Letters of credit for public deposits - Security interest - Priority - Written agreement
N.D. Cent. Code § 21-04-09.1
in effect21-04-09.1. Letters of credit for public deposits - Security interest - Priority - Written
agreement.
Letters of credit issued by the Bank of North Dakota in connection with section 21-04-09
must be secured by collateral. A security interest is created and attaches when the Bank issues
a letter of credit in connection with section 21-04-09. Filing is not required for perfection of the
security interest created and it is entitled to priority as to all creditors. The board of directors of a
financial institution seeking a letter of credit from the Bank shall execute a written agreement
with the Bank, reflect approval of the agreement in the board of director's minutes and, as of the
date of execution of the agreement, keep a copy of the agreement as an official record.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t21c04.pdf#nameddest=21-04-09p1Fetched: 10/16/2026