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Can you summarize NDCC Section 6-03-60?
Powers, Management, and Operation of Banks > Loans to and purchases from directors, executive officers, and principal shareholders - Restrictions - Conditions - Penalty - Civil liability.
Short Summary
This legal document governs the restrictions, conditions, and penalties related to loans and purchases made by state banking associations to directors, executive officers, and principal shareholders. It specifies that the combination of loans or extensions of credit made to an officer of the association should not exceed the limitation set by section 6-03-59 of the North Dakota Century Code, federal law, or federal rule. Additionally, it prohibits directors, officers, or employees of a bank from selling any mortgage, bond, note, stock, or other property to the bank without obtaining written approval from the board of directors. The board of directors’ actions regarding loans and discounts must be recorded in the minute books of the banking association. Any shareholder, officer, or director who knowingly violates these provisions will be held personally liable for any resulting loss or damage to the association or any person. They will also be guilty of a class B misdemeanor. The commissioner has the authority to require the payment or repurchase of loans, securities, or obligations mentioned in this document.
Whom does it apply to?
Directors, executive officers, and principal shareholders of a banking association
What does it govern?
Loans to and purchases from directors, executive officers, and principal shareholders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Civil liability, class B misdemeanor
Jurisdiction
North Dakota