2016 North Dakota Century Code Title 6 Banks and Banking Chapter 6-09.7 Fuel Production Facility Loan Guarantee Program
Download as PDF
CHAPTER 6-09.7
FUEL PRODUCTION FACILITY LOAN GUARANTEE PROGRAM
6-09.7-01. Guarantee loan program - Administration - Advisory board.
The Bank of North Dakota shall administer the state guarantee loan program as provided in
this chapter. The advisory board of directors to the Bank of North Dakota appointed pursuant to
chapter 6-09.1 shall act in an advisory capacity concerning the program.
6-09.7-02. Powers and duties of the Bank of North Dakota.
The Bank of North Dakota may take, hold, and administer, on behalf of the state from any
source, any property, or any interest in the property, and the income therefrom, either absolutely
or in trust, for any purpose of the state guarantee loan program; provided, that no guarantee
obligation of the Bank is payable out of any moneys of the Bank except those made available to
the Bank under this chapter.
6-09.7-03. Extent of loan guarantee.
Expired under S.L. 2013, ch. 87, § 4.
6-09.7-04. Bank to prescribe the rate of interest on guaranteed loan.
Any loan guaranteed by the Bank of North Dakota must bear interest at a rate not in excess
of the interest charged by the lender to other persons for similar types of loans not guaranteed
by the Bank unless the Bank determines that a higher rate of interest is justified by special
circumstances and would be consistent with the general objectives of this chapter.
6-09.7-05. Establishment and maintenance of adequate guarantee funds - Use of
strategic investment and improvements fund.
The Bank of North Dakota shall establish and at all times maintain an adequate guarantee
reserve fund in a special account in the Bank. The Bank may request the director of the office of
management and budget to transfer funds from the strategic investment and improvements fund
created by section 15-08.1-08 to maintain one hundred percent of the guarantee reserve fund
balance. Transfers from the strategic investment and improvements fund may not exceed a total
of twenty-five million dollars. Moneys in the guarantee reserve fund are available to reimburse
lenders for guaranteed loans in default. The securities in which the moneys in the reserve fund
may be invested must meet the same requirements as those authorized for investment under
the state investment board. The income from such investments must be made available for the
costs of administering the state guarantee loan program and income in excess of that required
to pay the cost of administering the program must be deposited in the reserve fund. The amount
of reserves for all guaranteed loans must be determined by a formula that will assure, as
determined by the Bank, an adequate amount of reserve.
6-09.7-06. Procedure on default of guaranteed loan.
Whenever it appears to the satisfaction of the Bank of North Dakota that a guaranteed loan
is in default, and the eligible lender has certified this fact to the Bank, the Bank shall reimburse
the eligible lender making the loan from the reserve fund to the extent the loan was guaranteed
by the fund. Whenever payment of the guaranteed principal balance of any guaranteed loan is
demanded of the Bank, the note and accompanying evidence of the loan must be tendered to
the Bank in manner and form to confer good title so that the loan may be collected by the Bank
as it may determine according to law. No statute of limitations may be used as a defense
against collection, through court proceedings, of any loan guaranteed under this chapter.
6-09.7-07. Fees for reasonable costs.
The Bank of North Dakota may charge reasonable fees for guaranteeing of loans under this
chapter, and the fees must be available to defray costs of administering the state guarantee
loan program. Fees in excess of the amount required to pay the cost of administering the
program must be deposited in the reserve fund.
Page No. 1
6-09.7-08. Limitation on additional state aid.
Repealed by S.L. 2011, ch. 82, § 4.
6-09.7-09. Agricultural real estate loans - Guarantee.
The Bank of North Dakota may guarantee the loan of money by banks, credit unions,
lending institutions that are part of the farm credit system, and savings and loan associations in
this state to eligible persons for the purchase of agricultural real estate or the restructuring of
agricultural real estate loans, provided the transactions do not exceed a loan-to-value ratio of
eighty percent and further provided that no single loan exceed four hundred thousand dollars.
The Bank of North Dakota may have no more than eight million dollars in outstanding loan
guarantees under this section. The Bank of North Dakota may establish additional terms,
conditions, and procedures, as necessary to meet the requirements of this section.
Page No. 2
Disclaimer: These codes may not be the most recent version. North Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
