§ 6-06-06 — Powers of credit unions

A credit union has the following powers:
1. To receive the savings of its members either as payment on shares or as deposits,
including the right to conduct Christmas clubs, vacation clubs, and other such thrift
organizations within its membership.
2. To make loans to members.
3. To make loans to a cooperative society or other organization having membership in
the credit union.
4. To deposit its moneys in financial institutions, trust companies, credit unions, corporate
central credit unions, and the Bank of North Dakota authorized to receive deposits.
5. To invest in the following:
a. In bonds of the United States without limitation in securities issued as direct
obligations by the United States government or any agency thereof and in any
trust established for investing directly or collectively in such securities.
b. In bonds or evidences of debt of this state or in bonds of states of the United
States.
c. In bonds or certificates of indebtedness of any county, city, or school district in
this state, issued pursuant to authority of law, but not to exceed thirty percent of
the assets of any credit union may be invested in such bonds or certificates of
indebtedness.
d. In notes or bonds secured by mortgage or deed of trust upon unencumbered,
improved real estate in this state, if such investment does not exceed sixty-five
percent of the market value of the property mortgaged, and fire and tornado
insurance policies are maintained and deposited as collateral to such mortgage,
subject to such restriction and regulations as may be imposed by the state credit
union board.
e. In notes or bonds secured by a security interest or lien upon unencumbered
personal property, if the investment does not exceed ninety percent of the market
value of the property secured.
f. In first lien, public utility, industrial, corporation, or association bonds, notes, or
other evidences of debt issued by corporations located in the United States of
America to the extent authorized by the state credit union board.
g. Subject to rules of the state credit union board, in shares of investment
companies registered under the Investment Companies Act of 1940 and which
invest only in investments otherwise permissible under this section.
h. In investments or insurance products or in loans to the credit union employee
associated with the investment or insurance product which are otherwise
prohibited by this section if the investments are directly related to a benefit plan
for credit union employees.
6. To borrow money as limited in this chapter.

7. Subject to such regulations as the state credit union board may prescribe, insurance
obtained under title 1 of the National Housing Act must be deemed adequate security.
8. To sue and be sued.
9. A credit union may invest in a credit union office building, including the lot, piece, or
parcel of land on which the same is located, and in furniture and fixtures, to the extent
authorized by regulations issued by the state credit union board.
10. a. Every state credit union has the power to purchase, hold, and convey other real
estate as herein provided, and not otherwise:
(1) Such as is mortgaged to it in good faith by way of security for loans, or for
debts previously contracted.
(2) Such as is conveyed to it in good faith in satisfaction of debts previously
contracted in the course of its dealings.
(3) Such as it purchases at sales under judgments, decrees, or mortgages held
by the credit union, or purchases to secure debts due to it.
b. Upon transfer to other real estate owned, a current appraisal must be conducted
by an individual who is independent of the transaction. Except as otherwise
provided by chapter 10-06.1, a state credit union may hold possession of any real
estate acquired under mortgage or title and possession of any real estate
purchased to satisfy indebtedness, for a period not to exceed five years. The
commissioner may extend the real estate holding period up to an additional five
years upon formal request by a credit union if the credit union has made a
good-faith attempt to dispose of the real estate within the five-year period, or
disposal within the five-year period would be detrimental to the credit union.
Within thirty days after receipt of an adverse decision, the credit union may
appeal that decision to the state credit union board.
c. Notwithstanding other sections of this chapter, a credit union may apply to the
commissioner for authority to exchange its interest in real property acquired in
satisfaction of a debt previously contracted for an interest in an entity that would
dispose of the real property. If the commissioner's decision with respect to an
application is unfavorable, the applicant credit union may appeal the decision to
the state credit union board by filing a notice of appeal with the commissioner
within twenty business days after the commissioner has notified the applicant
credit union of the decision.
11. Subject to authorization by the state credit union board, acting by order or rule, a state
credit union has the same powers as a federal credit union and may engage in any
activity in which a credit union could engage if the credit union were federally
chartered.
12. To exercise any incidental power necessary or requisite to enable the credit union to
carry out effectively the business for which it is incorporated or as determined by the
board by order or rule.