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Can you summarize NDAC Chapter 13-02-12?
Banking and Savings and Loan Associations > Interstate Banking
Short Summary
The provided legal document pertains to the requirements for a reciprocating state bank holding company to acquire or organize a North Dakota state or national bank. The company must demonstrate how they will meet the credit needs for business expansion of the local community or trade area where the bank and any facilities, stations, or banking houses are located. The document provides definitions for terms such as ‘family farm’, ‘farmer’, ‘investments in community development’, ’low and moderate income housing’, and ‘student education loans’. It also outlines the types of developmental loans that can be made to residents of North Dakota in the Bank’s trade area, including operating loans for farmers and family farms, loans for creating or expanding farm and nonfarm businesses, loans guaranteed by the small business administration or farmers home administration, investments in community development corporations or projects, low or moderate income housing loans, student education loans, loans made in distressed areas, loans made under the Bank of North Dakota’s agricultural loan programs, and loans made under the Bank of North Dakota’s commercial loan programs. The document emphasizes the importance of maintaining a certain level and percentage of developmental loans and failure to do so may result in disapproval, divestiture, or cease and desist proceedings. The document was implemented on August 1, 1991, and is governed by the North Dakota Administrative Code, specifically the Department of Financial Institutions’ section on Banking and Savings and Loan Associations under Interstate Banking.
Whom does it apply to?
Reciprocating state bank holding companies
What does it govern?
Requirements for a reciprocating state bank holding company making an application to acquire or organize a North Dakota state or national bank and demonstrating how they will meet the credit needs for business expansion of the local community or trade area
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
North Dakota