N.D. Cent. Code § 6-09-49.3

6-09-49.3. Rail revolving loan fund - Continuing appropriation

1. The rail revolving loan fund is a special fund in the state treasury from which the Bank

of North Dakota shall provide loans to counties, cities, railroads, and other freight

railroad users to construct or upgrade rail infrastructure to improve rail service.

2. The Bank shall administer the fund in accordance with the provisions of this section

and may adopt policies and establish guidelines for the loans, including policies for

eligibility and allowing participation by local financial institutions. Class I railroads are

not eligible.

3. The Bank shall consider the applicant's ability to repay the loan when processing the

application and shall issue loans only to applicants that provide reasonable assurance

of sufficient future income to repay the loan.

4. The department of transportation shall review and approve the project before the Bank

may issue a loan based on policies developed by the department.

5. The Bank shall deposit in the fund all payments of principal and interest paid on loans

made from the fund. The Bank may use a portion of the interest paid on the

outstanding loans as a servicing fee to pay administrative costs which may not exceed

one-half of one percent of the amount of the outstanding loans.

6. All moneys transferred to the fund, interest upon moneys in the fund, and payments to

the fund of principal and interest are appropriated to the Bank on a continuing basis for

administrative costs and for loan disbursements according to this section.

7. The fund must be audited annually pursuant to section 6-09-29, and the cost of the

audit must be paid from the fund.