Statutes, codes, and regulations
North Dakota Administrative Code
Title 13 - Department of Financial InstitutionsArticle 13-02 - Banking and Savings and Loan Associations
Chapter 13-02-09 - Loan Limitation to One Borrower or Concern
Section 13-02-09-03 - Liabilities of a borrower

N.D. Admin. Code 13-02-09-03

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Current through Supplement No. 394, October, 2024
Section 13-02-09-03 - Liabilities of a borrower
1. Standby letters of credit must be included in determining the total direct, indirect, or contingent liability of a borrower who is a beneficiary of the standby letter of credit.
2. The obligations of a general partnership must be included in determining the total direct, indirect, or contingent liability of each general partner of the partnership.
3. The obligations of a limited partnership must be included, to the extent of each limited partner's share of ownership of the limited partnership, in determining the total direct, indirect, or contingent liability of each limited partner of the limited partnership, if one of the conditions of subsection 4 of section 13-02-09-04 exists. The entire obligation of a limited partnership must be included in determining the total direct, indirect, or contingent liability of the general partner of a limited partnership.
4. An extension of credit to a borrower which is participated in by the banking association to a third party with recourse must be included in determining the total direct, indirect, or contingent liability of that borrower.
5. If an extension of credit is secured by a pledged certificate of deposit drawn on the lending bank and payable to the borrower, the face value of the certificate of deposit or the borrower's obligation secured by the certificate of deposit, whichever is less, may not be considered in determining the total liability of a borrower.
6. If an extension of credit which is transferred by the banking association to a third party without recourse fails to comply with applicable call report instructions to be treated as a sale, the extension of credit must be considered in determining the total direct, indirect, or contingent liability of that borrower. Transfers that do not meet the conditions for sale treatment must be accounted for according to prevailing call report instructions.

N.D. Admin Code 13-02-09-03

Effective September 1, 1986; amended effective December 1, 1998.

General Authority: NDCC 6-01-04

Law Implemented: NDCC 6-03-59