§ 6-05-16 — Indebtedness of directors - Prohibition and exception - Theft - Penalty

North Dakota § 6-05-16

• Jurisdiction: North Dakota
• Title 6: Banks and Banking
• Ch. 6-05: Annuity, Safe Deposit, Surety, and Trust Companies

Text

Such corporation may not loan its funds, moneys, capital, trust funds, or any other property
whatsoever to any director, officer, agent, or other employee thereof, nor may any such director,
officer, agent, or other employee become in any manner indebted to said corporation by means
of any overdraft, promissory note, account, endorsement, guaranty, or other contract
whatsoever unless such indebtedness has been approved or authorized first by the board of
directors, or an investment committee created by it, and such approval entered in the minutes of
the proceedings of such board or committee. Any such director, agent, or employee who
becomes indebted to said company, contrary to the provisions hereof, is guilty of the crime of

theft to the amount of such indebtedness from the time such indebtedness was created and
must be punished in the manner prescribed by section 12.1-23-05. The execution and delivery
of the official bond of such officer, agent, or employee, or that person's endorsement of
commercial paper, however, may not be considered as an indebtedness for the purpose of this
section.