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Can you summarize NDCC Chapter 6-05?
Banks and Banking > Annuity, Safe Deposit, Surety, and Trust Companies
Short Summary
The provided legal document content governs the establishment, operation, and regulation of annuity, safe deposit, surety, and trust companies in North Dakota. It outlines the requirements for forming a corporation for these purposes, including the minimum number of individuals required and the residency requirement. The document also discusses the role of the Board in examining and granting permission to organize such institutions. Additionally, it covers the authorization for banking associations to exercise fiduciary powers and the continued operation of corporations engaged in fidelity insurance and corporate suretyship. The document further prohibits the use of certain words and phrases by individuals or entities not organized under the specified chapter. However, exemptions are provided for specific entities, including national banking corporations, state banks, and their affiliates. The document also specifies the minimum capital requirements for such corporations and the additional capital that may be required by the state banking board. It further governs the types of securities in which corporations can invest their surety deposits and the security held by the department of financial institutions for the benefit of individuals making transfers or deposits with trust companies. The document also outlines the issuance and management of certificates of deposit, the qualifications and terms of directors, the election of directors and appointment of officers, the powers and activities of qualified corporations, and the investment of trust funds. It also covers the resignation of trustees in favor of corporations, compensation for trust services, and the examination and investigation of corporations. The document does not mention any specific exemptions or penalties for non-compliance or violations.
Whom does it apply to?
Corporations formed for the purpose of transacting business as an annuity, safe deposit, and trust company, banking associations, fidelity insurance and corporate suretyship corporations, and trust companies engaging in fiduciary activities
What does it govern?
Annuity, Safe Deposit, Surety, and Trust Companies
What are exemptions?
Exemptions are provided for national banking corporations, state banks authorized under this chapter, state banks or trust companies authorized to engage in trust activities under the laws of another state, their affiliates, bona fide banking institution trade associations and their affiliates, and the Bank of North Dakota
What are the Penalties?
Violation of the provision prohibiting the use of certain words and phrases in connection with the business of a trust company results in a penalty of one hundred dollars per day or part thereof during which the violation continues
Jurisdiction
North Dakota