§ 13-11-14 — Trust funds - Requirements and restrictions

North Dakota § 13-11-14

• Jurisdiction: North Dakota
• Title 13: Debtor and Creditor Relationship
• Ch. 13-11: Debt-Settlement Providers

Text

1. All funds received by a debt-settlement provider or the provider's agent from and for
the purpose of paying bills, invoices, or accounts of a debtor constitute trust funds
owned by and belonging to the debtor from whom the funds were received. All such
funds received by the debt-settlement provider must be separated from the funds of
the debt-settlement provider not later than the end of the business day following
receipt by the debt-settlement provider. All such funds must be kept separate and
apart at all times from funds belonging to the debt-settlement provider or any of its
officers, employees, or agents and may be used for no purpose other than paying bills,
invoices, or accounts of the debtor. On or before the close of the business day
following receipt, all such trust funds received at the main or branch offices of a
debt-settlement provider must be deposited in a bank in an account in the name of the
debt-settlement provider-designated trust account, or by some other appropriate name
indicating that the funds are not the funds of the debt-settlement provider or its
officers, employees, or agents.
2. At least once every month, the debt-settlement provider shall render an accounting to
the debtor that itemizes the total amount received from the debtor, the total amount
paid each creditor, the amount of charges deducted, and any amount held in reserve,
if applicable, and the status of each of the debtor's enrolled accounts. In addition, a
debt-settlement provider shall provide such an accounting to a debtor within seven
days after written demand, but not more than three times per six-month period.
3. This chapter does not require the establishment of a trust account if no consumer
funds other than earned settlement fees are held or controlled by a debt-settlement
provider.