10-30-08. Nonstockholder members - Loan limitation.

349 words·~2 min read·/nd/title-10/chapter-10-30-development-corporations/10-30-08·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. The nonstockholder members of the corporation are those national or state banks,

savings banks, savings and loan associations, trust companies, stock or mutual

insurance companies, the Bank of North Dakota, credit unions, and other financial

institutions that apply for membership in the corporation, and membership becomes

effective upon the acceptance of the application by the board of directors. Each

member of the corporation shall lend money to the corporation when called upon by it

to do so on the terms and other conditions as are approved from time to time by a

majority of the directors.

2. The total amount of loans by any member at any one time shall not exceed the

following limit, determined on the basis of the balance sheet of that member at the

close of its second preceding fiscal year, as certified by its proper officers:

a. For commercial banks and trust companies and the Bank of North Dakota, two

and one-half percent of capital and surplus.

b. For savings banks, two and one-half percent of one-half of the total surplus

accounts.

c. For savings and loan associations and credit unions, two and one-half percent of

the guaranty funds, surplus, and undivided profits.

d. For stock insurance companies, two and one-half percent of the capital and

surplus.

e. For mutual insurance companies, two and one-half percent of the guaranty funds

or of the surplus, whichever is applicable.

f. For other nonstockholder members, comparable limits approved by the board of

directors.

3. All loan limits must be established at the thousand dollar amount nearest to the

amount computed in accordance with subsection 2. All calls of funds which

nonstockholder members are committed to lend to the corporation must be prorated by

the corporation among the nonstockholder members in the same proportion that the

individual lines of credit bear to the aggregate lines of credit. Upon sixty days' written

notice, a member of the corporation may withdraw from membership in the corporation

at the expiration date of the notice, and after that expiration date, is free of obligations

except those accrued before the expiration date.