N.D. Admin. Code 13-03-23-08

Current through Supplement No. 394, October, 2024

Section 13-03-23-08 - Examinations

A credit union shall allow the commissioner or the commissioner's examiner, at the commissioner's discretion, to inspect or examine all the books or records of the credit union service organization and subsidiary credit union service organization for the purpose of determining compliance with this chapter and to determine the value of the credit union's investment or loans. In order to accomplish the forgoing, each credit union must have a written agreement in place with the credit union service organization and any subsidiary credit union service organization, prior to investing in or lending to the credit union service organization or subsidiary credit union service organization, and prior to the credit union service organization investing in or lending to the subsidiary credit union service organization, providing that the credit union service organization and subsidiary credit union service organization will:

1. Provide the department with the right to inspect or examine all records of the credit union service organization;

2. Account for all its transactions in accordance with generally accepted accounting principles;

3. Prepare quarterly financial statements and provide the credit union with a copy of these statements within forty-five days of the quarter end;

4. Obtain an annual financial statement audit of its financial statements by a licensed certified public accountant in accordance with generally accepted auditing standards. A wholly owned credit union service organization is not required to obtain a separate annual financial statement audit if that wholly owned credit union service organization is included in the annual consolidated financial statement audit of the investing credit union; and

5. Comply with applicable federal, state, and local laws.

N.D. Admin Code 13-03-23-08

Effective January 1, 2007; amended effective January 1, 2013.

Amended by Administrative Rules Supplement 371, January 2019, effective 1/1/2019.

General Authority: NDCC 6-01-04

Law Implemented: NDCC 6-01-04, 6-01-09, 6-06-06, 6-06-08