N.D. Cent. Code § 6-05-04

Current through 2024 Legislative Session

Section 6-05-04 - Surety deposit investments required - Securities in which investment may be made

Every corporation organized under this chapter and every foreign corporation before engaging in similar comparable activities within this state shall either deposit with any federal reserve bank, the Bank of North Dakota, or any other custodian approved by the commissioner, securities as provided by this section or pledge a certificate of deposit as provided by this section. The deposit or pledge may not be less than fifty thousand dollars or less than one-sixth of the par value of the capital stock of the corporation, whichever is the greater. However, a corporation is not required to deposit or pledge more than five hundred thousand dollars. The deposit certificate or pledge agreement must authorize the commissioner to cause the deposit, in part or in whole, to be transferred to the commissioner upon the commissioner's demand. An original of the deposit certificate or pledge must be furnished to the commissioner. The deposit or pledge must be:

1. Bonds of the United States or of this state;

2. Bonds of other states which have the approval of the commissioner of financial institutions;

3. Bonds or obligations of any township, school district, city, or county within this state, whose total bonded indebtedness does not exceed five percent of the then assessed valuation thereof;

4. Bonds or promissory notes secured by first mortgages or deeds of trust upon unencumbered real estate situated within the state of North Dakota worth two and one-half times the amount of the obligation so secured;

5. Obligations issued, assumed, or guaranteed by the international bank for reconstruction and development or the African development bank;

6. United States treasury bills or notes of an agency thereof;

7. Certificates of deposit fully insured by the federal deposit insurance corporation from banks located within this state; or

8. Certificates of deposit issued by the Bank of North Dakota.

N.D.C.C. § 6-05-04