Investments of state banks
N.D. Cent. Code § 6-03-47.2
in effect6-03-47.2. Investments of state banks
In addition to the other powers authorized by law under this title, any state banking
association may invest its funds in:
1. Bonds, notes, or debentures of any corporation that have been rated in one of the four
highest rating categories by a nationally recognized statistical rating organization
registered with the securities and exchange commission. In the case of different
ratings from different rating organizations, the lower rating applies. If a nationally
recognized statistical rating organization has not rated the security, the bank shall
determine that the security is the credit equivalent of a security rated in the four
highest rating categories by a nationally recognized statistical rating organization. This
includes documentation demonstrating that the issuer of the security has an adequate
capacity to meet financial commitments under the security for the projected life of the
asset or exposure and the issuer has adequate capacity to meet financial
commitments if the risk of default by the obligor is low and the full and timely
repayment of principal and interest is expected. The aggregate par value of
investments issued by any one corporation may not exceed twenty-five percent of
unimpaired capital and surplus at the time of purchase.
2. Equity and debt instruments of corporations or projects designed primarily to promote
community welfare such as economic rehabilitation and development of low-income
areas, subject to approval and regulation of the state banking board but not to exceed
for the total of all investments under this subsection, ten percent of the combined
capital and surplus of the banking association.
3. Investments, in either equity or debt instruments or securities, offered by small
business investment companies organized and licensed by the small business
administration under the Small Business Investment Company Act of 1958 [Pub. L.
85-699; 72 Stat. 689; 15 U.S.C. 661 et seq.], and the Small Business Enhancement
Act of 1992 [Pub. L. 102-366; 106 Stat. 1007-1020; 15 U.S.C. 661 et seq.], and any
amendments thereto.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t06c03.pdf#nameddest=6-03-47p2Fetched: 10/16/2026