Title 6 — Banks and Banking

An out-of-state bank holding company that filed an application under chapter 6-08.3 which was approved by the board before September 29, 1995, shall comply with the reporting requirements of section 6-08.3-09 for a period of five years from the date that the application was appro…

Repealed by S.L. 1995, ch. 79, § 25.

Repealed by S.L. 1995, ch. 79, § 25.

Repealed by S.L. 1995, ch. 79, § 25.

This chapter specifically authorizes, in accordance with section 3 of the Bank Holding Company Act of 1956 [12 U.S.C. 1842], and section 101 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 [Pub. L. 103-328; 108 Stat. 2338; 12 U.S.C. 1811 et seq.], inter…

Repealed by S.L. 1995, ch. 79, § 25.

For purposes of this chapter, unless the context otherwise requires: 1. "Affiliate" means a company that controls, is controlled by, or is under common control with another company. 2. "Bank" means insured depository institution as defined in 12 U.S.C. 1813(c)(2), but the term do…

Subject to section 6-08.4-06, the responsible federal regulatory authority may approve a transaction under the Federal Deposit Insurance Act [Pub. L. 81-967; 64 Stat. 87; 12 U.S.C. 1811 et seq.].

Notwithstanding section 6-08.4-02, a North Dakota state-chartered bank, with approval of the commissioner or board, may establish, acquire, retain, and operate one or more branches in a state other than this state. An application must be filed with the commissioner or board at th…

Effective May 31, 1997, one or more North Dakota banks may merge with one or more out-of-state banks under this chapter, and an out-of-state bank resulting from an interstate merger may maintain and operate branches of a merged North Dakota bank in this state if the conditions an…

Any out-of-state bank that proposes a transaction for a branch in this state must notify and submit a copy of its transaction application to the board not later than the date on which it files the application with the responsible federal regulatory authority.

1. An out-of-state state-chartered bank that establishes, acquires, and retains one or more branches in this state under this chapter may conduct any activities at the branch or branches that are authorized under the laws for North Dakota state banks, except to the extent those a…

To the extent a state imposes a restriction on the ability of a North Dakota bank to establish, acquire, or retain a branch in that state, that restriction must apply to the establishment, acquisition, or retention of a branch in this state by the out-of-state bank.

If the board or commissioner determines that a branch maintained by an out-of-state state-chartered bank is being operated in violation of any provision of North Dakota law, or that the branch is being operated in an unsafe and unsound manner, the board or commissioner has the sa…

An industrial bank may not accept deposits or make loans at a commercial location unless the industrial bank is owned by a financial holding company as defined in 12 U.S.C. 1841(p). For purposes of this section, "commercial location" means a location owned, operated, leased, or o…

As used in this chapter: 1. "Account" means funds or assets held by a financial service provider, including a deposit account, savings account, share account, certificate of deposit, trust account, individual retirement account, guardianship or conservatorship account, investment…

1. A financial service provider may refuse to accept an acknowledged power of attorney if the financial service provider has a good faith belief to suspect the principal is or may be the victim or target of financial exploitation by the agent or individual acting for or with the …

In this chapter: 1. "Account agreement" means an agreement that: a. Is in a record between a bank or credit union and one or more depositors; b. May have one or more beneficiaries as additional parties; and c. States the intention of the parties to establish a special deposit in …

1. This chapter applies to a special deposit under an account agreement that states the intention of the parties to establish a special deposit governed by this chapter, regardless of whether a party to the account agreement or a transaction related to the special deposit, or the…

1. The effect of sections 6-08.6-01 through 6-08.6-05, 6-08.6-07 through 6-08.6-10, and 6-08.6-13 may not be varied by agreement, except as provided in those sections. Subject to subsection 2, the effect of sections 6-08.6-06, 6-08.6-11, and 6-08.6-12 may be varied by agreement. …

A deposit is a special deposit if it is: 1. A deposit of funds in a bank or credit union under an account agreement; 2. For the benefit of at least two beneficiaries, one or more of which may be a depositor; 3. Denominated in a medium of exchange that is currently authorized or a…

1. A special deposit must serve at least one permissible purpose stated in the account agreement from the time the special deposit is created in the account agreement until termination of the special deposit. 2. If, before termination of the special deposit, the bank or credit un…

1. Unless the account agreement provides otherwise, the bank or credit union is obligated to pay a beneficiary if there are sufficient actually and finally collected funds in the balance of the special deposit. 2. Except as provided in subsection 3, the obligation to pay the bene…

1. A depositor or a beneficiary does not have a property interest in the special deposit itself. 2. The only property interest with respect to a special deposit is the right to receive payment if the bank or credit union is obligated to pay a beneficiary. Any property interest un…

1. Subject to subsection 2, creditor process with respect to a special deposit is not enforceable against the bank or credit union holding the special deposit. 2. Creditor process is enforceable against the bank or credit union holding a special deposit with respect to an amount …

A court may enjoin, or grant similar relief that would have the effect of enjoining, a bank or credit union from paying a depositor or beneficiary only if payment would constitute a material fraud or facilitate a material fraud with respect to a special deposit.

1. Except as provided in subsection 2 or 3, a bank or credit union may not exercise a right of recoupment or set off against a special deposit. 2. An account agreement may allow the bank or credit union to debit the special deposit: a. When the bank or credit union becomes obliga…

1. A bank or credit union does not have a fiduciary duty to any person with respect to a special deposit. 2. When the bank or credit union holding a special deposit becomes obligated to pay a beneficiary, a debtor-creditor relationship arises between the bank or credit union and …

1. Unless otherwise provided in the account agreement, a special deposit terminates five years after the date the special deposit was first funded. 2. Unless otherwise provided in the account agreement, if the bank or credit union cannot identify or locate a beneficiary entitled …

Title 41, consumer protection law, law governing deposits generally, law related to escheat and abandoned or unclaimed property, and the principles of law and equity, including law related to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, c…

In applying and construing this chapter, a court shall consider the promotion of uniformity of the law among the states that enact it.

This chapter must be known as the "North Dakota Public Finance Authority Act".

It is declared to be the policy of the state of North Dakota to foster and promote the provision of adequate capital markets and facilities for borrowing money by political subdivisions or other contracting parties and for the financing of their respective public improvements or …

In this chapter, unless the context or subject matter otherwise requires: 1. "Bondholder" or "holder" or any similar term when used with reference to a bond of the public finance authority means any person who is the bearer of any outstanding bond of the public finance authority.…

A public finance authority is established under the operation, management, and control of the industrial commission to be known as the "public finance authority". The public finance authority is constituted as an instrumentality of the state exercising public and governmental fun…

Participation by a political subdivision is entirely voluntary and no political subdivision may be required to sell its bond issues to the public finance authority. Notwithstanding any other state law applicable to the issuance of bonds, a political subdivision desiring to partic…

The public finance authority and any state agency authorized by state or federal law to make an allocation of bonds or bonding authority or to make loans, or to issue bonds to obtain funds for the purpose of making loans or grants, may enter into an administrative agreement, whic…

1. The public finance authority may lend money to political subdivisions or other contracting parties through the purchase or holding of municipal securities which, in the opinion of the attorney general, are properly eligible for purchase or holding by the public finance authori…

The public finance authority has the following powers: 1. To sue and be sued. 2. To make and enforce bylaws, rules, and regulations for the conduct of its affairs and business and for use of its services. 3. To acquire, hold, use, and dispose of its income, revenue, funds, and mo…

Bonds of the public finance authority must be authorized by resolution of the industrial commission and may be issued in one or more series and must bear such date or dates, mature at such time or times, bear interest at such rate or rates of interest per year, be in such denomin…

Any pledge of revenue or of a revenue agreement under chapter 40-57 made by the industrial commission as security for public finance authority bonds is valid and binding from time to time when the pledge is made. The industrial commission may also pledge assets of the Bank of Nor…

1. The public finance authority shall establish and maintain a reserve fund in which there must be deposited all moneys appropriated by the state for the purpose of the fund, all proceeds of bonds required to be deposited therein by terms of any contract between the public financ…

The public finance authority may establish such additional and further reserves or such other funds or accounts as may be, in its discretion, necessary, desirable, or convenient to further the accomplishment of the purposes of the public finance authority to comply with the provi…

Neither the members of the industrial commission nor any person executing bonds issued pursuant to this chapter or chapter 40-57 is liable personally on such bonds by reason of the issuance thereof.

The public finance authority has the power to purchase bonds of the public finance authority out of any funds or money of the public finance authority available therefor. The public finance authority may hold, cancel, or resell such bonds or notes subject to and in accordance wit…

Notwithstanding any restrictions contained in any other law, the state and all public officers, boards, and agencies, and political subdivisions and agencies thereof, all national banking associations, state banks, trust companies, savings banks and institutions, savings and loan…

All property of the public finance authority and all bonds issued under this chapter must be deemed to be serving essential public and governmental purposes and such property and such bonds so issued, their transfer and the income therefrom, including any profits made on the sale…

All property of the public finance authority is exempt from levy and sale by virtue of an execution and no execution or other judicial process may issue against the same nor may any judgment against the public finance authority be a charge or lien upon its property; provided, tha…

The public finance authority is authorized and empowered to obtain from any entity of the state, any department or agency of the United States of America, or any nongovernmental insurer any insurance, guaranty, or liquidity facility, or from a financial institution a letter of cr…

In the event of default by a political subdivision in the payment of interest on or principal of any municipal securities owned or held by the public finance authority, the public finance authority may proceed to enforce payment, pursuant to applicable provisions of law, of such …