N.D. Cent. Code § 6-05.2-02

6-05.2-02. Administration of fiduciary powers

1. The board of directors is responsible for the proper exercise of fiduciary powers by the

banking institution. All pertinent matters, including the determination of policies, the

investment and disposition of property held in a fiduciary capacity, and the direction

and review of the actions of all officers, employees, and committees used by the

banking institution in the exercise of its fiduciary powers, are the responsibility of the

board. In discharging this responsibility, the board of directors may assign, by action

duly entered in the minutes, the administration of any of the banking institution's

fiduciary powers as it may consider proper to assign to its directors, officers,

employees, or committees as it may designate.

2. No fiduciary account may be accepted without the prior approval of the board of

directors, or of the directors, officers, or committees to whom the board may have

designated the performance of that responsibility. A written record must be made of all

acceptances and of the relinquishment or closing out of all fiduciary accounts. Upon

the acceptance of an account for which the banking institution has investment

responsibilities, a prompt review of the assets must be made. The board must ensure

that at least once during every calendar year, and within fifteen months of the last

review, all the assets held in or for each fiduciary account where the banking institution

has investment responsibilities are reviewed to determine the advisability of retaining

or disposing of the trust assets.

3. All officers and employees taking part in the operating of trust activities must be

adequately bonded.

4. Every banking institution exercising fiduciary powers must designate, employ, or retain

legal counsel who is readily available to pass upon fiduciary matters and to advise the

banking institution as to its trust activities.

5. Every banking institution exercising fiduciary powers must adopt written policies and

procedures to ensure that the federal securities laws are complied with in connection

with any decision or recommendation to purchase or sell any security. The policies and

procedures, in particular, must ensure the banking institution may not use inside

information in connection with any decision or recommendation to purchase or sell any

security.