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ND HB1085
Bill
Status
4/17/2013
Primary Sponsor
Industry, Business and Labor Committee
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AI Summary
HB 1085 Summary
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Defines "financial corporation" as entities regulated by the Department of Financial Institutions, excluding financial institutions and credit unions, and extends regulatory authority to these entities.
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Authorizes state-chartered banks to purchase, construct, and lease municipal buildings, school buildings, and similar public facilities to municipalities or public authorities, with the lease agreement requiring the lessee to become the owner upon expiration.
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Reorganizes department personnel structure by replacing references to "chief deputy examiner" with "assistant commissioner" and clarifies duties and appointment procedures for assistant commissioners and deputy examiners.
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Modifies civil money penalty procedures to require consideration of whether good faith was exercised, clarifies penalty caps at $5,000 per occurrence plus $100 per day of violation continuation, and directs collected penalties to the financial institutions regulatory fund rather than state treasury.
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Allows nonresident banks and trust companies to establish fiduciary business in North Dakota if their home state grants reciprocal authority to North Dakota state-chartered institutions, and requires submission of applications to the Department of Financial Institutions for review.
Legislative Description
The management and control of entities regulated by the department of financial institutions, the powers and duties of the state banking board and state credit union board, assessment of civil money penalties, the taking of testimony and enforcement of orders, the appointment of receivers, the supervision and examination by the commissioner of financial institutions, the records kept and reports made by the commissioner of financial institutions, the appointment of an assistant commissioner and assignment of titles within the department of financial institutions, the reports of deputies of the commissioner of financial institutions, the prohibition of financial interest by officers and employees of the department of financial institutions in entities regulated by the department of financial institutions, the salaries of deputies of the commissioner of financial institutions, the regulation and limitation of loans on real estate, the conversion, consolidation, or merger of banking institutions, the removal to a new location of a banking association, requirements regarding how the list of shareholders of a banking institution is to be kept and when it is to be filed with the commissioner of financial institutions, reserve funds of banking associations, the right of action against security deposits of trust companies, responsibilities of trust companies to a beneficiary of a trust, reports regarding the increase in capital stock of trust companies to the state banking board, fees paid to the department of financial institutions by trust companies, the duty of the commissioner of financial institutions when an examination of a trust company discloses a violation of law, and the authorization and application by a nonresident bank or trust company intending to establish a place of business, branch office, or agency in the state.
Last Action
Signed by Governor 04/15
4/17/2013