Title 6, Banks and Banking

1. There is created in the state treasury the water infrastructure revolving loan fund to provide loans for water supply, flood protection, or other water development and water management projects. The fund consists of moneys transferred into the fund, interest earned on moneys i…

1. The rail revolving loan fund is a special fund in the state treasury from which the Bank of North Dakota shall provide loans to counties, cities, railroads, and other freight railroad users to construct or upgrade rail infrastructure to improve rail service. 2. The Bank shall …

(Contingent effective date - See note) The North Dakota financial center is a building that is owned by the Bank of North Dakota and is adjacent to the building in which the Bank of North Dakota is housed. The Bank of North Dakota shall lease the space in the North Dakota financi…

1. The bulk propane storage tank revolving loan fund is a special fund in the state treasury from which the Bank of North Dakota shall provide loans to propane retailers to purchase and install storage containers to be used for the bulk storage of propane. The Bank shall administ…

1. There is created in the state treasury the economic diversification research fund. The fund consists of all moneys deposited in or transferred to the fund pursuant to legislative action. Moneys in the fund may be spent by the Bank of North Dakota pursuant to legislative approp…

1. The Bank of North Dakota shall administer a loan program to provide loans for new construction projects to provide housing for individuals with disabilities that have extraordinary medical needs. A construction project may include a land purchase and the construction costs of …

No person, partnership, association, corporation, or limited liability company, except as otherwise authorized by law, may engage in the business of receiving, as agent for another, moneys for the purpose of deposit in a bank, without first having applied to the commissioner and …

Such applicant shall pay to the commissioner an annual fee of twenty-five dollars, and shall furnish a bond to the state of North Dakota, executed by a corporate surety company authorized to do business in this state, in the sum of not less than five thousand dollars. Such bond f…

No license may be granted for the purpose of conducting such business in any city wherein there already is operating a state or national bank or an authorized separate facility. In the event that a national or state bank or an authorized separate facility is authorized to do, and…

A licensee operating a business under the terms of this chapter may not loan any of the moneys given into the licensee's custody by any depositor for deposit in a bank, but shall promptly transfer said funds to the bank designated by the depositor, and each depositor has the righ…

The commissioner is authorized to prescribe such rules and regulations for the operating of such business as in the commissioner's judgment, from time to time, may be necessary for the protection of the depositors dealing with such licensee, and has the power to require complianc…

The commissioner may make an examination of the business of such licensee, and such applicant shall pay an examination fee. Fees for such examinations must be charged by the department of financial institutions at an hourly rate to be set by the commissioner, sufficient to cover …

In the event of the failure of any person, partnership, association, corporation, or limited liability company to comply with the provisions of this chapter or the regulations promulgated by the commissioner as herein provided, the commissioner, after fifteen days' notice in writ…

Any person violating the provisions of this chapter is guilty of a class A misdemeanor.

In this chapter, unless the context or subject matter otherwise requires: 1. "Commissioner" means the commissioner of financial institutions. 2. "Compliance audit" means a voluntary, internal evaluation, review, assessment, audit, or investigation for the purpose of identifying o…

A compliance self-critical analysis privilege is created to protect the confidentiality of compliance self-critical analysis documents or communications in regard to their content relating to voluntary internal compliance audits conducted by financial institutions and persons in …

Except as provided in this chapter, a compliance self-critical analysis audit document is privileged information and is not discoverable or admissible evidence in any legal action in any civil, criminal, or administrative proceeding. The privilege is a matter of substantive law o…

If a financial institution, person, or entity performs or directs the performance of a compliance audit, an officer, employee, or agent involved with the compliance audit, or any consultant who is hired for the purpose of performing the compliance audit, may not be examined in an…

1. Upon request of the commissioner, a financial institution must submit a compliance self-critical analysis audit document to the commissioner, or the commissioner's designee, as a confidential document under the provisions of section 6-01-07, without waiving the privilege set f…

1. The self-critical analysis privilege does not apply to the extent that it is expressly waived by the financial institution that prepared or caused to be prepared the compliance self-critical analysis audit document. 2. In a civil or administrative proceeding, a court of record…

1. If a person seeks from a financial institution communications involving a compliance audit or any compliance self-critical analysis audit document during the course of a pending civil or criminal proceeding, the financial institution may assert the self-critical analysis privi…

A financial institution asserting the compliance self-critical analysis privilege set forth in this chapter has the burden of demonstrating the applicability of the privilege. Once a financial institution has established the applicability of the privilege, a party seeking disclos…

The self-critical analysis privilege set forth in this chapter does not extend to: 1. Documents, communications, data, reports, or other information expressly required to be collected, developed, maintained, or reported to a regulatory agency pursuant to this title, or other fede…

A person may not use the name or logo of any bank, trust company, savings association, or savings bank or of an affiliate of such financial institution in connection with the sale, distribution, offer for sale, advertisement, or promotion of any product or service without first o…

A person that violates this chapter is civilly liable to the bank, trust company, savings association, savings bank, or affiliate for each unlawful use of a name or logo in the amount of one thousand dollars or actual damages, whichever is greater, plus reasonable attorney's fees…

A court may enjoin the use of a name or logo which violates this chapter. An action for injunction under this section is in addition to any other remedy that may be available.

A person that willfully violates this chapter is guilty of a class B misdemeanor.

As used in this chapter, unless the context or subject matter otherwise requires: 1. "Customer" means any person engaged in a payment card transaction facilitated or processed by a financial entity. 2. "Disclosure" means the transfer, publication, or distribution of protected fin…

1. Except for those records kept during the regular course of a criminal investigation and prosecution or merchant marketing campaigns, a government entity or any official, agent, or employee of the state, or any other person, may not willfully keep or cause to be kept any list, …

1. Any person may allege violations under this chapter to the attorney general. The attorney general may investigate alleged violations under this chapter and shall provide a written notice to any person in violation. A person that has received a written notice from the attorney …

There is created in the state treasury the merchant code violation fund. The fund consists of all money deposited in the fund under this chapter. Moneys in the fund are appropriated to the attorney general on a continuing basis for disbursement to individuals harmed by a violatio…

As used in this chapter, unless the context plainly requires otherwise: 1. "Affiliated bank", with respect to a subsidiary trust company, means any of the following: a. A bank incorporated under the laws of this state, or a national banking association having its main office in t…

A subsidiary trust company may be incorporated under the laws of this state or formed under the laws of the United States. To the extent not inconsistent with the provisions of sections 6-05.1-01 through 6-05.1-05, any subsidiary trust company incorporated under the laws of this …

The permissible business of a subsidiary trust company is to engage in such trust business as may be engaged in by a trust company pursuant to section 6-05-08. A subsidiary trust company may not exercise any of the powers provided in subsection 7 of section 6-03-02, nor conduct c…

A subsidiary trust company may establish and maintain for itself and its subsidiary entities one or more offices or places of business within this state, throughout the United States, in foreign countries, or in dependencies or insular possessions of the United States. The regula…

1. Any subsidiary trust company which has been duly authorized to commence the business for which it is organized, and which has made any deposit of securities required by law, may at any time file its verified application in the district court of the county in which its main off…

Each banking institution exercising investment discretion with respect to an account must adopt and follow written policies and procedures intended to ensure that its brokerage placement practices comply with all applicable laws and regulations. Among other relevant matters, the …

1. The board of directors is responsible for the proper exercise of fiduciary powers by the banking institution. All pertinent matters, including the determination of policies, the investment and disposition of property held in a fiduciary capacity, and the direction and review o…

1. Every banking institution exercising fiduciary powers must keep its fiduciary records separate and distinct from other records of the banking institution. All fiduciary records necessary for reporting purposes must be maintained for such time as to enable the banking instituti…

A committee of directors, exclusive of any active officers of the bank, must, at least once during each calendar year and within fifteen months of the last audit, make suitable audits of the trust activities or cause suitable audits to be made by auditors responsible to the board…

Uninvested or undistributed funds held by a banking institution in a fiduciary capacity must not be held uninvested or undistributed any longer than is reasonable for the proper management of the account. Each banking institution exercising fiduciary powers must adopt and follow …

1. Funds held by a banking institution as fiduciary may not be invested in stock or obligations of, or property acquired from, the banking institution or its directors, officers, or employees, or individuals with whom there exists such a connection, or organizations in which ther…

1. The investment of each account must be kept separate from the assets of the banking institution and must be placed in the joint custody or control of not less than two of the officers or employees of the banking institution designated for that purpose by the board of directors…

The commissioner or board may close and liquidate a state trust company on finding that the interests of its clients and creditors are jeopardized by the state trust company's insolvency or imminent insolvency or that the best interests of clients and creditors would be served by…

After closing a state trust company, the commissioner shall place a sign at its main entrance stating that the state trust company has been closed. A correspondent bank of the closed state trust company may not pay an item drawn on the account of the closed state trust company wh…

The court may not require a bond from the commissioner as receiver. Any reference in this chapter to the receiver is a reference to the commissioner as receiver and any successors in office or an independent receiver appointed at the request of the commissioner. The acts of the r…