Title 13, Debtor and Creditor Relationship

1. The commissioner may issue upon any licensee an order suspending or revoking a licensee's license if the commissioner finds that: a. The licensee has failed to pay the annual license fee under this chapter or any examination fee imposed by the commissioner under the authority …

1. The commissioner of financial institutions may issue upon a current or former money broker officer or employee and upon the licensee involved an order stating: a. That the current or former officer or employee is engaging or has engaged in any of the following conduct: (1) Vio…

It is a violation of this chapter for a person subject to this chapter to: 1. Make or cause to be made any material false statement or representation in any application or other document or statement required to be filed under any provision of this chapter, or to omit to state an…

A money broker may not take any type of fee in advance before the funding of the loan or lease, unless the money broker is licensed under this chapter.

1. Interest charges and other fees must be set at rates, amounts, and terms as agreed to by the parties within the loan contract. However, a licensee may not contract for or receive finance charges pursuant to a loan in excess of an annual rate of thirty-six percent, including al…

Whenever it appears to the department of financial institutions either upon complaint or otherwise, that any person has engaged in, is engaging in, or is about to engage in any act or practice or transaction which is prohibited by this chapter, or by any order of the department i…

In addition to any authority allowed under this chapter, the commissioner may conduct investigations and examinations as follows: 1. The department of financial institutions in its discretion: a. May make such public or private investigation or examination within or outside this …

An applicant, licensee, or other person subject to the provisions of this chapter shall comply with requests for information, documents, or other requests from the department of financial institutions within the time specified in the request, which must be a minimum of ten days, …

The remedies provided for in this chapter are in addition to and not exclusive of any other remedies provided by law.

Any person violating any of the provisions of this chapter or any rule or order of the department of financial institutions made pursuant to the provisions of this chapter or who engages in any act, practice, or transaction declared by any provision of this chapter to be unlawful…

To promote more effective regulation and reduce regulatory burden through supervisory information sharing: 1. Except as otherwise provided in Public Law 110-289, section 1512, the requirements under any federal law, chapter 44-04, or section 6-01-07.1, regarding the privacy or co…

A licensee is required to submit within twenty business days of the date of change notification of a change of name or change of address. The notification must be in the form prescribed by the commissioner.

Notwithstanding state privacy law, the commissioner shall report regularly violations of this chapter, as well as enforcement actions and other relevant information, to the nationwide multistate licensing system and registry subject to the provisions contained in section 13-10-15…

Except for provisions of chapter 6-08.1 which are inconsistent with this chapter, chapter 6-08.1 applies to all money brokers licensed under this chapter.

For purposes of this chapter, the following definitions shall apply: 1. "Acting in concert" means persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement. 2. "Anti-Money Laundering Act of 2020…

This chapter does not apply to: 1. An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this section or licensees, in connection with wire transfers, credit card transactions, debit card …

The commissioner may require any person claiming to be exempt from licensing pursuant to section 13-09.1-02 to provide information and documentation to the commissioner demonstrating the person qualifies for any claimed exemption.

1. In order to carry out the purposes of this chapter, the commissioner may, subject to the provisions of subsections 1 and 2 of section 13-09.1-05: a. Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory a…

1. Except as otherwise provided in subsection 2, all information or reports obtained by the commissioner from an applicant, licensee, or authorized delegate, and all information contained in or related to an examination, investigation, operating report, or condition report prepar…

1. The commissioner may conduct an examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by this chapter or by a rule adopted or order issued under this chapter as reasonably necessary or appropriate to administer and en…

1. To efficiently and effectively administer and enforce this chapter and to minimize regulatory burden, the commissioner may participate in multistate supervisory processes established between states and coordinated through the conference of state bank supervisors, money transmi…

1. In the event state money transmission jurisdiction is conditioned on a federal law, any inconsistencies between a provision of this chapter and the federal law governing money transmission must be governed by the applicable federal law to the extent of the inconsistency. 2. In…

1. A person may not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless the person is licensed under this chapter; 2. Subsection 1 does not apply to: a. A person that is an authorized delegate of a person l…

1. To establish consistent licensing between North Dakota and other states, the commissioner may: a. Implement all licensing provisions of this chapter in a manner that is consistent with other states that have adopted this chapter or multistate licensing processes; and b. Partic…

1. Applicants for a license shall apply in a form and in a medium as prescribed by the commissioner. Each form must contain content as set forth by rule, regulation, instruction, or procedure of the commissioner and may be changed or updated by the commissioner in accordance with…

1. Any individual in control of a licensee or applicant, any individual that seeks to acquire control of a licensee, and each key individual shall furnish to the commissioner through the nationwide system the following items: a. The individual's fingerprints for submission to the…

1. When an application for an original license under this chapter appears to include all the items, addresses, all of the matters that are required, the application is complete and the commissioner shall promptly notify the applicant in a record of the date on which the applicati…

1. A license under this chapter must be renewed annually. a. An annual nonrefundable renewal fee must be paid by December thirty-first. The fee must equal five hundred dollars or one-fourth of one percent of the money transmission dollar volume in North Dakota for the twelve mont…

1. If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license, the commissioner may suspend or revoke the licensee's license in accordance with the procedures established by this chapter o…

1. Any person, or group of persons acting in concert, seeking to acquire control of a licensee shall obtain the written approval of the commissioner prior to acquiring control. An individual is not deemed to acquire control of a licensee and is not subject to the acquisition of c…

1. A licensee adding or replacing any key individual shall: a. Provide notice in a manner prescribed by the commissioner within fifteen days after the effective date of the key individual's appointment; and b. Provide information as required by section 13-09.1-12 within forty-fiv…

1. Each licensee shall submit a report of condition within forty-five days of the end of the calendar quarter, or within any extended time as the commissioner may prescribe. 2. The report of condition must include: a. Financial information at the licensee level; b. Nationwide and…

1. Each licensee shall, within ninety days after the end of each fiscal year, or within any extended time as the commissioner may prescribe, file with the commissioner: a. An audited financial statement of the licensee for the fiscal year prepared in accordance with United States…

1. Each licensee shall submit a report of authorized delegates within forty-five days of the end of the calendar quarter. The commissioner may utilize the nationwide system for the submission of the report required by this subsection provided that such functionality is consistent…

1. A licensee shall file a report with the commissioner within one business day after the licensee has reason to know of the occurrence of any of the following events: a. The filing of a petition by or against the licensee under the federal bankruptcy code [11 U.S.C. Section 101-…

A licensee and an authorized delegate shall file all reports required by federal currency reporting, recordkeeping, and suspicious activity reporting requirements as set forth in the federal Anti-Money Laundering Act of 2020 and other federal and state laws pertaining to money la…

1. A licensee shall maintain the following records, for determining its compliance with this chapter for at least six years: a. A record of each outstanding money transmission obligation sold; b. A general ledger posted at least monthly containing all asset, liability, capital, i…

1. In this section, "remit" means to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee. 2. Before a licensee may conduct business through an authorized delegate or al…

A person shall not engage in the business of money transmission on behalf of a person not licensed under this chapter or not exempt pursuant to section 13-09.1-02. A person that engages in such activity provides money transmission to the same extent as if the person were a licens…

1. The district court of Burleigh County, in an action brought by a licensee, has jurisdiction to grant appropriate equitable or legal relief, including without limitation prohibiting the authorized delegate from directly or indirectly acting as an authorized delegate for any lic…

1. Every licensee shall forward all money received for transmission in accordance with the terms of the agreement between the licensee and the sender unless the licensee has a reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud or that a cr…

1. This section does not apply to: a. Money received for transmission subject to the federal remittance rule [title 12, Code of Federal Regulation, part 1005, subpart B]; or b. Money received for transmission pursuant to a written agreement between the licensee and payee to proce…

1. This section does not apply to: a. Money received for transmission subject to the federal remittance rule [title 12, Code of Federal Regulations, part 1005, subpart B]; b. Money received for transmission that is not primarily for personal, family, or household purposes; c. Mon…

Every licensee or authorized delegate shall include on a receipt or disclose on the licensee's website or mobile application the name and phone number of the department of financial institutions and a statement that the licensee's customers can contact the department of financial…

1. A licensee that provides payroll processing services shall: a. Issue reports to clients detailing client payroll obligations in advance of the payroll funds being deducted from an account; and b. Make available worker paystubs or an equivalent statement to workers. 2. Subsecti…

1. A licensee under this chapter shall maintain at all times a tangible net worth of the greater of one hundred thousand dollars or three percent of total assets for the first one hundred million dollars, two percent of additional assets for one hundred million dollars to one bil…

1. An applicant for a money transmission license must provide, and a licensee at all times must maintain, security consisting of a surety bond in a form satisfactory to the commissioner or, with the commissioner's approval, a deposit instead of a bond in accordance with this sect…

1. A licensee shall maintain at all times permissible investments that have a market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding money transmission obligations. 2. Except …

1. The following investments are permissible under section 13-09.1-34: a. Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and cash equivalents i…

1. The commissioner may suspend or revoke a license or order a licensee to revoke the designation of an authorized delegate if: a. The licensee violates this chapter or a rule adopted or an order issued under this chapter; b. The licensee does not cooperate with an examination or…