§ 10-04-21 — Restitution assistance fund - Continuing appropriation

North Dakota § 10-04-21

• Jurisdiction: North Dakota
• Title 10: Corporations
• Ch. 10-04: Supervision of Issue and Sale of Securities

Text

1. As used in this section:
a. "Claimant" means an individual who meets the definition of eligible adult under
section 10-04-08.5 and files an application for restitution assistance under this
section. The term includes the named party, the executor of a named party, the
heirs and assignees of a named party, or any other individual with lawful authority
to act for or on behalf of the named party in a restitution award in a final order.
b. "Final order" means an order issued by the commissioner under this chapter or a
final order issued by the court in a legal action initiated by the commissioner
under this chapter.
c. "Securities violation" means a violation of any provision of this chapter, or any
rule or order issued by the commissioner under this chapter.
d. "Victim" means an individual who meets the definition of an eligible adult under
section 10-04-08.5 and is awarded restitution in a final order.
2. A special fund is established in the state treasury and is designated as the restitution
assistance fund for eligible adult victims. The commissioner shall deposit up to one
million dollars per biennium from the department's revenue into the fund. The moneys
in the fund are appropriated on a continuing basis to the commissioner to provide
restitution assistance for victims who have not received full restitution from a final
order before the application for restitution assistance is due.
3. An individual is eligible for restitution assistance if the individual:
a. Is a resident of the state who is a victim of a securities violation committed in this
state or other jurisdiction, including a foreign country, if the jurisdiction does not
offer assistance substantially similar to the assistance offered under this section.
b. Is a nonresident who is a victim of a securities violation committed in this state if
the nonresident's home state offers residents of this state substantially similar
assistance as offered under this section.
c. Submits an application, in the manner prescribed by the commissioner, for
restitution assistance within two years of the date of the final order, except the
commissioner may grant an extension of time for submission of an application for
restitution assistance upon a showing of good cause by the claimant.
4. The commissioner may award the lesser of fifty thousand dollars or fifty percent of the
amount of unpaid restitution awarded in the final order to a claimant. An award of
restitution assistance may be made only to one claimant per victim. The commissioner
may waive any limitations on payment upon a showing of good cause.
5. The commissioner may not award restitution assistance if:
a. The victim sustained the monetary injury as a result of:
(1) Participating or assisting in a securities violation; or
(2) Attempting or committing a securities violation; or
b. The victim profited or would have profited from a securities violation.
6. A claimant convicted of any crime deemed relevant by the commissioner in connection
to a claim made under this section shall forfeit any restitution assistance awarded to
the claimant.
7. The commissioner may bring a civil action to recover funds awarded to a claimant
convicted of any crime deemed relevant by the commissioner in connection with a
claim under this section.
8. If the commissioner overturns a final order or a final order is overturned on appeal
after restitution assistance has been made to a claimant, the commissioner may issue
an order to recover the restitution assistance.

9. The department is subrogated to the rights of the claimant awarded restitution
assistance. The subrogation rights are against the individual ordered to pay restitution
to the victim for the securities violation. In addition, the commissioner is entitled to a
lien in the amount of the award on a recovery made by or on behalf of the victim. The
commissioner may recover the amount in a separate action or intervene in an action
brought by or on behalf of the victim.
10. A claimant shall refund to the commissioner any amount of restitution received if the
combined total of the restitution assistance exceeds the restitution awarded in the final
order. Any moneys recovered by the commissioner under subsections 7, 8, and 9 must
be returned to the fund.
11. The commissioner may suspend payment of claims or prorate payment of claims until
such a time the commissioner determines a sufficient balance has been restored to the
fund if payment of restitution assistance would result in a fund balance below one
hundred thousand dollars.
12. Restitution assistance awarded by the commissioner under this section is not subject
to execution, attachment, garnishment, or other process, except those executions,
attachments, garnishments, or other processes brought by or on behalf of the state.
13. The commissioner may adopt rules pursuant to chapter 28-32 to carry out this section.