N.D. Admin. Code 13-02-09-02
In determining the total direct, indirect, or contingent liability of a borrower for purposes of North Dakota Century Code section 6-03-59, the following definitions apply:
1. "Contingent liability" includes a potential economic obligation of an enterprise if:
a. It is probable that a liability will be incurred; and
b. The amount of the liability can be reasonably estimated.
2. "Corporation" means any entity organized and incorporated under law, including a limited liability company.
3. "Direct liability" means all obligations of an enterprise for which it has primary responsibility for repayment.
4. "Indirect liability" includes a potential economic obligation of an enterprise if:
a. It is probable that a liability will be incurred; and
b. The amount of the liability can be reasonably estimated.
5. "Limited partnership" means a partnership formed by two or more persons having one or more general partners and one or more limited partners, and includes a limited liability partnership.
6. "Parent corporation" means a corporation which owns or controls one or more subsidiaries.
7. "Probable" means that a future event or events that would cause a contingency to become a liability are likely to occur.
8. "Subsidiary" means a corporation which is owned or controlled by a parent corporation.
N.D. Admin Code 13-02-09-02
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-59