N.D. Cent. Code § 10-19.1-89

10-19.1-89. Loans - Guarantees - Suretyship

1. A corporation may lend money to, guarantee or pledge its assets as security for an

obligation of, become a surety for, or otherwise financially assist any person, if the

transaction, or a class of transactions to which the transaction belongs, is approved by

the board and:

a. Is in the usual and regular course of business of the corporation;

b. Is with, or for the benefit of, a related organization, an organization in which the

corporation has a financial interest, a person or organization with which the

corporation has a business relationship in the usual and regular course of

business, or an organization to which the corporation has the power to make

donations;

c. Is with, or for the benefit of, an officer or director or other employee of the

corporation or a related organization, and may reasonably be expected, in the

judgment of the board, to benefit the corporation; or

d. Whether or not any separate consideration has been paid or promised to the

corporation has been approved by:

(1) The holders of two-thirds of the voting power of the shares entitled to vote

which are owned by persons other than the interested person or persons; or

(2) The unanimous affirmative vote of the holders of all outstanding shares,

whether or not entitled to vote.

2. A loan, guarantee, surety contract, or other financial assistance under subsection 1

may be with or without interest and may be unsecured or may be secured in any

manner, including a grant of a security interest in shares of the corporation.

3. This section does not grant any authority to act as a bank or to carry on the business

of banking.