ND SB2276

Requires corporations to designate assets received from donors as temporarily restricted or permanently restricted according to generally accepted accounting principles and disclose them on financial statements.

Prohibits corporations from pledging, granting security interests in, or borrowing from assets designated as permanently restricted.

Permits corporations to pledge or borrow from temporarily restricted assets only for purposes consistent with donor restrictions.

Establishes that assets received for special use or purpose must be distributed first in the priority order when a corporation dissolves, before payment of other debts and obligations.

Senate passed 47-0; House passed 90-0 with 4 absent.