The North Dakota Century Code, specifically Chapter 6-03, governs the organization and operation of state banks. This chapter outlines the requirements for incorporation, including the minimum capital stock needed. For a state bank to be organized and commence business, it must have a minimum of \$50,000 in paid-in capital stock. This capital is essential for the bank’s solvency and its ability to absorb potential losses, thereby protecting depositors and ensuring financial stability. The statute requires that the capital stock be fully paid in before the bank can engage in banking activities. This foundational capital serves as a critical regulatory safeguard.

The North Dakota Century Code, specifically Chapter 6-03.1, governs the operation of trust companies. This chapter outlines the requirements for chartering, capitalization, and operational conduct of trust companies in North Dakota. A key aspect is the minimum capital requirement, which is established to ensure the financial stability and solvency of these institutions, thereby protecting depositors and beneficiaries. For a trust company to be chartered and operate within North Dakota, it must meet a specified minimum capital. This capital serves as a buffer against potential losses and is a prerequisite for obtaining a state charter. The exact amount is stipulated by law to maintain a certain level of financial soundness. Recent amendments or interpretations of the law might adjust these figures, but the foundational principle remains the same: adequate capitalization is essential for the public trust placed in such entities. The regulatory framework in North Dakota aims to balance the need for accessible financial services with the imperative of consumer protection and systemic stability. Therefore, understanding the specific capital requirements under North Dakota law is fundamental for any entity seeking to operate as a trust company within the state. The correct answer reflects the statutory minimum capital required for a North Dakota trust company charter.

The North Dakota Century Code, specifically Chapter 6-03.1, governs the establishment and operation of trust companies in North Dakota. A key requirement for a trust company seeking to operate within the state is the initial capitalization. The law mandates that a trust company must have a minimum paid-in capital of \$500,000. This capital serves as a foundational financial safeguard, ensuring the company possesses sufficient resources to meet its obligations and operate soundly. Furthermore, the statute outlines ongoing capital requirements and reserves to maintain financial stability. The \$500,000 figure is a statutory minimum, and actual capitalization may exceed this based on the business plan and risk assessment conducted by the company and regulatory authorities. This initial capital is crucial for licensing and commencement of operations, demonstrating the financial viability and commitment of the entity to the North Dakota banking regulatory framework.

North Dakota Century Code Section 6-03-08 governs the requirements for bank capital. Specifically, it mandates that a bank must have a minimum of \$100,000 in paid-in capital stock. This capital is crucial for a bank’s solvency and its ability to absorb potential losses, thereby protecting depositors and maintaining financial stability within the state. The statute outlines that this capital must be fully paid in before a bank can commence business. Furthermore, the law distinguishes between common and preferred stock, with specific provisions for the issuance and rights associated with each, but the foundational requirement for commencing operations is the \$100,000 paid-in capital. The North Dakota Department of Financial Institutions is responsible for overseeing compliance with these capital requirements. The concept of capital adequacy is fundamental to banking regulation, ensuring that institutions have sufficient financial resources to meet their obligations and withstand economic downturns. This minimum capital requirement serves as a baseline protection for the banking system in North Dakota.

The North Dakota Century Code, specifically Chapter 6-03.1, governs the establishment and operation of trust companies. This chapter outlines the requirements for a trust company to obtain a charter, including the minimum capital stock requirements. For a trust company to be chartered in North Dakota, it must possess a minimum of $100,000 in paid-in capital stock. This capital serves as a financial safeguard, demonstrating the company’s ability to conduct business and protect depositors and beneficiaries. Failure to meet this capital requirement would prevent the issuance of a charter, as it is a foundational element for financial stability and regulatory compliance under North Dakota banking law. The purpose of this capital requirement is to ensure that the trust company has sufficient financial resources to operate soundly, absorb potential losses, and meet its obligations to its clients and the public. It is a critical prerequisite for market entry and a key indicator of the institution’s financial integrity.

North Dakota law, specifically under the North Dakota Century Code, addresses the establishment and operation of bank holding companies. A bank holding company is generally defined as any company that has control over any bank or over any other bank holding company. Control is typically established if the company directly or indirectly owns, controls, or has the power to vote twenty-five percent or more of any class of voting securities of a bank or bank holding company. The North Dakota Department of Financial Institutions oversees the regulation of state-chartered banks and may have supervisory authority or require notification regarding bank holding company formations that impact state-chartered institutions. While federal law, such as the Bank Holding Company Act of 1956, provides a comprehensive framework for bank holding companies at the national level, state laws can impose additional requirements or clarifications pertinent to state-chartered banks within their jurisdiction. For instance, state statutes may detail specific notification procedures, application processes, or ongoing reporting obligations for bank holding companies whose activities directly involve or affect state-chartered banks operating within North Dakota. The core principle is to ensure that the formation and activities of bank holding companies do not jeopardize the safety and soundness of the state’s banking system or violate state consumer protection or financial stability mandates. Therefore, any company seeking to control a North Dakota state-chartered bank through a holding company structure must navigate both federal and state regulatory landscapes, with North Dakota law dictating specific compliance measures for entities impacting its chartered institutions.

North Dakota Century Code Section 6-03-07 governs the establishment of branches by state banks. This section permits a state bank to establish a branch upon obtaining approval from the State Banking Board. The approval process requires the bank to submit an application detailing the proposed branch’s location, services, and financial projections, demonstrating that the establishment of the branch is in the best interest of the bank and the public. The State Banking Board considers factors such as the financial condition of the applicant bank, the adequacy of its capital, the needs of the community where the branch is proposed, and the potential impact on existing financial institutions. The law does not mandate a specific minimum distance from an existing branch of the same bank or another bank, but the Board will consider such factors as part of the public interest assessment. The North Dakota Department of Financial Institutions is responsible for the administration and enforcement of these banking laws. Therefore, a state bank seeking to open a branch must secure the State Banking Board’s approval, which involves a comprehensive review of the bank’s proposal and its potential impact.

The North Dakota Century Code, specifically Chapter 6-03, addresses the organization and powers of banks. Section 6-03-17 grants banks the authority to make loans and discounts on personal and real property. However, this power is not absolute and is subject to various limitations and regulatory oversight to ensure financial stability and consumer protection. When considering a bank’s ability to lend, it’s crucial to understand the scope of permissible activities and the conditions under which they can operate. The formation of a bank involves adhering to strict procedural requirements, including obtaining a charter from the state banking commissioner, demonstrating adequate capital, and establishing a sound business plan. The powers conferred upon a bank are designed to facilitate its role in the economy by providing credit and financial services, but these powers are always balanced against the need for prudent risk management and compliance with state and federal banking regulations. The question probes the fundamental understanding of a bank’s corporate powers as defined by North Dakota law, emphasizing that these powers are granted by statute and are not inherent or unlimited. The specific context of forming a bank and the subsequent powers it can exercise are directly tied to the legislative framework established in the North Dakota Century Code.

The North Dakota Century Code, specifically Title 6, governs banking and financial institutions. When a bank in North Dakota seeks to acquire a significant portion of the voting stock of another North Dakota-chartered bank, it triggers specific regulatory oversight. North Dakota law requires prior approval from the State Banking Board for such a transaction to ensure it aligns with the safety and soundness of the financial system and does not create undue concentration of market power or pose risks to depositors. This approval process is designed to protect the public interest and maintain stability within the state’s banking sector. The board evaluates various factors, including the financial condition of both institutions, the business plan of the acquiring entity, the impact on competition, and the qualifications of the proposed management. Failure to obtain this approval can lead to penalties and the transaction being voided. The relevant statutory framework emphasizes a proactive regulatory approach to mergers and acquisitions within the state’s banking industry.

The North Dakota Century Code, specifically Chapter 6-03, governs the organization and operation of banks. This chapter outlines the requirements for establishing a bank, including the minimum capital requirements. For a state bank to be chartered in North Dakota, it must have a minimum of \$100,000 in paid-in capital. This capital is crucial for the bank’s solvency and ability to absorb potential losses, thereby protecting depositors and maintaining financial stability within the state. The specific amount is a statutory requirement to ensure a foundational level of financial strength before a bank can commence operations and accept deposits from the public. This capital requirement is a fundamental aspect of bank chartering and regulatory oversight in North Dakota, designed to promote a sound banking system.

North Dakota Century Code Section 6-03-06 addresses the requirements for a bank to be organized. This section mandates that a banking corporation must have a minimum of five directors, each of whom must be a resident of North Dakota. Furthermore, at least two-thirds of the directors must be citizens of the United States. The statute also specifies that each director must own in their own right shares of the capital stock of the bank to the amount of at least one thousand dollars, with the value of the stock to be determined by its par value. This ownership requirement is crucial for ensuring that directors have a vested interest in the bank’s financial health and stability. The total capital stock requirement for a state-chartered bank in North Dakota is also a significant factor, with a minimum of fifty thousand dollars in capital stock being necessary before commencing business. This capital serves as a buffer against potential losses and ensures the bank has sufficient resources to operate. The explanation of the calculation is as follows: The question asks for the minimum number of directors required. North Dakota Century Code Section 6-03-06 explicitly states that a banking corporation must have a minimum of five directors. Therefore, the calculation is simply the minimum number specified by statute, which is 5.

The North Dakota Century Code, specifically Chapter 6-03.1, governs the establishment and operation of trust companies. A key aspect of this chapter is the requirement for a trust company to maintain a minimum amount of capital and surplus. For a trust company organized under the laws of North Dakota, the statute mandates that it must have a paid-in capital of at least \$500,000. This capital must be fully paid in cash and free from liens or encumbrances. In addition to capital, the law also requires a surplus fund to be established. While the specific amount of surplus can fluctuate based on earnings and dividends, the initial paid-in capital requirement is a foundational element for obtaining a charter and commencing operations as a trust company in North Dakota. This capital serves as a buffer against potential losses and ensures the financial stability of the institution, thereby protecting the interests of its customers and the public. The statute aims to ensure that only well-capitalized entities can operate as fiduciaries, handling the assets and affairs of others with the utmost care and responsibility.

The North Dakota Century Code, specifically Chapter 6-03, governs the establishment and operation of banks. This chapter outlines the requirements for obtaining a bank charter, including minimum capital requirements and the process of application. For a state-chartered bank in North Dakota, the initial minimum capital requirement is a critical factor. While specific amounts can be adjusted by the Bank of North Dakota or through legislative action, the foundational principle is that adequate capital is essential for solvency and depositor protection. The Bank of North Dakota, as the state’s banking institution, plays a significant role in overseeing and regulating other state-chartered banks. Understanding the statutory minimums and the regulatory framework is paramount for any entity seeking to establish or operate a bank within the state. This includes adherence to provisions concerning corporate structure, board of directors, and operational procedures, all aimed at ensuring the safety and soundness of the banking system in North Dakota.

The North Dakota Century Code, specifically Chapter 6-03, governs the establishment and operation of state banks. This chapter outlines the requirements for obtaining a bank charter, including minimum capital requirements. While specific dollar amounts for capital can change with regulatory updates, the underlying principle is that a new state bank must demonstrate sufficient financial resources to operate soundly and protect depositors. The North Dakota State Banking Board is the primary regulatory authority responsible for reviewing and approving bank charter applications. They assess the adequacy of proposed capital, the business plan, the integrity of management, and the overall soundness of the proposed banking institution. The law emphasizes that the capital must be paid in full in cash, not in notes or property, to ensure the bank begins with tangible assets. This capital serves as a buffer against potential losses and is a crucial indicator of the bank’s ability to withstand financial stress. Furthermore, the statute requires that the bank’s articles of incorporation specify the amount of capital stock, and this amount cannot be reduced without regulatory approval. The Board’s determination of adequacy considers the bank’s intended business, its geographic market, and prevailing economic conditions in North Dakota.

The North Dakota Century Code (NDCC) Chapter 6-03 governs the establishment and operation of banks. Specifically, NDCC 6-03-04 outlines the requirements for obtaining a bank charter. This section mandates that an application must be filed with the State Banking Board and must include detailed information about the proposed bank’s capital structure, management, business plan, and the financial standing of its proposed directors and principal shareholders. The board then reviews this application to ensure the proposed bank is organized in a safe and sound manner and will serve the public interest. A crucial element of this review is the assessment of the adequacy of the proposed bank’s capital to meet its obligations and absorb potential losses, as well as the integrity and competence of its management team. The intent is to protect depositors and maintain the stability of the state’s financial system. Therefore, the fundamental requirement for a new bank charter in North Dakota is the approval of the State Banking Board based on a comprehensive review of the application and the applicant’s ability to operate a sound and compliant financial institution.

The scenario describes a situation where a bank chartered in North Dakota, operating under North Dakota banking laws, is considering an acquisition of a bank chartered in Montana. North Dakota Century Code (NDCC) Chapter 13-03 governs the acquisition of banks by North Dakota banks. Specifically, NDCC Section 13-03-03 requires that any acquisition of a banking institution by a bank chartered under the laws of North Dakota must receive approval from the North Dakota Department of Financial Institutions. This approval process is designed to ensure that such transactions are safe, sound, and in the best interest of the public and the acquiring bank’s depositors. The statute does not exempt out-of-state acquisitions from this requirement. Therefore, the North Dakota bank must obtain approval from the North Dakota Department of Financial Institutions before proceeding with the acquisition of the Montana bank, in addition to any approvals required by federal banking regulators and the state of Montana. The core principle is that a North Dakota-chartered entity’s significant corporate actions, especially those involving the acquisition of another financial institution, fall under the purview of its chartering state’s regulatory authority.

The North Dakota Century Code (NDCC) Chapter 6-03 outlines the requirements for the organization and incorporation of state banks. Specifically, NDCC 6-03-05 details the minimum capital requirements for a new state bank. This section mandates that a bank must have a minimum of \$200,000 in capital stock. This capital is crucial for the financial stability and operational capacity of the institution, ensuring it can absorb potential losses and meet its obligations to depositors and creditors. The capital stock represents the ownership equity of the bank and is a fundamental regulatory safeguard. The figure of \$200,000 is a statutory minimum, and the State Banking Board may require a higher amount based on the bank’s proposed business plan, market conditions, and risk assessment. This capital requirement is distinct from paid-in surplus or undivided profits, focusing solely on the initial equity investment.

The North Dakota Century Code, specifically Chapter 6-03.1, governs the establishment and operation of trust companies. This chapter outlines the requirements for obtaining a certificate of authority to operate as a trust company within the state. A key provision is the minimum capital requirement, which is designed to ensure financial stability and the ability to meet fiduciary obligations. For a trust company seeking to operate in North Dakota, the law mandates a minimum paid-in capital of \$250,000. This capital must be in the form of cash or readily marketable securities, subject to approval by the state banking commissioner. This capital serves as a buffer against potential losses and demonstrates the commitment and financial capacity of the entity to engage in trust activities. The intent is to protect beneficiaries and maintain public confidence in the trust services sector. Failure to meet this minimum capital requirement would prevent the issuance of a certificate of authority, thereby prohibiting the company from conducting trust business in North Dakota.

The North Dakota Century Code, specifically Title 6, governs banking and financial institutions. When a bank in North Dakota wishes to expand its services by establishing a new branch, it must obtain approval from the North Dakota Department of Financial Institutions (NDFI). This process is designed to ensure that the proposed branch will be operated in a safe and sound manner and that it will serve a public need. The application for a branch typically requires detailed information about the bank’s financial condition, the proposed location, the services to be offered, and a market analysis demonstrating the need for the new branch. The NDFI reviews this information against statutory requirements and regulatory guidelines. For instance, North Dakota law often mandates that a bank must be in a sound financial condition and have sufficient capital to support the expansion. Furthermore, the department will consider the potential impact on existing financial institutions in the area. The final decision rests with the NDFI Commissioner, who must approve or deny the application based on the submitted documentation and a thorough review of compliance with all applicable North Dakota banking statutes and regulations. The underlying principle is to balance the benefits of increased access to banking services with the need to maintain the stability and integrity of the state’s banking system.

The scenario describes a situation where a North Dakota bank is considering acquiring a smaller, distressed bank located in Montana. North Dakota law, specifically concerning interstate banking and acquisitions, is the primary framework to consider. The North Dakota Banking Commissioner’s approval is a prerequisite for any merger or acquisition involving a North Dakota-chartered bank. This approval process is designed to ensure the safety and soundness of the acquiring institution and to protect the interests of depositors and the stability of the financial system within North Dakota. While federal laws like the Riegle-Neagle Interstate Banking and Branching Efficiency Act of 1994 permit interstate acquisitions, state-specific regulations still apply, particularly concerning the approval of the acquiring bank’s home state regulator. In this case, the North Dakota Banking Commissioner must assess the financial health of the acquiring bank, the proposed terms of the acquisition, and the potential impact on North Dakota’s banking landscape. The commissioner’s authority stems from North Dakota Century Code Chapter 6-03, which governs the powers and duties of the banking department, including the oversight of mergers and acquisitions. The commissioner will evaluate whether the acquisition is in the best interest of North Dakota depositors and the state’s financial stability. Therefore, obtaining the North Dakota Banking Commissioner’s approval is the essential first step for the North Dakota bank.

North Dakota Century Code (NDCC) Section 6-03-07.1 outlines the requirements for a bank to establish a branch bank. Specifically, it states that a bank may establish a branch if it has capital and surplus of at least \( \$500,000 \) and has been in continuous operation for at least five years, and if the establishment of the branch is approved by the state banking board. The question presents a scenario where a North Dakota-chartered bank, “Prairie State Bank,” wishes to open a new branch. Prairie State Bank has been in operation for six years and possesses capital and surplus exceeding \( \$750,000 \). The state banking board has not yet reviewed or approved the proposal. The core of the question lies in identifying the missing prerequisite for the branch establishment under North Dakota law. While the bank meets the operational duration and capital requirements, the explicit approval from the state banking board is a mandatory step before the branch can be legally opened. Therefore, the absence of this approval is the critical factor preventing the immediate establishment of the branch.

The North Dakota Century Code, specifically Title 6, governs banking and financial institutions. Section 6-03-02 outlines the requirements for establishing a bank, including the minimum capital stock. For a state bank, the minimum capital stock required is \$200,000. This capital must be fully paid in cash before a bank can commence business. Furthermore, the law emphasizes that this capital is intended to provide a strong financial foundation and protect depositors and the general public. The capital structure also includes surplus and undivided profits, which contribute to a bank’s safety and soundness. While other factors like a business plan, management expertise, and a favorable economic environment are crucial for a bank’s success and regulatory approval, the statutory minimum capital requirement is a foundational legal prerequisite. The Bank of North Dakota, established under separate legislation, operates under a unique charter and is not subject to the same initial capital requirements as a privately chartered state bank.

The North Dakota Century Code, specifically Chapter 6-03, governs the establishment and operation of state banks. Section 6-03-08 outlines the requirements for the initial capital of a state bank. This statute mandates that a state bank must have a minimum paid-in capital of at least \$50,000. This capital requirement is designed to ensure that new banks have sufficient financial resources to operate safely and soundly, absorb potential initial losses, and protect depositors. The capital serves as a buffer against unforeseen economic downturns or operational challenges. The amount is not directly tied to a percentage of deposits at the time of chartering, nor is it based on a fixed number of branches or the geographic area served, although these factors might be considered by the banking board during the application process. The statute provides a clear, fixed minimum for initial capitalization.

The North Dakota Century Code (NDCC) § 6-03-13 governs the examination of banks by the Bank of North Dakota or the State Banking Commissioner. This statute outlines the scope and authority of such examinations. Specifically, it empowers the Bank of North Dakota or the State Banking Commissioner to examine every bank organized under the laws of North Dakota. The purpose of these examinations is to ensure compliance with banking laws, assess financial condition, and protect depositors and the public interest. The statute also details the types of information that can be reviewed, including books, accounts, records, and any other information deemed necessary for a thorough assessment. This comprehensive oversight is a cornerstone of maintaining a sound and stable banking system within the state, ensuring that financial institutions operate responsibly and adhere to regulatory standards. The examination process is crucial for identifying potential risks and ensuring the solvency and integrity of North Dakota’s banking sector, aligning with the broader objectives of financial regulation.

North Dakota Century Code Section 6-03-08 outlines the requirements for a bank to organize and commence business. Specifically, it mandates that a bank must have a minimum paid-in capital stock of \$50,000. This capital must be fully paid in cash before the bank can legally begin operations. The purpose of this capital requirement is to ensure that the bank has sufficient financial resources to absorb potential losses, protect depositors, and maintain solvency. Without meeting this minimum capital threshold, the bank would be deemed to be operating in violation of state banking law, potentially facing regulatory action. The law emphasizes that the capital must be in the form of cash, preventing the use of promissory notes or other forms of credit as substitutes for actual capital infusion. This ensures a tangible financial foundation for the institution.

The North Dakota Century Code, specifically Chapter 6-03, governs the organization and powers of state banks. This chapter outlines the requirements for incorporating a state bank, including the minimum capital stock, the filing of articles of incorporation with the Secretary of State and the State Banking Board, and the process of obtaining a certificate of authority from the Banking Board. The Banking Board’s role is crucial in ensuring that the proposed bank will serve a public need and convenience, that the incorporators are of good character and have adequate financial resources, and that the proposed capital structure is sound. The law emphasizes that the Banking Board has discretion in approving or denying an application based on these factors. Therefore, the initial authorization to operate as a state bank in North Dakota is contingent upon the approval of the State Banking Board after a thorough review of the application and supporting documentation, which includes demonstrating the need for the bank and the qualifications of its organizers. This process ensures that new banking institutions meet specific standards designed to protect depositors and maintain the stability of the state’s financial system, aligning with the broader regulatory framework for banking in the United States.

The North Dakota Century Code, specifically Title 6, governs banking and financial institutions. When a bank operating in North Dakota intends to acquire a significant portion of the assets and liabilities of another North Dakota-chartered bank, it must adhere to specific regulatory procedures. These procedures are designed to ensure the safety and soundness of the banking system, protect depositors, and maintain market stability. The process typically involves obtaining approval from the State Banking Board, which is mandated by North Dakota law to review such transactions. This review considers various factors, including the financial condition of both the acquiring and selling institutions, the potential impact on competition, and the adequacy of the acquiring bank’s capital. The State Banking Board’s authority stems from its oversight role over state-chartered banks as established by North Dakota statutes. While federal regulators may also have a role depending on the charter and size of the institutions, the primary state-level approval authority rests with the State Banking Board for transactions involving North Dakota-chartered banks. The Bank of North Dakota, while a unique state-owned institution, does not directly issue approvals for mergers or acquisitions between private commercial banks; its role is distinct. The Attorney General of North Dakota may be involved in reviewing the legality of the transaction, but the primary regulatory approval authority for banking structure changes lies with the State Banking Board.

The North Dakota Century Code (NDCC) Chapter 6-03 outlines the requirements for the organization and operation of state banks. Specifically, NDCC § 6-03-07 mandates that a minimum of five individuals must be elected as directors by the shareholders. These directors are responsible for the overall governance and strategic direction of the bank. The statute also specifies that directors must meet certain qualifications, including being of good moral character and possessing a certain amount of the bank’s capital stock. The question probes the minimum number of directors required for a state-chartered bank in North Dakota, which is a foundational aspect of corporate governance under state banking law. Understanding this requirement is crucial for anyone involved in the establishment or management of a banking institution within the state, as it directly impacts the bank’s legal structure and oversight.

The North Dakota Century Code, specifically Chapter 6-03, addresses the establishment and operation of banks. A critical aspect of this chapter pertains to the minimum capital requirements for newly chartered banks. The law mandates that a bank’s capital stock, surplus, and undivided profits must collectively meet a certain threshold before commencing business. For a bank to be granted a charter and begin operations in North Dakota, it must demonstrate that its initial capital structure is sufficient to absorb potential early losses and support its projected business volume. This requirement is designed to ensure the safety and soundness of the banking system and protect depositors. The specific amount is determined by the Banking Board, but the underlying principle is to ensure a robust financial foundation.

The scenario describes a situation where a state-chartered bank in North Dakota is considering a merger with a bank chartered in South Dakota. Under North Dakota law, specifically North Dakota Century Code Chapter 6-03, which governs bank mergers and acquisitions, a state-chartered bank must obtain approval from the North Dakota State Banking Board for any merger, consolidation, or acquisition of assets and liabilities. This requirement is in place to ensure that such transactions are conducted in a manner that is safe and sound, and that the resulting entity will continue to serve the public interest. The State Banking Board reviews various factors, including the financial condition of the merging entities, the adequacy of their capital, the proposed management of the combined institution, and the impact on competition and consumer protection within North Dakota. While federal law also governs interstate banking transactions, state law often imposes additional or specific requirements for state-chartered institutions. Therefore, the North Dakota State Banking Board’s approval is a mandatory step in this process for the North Dakota bank.