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Can you summarize NDCC Chapter 6-08?
Banks and Banking > General Provisions
Short Summary
The legal document reviewed governs various aspects of banking institutions and associations in North Dakota. It requires banks to be numbered and receive an official number from the secretary of state. Officers of state banking associations or trust companies must take an oath before assuming office. Domestic banks are taxed on the same basis as national banks to ensure parity and equality in taxation. Banking associations in the state are exempt from legal process of attachment and execution. If a bank fails to pay a valid final judgment or decree, the state banking board can declare the bank insolvent and appoint a receiver. The document also outlines the process for the sale or purchase of associations, banking institutions, or holding companies, requiring prior written notice and approval from the state banking board or commissioner. Violations of the provisions of this title, not designated as crimes, are considered class B misdemeanors. Certified copies of articles of incorporation can be used as evidence in courts. Directors who willfully violate the law or omit to perform their duties are guilty of a class B misdemeanor. The document also addresses false statements, rumors, or suggestions that affect the financial condition of banking associations or corporations, issuing checks without an account, and the preservation of records by banks. It allows out-of-state banks or trust companies to serve in a fiduciary capacity in North Dakota, subject to certain requirements. The document also prohibits financial institutions from acquiring more than twenty-five percent of North Dakota deposits and imposes penalties for violations. It further addresses the operation of automated teller machines, wire transfers, and electronic records. Specific penalties and exemptions are mentioned throughout the document.
Whom does it apply to?
The document applies to banks, banking associations, trust companies, financial institutions, and financial institution holding companies operating in North Dakota.
What does it govern?
The legal document governs various aspects of banking institutions and associations in North Dakota, including their organization, taxation, insolvency, fiduciary capacity, and limitations on ownership or control of deposits.
What are exemptions?
The document provides exemptions for certain acquisitions of voting securities and allows out-of-state banks or trust companies to establish a place of business in North Dakota for conducting fiduciary business, subject to certain requirements.
What are the Penalties?
The document specifies that officers of banking associations who violate any provision of the title, violation of which has not specifically been designated as a crime, are guilty of a class B misdemeanor. Additionally, issuing a check, draft, electronic funds transfer authorization, or order for the payment of money without having an account with the bank or depository is considered a class C felony under certain circumstances.
Jurisdiction
North Dakota