Statutes, codes, and regulations
North Dakota Century Code
Title 21 - GOVERNMENTAL FINANCE
Chapter 21-04 - DEPOSITORIES OF PUBLIC FUNDS
Section 21-04-09.1 - Letters of credit for public deposits - Security interest - Priority - Written agreement

N.D. Cent. Code § 21-04-09.1

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Current through 2023 Legislative Sessions
Section 21-04-09.1 - 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.

N.D.C.C. § 21-04-09.1