ND SB2296

Amends North Dakota Century Code Section 21-04-09 to allow treasurers of public corporations and individuals legally charged with custody of public funds to accept pledged securities in lieu of personal or surety bonds, requiring security equal to 110% of deposits.

Specifies eligible securities including U.S. government bills and bonds, federal agency securities, irrevocable standby letters of credit from federal home loan banks rated AA or better, and securities issued by North Dakota or other states approved by the banking board.

Permits financial institutions to substitute pledged securities without public corporation consent if replacement securities have equal or greater market value, with notification required same day by mail or electronic transmission.

Allows depository financial institutions to fulfill pledge requirements by maintaining a security pledge schedule documenting public bodies with deposits, deposit amounts, federal deposit insurance applied, net uninsured deposits, and qualified securities pledged, verified quarterly by custodians.

Eliminates security pledge requirements for funds insured or guaranteed by the Federal Deposit Insurance Corporation, National Credit Union Administration, or qualified excess deposit insurance companies rated A- or better by A.M. Best Company Inc.

Repeals Section 21-04-11 of the North Dakota Century Code relating to records of securities.