North Dakota § 6-03-60 Loans to and purchases from directors, executive officers, and principal shareholders - Restrictions - Conditions - Penalty - Civil liability

North Dakota Statutes

§ 6-03-60 — Loans to and purchases from directors, executive officers, and principal shareholders - Restrictions - Conditions - Penalty - Civil liability

North Dakota·Title 6 Banks and Banking·Ch. 6-03 Powers, Management, and Operation of Banks

shareholders - Restrictions - Conditions - Penalty - Civil liability.
At no time may any combination of loans or extensions of credit or both made by a state
banking association to an officer of that association exceed the limitation on loans to one person
or concern specified in section 6-03-59, federal law, or federal rule.
No director, officer, or employee of a bank shall sell to such bank, directly or indirectly, any
mortgage, bond, note, stock, or other property whatsoever without first obtaining the written
approval of the board of directors. The action of the board of directors in connection with the
loans and discounts required under this section shall be made a matter of permanent record in
the minute books of the banking association. Any shareholder, officer, or director of any b

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shareholders - Restrictions - Conditions - Penalty - Civil liability.
At no time may any combination of loans or extensions of credit or both made by a state
banking association to an officer of that association exceed the limitation on loans to one person
or concern specified in section 6-03-59, federal law, or federal rule.
No director, officer, or employee of a bank shall sell to such bank, directly or indirectly, any
mortgage, bond, note, stock, or other property whatsoever without first obtaining the written
approval of the board of directors. The action of the board of directors in connection with the
loans and discounts required under this section shall be made a matter of permanent record in
the minute books of the banking association. Any shareholder, officer, or director of any banking
association who knowingly shall violate the provisions of this section shall be held liable in the
person's personal and individual capacity for all loss or damage which the association or any
person shall sustain in consequence thereof and shall be guilty of a class B misdemeanor. The
commissioner may require, at any time, the payment or repurchase of loans, securities, or
obligations herein referred to.

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