# Title 6 — Banks and Banking

## Chapter 6-09 — The Bank of North Dakota

### § 6-09-01. Purpose and establishment of Bank of North Dakota.

For the purpose of encouraging and promoting agriculture, commerce, and industry, the
state of North Dakota shall engage in the business of banking, and for that purpose shall
maintain a system of banking owned, controlled, and operated by it, under the name of the Bank
of North Dakota.
### § 6-09-02. Industrial commission to operate Bank - Business of Bank.

The industrial commission shall operate, manage, and control the Bank of North Dakota,
locate and maintain its places of business, of which the principal place must be within the state,
and make and enforce orders, rules, regulations, and bylaws for the transaction of its business.
The business and financial transactions of the Bank, in addition to other matters specified in this
chapter, may include anything that any bank or bank holding company lawfully may do, except
as it is restricted by the provisions of this chapter. This provision may not be held in any way to
limit or qualify either the powers of the industrial commission granted by or the functions of said
Bank as defined in this chapter. The powers of the industrial commission and the functions of
the Bank must be implemented through actions taken and policies adopted by the industrial
commission.
### § 6-09-02.1. Declaration and finding of public purpose - Bank of North Dakota advisory

board of directors.
To enlist the help of private enterprise and to encourage more active use of the purposes for
which the Bank of North Dakota was created, the governor shall appoint an advisory board of
directors to the Bank of North Dakota consisting of seven persons, at least two of whom must
be officers of banks, the majority of the stock of which is owned by North Dakota residents, and
at least one of whom must be an officer of a state-chartered or federally chartered financial
institution. The governor shall appoint a chairman, vice chairman, and secretary from the
advisory board of directors. The term of a director is four years. The industrial commission shall
define the duties of the advisory board of directors.
### § 6-09-02.2. Authority of the advisory board of directors to the Bank of North Dakota.

The advisory board of directors to the Bank of North Dakota shall:
1. Meet regularly with the management of the Bank of North Dakota to review the Bank's
operations to determine whether recommendations should be made by the board to
the industrial commission relating to improved management performance, better
customer service, and overall improvement in internal methods, procedures, and
operating policies of the Bank.
2. Make recommendations to the industrial commission relating to the establishment of
additional objectives for the operation of the Bank of North Dakota.
3. Make recommendations to the industrial commission concerning the appointment of
officers of the Bank of North Dakota.
4. Meet regularly with the industrial commission to present any recommendations
concerning the Bank of North Dakota.
5. In addition to the foregoing and pursuant to authorization from the industrial
commission, act on behalf of the Bank with respect to the powers and functions of the
Bank.
### § 6-09-03. Industrial commission may acquire property by purchase or eminent domain

- Investment in banking house and furnishings.
Repealed by S.L. 1989, ch. 110, § 11.

### § 6-09-04. Commission to employ president and employees - Compensation, operation,

and maintenance expenditures limited to appropriations, revenue, or capital.
The industrial commission shall appoint a president, and may appoint and employ such
subordinate officers, employees, and agents as it may judge expedient and in the interests of
the state, and shall define the duties, designate the titles, and fix the compensation of all such
persons. The commission may designate the president or other officers or employees as its
agent in respect to the functions of the Bank, subject to its supervision, limitation, and control.
The total compensation of such appointees and employees, together with other expenditures for
the operation and maintenance of the Bank, shall remain within the appropriation, revenues, or
capital lawfully available for such purposes.
### § 6-09-05. Removal and discharge of appointees.

The industrial commission may remove and discharge any and all persons appointed in the
exercise of the powers granted by this chapter, whether by the commission or by the president
of the Bank. All appointments and removals contemplated by this chapter must be made as the
commission deems fit to promote the efficiency of the public service.
### § 6-09-06. Capital of Bank.

Repealed by S.L. 1979, ch. 138, § 1.
### § 6-09-07. State funds must be deposited in Bank of North Dakota - Income of the Bank.

All state funds and funds of all state penal, educational, and industrial institutions must be
deposited in the Bank of North Dakota by the persons having control of such funds or must be
deposited in accordance with constitutional and statutory provisions. All income earned by the
Bank for its own account on state moneys that are deposited in or invested with the Bank to the
credit of the state must be credited to and become a part of the revenues and income of the
Bank.
### § 6-09-08. Nonliability of officers and sureties after deposit.

Whenever any of the public funds hereinbefore designated are deposited in the Bank of
North Dakota, as hereinbefore provided, the official having control thereof and the sureties on
the bond of every such official shall be exempt from all liability by reason of loss of any such
funds while so deposited.
### § 6-09-09. Deposits may be received from any source - Deposits to credit in other

banks.
Repealed by S.L. 1989, ch. 110, § 11.
### § 6-09-10. Guaranty of deposits - Exemption from all taxation.

All deposits in the Bank of North Dakota are guaranteed by the state. Such deposits are
exempt from state, county, and municipal taxes of any and all kinds.
### § 6-09-11. Bank a clearinghouse.

For banks that make the Bank of North Dakota a reserve depositary, it may perform the
functions and render the services of a clearinghouse, including all facilities for providing
domestic and foreign exchange, and may rediscount paper, on such terms as the industrial
commission shall provide.
### § 6-09-12. Interest rates fixed by commission - Time deposits - Limitations - Charges

for services.
Repealed by S.L. 1989, ch. 110, § 11.
### § 6-09-13. Collection items must be paid to Bank of North Dakota at par - Violation a

misdemeanor.
Repealed by S.L. 1975, ch. 106, § 673.

### § 6-09-14. Bank of North Dakota may deposit in any bank.

Repealed by S.L. 1989, ch. 110, § 11.
### § 6-09-15. Powers.

The Bank of North Dakota may:
1. Make, purchase, guarantee, or hold loans:
a. To state-chartered or federally chartered lending agencies or institutions or any
other financial institutions.
b. To holders of Bank of North Dakota certificates of deposit and savings accounts
up to ninety percent of the value of the certificates and savings accounts offered
as security.
c. To actual farmers who are residents of this state, if the loans are secured by
recorded mortgages giving the Bank of North Dakota a first lien on real estate in
North Dakota in amounts not to exceed eighty percent of the value of the security.
d. That are insured or guaranteed in whole or in part by the United States, its
agencies, or instrumentalities.
e. That are eligible to be guaranteed under chapter 15-62.1. Loans made pursuant
to this subdivision may provide for interest that remains unpaid at the end of any
period specified in the loan to be added to the principal amount of the debt and
thereafter accumulate interest.
f. To individuals or bank holding companies for the purpose of purchasing or
refinancing the purchase of bank stock of a bank located in the state.
g. To nonprofit organizations that are exempt from federal taxation under section
501(c)(3) of the Internal Revenue Code [26 U.S.C. 501(c)(3)], the proceeds of the
loans to be used for construction, reconstruction, repair, renovation, maintenance,
and associated costs on property under the control of the parks and recreation
department.
h. Under Public Law No. 99-198 [99 Stat. 1534; 7 U.S.C. 1932 et seq.], as amended
through December 31, 1996, to nonprofit corporations for the purpose of
relending loan funds to rural businesses.
i. Under title 7, Code of Federal Regulations, part 1948, subpart C; part 1951,
subparts F and R; and part 1955, subparts A, B, and C, as amended through
December 31, 1996, to finance businesses and community development projects
in rural areas.
j. Obtained as security pledged for or originated in the restructuring of any other
loan properly originated or participated in by the Bank.
k. To instrumentalities of this state.
l. As otherwise provided by this chapter or other statutes.
m. If the Bank is participating in the loan and the Bank deems it is in the best
interests of the Bank to do so, it may purchase the remaining portion of the loan
from a participating lender that is closed by regulatory action or from the receiver
of the participating lender's assets.
n. To an investment company created for completing a trust preferred securities
transaction for the benefit of a financial institution located in this state.
2. Make agricultural real estate loans in order to participate in the agricultural mortgage
secondary market program established pursuant to the Agricultural Credit Act [Pub. L.
100-233; 101 Stat. 1686; 12 U.S.C. 2279aa-2279aa-14], as amended through
December 31, 1996.
3. Purchase participation interests in loans made or held by banks, bank holding
companies, state-chartered or federally chartered lending agencies or institutions, any
other financial institutions, or any other entity that provides financial services and that
meets underwriting standards that are generally accepted by state or federal financial
regulatory agencies.
4. Invest its funds:
a. In conformity with policies of the industrial commission.

b. In a public venture capital corporation organized and doing business in this state
through the purchase of shares of stock.
c. In North Dakota alternative and venture capital investments and early-stage
capital funds, including the North Dakota development fund, incorporated, not to
exceed fifteen million dollars, for the purpose of providing funds for investment in
North Dakota alternative and venture capital investments, early-stage capital
funds, and entrepreneurship awards. The Bank may invest a maximum of two
hundred thousand dollars per biennium in North Dakota-based venture capital
entities that make investments in companies located outside North Dakota. The
Bank may allow for third-party management of the funds invested under this
subdivision if the management is provided by the North Dakota development
fund, incorporated, or a third party that is located in the state and that has
demonstrated fund management experience.
5. Buy and sell federal funds.
6. Lease, assign, sell, exchange, transfer, convey, grant, pledge, or mortgage all real and
personal property, title to which has been acquired in any manner.
7. Acquire real or personal property or property rights by purchase, lease, or, subject to
chapter 32-15, the exercise of the right of eminent domain and may construct,
remodel, and repair buildings.
8. Receive deposits from any source and deposit its funds in any bank or other financial
institution.
9. Perform all acts and do all things necessary, convenient, advisable, or desirable to
carry out the powers expressly granted or necessarily implied in this chapter through
or by means of its president, officers, agents, or employees or by contracts with any
person, firm, or corporation.
10. Purchase mortgage loans on residential real property originated by financial
institutions.
### § 6-09-15.1. Loans to general fund authorized - Continuing appropriation - Report.

The state treasurer and the director of the office of management and budget may, when the
balance in the state general fund is insufficient to meet legislative appropriations, borrow from
the Bank of North Dakota in an amount that at no time exceeds the total principal amount of fifty
million dollars with principal maturity not to extend beyond the biennium in which the borrowing
occurs. As a condition precedent to the loan, the state treasurer must request and obtain a
statement from the director of the office of management and budget and state tax commissioner
certifying that anticipated general fund revenues for the balance of the biennium in which the
loan is taken will exceed the principal amount and interest on the loan. The state industrial
commission may in turn direct the Bank of North Dakota to make loans to the state general fund
at such rates of interest as the industrial commission may prescribe. The state treasurer and the
director of the office of management and budget shall establish a repayment plan for the
repayment of the principal upon maturity and the interest when due. The office of management
and budget shall report to the budget section of the legislative management regarding any loans
obtained pursuant to this section.
### § 6-09-15.2. Bank may invest in certain government sponsored stocks - Limit.

Repealed by S.L. 1989, ch. 110, § 11.
### § 6-09-15.3. Bank stock loans - Requirements.

Repealed by S.L. 1989, ch. 110, § 11.
### § 6-09-15.4. Participations in loans to small business concerns - Direct loans to

nonprofit corporations.
Repealed by S.L. 1999, ch. 82, § 1.

### § 6-09-15.5. Bank loans to beginning farmers - Revolving loan fund - Requirements.

1. A revolving loan fund must be maintained in the Bank of North Dakota for the purpose
of making or participating in loans to North Dakota beginning farmers for the purchase
of agricultural real estate, equipment, and livestock. All moneys transferred into the
fund, interest upon moneys in the fund, and payments to the fund of principal and
interest on loans made from the fund are appropriated for the purpose of providing
loans and to supplement the interest rate on loans to beginning farmers made by the
Bank of North Dakota under subdivision c of subsection 1 of section 6-09-15 and in
accordance with this section.
2. The revolving loan fund and loans made from the fund must be administered and
supervised by the Bank of North Dakota. The Bank may deduct a service fee for
administering the fund from interest payments received on loans. An application for a
loan from the fund must be made to the Bank and, upon approval, a loan must be
made from the fund in accordance with this section.
3. A loan made from the fund may not exceed eighty percent of the appraised value of
the agricultural collateral, with the actual percentage to be determined by the Bank.
The Bank may do all things and acts and may establish additional terms and
conditions necessary to make a loan under this section. A loan made from the fund
must have a first security interest.
4. A loan made from the fund must have either a fixed rate at one percent below the
Bank's then current base for ten years or the interest rate fixed at one percent below
the Bank's then current base rate for the first five years with a maximum rate of six
percent per year and variable at one percent below the Bank's then current base rate
for the second five years and during the second five years, the variable rate must be
adjusted annually on the anniversary date. The rate during the remaining term of the
loan floats at the Bank's base rate as in effect from time to time.
5. The maximum term of a real estate loan is thirty years. The maximum term of a farm
equipment or livestock loan is seven years.
6. The fund must be audited annually pursuant to section 6-09-29, and the cost of the
audit and any other actual costs incurred by the Bank on behalf of the fund, must be
paid for by the fund.
7. The Bank shall adopt policies to implement this section.
8. Notwithstanding any other provision of law, the Bank may transfer any unobligated
funds between funds that have been appropriated by the legislative assembly for
interest buydown in the beginning farmers loan fund and the agriculture partnership in
assisting community expansion fund.
9. Notwithstanding any other provision of law, the Bank may transfer any unobligated
funds to the value-added agriculture equity loan program for the purpose of interest
buydown on a loan made for investment in a feedlot or dairy operation. Fund transfers
under this subsection may not exceed one million dollars during a biennium.
### § 6-09-15.6. Bank of North Dakota purchase of export trading company stock -

Limitation.
Repealed by S.L. 1989, ch. 110, § 11.
### § 6-09-15.7. Bank may invest in a public venture capital corporation.

Repealed by S.L. 1989, ch. 110, § 11.
### § 6-09-15.8. Bank of North Dakota may make loans for improvement of facilities under

the control of the parks and recreation department.
Repealed by S.L. 1989, ch. 110, § 11.

### § 6-09-15.9. Limitations on loans by the Bank of North Dakota - Disclosure of interests

in certain loans.
Notwithstanding any other provision of law, the Bank of North Dakota may not make any
loan or otherwise give its credit to a member of the industrial commission during the member's
term on the industrial commission. Before taking office, a member of the industrial commission
shall file a statement with the Bank of North Dakota indicating any personal interest that that
member has in any loan or loan application in existence or pending at any time during the
member's term on the industrial commission.
### § 6-09-16. Funds transferred to state departments - How credited by state treasurer.

Repealed by S.L. 1979, ch. 142, § 1.
### § 6-09-17. Office of management and budget to issue warrants against transferred

funds.
Repealed by S.L. 1979, ch. 142, § 1.
### § 6-09-18. Real estate loans - Application - Appraisal - Action on loans.

Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-19. Conditions of real estate mortgage - Extension of payments.

Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-20. Mortgage and note payable to manager of Bank - Recitals - Recording -

Satisfaction and discharge.
Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-21. Sale and assignment of note and mortgage - Extension of payments limited.

Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-22. Assignment of note and mortgage to state treasurer - Payments -

Satisfactions.
Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-23. Partial release and satisfaction of mortgages assigned to state treasurer.

Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-24. Partial payments - Sale and assignment of mortgages assigned to state

treasurer.
Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-25. State treasurer may lease lands acquired through foreclosure of Bank

mortgages - Oil and gas leases.
Repealed by S.L. 1977, ch. 138, § 12.
### § 6-09-26. Name in which business conducted and titles taken - Execution of

instruments.
All business of the Bank must be conducted under the name of "The Bank of North Dakota".
Title to property pertaining to the operation of the Bank must be obtained and conveyed in the
name of "The State of North Dakota, doing business as The Bank of North Dakota". Instruments
must be executed in the name of the state of North Dakota. Within the scope of authority
granted by the industrial commission, the president may execute instruments on behalf of the
Bank, including any instrument granting, conveying, or otherwise affecting any interest in or lien
upon real or personal property. Other officers or employees of, and legal counsel to, the Bank
may execute instruments on behalf of the Bank when authorized by the industrial commission.

Any instrument executed prior to July 11, 1989, by the president, an attorney for the Bank, or an
officer or employee of the Bank, and otherwise proper, is valid and effective.
### § 6-09-26.1. Execution of instruments.

Repealed by S.L. 1989, ch. 110, § 11.
### § 6-09-27. Civil actions on Bank transactions - Name of parties - Service - Venue.

1. Civil actions may be brought against the state of North Dakota on account of claims for
relief claimed to have arisen out of transactions connected with the operation of the
Bank of North Dakota upon condition that the provisions of this section are complied
with. In such actions, the state must be designated as "The State of North Dakota,
doing business as The Bank of North Dakota". The actions may be brought in the
same manner and are subject to the same provisions of law as other civil actions. The
action must be brought in Burleigh County except as provided in section 28-04-01 or
except as provided in subsection 2.
2. If the Bank seeks to participate in a loan that involves multiple banks and if the loan
documents require the Bank to agree that civil actions will be commenced in a state
outside of North Dakota, the Bank may agree to venue outside of North Dakota if
approved by the attorney general.
### § 6-09-28. Surety on appeal, attachment, claim and delivery, and other cases in which

undertaking required, not required of Bank of North Dakota.
Provisions of law requiring that a surety or sureties be given on undertakings in actions on
appeal, attachment, claim and delivery, and other cases in which an undertaking is required, are
not applicable to the state of North Dakota, doing business as the Bank of North Dakota, as the
party seeking such relief. It is required to give its own undertaking without surety and to
reimburse the adverse party when required by law.
### § 6-09-29. Examinations and audit reports.

1. The state auditor shall contract with an independent certified public accounting firm for
an annual audit of the Bank of North Dakota in accordance with generally accepted
government auditing standards. On request of the state auditor, the industrial
commission shall assist the state auditor in the auditing firm selection process, but the
selection of the auditing firm is the state auditor's responsibility. The auditor selected
shall prepare an audit report that includes financial statements presented in
accordance with the audit and accounting guide for banks and savings institutions
issued by the American institute of certified public accountants. The auditor also shall
prepare audited financial statements for inclusion in the comprehensive annual
financial report for the state.
2. The separate programs and funds administered by the Bank must be audited annually.
The audits may be conducted by the state auditor or an independent certified public
accounting firm. The audits of the separate programs and funds administered by the
Bank may be combined into one comprehensive audit if combining the audits provides
cost savings and efficiencies.
3. The state auditor may conduct performance audits of the Bank of North Dakota,
including the separate programs and funds administered by the Bank. The auditor
shall report the results of the audit to the industrial commission and to the legislative
assembly. The Bank of North Dakota or its separate programs and funds shall pay the
costs of the performance audit.
4. The department of financial institutions, through the commissioner, shall examine the
Bank of North Dakota at least once each twenty-four months and conduct any
investigation of the Bank which may be necessary. The commissioner shall report the
examination results, and the results of any necessary investigation, to the industrial
commission as soon as practicable and to the legislative assembly. The department of
financial institutions shall charge a fee for any examination or investigation at an hourly

rate to be set by the commissioner, sufficient to cover all reasonable expenses of the
department associated with the examinations and investigations provided for by this
section.
### § 6-09-30. Repayment of moneys appropriated for Bank to state.

Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-31. Sale of land held by state treasurer as trustee for state.

Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-32. Bank may adopt rules governing sales.

Repealed by S.L. 1967, ch. 91, § 2.
### § 6-09-33. Bank of North Dakota to administer assets of rural rehabilitation corporation.

Repealed by S.L. 1989, ch. 110, § 11.
### § 6-09-34. Electronic fund transfer systems.

The Bank of North Dakota may establish, under such rules and regulations as adopted by
the industrial commission, a system to provide fund transfer services to its customers and to the
customers of state-chartered and federally chartered banks located within the state of North
Dakota, and to other financial institutions otherwise authorized to utilize the services of
electronic fund transfer systems, to acquire such equipment as is necessary to establish
electronic fund transfer systems, and to make such reasonable charges for services rendered to
other banks hereunder as may be established by the industrial commission.
### § 6-09-35. Confidentiality of Bank records - Exempt records.

1. The following records of the Bank of North Dakota are confidential:
a. Commercial or financial information of a customer, whether obtained directly or
indirectly, except for routine credit inquiries or unless required by due legal
process. As used in this subsection, "customer" means any person who has
transacted or is transacting business with, or has used or is using the services of,
the Bank of North Dakota, or for whom the Bank of North Dakota has acted as a
fiduciary with respect to trust property.
b. Internal or interagency memorandums or letters which would not be available by
law to a party other than in litigation with the Bank.
c. Information contained in or related to examination, operating, or condition reports
prepared by, on behalf of, or for the use of a state or federal agency responsible
for the regulation or supervision of any Bank activity.
d. Information obtained from the state department of financial institutions which
would not be available from that agency under section 6-01-07.1.
e. The report by a Bank officer or member of the Bank's advisory board of directors
concerning personal financial statements.
2. The following records of the Bank of North Dakota are exempt:
a. Bond insurance coverage, including excess bond insurance coverage.
b. Cyber liability coverage, including excess cyber liability coverage.
### § 6-09-36. Bank of North Dakota - Custodian of securities.

Notwithstanding any other provision of law to the contrary, the Bank of North Dakota shall
replace the state treasurer as the custodian of all securities that are required to be deposited
with the state except that the state treasurer is the custodian of all securities resulting from the
investment of funds by the state treasurer, or except as otherwise required by this section and
sections 6-05-04, 6-05-05, 6-05-27, 39-16-10, and 39-16.1-15, subsection 1 of section
39-16.1-17, and subsection 1 of section 39-16.1-19.

### § 6-09-37. Sale and leasing of acquired agricultural real estate.

The sale and leasing of agricultural real estate with an appraised value of ten thousand
dollars or more acquired by the Bank of North Dakota through foreclosure or deed in lieu of
foreclosure must be done in accordance with chapter 15-07 or 15-09 and policies adopted by
the industrial commission. The sale and leasing of agricultural real estate with an appraised
value of less than ten thousand dollars, acquired by the Bank of North Dakota through
foreclosure or deed in lieu of foreclosure, may be done in a manner as the Bank determines is
appropriate given the circumstances. In the case of a lease by the party holding the right of
redemption, that party has the right to purchase at any time.
### § 6-09-38. North Dakota higher education savings plan - Administration - Rules -

Continuing appropriation.
The Bank of North Dakota shall adopt rules to administer, manage, promote, and market a
North Dakota higher education savings plan. The Bank shall ensure that the North Dakota
higher education savings plan is maintained in compliance with internal revenue service
standards for qualified state tuition programs. The Bank, as trustee of the North Dakota higher
education savings plan, may impose an annual administrative fee to recover expenses incurred
in connection with operation of the plan, support the functions of the Bank related to the
educational mission of the Bank, or defray the expenses of education as defined by section 529
of the Internal Revenue Code of 1986 [26 U.S.C. 529]. Administrative fees received by the Bank
are appropriated on a continuing basis to be used as provided in this section. Contributions
made during the taxable year to a higher education savings plan administered by the Bank,
pursuant to the provisions of the plan, are eligible for an income tax deduction as provided in
chapter 57-38. Information related to contributions is confidential except as is needed by the tax
commissioner for determining compliance with the income tax deduction provided in chapter
57-38.
### § 6-09-38.1. North Dakota achieving a better life experience plan - Administration -

Rules - Continuing appropriation.
The Bank of North Dakota shall adopt rules to administer, manage, promote, and market the
North Dakota achieving a better life experience plan. The Bank shall ensure the North Dakota
achieving a better life experience plan is maintained in compliance with internal revenue service
standards for qualified state disability expense programs. The Bank, as trustee of the North
Dakota achieving a better life experience plan, may impose an annual administrative fee to
recover expenses incurred in connection with operation of the plan. Administrative fees received
by the Bank are appropriated to the Bank on a continuing basis to be used as provided under
this section. Money and assets in North Dakota achieving a better life experience plan accounts
or in qualified achieving a better life experience plan accounts in any state may not be
considered for the purpose of determining eligibility to receive, or the amount of, any assistance
or benefits from local or state means-tested programs.
### § 6-09-39. Truckdriver training programs - Loans to students.

Expired under S.L. 2007, ch. 79, § 2.
### § 6-09-40. Reimbursement of Bank losses.

Repealed by S.L. 2007, ch. 87, § 2.
### § 6-09-41. Livestock loan guarantee program - Establishment - Rules.

Expired under S.L. 2005, ch. 57, § 5.
### § 6-09-42. Health information technology loan fund - Appropriation.

Repealed by S.L. 2015, ch. 427, § 6.

### § 6-09-43. Health information technology planning loan fund - Appropriation.

1. The health information technology planning loan fund is established in the Bank for the
purpose of providing low-interest loans to health care entities to assist those entities in
improving health information technology infrastructure. This fund is a revolving loan
fund. All moneys transferred into the fund, interest upon moneys in the fund, and
collections of interest and principal on loans made from the fund are appropriated for
disbursement according to this section.
2. The Bank shall make loans from this fund to health care entities as approved by the
health information technology office director in accordance with the criteria established
by the health information technology director under section 54-59-26.
3. The Bank shall administer the health information technology planning loan fund. Funds
in the loan fund may be used for loans as provided under this section and the costs of
administration of the fund. Annually, the Bank may deduct a service fee for
administering the revolving loan fund maintained under this section.
4. An application for a loan under this section must be made to the health information
technology office. The health information technology office director may approve the
application of a qualified applicant that meets the criteria established by the health
information technology office director. The health information technology office shall
forward approved applications to the Bank. Upon approval of the application by the
Bank, the Bank shall make the loan from the revolving loan fund as provided under
this section.
5. The Bank may do all acts necessary to negotiate loans and preserve security as
deemed necessary, to exercise any right of redemption, and to bring suit in order to
collect interest and principal due the revolving loan fund under mortgages, contracts,
and notes executed to obtain loans under this section. If the applicant's plan for
financing provides for a loan of funds from sources other than the state of North
Dakota, the Bank may make a loan subordinate security interest. The Bank may
recover from the revolving loan fund amounts actually expended by the Bank for legal
fees and to effect a redemption.
### § 6-09-44. Residential mortgages.

1. The Bank may establish a residential mortgage loan program under which the Bank
may originate residential mortgages if private sector mortgage loan services are not
reasonably available. Under this program a local financial institution or credit union
may assist the Bank in taking a loan application, gathering required documents,
ordering required legal documents, and maintaining contact with the borrower.
2. If the Bank establishes a program under this section, at a minimum the program must
provide:
a. An applicant must be referred to the Bank by a local financial institution or credit
union;
b. The loan application must be for an owner-occupied primary residence; and
c. The Bank provide all regulatory disclosures, process and underwrite the loan,
prepare closing documents, and disburse the loan.
3. The Bank may sell eligible first-time home buyer loans to the North Dakota housing
finance agency.
### § 6-09-45. Required transfer - Special education contract costs.

Repealed by S.L. 2017, ch. 12, § 26.
### § 6-09-46. Rebuilders loan program - Loan fund - Continuing appropriation -

Requirements.
Repealed by S.L. 2021, ch. 79, § 2.

### § 06-09-46.1. Rebuilders home loan program - Rebuilders home loan fund - Continuing

appropriation - Requirements.
Repealed by S.L. 2021, ch. 79, § 2.
### § 6-09-46.2. Rebuilders loan program - Rebuilders permanent loan fund - Continuing

appropriation.
1. The Bank of North Dakota shall develop a rebuilders loan program to make or
participate in loans to North Dakota residents as a result of:
a. A presidentially declared disaster in the state;
b. A governor-declared disaster in the state;
c. An emergency in the state;
d. A weather-related incident in the state as determined by the governor; or
e. An economic hardship as determined by the governor.
2. Under the rebuilders loan program, the Bank shall develop and implement specific
loan programs to respond to the specific needs resulting from a disaster, emergency,
incident, or hardship. The Bank may fund the loan from any available funding in the
rebuilders permanent loan fund and may accept private sector donations and funds
from the federal government.
3. Upon request of the Bank of North Dakota, the governor shall furnish the Bank with
information relating to the nature and amount of state and local resources that have
been or will be committed to alleviating the results of the disaster or emergency, an
estimate of the amount and severity of the damage and the impact on the private and
public sectors, and an estimate of the type and amount of assistance needed.
4. To apply for a loan under the program, a person shall apply to the originating financial
institution. Upon Bank of North Dakota approval of an application, the Bank shall make
a loan in accordance with the loan program established under this section. The Bank
shall establish a loan application period, which may not exceed a period of eighteen
months from the date of the declaration of the disaster or emergency.
5. Excluding the rebuilders and rebuilders home loans transferred to the fund, the Bank
of North Dakota shall deposit in the fund all principal and interest paid on the loans
made from the fund. The Bank may deduct from interest payments received on a loan
under the program a service fee for administering the fund for the Bank and the
originating financial institution. The fund must be audited annually pursuant to section
6-09-29, and the cost of the audit and any other actual costs incurred by the Bank on
behalf of the fund, must be paid by the fund.
6. There is created in the state treasury the rebuilders permanent loan fund administered
by the Bank of North Dakota. The fund consists of all moneys transferred to the fund
by the legislative assembly, interest on moneys in the fund, and payments to the fund
of principal and interest on loans made from the fund. All moneys in the fund are
appropriated to the Bank on a continuing basis for the rebuilders loan program.
7. If approved by the industrial commission, the fund may borrow from the Bank of North
Dakota to provide funding for loans under this section. A loan made to the fund by the
Bank must be repaid with principal and interest payment received by the rebuilders
permanent loan fund or with moneys appropriated by the legislative assembly.
8. The Bank of North Dakota shall adopt policies to implement this section.
### § 6-09-47. Medical facility infrastructure loan fund - Medical facility infrastructure loan

program - Rural health loan program - Medical facility emergency operating loan
program - Continuing appropriation - Audit and costs of administration. (Effective
through June 30, 2027)
1. The Bank of North Dakota shall administer a medical facility infrastructure loan
program to provide loans to medical facilities to conduct construction that improves the
health care infrastructure in the state or improves access to existing nonprofit health
care providers in the state. The construction project may include land purchases and
may include purchase, lease, erection, or improvement of any structure or facility to

the extent the governing board of the health care facility has the authority to authorize
such activity.
2. In order to be eligible under the medical facility infrastructure loan program, the
applicant must be the governing board of the health care facility which shall submit an
application to the Bank. The application must:
a. Detail the proposed construction project, which must be a project of at least
one million dollars and which is expected to be utilized for at least thirty years;
b. Demonstrate the need and long-term viability of the construction project; and
c. Include financial information as the Bank may determine appropriate to determine
eligibility, such as whether there are alternative financing methods.
3. A medical facility infrastructure loan provided under this section:
a. May not exceed the lesser of fifteen million dollars or seventy-five percent of the
actual cost of the project;
b. Must have an interest rate equal to two percent; and
c. Must provide a repayment schedule of no longer than twenty-five years.
4. A recipient of a medical facility infrastructure loan under this section shall complete the
financed construction project within twenty-four months of approval of the loan. Failure
to comply with this subsection may result in forfeiture of the entire loan received under
this section.
5. The Bank shall administer a rural health loan program to provide short-term gap
financing to grant recipients under the federal rural health transformation program with
approved projects and a demonstrated financial need.
a. To be eligible for a rural health loan under this subsection, the applicant:
(1) Must be approved for a grant by the department of health and human
services and the centers for Medicare and Medicaid services, as applicable,
under the federal rural health transformation program based on policies
developed by the department of health and human services.
(2) Provide information as requested by the Bank, including information
substantiating a demonstrated financial need and evidence of project
approval from the department of health and human services under the
federal rural health transformation program.
b. A loan under this subsection must have:
(1) An annual interest rate that does not exceed two percent;
(2) A term that complies with the criteria established by the department of
health and human services, in accordance with the federal rural health
transformation program, and does not exceed three years.
c. From the repayment of loans under this subsection, the principal portion must be
used to replenish the Bank's profits which were transferred to the fund for the
loans under this program, and interest portion must be deposited in the fund.
6. The Bank shall administer a medical facility emergency operating loan program to
provide emergency operating loans to local nonprofit hospitals located in cities with a
population of fewer than two thousand five hundred according to the most recent
decennial census.
a. To be eligible for an emergency operating loan under this subsection, the
governing board of a health care facility shall:
(1) Submit an application to the Bank by March 31, 2026;
(2) Provide financial information as requested by the Bank to determine
eligibility, including information on alternative financing and other funding
sources; and
(3) Provide an updated operating plan and cash flow projections indicating the
feasibility of future operations after restructuring and sufficient financial
resources to address any operating deficit and to repay the loan.
b. A medical facility emergency operating loan under this subsection:
(1) May not exceed five million dollars per qualified applicant;
(2) Must have an annual interest rate that does not exceed two percent; and

(3) Must have a maximum term that does not exceed eleven years, unless a
shorter term is required based on an analysis by the Bank, with the first year
of the loan eligible for interest-only payments.
7. The medical facility infrastructure loan fund is a special fund in the state treasury. This
fund is a revolving fund. All moneys transferred into the fund, interest on moneys in the
fund, and collections of principal and interest on loans from the fund are appropriated
to the Bank on a continuing basis for the purpose of providing loans under this section.
8. Moneys in the fund may be used for loans as provided under this section and to pay
the costs of administration of the fund. Annually, the Bank may deduct a service fee for
administering the fund.
9. The fund must be audited in accordance with section 6-09-29. The cost of the audit
and any other actual costs incurred by the Bank on behalf of the fund must be paid
from the fund.
10. The Bank shall deposit medical facility infrastructure loan repayments in the fund.
Medical facility infrastructure loan fund - Medical facility infrastructure loan program -
Rural health loan program - Continuing appropriation - Audit and costs of administration.
(Effective after June 30, 2027)
1. The Bank of North Dakota shall administer a medical facility infrastructure loan
program to provide loans to medical facilities to conduct construction that improves the
health care infrastructure in the state or improves access to existing nonprofit health
care providers in the state. The construction project may include land purchases and
may include purchase, lease, erection, or improvement of any structure or facility to
the extent the governing board of the health care facility has the authority to authorize
such activity.
2. In order to be eligible under the medical facility infrastructure loan program, the
applicant must be the governing board of the health care facility which shall submit an
application to the Bank. The application must:
a. Detail the proposed construction project, which must be a project of at least one
million dollars and which is expected to be utilized for at least thirty years;
b. Demonstrate the need and long-term viability of the construction project; and
c. Include financial information as the Bank may determine appropriate to determine
eligibility, such as whether there are alternative financing methods.
3. A medical facility infrastructure loan provided under this section:
a. May not exceed the lesser of fifteen million dollars or seventy-five percent of the
actual cost of the project;
b. Must have an interest rate equal to two percent; and
c. Must provide a repayment schedule of no longer than twenty-five years.
4. A recipient of a medical facility infrastructure loan under this section shall complete the
financed construction project within twenty-four months of approval of the loan. Failure
to comply with this subsection may result in forfeiture of the entire loan received under
this section.
5. The Bank shall administer a rural health loan program to provide short-term gap
financing to grant recipients under the federal rural health transformation program with
approved projects and a demonstrated financial need.
a. To be eligible for a rural health loan under this subsection, the applicant:
(1) Must be approved for a grant by the department of health and human
services and the centers for Medicare and Medicaid services, as applicable,
under the federal rural health transformation program based on policies
developed by the department of health and human services.
(2) Provide information as requested by the Bank, including information
substantiating a demonstrated financial need and evidence of project
approval from the department of health and human services under the
federal rural health transformation program.
b. A loan under this subsection must have:
(1) An annual interest rate that does not exceed two percent;

(2) A term that complies with the criteria established by the department of
health and human services, in accordance with the federal rural health
transformation program, and does not exceed three years.
c. From the repayment of loans under this subsection, the principal portion must be
used to replenish the Bank's profits which were transferred to the fund for the
loans under this program, and interest portion must be deposited in the fund.
6. The medical facility infrastructure loan fund is a special fund in the state treasury. This
fund is a revolving fund. All moneys transferred into the fund, interest on moneys in the
fund, and collections of principal and interest on loans from the fund are appropriated
to the Bank on a continuing basis for the purpose of providing loans under this section.
7. Moneys in the fund may be used for loans as provided under this section and to pay
the costs of administration of the fund. Annually, the Bank may deduct a service fee for
administering the fund.
8. The fund must be audited in accordance with section 6-09-29. The cost of the audit
and any other actual costs incurred by the Bank on behalf of the fund must be paid
from the fund.
9. The Bank shall deposit medical facility infrastructure loan repayments in the fund.
### § 6-09-47.1. Long-term care facility infrastructure loan program.

1. The Bank of North Dakota shall administer a loan program to provide loans to nursing
and basic care facilities for renovation projects or the construction of new facilities. A
construction project may include a land purchase and the purchase, lease, erection, or
improvement of any structure or facility to the extent the governing body of the nursing
or basic care facility has the authority to authorize such activity.
2. The governing body of a nursing or basic care facility may submit an application to the
Bank for a loan. The application must:
a. Detail the proposed construction project;
b. Demonstrate the need and long-term viability of the project; and
c. Include financial information the Bank determines appropriate to verify eligibility.
3. A loan approved under this section:
a. May not exceed fifty percent of project costs;
b. May not exceed ten million dollars for a project;
c. Must have an interest rate that does not exceed two percent; and
d. Must have a repayment schedule of no longer than twenty years.
4. A recipient of a loan under this section shall complete the financed construction project
within twenty-four months of the approval of the loan. Failure to comply with this
subsection may result in forfeiture of the entire loan received under this section.
5. The Bank shall deposit in the strategic investment and improvements fund all principal
and interest paid on the loans made from the fund. The Bank may deduct from interest
payments a service fee for costs of administering the loan program, not to exceed
one-half of one percent of the outstanding balance of the loans.
### § 6-09-48. Funds received in relation to federal student loan program - Administration -

Continuing appropriation.
1. The Bank of North Dakota shall administer and manage the funds received in relation
to the federal student loan program under section 2212 of the Health Care and
Education Reconciliation Act of 2010 [Pub. L. 111-152].
2. The funds must be used to support the functions of the Bank related to the educational
mission of the Bank.
3. The funds received by the Bank under subsection 1 are appropriated on a continuing
basis to be used as provided in this section.
4. These funds are not subject to section 54-44.1-11.

### § 6-09-49. Infrastructure revolving loan fund - Continuing appropriation.

1. The infrastructure revolving loan fund is a special fund in the state treasury from which
the Bank of North Dakota shall provide loans to political subdivisions, the Garrison
Diversion Conservancy District, and the Lake Agassiz water authority for essential
infrastructure projects. The Bank shall administer the infrastructure revolving loan fund.
The maximum term of a loan made under this section is the lesser of thirty years or the
useful life of the project. A loan made from the fund under this section must have an
interest rate that does not exceed two percent per year.
2. For purposes of this section, "essential infrastructure projects" means capital
construction projects to construct new infrastructure or replace existing infrastructure,
which provide the fixed installations necessary for the function of a political
subdivision. Capital construction projects exclude routine maintenance and repair
projects, but include the following:
a. The Red River valley water supply project;
b. Water treatment plants;
c. Wastewater treatment plants;
d. Sewerlines and waterlines, including lift stations and pumping systems;
e. Storm water infrastructure, including curb and gutter construction;
f. Water storage systems, including dams, water tanks, and water towers;
g. Road and bridge infrastructure, including paved and unpaved roads and bridges;
h. Airport infrastructure;
i. Electricity transmission infrastructure;
j. Natural gas transmission infrastructure;
k. Communications infrastructure;
l. Emergency services facilities, excluding hospitals;
m. Critical political subdivision buildings and infrastructure; and
n. Infrastructure required to service recreation and community facilities, not
including the construction of a building or recreational amenity.
3. In processing political subdivision loan applications under this section, the Bank shall
calculate the maximum outstanding loan amount per qualified applicant. A qualified
applicant under this section may have a maximum combined total of twenty million
dollars in outstanding loans under this section and section 6-09-49.1. The Bank shall
consider the applicant's ability to repay the loan when processing the application and
shall issue loans only to applicants that provide reasonable assurance of sufficient
future income to repay the loan.
4. The Bank shall deposit in the infrastructure revolving loan fund all payments of interest
and principal paid under loans made from the infrastructure revolving loan fund. The
Bank may use a portion of the interest paid on the outstanding loans as a servicing fee
to pay for administrative costs which may not exceed one-half of one percent of the
amount of the interest payment. All moneys transferred to the fund, interest upon
moneys in the fund, and payments to the fund of principal and interest are
appropriated to the Bank on a continuing basis for administrative costs and for loan
disbursement according to this section.
5. The Bank may adopt policies and establish guidelines to administer this loan program
in accordance with the provisions of this section and to supplement and leverage the
funds in the infrastructure revolving loan fund. Additionally, the Bank may adopt
policies allowing participation by local financial institutions.
6. If a political subdivision applies for a loan under this section for a county road or bridge
project, the department of transportation shall review and approve the project before
the Bank may issue a loan. If a political subdivision applies for a loan under this
section for a water-related project, the state water commission shall review and
approve the project before the Bank may issue a loan. The department of
transportation and state water commission may develop policies for reviewing and
approving projects under this section.

### § 6-09-49.1. Legacy infrastructure loan fund - Continuing appropriation.

1. The legacy infrastructure loan fund is a special fund in the state treasury from which
the Bank of North Dakota shall provide loans to political subdivisions, the Garrison
Diversion Conservancy District, and the Lake Agassiz water authority for eligible
infrastructure projects as authorized in this section.
2. The Bank of North Dakota may adopt policies and establish guidelines to administer
the legacy infrastructure loan fund in accordance with this section.
3. A loan made from the legacy infrastructure loan fund must have an interest rate that
does not exceed two percent per year. The maximum term of a loan under this section
is the lesser of thirty years or the useful life of the project.
4. The Bank of North Dakota shall transfer all payments of principal and interest paid on
loans made from the legacy infrastructure loan fund to the legacy fund. The Bank may
use a portion of the interest paid on the outstanding loans as a servicing fee to pay for
administrative costs, which may not exceed one-half of one percent of the amount of
the outstanding loans.
5. An applicant shall issue an evidence of indebtedness as authorized by law.
6. When processing political subdivision loan applications under this section, the Bank of
North Dakota shall calculate the maximum outstanding loan amount per qualified
applicant. The maximum outstanding loan amount for infrastructure projects under
subsection 7 is forty million dollars. The Bank shall consider the ability of the applicant
to repay the loan while processing the application and shall issue loans only to
applicants that provide reasonable assurance of sufficient future income to repay the
loan.
7. Eligible infrastructure projects under this subsection are capital projects to construct
new infrastructure or to replace infrastructure and which provide the fixed installations
necessary for the function of a political subdivision. Capital construction projects
exclude routine maintenance and repair projects, but include:
a. Water treatment plants;
b. Wastewater treatment plants;
c. Sewerlines and waterlines, including lift stations and pumping stations;
d. Water storage systems, including dams, water tanks, and water towers;
e. Storm water infrastructure, including curb and gutter construction;
f. Road and bridge infrastructure, including paved and unpaved roads and bridges;
g. Airport infrastructure;
h. Electricity transmission infrastructure;
i. Natural gas transmission infrastructure;
j. Communications infrastructure;
k. Emergency services facilities, excluding hospitals;
l. Essential political subdivision building and infrastructure; and
m. The Red River valley water supply project.
8. The department of transportation shall approve county road and bridge projects for
purposes of loans under this section and may adopt policies for the review and
approval of projects under this section.
9. For purposes of loans under this subsection, the state water commission shall review
and approve eligible projects to construct new water-related infrastructure or to replace
existing water-related infrastructure which provide the fixed installations necessary for
the function of a political subdivision. The state water commission may adopt policies
for the review and approval of projects under this section. Capital construction projects
exclude routine maintenance and repair projects, but include:
a. Flood control;
b. Conveyance projects;
c. Rural water supply;
d. Water supply; and
e. General water management.

### § 6-09-49.2. Water infrastructure revolving loan fund - State water commission -

Continuing appropriation.
1. There is created in the state treasury the water infrastructure revolving loan fund to
provide loans for water supply, flood protection, or other water development and water
management projects. The fund consists of moneys transferred into the fund, interest
earned on moneys in the fund, and principal and interest payments to the fund. All
moneys in the fund are appropriated to the Bank of North Dakota on a continuing basis
for loan disbursements and administrative costs.
2. The state water commission shall approve eligible projects for loans from the water
infrastructure loan fund. The state water commission shall consider the following when
evaluating eligible projects:
a. A description of the nature and purposes of the proposed infrastructure project,
including an explanation of the need for the project, the reasons why the project
is in the public interest, and the overall economic impact of the project.
b. The estimated cost of the project, the amount of loan funding requested, and
other proposed sources of funding.
c. The extent to which completion of the project will provide a benefit to the state or
regions within the state.
3. Projects not eligible for the state revolving funds under chapters 61-28.1 and 61-28.2
must be given priority for loans from the water infrastructure revolving loan fund.
4. In consultation with the state water commission, the Bank of North Dakota shall
develop policies for the review and approval of loans under this section. Loans made
under this section must be made at the same interest rate as the revolving loan funds
established under chapters 61-28.1 and 61-28.2.
5. The Bank of North Dakota shall manage and administer loans from the water
infrastructure loan fund. The Bank shall deposit in the fund all principal and interest
paid on loans made from the fund. Annually, the Bank may deduct one-half of
one percent of the outstanding loan balance as a service fee for administering the
water infrastructure revolving loan fund. The fund must be audited annually pursuant to
section 6-09-29, and the cost of the audit must be paid from the fund.
### § 6-09-49.3. Rail revolving loan fund - Continuing appropriation.

1. The rail revolving loan fund is a special fund in the state treasury from which the Bank
of North Dakota shall provide loans to counties, cities, railroads, and other freight
railroad users to construct or upgrade rail infrastructure to improve rail service.
2. The Bank shall administer the fund in accordance with the provisions of this section
and may adopt policies and establish guidelines for the loans, including policies for
eligibility and allowing participation by local financial institutions. Class I railroads are
not eligible.
3. The Bank shall consider the applicant's ability to repay the loan when processing the
application and shall issue loans only to applicants that provide reasonable assurance
of sufficient future income to repay the loan.
4. The department of transportation shall review and approve the project before the Bank
may issue a loan based on policies developed by the department.
5. The Bank shall deposit in the fund all payments of principal and interest paid on loans
made from the fund. The Bank may use a portion of the interest paid on the
outstanding loans as a servicing fee to pay administrative costs which may not exceed
one-half of one percent of the amount of the outstanding loans.
6. All moneys transferred to the fund, interest upon moneys in the fund, and payments to
the fund of principal and interest are appropriated to the Bank on a continuing basis for
administrative costs and for loan disbursements according to this section.
7. The fund must be audited annually pursuant to section 6-09-29, and the cost of the
audit must be paid from the fund.

### § 6-09-50. North Dakota financial center - Lease rates - Payments in lieu of taxes.

(Contingent effective date - See note)
The North Dakota financial center is a building that is owned by the Bank of North Dakota
and is adjacent to the building in which the Bank of North Dakota is housed. The Bank of North
Dakota shall lease the space in the North Dakota financial center to other state agencies based
on market rate lease prices. The Bank of North Dakota shall make payments in lieu of property
taxes in the manner and according to the conditions and procedures that would apply if the
building were privately owned.
### § 6-09-51. Dynamic fiscal impact analysis.

Expired under S.L. 2017, ch. 364, § 3.
### § 6-09-52. Bulk propane storage tank revolving loan fund - Continuing appropriation -

Audit and costs of administration.
1. The bulk propane storage tank revolving loan fund is a special fund in the state
treasury from which the Bank of North Dakota shall provide loans to propane retailers
to purchase and install storage containers to be used for the bulk storage of propane.
The Bank shall administer the propane storage tank revolving loan fund.
2. To be eligible for this loan program, the applicant must be a propane retailer
conducting business in the state and submit an application to the Bank which must:
a. Detail the proposed project, including the location of the storage container within
the state;
b. Demonstrate the need and viability of the project; and
c. Include financial information as the Bank may determine appropriate.
3. The Bank shall consider the applicant's ability to repay the loan when processing the
application and shall issue loans only to applicants that provide reasonable assurance
of sufficient future income to repay the loan.
4. A loan provided under this section:
a. May not exceed the lesser of five hundred thousand dollars or eighty-five percent
of the actual cost of the project;
b. Must have an interest rate equal to two percent; and
c. Must provide a repayment schedule of no longer than fifteen years.
5. In processing loan applications under this section, the Bank shall calculate the
maximum outstanding loan amount per qualified applicant. A qualified applicant under
this section may have a maximum total of five hundred thousand dollars in outstanding
loans under this section.
6. The Bank shall deposit in the bulk propane storage tank revolving loan fund all
payments of interest and principal paid under loans made from the bulk propane
storage tank revolving loan fund. The Bank may use a portion of the interest paid on
the outstanding loans as a servicing fee to pay for administrative costs which may not
exceed one-half of one percent. All money transferred to the fund, interest upon
moneys in the fund, and payments to the fund of principal and interest are
appropriated to the Bank on a continuing basis for administrative costs and for loan
disbursement according to this section.
7. The Bank may adopt policies and establish guidelines to administer this loan program
in accordance with this section and to supplement and leverage funds in the bulk
propane storage tank revolving loan fund. Additionally, the Bank may adopt policies
allowing participation by local financial institutions.
8. The bulk propane storage tank revolving loan fund must be audited in accordance with
section 6-09-29 or shall engage with an independent public auditor to perform the
necessary procedure to ensure compliance with section 6-09-29. The cost of the audit
and any other actual costs incurred by the Bank on behalf of the fund must be paid
from the fund.

### § 6-09-53. Economic diversification research fund - Report to legislative management.

1. There is created in the state treasury the economic diversification research fund. The
fund consists of all moneys deposited in or transferred to the fund pursuant to
legislative action. Moneys in the fund may be spent by the Bank of North Dakota
pursuant to legislative appropriations to provide grants to institutions under the control
of the state board of higher education for economic diversification research.
2. In consultation with representatives of North Dakota state university and the university
of North Dakota, the Bank, in consultation with the state board of higher education,
shall award grants to institutions under the control of the state board of higher
education. The bank must award ninety percent of the funds available each biennium
to North Dakota state university and the university of North Dakota with equal amounts
awarded to each institution. The remaining funding must be awarded to the other
institutions under the control of the state board of higher education, as determined by
the board. The state board of higher education may not award more than fifty percent
of the available funding during the first year of the biennium. The Bank of North Dakota
shall distribute the grant funding as awarded by the state board of higher education.
3. The state board of higher education shall develop guidelines for the economic
diversification research grants. The purpose of the grants is to stimulate economic
activity across the state through innovation of new technology, concepts, and products;
to promote job creation and career and wage growth; to enhance health care
outcomes; to address loss of revenue and jobs in communities with economies that
depend primarily on the fossil fuel industry; and to provide experiential learning
opportunities for students. Research projects may be initiated by an institution under
the control of the state board of higher education or by the private sector. The
guidelines must include consideration for research projects with matching funds and
provisions for grant oversight by an internal advisory committee and an external
advisory committee.
4. The state board of higher education shall develop reporting requirements for the
institutions under the control of the board. The reporting requirements must include
criteria for assessing performance outcomes related to the grants. The state board of
higher education shall compile the reports and submit a comprehensive report
annually to the legislative management. The comprehensive report must include
information on how the research efforts by each institution align with the state's
priorities, how the institutions collaborate when appropriate, and how the outcomes of
the research meet established performance expectations.
### § 6-09-54. Extraordinary medical needs housing loan fund - Continuing appropriation.

1. The Bank of North Dakota shall administer a loan program to provide loans for new
construction projects to provide housing for individuals with disabilities that have
extraordinary medical needs. A construction project may include a land purchase and
the construction costs of the project. The applicant must comply with project
requirements as approved by the department of health and human services and the
North Dakota housing finance agency.
2. The extraordinary medical needs housing loan fund is a special fund maintained in the
state treasury from which the Bank shall provide loans under this section. The fund
consists of revenues transferred under legislative authorization, interest upon moneys
in the fund, and collections of interest and principal on loans made from the fund. All
moneys in the fund are appropriated on a continuing basis to the Bank for the purpose
of providing loans under this section.
3. The developer of the housing facility for individuals with disabilities that have
extraordinary medical needs may submit an application to the Bank for a loan. The
application must:
a. Provide detail on the proposed construction project and its compliance with the
department of health and human services and the North Dakota housing finance
agency requirements;
b. Demonstrate the need and long-term viability of the project; and

c. Include financial information the Bank determines appropriate to verify eligibility.
4. A loan approved under this section:
a. May not exceed three million three hundred thousand dollars for a project;
b. Must have an interest rate that does not exceed two percent; and
c. Must have a repayment schedule of no longer than twenty years.
5. A recipient of a loan under this section shall complete the financed construction project
within twenty-four months of the approval of the loan. Failure to comply with this
subsection may result in forfeiture of the entire loan received under this section.
6. The Bank shall deposit in the fund all principal and interest paid on the loans made
from the fund. The Bank may deduct from interest payments a service fee for costs of
administering the loan program. The fund must be audited annually pursuant to section
behalf of the fund must be paid from the fund.
