N.D. Cent. Code § 6-05.2-06

6-05.2-06. Self-dealing

1. Funds held by a banking institution as fiduciary may not be invested in stock or

obligations of, or property acquired from, the banking institution or its directors,

officers, or employees, or individuals with whom there exists such a connection, or

organizations in which there exists such an interest, as affects the exercise of the best

judgment of the banking institution in acquiring the property, or in stock or obligations

of, or property acquired from, affiliates of the banking institution or their directors,

officers, or employees, unless authorized by the instrument creating the relationship or

as authorized by law.

2. Property held by a banking institution as fiduciary may not be sold or transferred, by

loan or otherwise, to the banking institution or its directors, officers, or employees, or to

individuals with whom there exists such a connection, or organizations in which there

exists such an interest, as affects the exercise of the best judgment of the banking

institution in selling or transferring the property, or to affiliates of the banking institution

or their directors, officers, or employees except:

a. As authorized by the instrument creating the relationship or as authorized by law;

b. When the banking institution has been advised in writing by its counsel or auditor

that it has incurred as a fiduciary a contingent or potential liability and desires to

relieve itself of that liability, a sale or transfer may be made with the approval of

the board of directors, provided that the banking institution, upon consummation

of the sale or transfer, makes reimbursement in cash at no loss to the account;

c. To purchase at market value, defaulted investment funds; or

d. Where ordered by the board.

3. Funds held by a banking institution as fiduciary may not be invested by the purchase

of stock or obligations of the banking institution or its affiliates unless authorized by the

instrument or as authorized by law. If the retention of stock or obligations of the

banking institution or its affiliates is authorized by the instrument creating the

relationship, by court order, or by law it may exercise rights to purchase its own stock

or securities convertible into its own stock when offered pro rata to stockholders. When

the exercise of rights or receipt of a stock dividend results in fractional share holdings,

additional fractional shares may be purchased to complement the fractional shares so

acquired.

4. A banking institution may sell assets held by it as fiduciary in one account to itself as

fiduciary in another account if the transaction is fair to both accounts and if the

transaction is not prohibited by the terms of any governing instrument.

5. A banking institution may make a loan to an account from the funds belonging to

another account when the making of a loan to a designated account is authorized by

the instrument creating the account from which the loan is made.

6. A banking institution may make a loan to an account and may take, as security for the

loan, assets of the account provided the transaction is fair to the account.