Title 13 — Debtor and Creditor Relationship
19 chapters · 259 sections in this title.
N.D.C.C. § 13-08-08 Reports of commissioner
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Within fifteen days of the occurrence of any one of the following events, a licensee shall file a written report with the commissioner describing the event and the event's expected impact on the activities of the licensee in the state: 1. The filing for bankruptcy or reorganizati…
N.D.C.C. § 13-08-09 Expiration of license - Renewal
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Licenses issued under this chapter expire as of December thirty-first of each year. A license may be renewed for the ensuing twelve-month period upon application and the payment to the commissioner of the annual license fee, which is not subject to refund, before December first o…
N.D.C.C. § 13-08-10 Regulations - Examinations
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The commissioner may adopt rules for the implementation and enforcement of this chapter. To assure compliance with this chapter, the commissioner may examine the relevant business, books, and records of any licensee. The licensee shall pay an examination or visitation fee, and th…
N.D.C.C. § 13-08-11 Retention of records
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Each licensee shall keep and use in the licensee's business any books, accounts, and records the commissioner may require to carry into effect the provisions of this chapter and the rules issued under this chapter. Every licensee shall preserve required books, accounts, and recor…
N.D.C.C. § 13-08-11.1 Response to department requests
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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, …
N.D.C.C. § 13-08-11.2 Confidentiality
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To promote more effective regulation and reduce regulatory burden through supervisory information sharing, the commissioner or commissioner's designee may furnish information to or receive information from a nationwide multistate licensing system for the purpose of regulation of …
N.D.C.C. § 13-08-13 Denial of license - Hearing
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If the commissioner determines an applicant is not qualified to receive a license, the commissioner shall notify the applicant in writing stating that the application is denied and stating the basis for denial. If the commissioner denies an application, or if the commissioner fai…
N.D.C.C. § 13-08-14 Suspension - Revocation
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1. The commissioner may issue and serve upon any licensee an order suspending or revoking a license if the commissioner finds that the licensee or any principal of the licensee has been convicted of a felony or that the licensee knowingly or through lack of due care: a. Failed to…
N.D.C.C. § 13-08-15 Violations - Cease and desist orders - Penalties
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Except as otherwise provided in this chapter, any person who willfully provides deferred presentment services without a license is guilty of a class C felony and any person who violates any other provisions of this chapter or any rule adopted to implement this chapter is guilty o…
N.D.C.C. § 13-08-16 Disclosure of customer information
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Except for provisions of chapter 6-08.1 which are inconsistent with this chapter, chapter 6-08.1 applies to all persons licensed under this chapter.
N.D.C.C. § 13-10-01 Purpose
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The purpose of this chapter is to protect consumers seeking mortgage loans and to ensure that the mortgage lending industry is operating without unfair, deceptive, and fraudulent practices on the part of mortgage loan originators.
N.D.C.C. § 13-10-02 Definitions
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For purposes of this chapter: 1. "Depository institution" has the same meaning as is currently defined under section 3 of the Federal Deposit Insurance Act and includes any credit union. 2. "Federal banking agencies" means the board of governors of the federal reserve system, the…
N.D.C.C. § 13-10-03 License and registration required
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1. An individual, unless specifically exempted from this chapter under subsection 2, shall not engage in the business of a mortgage loan originator with respect to any dwelling located in this state without first obtaining and maintaining annually a license under this chapter. Ea…
N.D.C.C. § 13-10-04 State license and registration application and issuance
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1. Applicants for a license shall apply in a form as prescribed by the commissioner. Each such form must contain content as set forth by rule, regulation, instruction, or procedure of the commissioner and may be changed or updated as necessary by the commissioner in order to carr…
N.D.C.C. § 13-10-05 Issuance of license
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The commissioner shall not issue a mortgage loan originator license unless the commissioner makes at a minimum the following findings: 1. The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, except that a subsequent formal vacat…
N.D.C.C. § 13-10-06 Prelicensing and relicensing education of loan originators
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1. To meet the prelicensing education requirement referred to in subsection 4 of section 13-10-05, a person shall complete at least twenty hours of education approved in accordance with subsection 2, which must include at least: a. Three hours of federal law and regulations; b. T…
N.D.C.C. § 13-10-07 Testing of loan originators
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1. In order to meet the written test requirement referred to in subsection 5 of section 13-10-05, an individual must pass, in accordance with the standards established under this subsection, a qualified written test developed by the nationwide mortgage licensing system and regist…
N.D.C.C. § 13-10-08 Standards for license renewal
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1. The minimum standards for license renewal for mortgage loan originators include the following: a. The mortgage loan originator continues to meet the minimum standards for license issuance under section 13-10-05. b. The mortgage loan originator has satisfied the annual continui…
N.D.C.C. § 13-10-09 Continuing education for mortgage loan originators
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1. To meet the annual continuing education requirements referred to in section 13-10-08, a licensed mortgage loan originator shall complete at least eight hours of education approved in accordance with subsection 2, which must include at least: a. Three hours of federal law and r…
N.D.C.C. § 13-10-10 Authority to require license
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In addition to any other duties imposed upon the commissioner by law, the commissioner shall require mortgage loan originators to be licensed and registered through the nationwide mortgage licensing system and registry. To carry out this requirement, the commissioner may particip…
N.D.C.C. § 13-10-12 Enforcement authorities, violations, and penalties
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1. To ensure the effective supervision and enforcement of this chapter the commissioner may: a. Deny, suspend, revoke, condition, or decline to renew a license for a violation of this chapter, rules or regulations issued under this chapter or order or directive entered under this…
N.D.C.C. § 13-10-13 Surety bond and minimum net worth requirements - Surety bond required
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1. Each mortgage loan originator must be covered by a surety bond in accordance with this section. If the mortgage loan originator is an employee or exclusive agent of a person subject to this chapter, the surety bond of such person subject to this chapter may be used in lieu of …
N.D.C.C. § 13-10-14 Minimum net worth required
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A minimum net worth must be continuously maintained for mortgage loan originators in accordance with this section. If the mortgage loan originator is an employee or exclusive agent of a person subject to this chapter, the net worth of such person subject to this chapter may be us…
N.D.C.C. § 13-10-15 Confidentiality
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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 or chapter 44-04 regarding the privacy or confidentiality of any …
N.D.C.C. § 13-10-16 Investigation and examination authority
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In addition to any authority allowed under this chapter, the commissioner may conduct investigations and examinations as follows: 1. For purposes of initial licensing, license renewal, license suspension, license conditioning, license revocation or termination, or general or spec…
N.D.C.C. § 13-10-17 Prohibited acts and practices
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It is a violation of this chapter for a person or individual subject to this chapter to: 1. Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person; 2. Engage in any unfair or deceptive practice toward any …
N.D.C.C. § 13-10-18 Mortgage call reports
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Each mortgage licensee shall submit to the nationwide mortgage licensing system and registry reports of condition, which shall be in such form and shall contain such information as the nationwide mortgage licensing system and registry may require.
N.D.C.C. § 13-10-19 Report to nationwide mortgage licensing system and registry
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Notwithstanding state privacy law, the commissioner is required to report regularly violations of this chapter, as well as enforcement actions and other relevant information, to the nationwide mortgage licensing system and registry subject to the provisions contained in section 1…
N.D.C.C. § 13-10-20 Privately insured credit unions
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Nonfederally insured credit unions which employ loan originators, as defined in Public Law 110-289, title V, the S.A.F.E. Act, shall register such employees with the nationwide mortgage licensing system and registry by furnishing the information concerning the employees' identity…
N.D.C.C. § 13-10-21 Unique identifier shown
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The unique identifier of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulatio…
N.D.C.C. § 13-11-01 Definitions
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For the purposes of this chapter: 1. "Affiliate": a. With respect to an individual, means: (1) The spouse of the individual; (2) A sibling of the individual or the spouse of a sibling; (3) An individual or the spouse of an individual who is a lineal ancestor or lineal descendant …
N.D.C.C. § 13-11-02 License required
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It is unlawful for any person to act as a debt-settlement provider except as authorized by this chapter and without first having obtained a license under this chapter. A person that engages in debt settlement is deemed to engage in debt settlement in this state if the debtor resi…
N.D.C.C. § 13-11-03 Application for license
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1. Every application for a debt-settlement provider license, or for a renewal thereof, must be made in the form prescribed by the commissioner and must contain any information which the commissioner determines necessary and proper. The commissioner may require any applicant to pr…
N.D.C.C. § 13-11-04 Fee and bond to accompany application for debt-settlement license
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The application for license must be in writing, under oath, and in the form prescribed by the commissioner. The application must give the location where the business is to be conducted and must contain any further information the commissioner requires, including the names and add…
N.D.C.C. § 13-11-05 Qualifications for license
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1. Upon the filing of the application, the approval of the bond, and the payment of the specified fees, the commissioner may issue a license if the commissioner finds all of the following: a. The financial responsibility, experience, character, and general fitness of the applican…
N.D.C.C. § 13-11-06 Expiration and renewal of license
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All licenses required under this chapter expire on December thirty-first of each year and may be renewed. Renewals are effective the succeeding January first. Applications for renewal must be submitted at least thirty days before the expiration of the license and must be accompan…
N.D.C.C. § 13-11-07 Applicant's obligation to update information
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An applicant or licensed provider shall notify the commissioner within ten days after a change in the information provided within the application.
N.D.C.C. § 13-11-08 Records - Annual reports
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1. Every licensee shall maintain records in conformity with generally accepted accounting principles and practices in a manner that will enable the commissioner to determine whether the licensee is complying with this chapter. The records of a licensee may be maintained electroni…
N.D.C.C. § 13-11-09 Approval or denial of a license
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Any complete application for a license must be approved or denied within sixty days after the filing of the complete application with the commissioner.
N.D.C.C. § 13-11-10 Revocation of license - Suspension of license - Surrender of license
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1. If the commissioner has reason to believe that grounds for revocation of a license exist, the commissioner may notify the licensee with a notice of hearing stating the contemplated action and in general the grounds thereof and setting the time and place for a hearing thereon. …
N.D.C.C. § 13-11-12 Advertising and marketing practices
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1. A debt-settlement provider may not represent, expressly or by implication, any results or outcomes of its debt-settlement services in any advertising, marketing, or other communication to consumers unless the debt-settlement provider possesses substantiation for the representa…
N.D.C.C. § 13-11-13 Contracts, books, and records
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1. Upon request, each debt-settlement provider shall furnish to the commissioner a copy of the contract entered between the debt-settlement provider and the debtor. The debt-settlement provider shall furnish the debtor with a copy of the written contract at the time of execution …
N.D.C.C. § 13-11-14 Trust funds - Requirements and restrictions
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1. All funds received by a debt-settlement provider or the provider's agent from and for the purpose of paying bills, invoices, or accounts of a debtor constitute trust funds owned by and belonging to the debtor from whom the funds were received. All such funds received by the de…
N.D.C.C. § 13-11-15 Requirement of good faith
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A provider shall act in good faith in all matters under this chapter.
N.D.C.C. § 13-11-16 Customer service
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A provider that is required to be registered under this chapter shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified counselor or customer service representative, as appropriate, during ordinary business…
N.D.C.C. § 13-11-17 Required presale consumer disclosures and warnings
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1. Before the consumer signs a contract, the debt-settlement provider shall provide an oral and written notice to the consumer that clearly and conspicuously discloses all of the following: a. Debt-settlement services may not be suitable for all consumers. b. Using a debt-settlem…
N.D.C.C. § 13-11-18 Individualized financial analysis
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1. Before entering a written contract with a consumer, a debt-settlement provider shall prepare and provide to the consumer in writing and retain a copy of: a. An individualized financial analysis, including the individual's income, expenses, and debts; and b. A statement contain…
N.D.C.C. § 13-11-19 Debt-settlement contract
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1. A debt-settlement provider may not provide debt-settlement service to a consumer without a written contract signed and dated by both the consumer and the debt-settlement provider. 2. Any contract for the provision of debt-settlement service entered in violation of this section…
N.D.C.C. § 13-11-20 Cancellation of contract and right to fee and settlement fund refunds
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1. A consumer may cancel a contract with a debt-settlement provider at any time before the debt-settlement provider has performed fully each service the debt-settlement provider contracted to perform or represented that the debt-settlement provider would perform. 2. If a consumer…
N.D.C.C. § 13-11-21 Fees
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1. A debt-settlement provider may not charge fees of any type or receive compensation from a consumer in a type, amount, or timing other than fees or compensation permitted in this section. 2. A debt-settlement provider may not charge or receive from a consumer any enrollment fee…