violated any of the provi…

1. A director shall discharge the duties of the position of director in good faith, in a manner the director reasonably believes to be in the best interests of the financial institution, and with the care an ordinarily prudent person in a like position would exercise under simila…

1. Before any real estate loan equal to or more than four hundred thousand dollars is made, an appraisal must be conducted by a licensed or certified appraiser if required by the federal Financial Reform, Recovery, and Enforcement Act of 1989 [Pub. L. 101-73; 103 Stat. 512; 12 U.…

Repealed by S.L. 1991, ch. 84, § 1.

Expired under S.L. 1989, ch. 99, § 3.

In selling or disposing of loans made upon real estate security, no association has power to guaranty the payment or collection thereof except as necessary to sell residential mortgage loans on the secondary market, and any such guaranty made in violation of this provision is not…

A state banking association may not invest more than sixty-five percent of the amount of its unimpaired capital stock, surplus, and undivided profits in a banking facility, furniture, fixtures, and equipment without the approval of the commissioner or the state banking board.

Every state banking association has the power to purchase, hold, and convey other real estate as herein provided, and not otherwise: 1. Such as is mortgaged to it in good faith by way of security for loans or for debts previously contracted. 2. Such as is conveyed to it in good f…

No banking association may hold the possession of any real estate under mortgage, nor title and possession of any real estate purchased to satisfy indebtedness, for a longer period than five years from the date of acquiring title thereto unless such time has been extended by cert…

Any banking association violating the provisions of the preceding sections of this chapter relating to powers, at the discretion of the state banking board, shall forfeit its charter. Any officer, director, or employee who knowingly violates or permits the violation of any of suc…

1. Any two or more banking institutions upon making application to the commissioner or the state banking board may consolidate or merge if authorized by the commissioner or board into one banking institution under the charter of either existing banking institution on such terms a…

All of the rights, property, franchises, and interests of the consolidating or merging bank or trust company are deemed to be transferred to and vested in the bank or trust company into which it is consolidated or merged without other instrument of transfer. The consolidated bank…

An association organized to do business in any city in this state, and which has sold or converted its business to a national bank or to any other banking association which is continued at the same place, may not use its charter to recommence business at another place without fir…

Upon compliance with section 6-03-13.3, any bank organized under chapter 6-02 or 6-06.2 and under the supervision of the state banking board, and any national bank doing business in this state, may maintain and operate separate and apart from its banking house facilities, in addi…

Repealed by S.L. 1991, ch. 86, § 4.

1. Whenever any bank desires to maintain and operate a facility separate and apart from its banking house, pursuant to section 6-03-13.1, or to move a facility previously established to another location, it shall apply to the commissioner or the comptroller of the currency, as th…

Every paying and receiving station, banking house or office, or drive-in and walkup facility existing on August 1, 1996, must be considered a separate facility approved by the state banking board or the comptroller of the currency, as the case may be, under this chapter. A facili…

Notwithstanding section 6-03-13.1, any bank organized under chapter 6-02, any national bank doing business in this state, or any bank established in this state by any bank holding company doing business in this state as of January 1, 1995, may convert a branch of a federal saving…

Repealed by S.L. 1995, ch. 79, § 24.

Repealed by S.L. 1995, ch. 79, § 24.

Any bank subsidiary of a bank holding company may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and any other obligations as an agent for a depository institution affiliate, subject to any requirements established by the board by…

Repealed by S.L. 1995, ch. 79, § 24.

In the event of an emergency or other temporary relocation, a bank shall notify the commissioner to relocate its main banking house or facility until the former location is repaired to allow bank operations to resume. No notice or public hearing need be held to act upon the tempo…

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

Repealed by S.L. 1995, ch. 79, § 24.

Repealed by S.L. 1995, ch. 79, § 24.

Repealed by S.L. 1995, ch. 79, § 24.

Repealed by S.L. 1995, ch. 79, § 24.

The president, cashier, or other officer in active charge of any state banking association shall notify the commissioner immediately by certified mail of any impairment of capital or reduction of capital stock thereof, and any such officer failing so to do is guilty of a class B …

Whenever the capital of any state banking association becomes impaired or the capital stock reduced below the amount required by this title or by the articles of incorporation, no dividend may be declared nor distribution of profits made thereafter while any debts of the associat…

When the capital of any association becomes impaired or when its capital stock is reduced below the amount required by this title or its articles of incorporation, the board of directors of the association has the power, and it is its duty, immediately to make a pro rata assessme…

Any association may provide, either by its articles of incorporation, by subsequent resolution, or by written agreement of the holders of a majority of its stock, for an increase in its capital stock from time to time subject to the limitations of this title. No increase in capit…

Any association may reduce its capital stock to any sum not less than the amount required to authorize the formation of any association by vote of its shareholders owning two-thirds of its stock. No such reduction may be made, however, until the amount thereof proposed is reporte…

1. The president of every banking institution formed pursuant to the provisions of this title, at all times, shall keep a true and correct list of the names and post-office addresses of all shareholders of such banking institution, with the amount of stock held by each, the date …

The capital stock of each association must be divided into shares of not less than ten dollars each and is deemed personal property and transferable on the books of the association in such manner as may be prescribed by its bylaws or articles of incorporation. A transfer of share…

Repealed by S.L. 1953, ch. 96, § 3.

Repealed by omission from this code.

Repealed by omission from this code.

Whenever any shareholder or shareholder's assignee fails to pay any assessment of the stock when the assessment is required to be paid, the board of directors of the association may sell at public or private sale, whichever appears to it best for all concerned, so much of the sto…

If no bidder who will pay to the association the amount due on the stock and the costs and expenses of sale for the transfer of the stock to that person appears at the time and place set for the sale, no sale may be made, and all the shares of the shareholder must be forfeited to…

No association or banking institution may make any loan or discount on the security of the shares of its own stock or of the stock of any holding company which controls the association or banking institution, nor be a purchaser or holder of any such shares, unless such security o…

The surplus fund of any association organized under this title, in an amount not exceeding one hundred percent of its capital stock, is exempt from taxation and must not be taken into account in determining the taxable value of the shares of stock of the association.

1. No director or officer of an association may permit the impairment of an association's capital by the payment of dividends or otherwise. 2. Except as provided in subsection 4, no dividend may be paid which exceeds the following amount: a. An association's net profits for the p…

Every banking association shall have on hand at all times in available funds an amount which meets the requirements of the board of governors of the federal reserve system.