Title 13 — Debtor and Creditor Relationship

In this chapter, unless the context or subject matter otherwise requires: 1. "Creditor" means one in whose favor an obligation exists by reason of which the person is or may become entitled to the payment of money. 2. "Debtor" means one who, by reason of an existing obligation, i…

In the absence of fraud, every contract of a debtor is valid against all of the debtor's creditors, existing or subsequent, who have not acquired a lien on the property affected by the contract.

Except as otherwise provided in section 13-02.1-05, a debtor may pay one creditor in preference to another, or may give to one creditor security for the payment of that creditor's demand in preference to another.

When a creditor is entitled to resort to each of several funds for the satisfaction of the creditor's claim and another person has an interest in, or is entitled as a creditor to resort to, some but not all of them, the latter may require the former to seek satisfaction from thos…

Repealed by S.L. 1985, ch. 186, § 12. 13-01-06. Transfer of personalty without changing of possession or filing of instrument presumed fraudulent. Repealed by S.L. 1985, ch. 186, § 12. 13-01-07. Instruments affecting realty void when made with intent to defraud - Good-faith purch…

Repealed by S.L. 1985, ch. 186, § 12.

Repealed by S.L. 1985, ch. 186, § 12.

In all cases arising under the provisions of this chapter, the question of fraudulent intent is one of fact and not of law. No transfer or charge may be adjudged fraudulent solely on the ground that it was not made for a valuable consideration.

Any person who is a party to any conveyance or assignment of any interest in real or personal property entered into with intent to defraud prior or subsequent purchasers, creditors, or other persons except those with security interest in the property involved, who knowingly parti…

Every person who removes any of the person's property from a county with intent to prevent a levy thereon under execution or attachment, or who secretes, assigns, conveys, or otherwise disposes of any of the person's property with intent to defraud any creditor or to prevent the …

Every person who, knowing that the person's property is insufficient for the payment of all of the person's lawful debts, shall assign, transfer, or deliver any property for the benefit of any creditor or creditors upon any trust or condition that any creditor shall receive a pre…

1. A creditor may charge, receive, and collect a late payment charge on all money due on account from thirty days after the obligation of the debtor to pay has been incurred. A creditor may assign an account receivable that is subject to this section. An assignee of an account re…

The department of financial institutions shall use its facilities to administer and enforce this chapter. Any person or persons delegated to administer this chapter may not have financial interests directly or indirectly in any business which is subject to this chapter.

As used in this chapter, unless the context or subject matter otherwise requires: 1. "Collection agency" means a person that, in the ordinary course of business, engages in debt collection. 2. "Commissioner" means the commissioner of financial institutions. 3. "Communication" mea…

Except as otherwise provided in this chapter, no person, other than a collection agency licensed and authorized under this chapter, may engage in debt collection in the state of North Dakota without a collection agency license issued by the commissioner. A person engages in debt …

The commissioner may grant approval for each branch office which must be submitted by an application. When used in this chapter, "branch office" means a physical location where collection activity is carried out, other than the location where the collection agency license was gra…

1. Notwithstanding sections 13-05-02 and 13-05-02.3, a collection agency attempting in any manner to collect child support as defined in section 14-09-09.10 must be licensed under this chapter if either the child support debtor or creditor reside within this state, if the child s…

This chapter does not apply to: 1. Attorneys at law who are licensed to practice in the state of North Dakota. This exemption is limited to the actions of the licensed attorney and does not extend to persons either employed by the attorney or acting on behalf of the attorney; 2. …

1. Each application for a collection agency license, or for a renewal thereof, must be in the form prescribed by the commissioner and must contain the following information: a. The full name and proposed business name of the applicant. b. The address where the business is to be c…

1. Each licensee shall maintain a surety bond in the amount of fifty thousand dollars. 2. The surety bond must be in a form as prescribed by the commissioner. 3. When an action is commenced on a licensee's bond, the commissioner may require the filing of a new bond. 4. Immediatel…

A minimum net worth must be continuously maintained by every licensee in accordance with this section. 1. Minimum net worth must be maintained in the amount of twenty-five thousand dollars. 2. If the net worth of a licensee falls below the minimum net worth as set forth in subsec…

All licenses required herein expire on December thirty-first of each year and may be renewed. Applications for renewal must be submitted thirty days before the expiration of the license and must be accompanied by the required annual fees, which are not subject to refund. The form…

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.

Repealed by S.L. 2019, ch. 123, § 10.

Insofar as consistent with other provisions of law, the department of financial institutions has the power to: 1. Determine the qualifications of all applicants based on financial responsibility, financial condition, business experience, character, and general fitness which must …

1. The commissioner of financial institutions may issue and serve upon any current or former collection agency officer or employee and upon the collection agency involved an order stating: a. That the current or former officer or employee is willfully engaging or has willfully en…

1. The department of financial institutions may: a. Make such public or private investigation within or outside this state as it deems necessary to determine whether a person has violated or is about to violate a provision of this chapter or a rule or order under this chapter, or…

It is a violation of this chapter for a person or individual subject to this chapter to: 1. Negligently make any false statement or knowingly make any omission of material fact in connection with any information, reports, or applications filed with the department or another gover…

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 …

A collection agency may collect or attempt to collect, in addition to the principal amount of a claim, a transaction fee for processing a credit card payment in an amount that does not exceed two and one-half percent of the payment amount if: 1. The transaction fee is not prohibi…

1. Every collection agency licensed under this chapter shall keep a record of all sums collected by it and of all disbursements made by it for a period of six years from the date of last entry thereon. The records of a licensee may be maintained electronically provided they can b…

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 commissioner of financial institutions shall submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04.

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 is guilty of a class C felony. The commissioner may impose a civil money penalty not to exceed five thousand dollars per violation upon a person or agency who willfully violates a law, rule, written agreement, or order un…

As used in this chapter, "consumer credit counseling service" means a person whose agreements contemplate that a debtor will liquidate the debtor's debts by structured installments or that a creditor will reduce finance charges or fees for late payments, default, or delinquency.

Any agreement between a consumer credit counseling service and a debtor for counseling and assistance must be in writing and signed by both parties. The consumer credit counseling service shall give the debtor a copy of the signed agreement. The agreement must disclose the total …

A consumer credit counseling service entering an agreement with a debtor who resides in this state shall file with the attorney general a surety bond or other security in an amount equal to the largest sum accrued in the service's trust account during the prior year, or five thou…

A consumer credit counseling service shall deposit in a trust account in a financial institution, within one business day of receipt, any payments received from or on behalf of a debtor. A debtor's payments must be identifiable in the trust account. Funds in the trust account may…

A consumer credit counseling service may charge an origination fee of up to fifty dollars, which may be subtracted from the initial amount paid by the debtor to the counseling service. The consumer credit counseling service may withdraw and retain as partial payment of the servic…

A consumer credit counseling service may not take a confession of judgment or a power of attorney to confess judgment against the debtor or appear as the debtor in any judicial proceeding. The attorney general may, upon the attorney general's own motion, and shall, upon receipt o…

As used in this chapter, unless the context otherwise requires: 1. "Check" means a personal check signed by the maker and made payable to a licensee. 2. "Commissioner" means the commissioner of financial institutions. 3. "Completed deferred presentment service transaction" means …

A person may not engage in the business of deferred presentment service without a license issued under this chapter. A separate license is required for each location from which the business of deferred presentment service is conducted. A person is considered to be engaging in the…

To qualify for a license, an applicant shall satisfy the following requirements: 1. Each applicant shall maintain a net worth of at least twenty-five thousand dollars per licensed location, determined in accordance with generally accepted accounting principles. 2. The financial r…

1. Each application for a license must be in the form prescribed by the commissioner and must include: a. The legal name of the applicant, residence of the applicant, business address of the applicant, and address at which deferred presentment service is provided if different fro…

Each applicant for licensure shall include with the application an application and background investigation fee of eight hundred fifty dollars, which is not subject to refund but which, if the license is granted, constitutes the license fee for the first license year or part of t…

A licensee shall 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. In addition, the licensee shall submit the original license certificate for reiss…

Repealed by S.L. 2019, ch. 123, § 10.

1. Upon receipt of a complete application, the commissioner shall determine whether the qualifications prescribed under this chapter are satisfied. If the commissioner determines the qualifications are satisfied and approves the documents, the commissioner shall issue to the appl…

A license issued under this chapter is not transferable or assignable. The prior written approval of the commissioner is required for the continued operation of a deferred presentment service business if a change in control of a licensee occurs. Control in the case of a corporati…