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6-10 Agents for Deposits

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CHAPTER 6-10AGENTS FOR DEPOSITS6-10-01.License required to act as agent for deposits.No person, partnership,association, corporation, or limited liability company, except as otherwise authorized by law, may<br>engage in the business of receiving, as agent for another, moneys for the purpose of deposit in a<br>bank, without first having applied to the commissioner and received a license so to do.6-10-02. License fee - Bond. Such applicant shall pay to the commissioner an annualfee of twenty-five dollars, and shall furnish a bond to the state of North Dakota, executed by a<br>corporate surety company authorized to do business in this state, in the sum of not less than five<br>thousand dollars.Such bond from time to time may be increased by the commissionerwhenever, in the commissioner's judgment, the business of said licensee warrants.6-10-03. Limit on license. No license may be granted for the purpose of conductingsuch business in any city wherein there already is operating a state or national bank or an<br>authorized separate facility. In the event that a national or state bank or an authorized separate<br>facility is authorized to do, and does commence doing business in any city where a license has<br>been granted to operate a business under this section, such license may not thereafter be<br>renewed.6-10-04.Agent must deposit funds as directed. A licensee operating a businessunder the terms of this chapter may not loan any of the moneys given into the licensee's custody<br>by any depositor for deposit in a bank, but shall promptly transfer said funds to the bank<br>designated by the depositor, and each depositor has the right to designate the bank in which the<br>depositor desires such moneys deposited.6-10-05. Rules and regulations. The commissioner is authorized to prescribe suchrules and regulations for the operating of such business as in the commissioner's judgment, from<br>time to time, may be necessary for the protection of the depositors dealing with such licensee,<br>and has the power to require compliance therewith.6-10-06. Duty of commissioner. The commissioner may make an examination of thebusiness of such licensee, and such applicant shall pay an examination fee. Fees for such<br>examinations must be charged by the department of financial institutions at an hourly rate to be<br>set by the commissioner, sufficient to cover all reasonable expenses of the department<br>associated with the examinations provided for by this section. Fees must be paid to the state<br>treasurer and deposited in the financial institutions regulatory fund.6-10-07. Revocation of license. In the event of the failure of any person, partnership,association, corporation, or limited liability company to comply with the provisions of this chapter<br>or the regulations promulgated by the commissioner as herein provided, the commissioner, after<br>fifteen days' notice in writing, may revoke such license. Such applicant, upon demand in writing<br>served upon the commissioner, within ten days after the receipt of such notice as above<br>provided, is entitled to a hearing with respect to such violation. The notice of revocation must<br>specify the violations of law or regulations which constitute the grounds for such charges against<br>such licensee.6-10-08. Penalty. Any person violating the provisions of this chapter is guilty of a class Amisdemeanor.Page No. 1Document Outlinechapter 6-10 agents for deposits