Duties and liability of bank or credit union
N.D. Cent. Code § 6-08.6-11
in effect6-08.6-11. Duties and liability of bank or credit union
1. A bank or credit union does not have a fiduciary duty to any person with respect to a
special deposit.
2. When the bank or credit union holding a special deposit becomes obligated to pay a
beneficiary, a debtor-creditor relationship arises between the bank or credit union and
beneficiary.
3. The bank or credit union holding a special deposit has a duty to a beneficiary to
comply with the account agreement and this chapter.
4. If the bank or credit union holding a special deposit does not comply with the account
agreement or this chapter, the bank or credit union is liable to a depositor or
beneficiary only for damages proximately caused by the noncompliance. Except as
provided by other law, the bank or credit union is not liable for consequential, special,
or exemplary damages.
5. The bank or credit union holding a special deposit may rely on records presented in
compliance with the account agreement to determine whether the bank or credit union
is obligated to pay a beneficiary.
6. If the account agreement requires payment on presentation of a record, the bank or
credit union shall determine within a reasonable time whether the record is sufficient to
require payment. If the agreement requires action by the bank or credit union on
presentation of a record, the bank or credit union is not liable for relying in good faith
on the genuineness of the record if the record appears on its face to be genuine.
7. Unless the account agreement provides otherwise, the bank or credit union is not
required to determine whether a permissible purpose stated in the agreement
continues to exist.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t06c08-6.pdf#nameddest=6-08p6-11Fetched: 10/16/2026