Title 4, Economic Resources

Open-end Loan Plan; Interest; Additional Charges; Security for Plan; Necessary Disclosures. (1) Any licensee may make loans under an open-end loan plan and may receive interest, discount, consideration, finance charge and other charges as provided in section 60151. (2) Interest o…

Open-end Credit Card Plan Authorized. (1) A licensee may transact business and extend credit to borrowers under an open-end credit card plan. A licensee may offer an open-end credit card plan in conjunction with noncredit features or services available to the borrower through use…

Licensee Duty Toward Borrowers. Every licensee shall: (1) Deliver to the borrower at the time any loan is made a statement in the English language showing in clear and distinct terms: (a) The name and address of the borrower and of the licensee. (b) The amount and the date of the…

Commercial Loans; Interest; Additional Charges. A licensee may make commercial loans and may charge and receive interest (including compound interest), discount, consideration, finance charge, and other charges as provided in 4 CMC § 60151. Source: PL 15-85, § 4, modified. Commis…

Cease and Desist Order. (1) The secretary may issue and serve upon a licensee or a director, officer, employee or agent of a licensee an order to cease and desist from a violation when the secretary has reasonable cause to believe that the person to whom the order is directed is …

Enforcement Actions. The secretary may institute any action or other proceeding that the secretary considers necessary for enforcing any provision of this chapter or any rule, order or action adopted, issued or taken by the secretary under this chapter. Source: PL 12-36, § 1(6977…

Rulemaking Authority; Notice. (1) In accordance with the Administrative Procedure Act, 1 CMC § 9101 et seq., the secretary may adopt rules for the purpose of carrying out this chapter. (2) In addition to the notice requirements of the Administrative Procedure Act, 1 CMC § 9101 et…

Person Not Liable for Good Faith Acts or Omissions. A licensee or other person may not be held personally liable for an act done or omitted by the person in good faith and in compliance with an interpretation, rule or order of the secretary regardless of whether the interpretatio…

Civil Penalties. (1) The secretary may assess any person who violates any material provision of any final order of the secretary under this chapter, a civil penalty in an amount determined by the secretary of not more than $10,000 per violation. (2) Civil penalties under this sec…

Exclusions. This chapter does not apply to banks, pawnshops, trust companies, savings and loan associations, or credit unions. Source: PL 12-36, § 1(6981).

Imposition of Tax. Whenever a federal estate tax is payable to the United States, there is hereby imposed a Commonwealth estate tax on the taxable estate equal to the amount, if any, of the maximum allowable credit for foreign death taxes pursuant to the United States Internal Re…

Determination of Commonwealth Estate Tax Liability. The Commonwealth estate tax liability shall be determined in the following manner: The lesser of (a) The foreign death tax credit allowable pursuant to IRC Section 2014, or (b) The product derived by dividing the value of the pr…

Collection and Administration. The Director of the Division of Revenue and Taxation shall provide for the collection and administration of the tax imposed by 4 CMC § 1961 by rules and regulations promulgated for that purpose. Source: PL 10-10, § 4 (§ 1733); amended by PL 11-52, §…

State Death Tax Credit Allowable Against Federal Estate Tax; Property With Situs in the Commonwealth; Determination. For purposes of this chapter, property situated in the Commonwealth means property in the case where a decedent leaves property having situs in the Commonwealth. S…

Merger. (a) One or more corporations may merge into another corporation if the board of directors of each corporation adopts and its shareholders (if required by 4 CMC § 4543) approve a plan of merger. (b) The plan of merger must set forth: (1) The name of each corporation planni…

Share Exchange. (a) A corporation may acquire all of the outstanding shares of one or more classes or series of another corporation if the board of directors of each corporation adopts and its shareholders (if required by 4 CMC § 4543) approve the exchange. (b) The plan of exchan…

Action on Plan. (a) After adopting a plan of merger or share exchange, the board of directors of the corporation whose shares will be acquired in the share exchange, shall submit the plan of the merger (except as provided in subsection (g) of this section) or share exchange for a…

Merger of Subsidiary. (a) A parent corporation owning at least 90 percent of the outstanding shares of each class of a subsidiary corporation may merge the subsidiary into itself without approval of the shareholders if the parent shall adopt a plan of merger that sets forth: (1) …

Articles of Merger or Share Exchange. (a) After a plan of merger or share exchange is approved by the shareholders, or adopted by the board of directors if shareholder approval is not required, the surviving or acquiring corporation shall deliver to the Registrar of Corporations …

Effect of Merger or Share Exchange. (a) When a merger takes effect: (1) Every other corporation party to the merger merges into the surviving corporation and the separate existence of every corporation except the surviving corporation ceases; (2) The title to sell all real estate…

Merger or Share Exchange with Foreign Corporation. (a) One or more foreign corporations may merge or enter into a share exchange with one or more domestic corporations if: (1) In a merger, the merger is permitted by the law of the state or country under whose law each foreign cor…

Right of Action. A member of a limited liability company may maintain an action in the right of the company if the members or managers having authority to do so have refused to commence the action or an effort to cause those members or managers to commence the action is not likel…

Proper Plaintiff. In a derivative action for a limited liability company, the plaintiff must be a member of the company when the action is commenced; and: (1) Must have been a member at the time of the transaction of which the plaintiff complains; or (2) The plaintiff’s status as…

Pleading. In a derivative action for a limited liability company, the complaint must set forth with particularity the effort of the plaintiff to secure initiation of the action by a member or manager or the reasons for not making the effort. Source: PL 14-11, § 2 (1103). Commissi…

Expenses. If a derivative action for a limited liability company is successful, in whole or in part, or if anything is received by the plaintiff as a result of a judgment, compromise, or settlement of an action or claim, the court may award the plaintiff reasonable expenses, incl…

Tourism Air Service Stabilization Trust Fund. [repealed] Source: PL 17-29 §§ 3 and 5 (February 16, 2011); (a), (d) and (e) repealed and reenacted and (b) and (c) amended by PL 17-58 § 1 (November 4, 2011); changes made by PL 17-58 were repealed by PL 17-75 § 2 (June 4, 2012), mod…

Sale of Assets in Regular Course of Business and Mortgage of Assets. (a) A corporation may, on the terms and conditions and for the consideration determined by the board of directors: (1) Sell, lease, exchange, or otherwise dispose of all, or substantially all, of its property in…

Sale of Assets Other Than in Regular Course of Business. (a) A corporation may sell, lease, exchange, or otherwise dispose of all, or substantially all, of its property (with or without the good will), otherwise that in the usual and regular course of business, on the terms and c…

Uniformity of Application and Construction. This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it. Source: PL 14-11, § 2 (1201). Commission Comment: See the commen…

Transitional Provisions. (a) Before January 1, 2003, this chapter governs only a limited liability company organized: (1) After the effective date of this Act, unless the company is continuing the business of a dissolved limited liability company under Commonwealth law; and (2) B…

Savings Clause. This Act and any repealer contained herein shall not be construed as affecting any existing right acquired under contract or acquired under statutes repealed or under any rule, regulation or order adopted under the statutes. Repealers contained in this Act shall n…

Severability Clause. If any provision of this Act or the application of any such provision to any person or circumstance should be held invalid by a court of competent jurisdiction, the remainder of this Act or the application of its provisions to persons or circumstances other t…

Effective Date. This Act shall take effect upon its approval by the Governor or becoming law without such approval. Source: PL 14-11, § 6. Commission Comment: PL 14-11was enacted on May 28, 2004. See the comment to 4 CMC § 4801 regarding PL 14-11.

Tobacco Control. There is hereby established within Title 4, Division 5 a new Chapter 12 creating standards for tobacco control within the CNMI, including the licensing of businesses dealing in tobacco products. There is hereby created a Division with the Department of Commerce c…

Exception: New Arrivals. A person entering the Commonwealth may bring with him for private use, and not for resale, tobacco products not exceeding 30 packages of 20 cigarettes each or one pound of tobacco, without paying an excise tax. Any person bringing into the Commonwealth a …

Fees: No Reduction. The fees set forth in 4 CMC § 50131(c) shall apply to all applicants regardless of when during the calendar year the applicant applies. Source: PL 11-75, § 5, modified.

Fees: Payment: Revocation. The applicable license fee shall be payable on the day of application for first time applicants, and on the renewal date for all others. Each license issued by the Department of Commerce, Alcohol Beverage and Tobacco Control Division, shall be valid onl…

Privileges: Limitations. A license is limited to the privileges conferred therein, and the licensee may not exercise any other privileges. Source: PL 11-75, § 7, modified.

Licensees: Limitation. A license is limited to the premises for which it is issued and a licensee may not exercise the privileges conferred by the license at other premises. Applicants with more than one establishment must apply for a separate license for each additional establis…

Wholesaler: Authorized Imports, Purchases and Sales. A person or establishment holding a wholesale agent license may import into or purchase in the Commonwealth from a manufacturer, agent, or wholesaler the tobacco products specified by the Department of Commerce, and sell such p…

Condition of Premises. (a) Cigarettes Maintained in a Secured Area. Retail establishments shall ensure that cigarettes are displayed in accordance with this subsection. Cigarettes may not be sold nor displayed individually, but in quantities of not less than 20 cigarettes per pac…

Required Signs. Any business which sells or permits to be sold on its premises any tobacco product and/or preparation shall clearly, continuously and conspicuously post signs reading “TOBACCO SALES PROHIBITED TO PERSONS UNDER THE AGE OF 18” next to any tobacco products and/or pre…

License Issuance Restrictions. The Department of Commerce, Alcohol Beverage and Tobacco Control Division, shall not issue a license of any class to any applicant that falls into one of the following categories, except pursuant to the restrictions noted herein: (a) Real Party in I…

Department of Commerce Disapproval of License Applications. The Department of Commerce may disapprove an application for a license, upon findings, through adequate investigation, that such refusal is in the public interest. Where an application for license has been denied pursuan…

Enforcement Powers. The Department of Commerce, Alcohol Beverage and Tobacco Control Division, Department of Public Safety, and Department of Public Health shall be responsible for the enforcement of this chapter, and may enter into memorandums of understanding to coordinate thei…

Inspections. (a) Undercover Operations. The Department of Commerce, Alcohol Beverage and Tobacco Control Division, Department of Public Safety, and Department of Public Health are authorized under this Chapter to secure the voluntary assistance of minors to conduct undercover inv…