N.D. Cent. Code § 6-05-15.5

6-05-15.5. Structure of trust company - Operating subsidiaries - Notice - Hearing -

Supervision.

1. A trust company may conduct its business directly or through one or more operating

subsidiary organizations, including a limited purpose bank that is established under the

laws of a jurisdiction other than this state. The activities of an operating subsidiary of a

trust company must be limited to those activities in which the trust company itself could

engage.

2. A trust company that desires to establish or acquire an operating subsidiary must

submit a written notification to the department of financial institutions not less than

thirty days before the trust company's investment in the subsidiary organization is

made. The notification must include the information specified by the state banking

board.

3. Within ten business days after receipt of the notification by the department, the

commissioner shall determine if the notice is complete and shall notify the trust

company of the determination. If within the ten business days the commissioner

determines that the notice is incomplete, the commissioner shall request the additional

information necessary to complete the notice. Within ten days after receipt of the

additional information, the commissioner shall notify the trust company by mail of the

commissioner's determination of completeness. The commissioner shall inform the

state banking board of the receipt of a completed notice. Upon expiration of thirty days

from the date for the mailing of a notice of completeness, the trust company's

investment in the operating subsidiary in accordance with its notice is deemed

approved by the state banking board, unless within that thirty-day period the state

banking board has served the trust company with a notice of hearing on the company's

proposed investment.

4. Any hearing required by the state banking board must be commenced and concluded

by the issuance of the order of the board within ninety days after the date for the

mailing of a notice of completeness by the commissioner. If the hearing is not

concluded within the ninety-day period, the investment by the trust company is

deemed approved by the state banking board.

5. The state banking board may prohibit the trust company's investment in an operating

subsidiary organization if it finds after a hearing:

a. The investment will jeopardize the solvency of the trust company; or

b. The operation of the trust company through the subsidiary organization will place

the trust company in an unsafe and unsound condition.

6. The state banking board has the same authority to examine and supervise an

operating subsidiary as exists for the trust company.