N.D. Admin. Code 13-02-15-01
1. "Bank funds" means cash or any check whereby the drawer and drawee are the lending bank, including a cashier's check.
2. "Core banking activity" includes receiving deposits, paying checks, or lending money.
3. "Loan production office" means an office which is apart from the main bank, facility, or interstate branch, where loans are solicited but money is not lent.
4. "Money" is "lent" only when the borrower receives loan proceeds in person directly from bank funds either:
a. At the lending bank or its operating subsidiary; or
b. At a facility established by the lending bank or its operating subsidiary.
5. "Receipt of bank funds representing loan proceeds" does not include delivery of bank funds directly by a third party provided it does not occur at a place established by the bank or its operating subsidiary.
6. "Third party" is a person who customarily delivers loan proceeds directly from bank funds under accepted industry practice such as an attorney or escrow agent at a real estate closing.
N.D. Admin Code 13-02-15-01
General Authority: NDCC 6-01-04, 6-03-02
Law Implemented: NDCC 6-03-38