N.D. Admin. Code 13-03-08-03

Current through Supplement No. 395, January, 2025
Section 13-03-08-03 - Credit applications and overdrafts

Consistent with policies established by the board of directors, the credit committee or loan officer shall ensure that a credit application is kept on file for each borrower supporting the decision to make a loan or establish a line of credit. A credit union may advance money to a member to cover an account deficit without having a credit application from the borrower on file if the credit union has a written overdraft policy. The policy must set a cap on the total dollar amount of all overdrafts the credit union will honor consistent with the credit union's ability to absorb losses, establish a time limit not to exceed sixty calendar days for a member either to deposit funds or obtain an approved loan from the credit union to cover each overdraft, limit the dollar amount of overdrafts the credit union will honor per member, and establish the fee , if any, that the credit union will charge members for honoring overdrafts. All overdrafts will be reported on the credit union's financial statements in accordance with generally accepted accounting principles, and will be treated as a loan in determining compliance with subdivision g of subsection 1 of North Dakota Century Code section 6-06-12 and North Dakota Administrative Code chapter 13-03-06.

N.D. Admin Code 13-03-08-03

Effective January 1, 2013.
Amended by Administrative Rules Supplement 371, January 2019, effective 1/1/2019.

General Authority: NDCC 6-01-04

Law Implemented: NDCC 6-06-06