Title 4, Economic Resources

Fiduciary Bond or Oath Excused. No oath or bond shall be required of a bank to qualify upon appointment as a fiduciary, unless the instrument creating a fiduciary position expressly otherwise provides. Source: PL 3-104, § 631.

Identification and Segregation of Fiduciary Assets; Investment and Deposit of Cash; Nominee for Securities. (a) A bank holding any asset as a fiduciary shall: (1) Segregate all such assets from any other assets of the bank and from the assets of other trusts, except as may be exp…

Investment of Funds Held as Fiduciary. A bank acting as fiduciary shall have the same investment powers as an individual fiduciary under like circumstances. Source: PL 3-104, § 633.

Common Trust Funds. A bank or trust company may create one or more common trust funds in which individuals may participate and invest. Source: PL 3-104, § 634.

Loans. (a) A bank may lend at a lawful rate of interest on the security of the personal obligation of the borrower. (b) A retail bank may lend on the security of tangible and intangible personal property subject to regulations issued by the director. (c) A retail bank may lend at…

Investments. (a) In addition to other investments expressly authorized by this division, a retail bank may purchase (or discount): (1) Obligations which satisfy the requirements of this division for loans and are acquired in full. (2) Obligations of the United States, or states o…

Acceptances. (a) Retail banks may accept: (1) A draft which has not more than six months sight to run, exclusive of days of grace, and is drawn to finance the purchase of goods with maturity in accordance with the original terms of purchase, or is secured by shipping documents tr…

Diversification of Loans and Investments. The director may issue regulations on the diversification of loans and investments. Source: PL 3-104, § 643. Commission Comment: With respect to the reference to the “director” of the Department of Commerce and Labor, see Executive Order …

Acquisition of Property to Satisfy or Protect Previous Loan. A bank may take property of any kind to satisfy or protect a loan previously made in good faith and in the ordinary course of business. Property acquired in satisfaction of a loan shall be held subject to the following …

Acquisition of Banking Premises and Equipment. (a) A bank may acquire real estate and equipment and improve real estate to be used in the transaction of its business in the Commonwealth and may rent any space so acquired in a building in excess of its present actual need. (b) The…

Sale of Assets in Ordinary Course. A bank may sell any asset in the ordinary course of business, or, with the approval of the director, in any other circumstance, but the sale of all or substantially all of the assets of a bank or of a department thereof shall be governed by regu…

Borrowing. A bank may borrow money and issue evidence of indebtedness, subject to such regulations as the director may issue. Source: PL 3-104, § 647. Commission Comment: With respect to the reference to the “director” of the Department of Commerce and Labor, see Executive Order …

Pledge of Assets. A bank may pledge its assets to: (a) Enable it to act as agent for the sale of obligations of the United States. (b) Secure borrowed funds. (c) Secure deposits. Source: PL 3-104, § 648.

Indorsement and Signature Guaranty. (a) A bank may assume secondary liability as an endorser of a negotiable or nonnegotiable instrument which it owns or has received for collection or that of the guarantor of the genuineness of a signature. (b) A guaranty of the signature means …

Parties, Events, and Interests. (a) Capacity to Insure. Any person capable of making a contract may be an insurer, subject to the restrictions imposed by this division. (b) Events Subject of Insurance. Except as provided in this section, any contingent or unknown event, whether p…

The Policy. (a) Contents. The written instrument in which a contract of insurance is set forth is the policy and it shall contain the information required herein: (1) The parties between whom the contract is made; (2) A description of the property, life or interest insured; (3) T…

Premiums. (a) Accrual of Premium. The insurer is entitled to payment of the premium as soon as the subject matter insured is exposed to the peril insured against. (b) Right to Return of Premium. Unless the insurance contract otherwise provides, a person insured is entitled to a r…

Rates. (a) [Repealed.] (b) Standards. An insurer in making rates, and the commissioner in approving them, shall apply the standards described in this section: (1) Rates shall not be excessive or inadequate, as herein provided, nor shall they be unfairly discriminatory; (2) No rat…

Loss. (a) Peril Not Insured Against: Rescue Efforts. An insurer is liable: (1) Where the thing insured is rescued from a peril insured against and which would otherwise have caused a loss if in the course of the rescue, the thing is exposed to a peril not insured against, and whi…

Double Insurance. (a) Double Insurance. Double insurance exists when the same person is insured by several insurers separately in respect to the same subject, interest and risk. (b) Double Insurance: Contribution. In case of double insurance, the several insurers are liable to pa…

Reinsurance. (a) A contract of reinsurance is one by which an insurer procures a third person to insure him against loss or liability by reason of the original insurance. (b) No admitted insurer shall reinsure with any other insurer who has not been previously admitted in the Com…

Disposition of Funds. All fees and costs collected pursuant to this division shall be payable to the Commonwealth Treasury and shall be credited to the General Fund. Source: PL 3-107, § 31.

General Penalties. Violation of any provision of this division for which a penalty is not otherwise provided shall be a misdemeanor punishable by a fine of not more than $1,000 if the offender is other than an individual person, and by a fine of not more than $500 or imprisonment…

Definitions. As used in this chapter, the following words and phrases shall have the meanings given to them in this section unless the context clearly indicates otherwise: (a) “Cost-effective” shall mean the ability to produce or purchase electric energy or firm capacity, or both…

Renewable Portfolio Standard. Each electric utility shall establish a renewable portfolio standard of twenty percent of its net electricity sales on or before December 31, 2016. Source: PL 15-23, § 2(8622); amended by PL 15-87 § 2(8622), modified; amended by PL 18-62 § 2 (Sept. 4…

Achieving Portfolio Standard. The electric utilities may aggregate their renewable portfolios in order to achieve the renewable portfolio standard. If requested, the regulator shall determine on an evidentiary record if an electric utility company is unable to meet the renewable …

Waivers, Extensions and Incentives. (a) An electric utility company not meeting the renewable portfolio standard shall report to the regulator in writing within 30 days following the goal date established in 4 CMC § 8522 and provide a detailed explanation for not meeting the rene…

Renewable Portfolio Standards Study. The regulator shall: (a) By December 31, 2008, develop and implement a utility rate structure and independent power producer contract standards, which may include but is not limited to, (1) Performance-based ratemaking to provide incentives th…

Definitions. As used in this article, the following words and phrases shall have the meanings given to them in this section unless the context clearly indicates otherwise: (a) “Available capacity” shall mean the capacity available to the electric utility’s system after factoring …

Net Energy Metering to Be Provided to Eligible Customer. (a) An eligible customer-generator shall be entitled to receive net energy metering service in accordance with this article. (b) Notwithstanding any law, CUC regulations, or moratorium to the contrary, CUC shall authorize a…

Maximum Capacity of Eligible Customer-Generator. A customer shall be eligible for net energy metering for not more than ten megawatts of available capacity of a renewable energy system; provided that the regulator shall increase the maximum qualifying capacity by regulation or or…

Standard Contract or Tariff; Rate Structure. (a) The electric utility shall develop a standard contract or tariff providing for net energy metering and shall make this contract or tariff available to eligible customer-generators, upon request, on a first-come-first-served basis u…

Limits on Additional Customer Generators. Notwithstanding the requirements of this chapter, an electric utility shall not be obligated to provide net energy metering to additional customer-generators in a control area when the combined total peak available capacity of all eligibl…

Calculation of Net Charges/Benefits. The net energy metering calculation shall be made by measuring the difference between the electricity which the electric utility delivered to the eligible customer-generator and the sum of: (a) The electricity generated by the eligible custome…

Billing Periods; 12-month Reconciliation. (a) Billing of net energy metering customers shall be on a monthly basis; provided that the last monthly bill for each 12-month period shall reconcile for that 12-month period the net electricity provided by the electric utility with: (1)…

Net Electricity Consumers. The net electricity consumer shall owe the electric utility for the customer’s consumption in excess of the customer’s production and credits. The eligible customer shall owe the electric utility for the excess monthly kilowatt hour consumption calculat…

Net Electricity Producers; Excess Electricity Credits and Credit Carry Over. (a) The intent of this article is that, for the 12-month billing period, the eligible customer-generator shall be fully compensated for his/her consumption through the production offset and credit calcul…

Net Electricity Consumption or Production Information. The electric utility shall provide every eligible customer-generator and independent power producer with net electricity consumption or production information with each regular monthly bill, which shall include: (a) The curre…

Termination of Eligible Customer-Generators. If an eligible customer-generator relationship with the electric utility terminates, the electric utility shall reconcile for the 12-month period the eligible customer-generator’s consumption and production of electricity, including an…

Safety and Performance Standards. (a) A renewable energy system used by an eligible customer-generator shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited tes…

Business and Tax Effects. (a) Business effects. (1) No business license shall be required solely by reason of the treatment of customer-generated electricity under this chapter except as provided in paragraph (2) of this subsection. (2) Independent power producers with an electri…

Energy Efficient Products and Services. (a) The Department of Finance’s Division of Procurement and Supply shall require all government agencies to select, where life-cycle cost-effective, products given the ENERGY STAR rating, or other equally-or -better energy efficient product…

Energy Efficient Purchases. (a) If an agency determines that initial costs render an otherwise cost-effective energy efficient purchase unaffordable, it shall request that the Department of Finance, Division of Procurement and Supply, solicit the provision of financing agreements…

Environmental Management System Purchasing. The Department of Finance, Division of Procurement and Supply, shall deliver to the Governor by December 31, 2006, a recommended Environmental Management Purchasing System (“EMS”). The EMS shall draw on the federal government’s EMS, iss…

Policy to Encourage Energy Efficiency. It shall be the policy of the Commonwealth to use energy as efficiently and cost-effectively, taking into account short-run and the long-term costs and benefits which can be quantified. Source: PL 15-23, § 2(8661); reenacted without change b…

Government Agencies to Employ Energy Efficiency. All Commonwealth agencies shall use energy cost-effectively. All Commonwealth contracts must explicitly require the installation of and the use of lifecycle, cost-effective energy efficiency technology, including but not limited to…