58th Legislative Session Ends
The 58th Legislative Assembly convened in regular session on January
7, and ended late on April 25, a 76-day legislative session. A Special
Session was called to convene on May 5, 2003, to address a state education
aid measure and the budget bills for two state agencies, the Department
of Corrections and Rehabilitation and the Information Technology Department,
budget items that should not have any impact on banking issues. The
legislators have been busy and time constraints due to our printing
schedule do not permit us to include all of the amendments that may
be of interest to financial institutions. The following are a few
that may be of interest:
SB 2191 Permits a financial institution, trust company, or credit
union to keep a copy of a customer's driver's license or nondriver
photo ID for verifying the identity of the customer.
Effective August 1, 2003.
HB 1070 Amends N.D.C.C. § 41-09-29: The following security
interests are perfected when they attach: A sale by an individual
of an account that is a right to payment of winnings in a lottery
or other game of chance.
Effective August 1, 2003.
This includes the right to lottery winnings as an asset that can be
a UCC-secured asset.
Effective August 1, 2003.
HB 1070 Amendment appears to require the filing of a financing
statement in order perfect a security interest in a lien on future
interest. Effective August 1, 2003.
HB 1330 Without ado, this amendment repeals the confiscatory price
defense, the bane of ag foreclosures. As you recall, these statutes
permitted a debtor to allege that the crop prices existing at the
time of foreclosure were below the price of production. The court
had the power to defer the action if it found that legal procedure
would confiscate the property of the debtor by forcing the sale
of ag products upon a “ruinous” market.
Effective August 1, 2003.
|
|
HB 1197 This
Act creates and enacts a new chapter to title 60, and creates an indemnity
fund for grain sold under a credit-sale contract. Under prior law,
credit-sale contract grain sellers were unsecured in the event of
elevator insolvency and were not eligible to participate in the existing
state trust fund.
Effective July 1, 2003.
HB 1267 This bill amends N.D.C.C. § 14-07-08 and adds “medical
care” to the list of debts for which a husband and wife are
jointly and severally liable. When taking a loan application, financial
institutions should be aware that in North Dakota husbands and wives
are now liable jointly and severally for debts contracted by either
while living together for the following: necessary household supplies
of food, clothing, and fuel, medical care, and for shelter for themselves
and family, and for the education of their minor children.
Effective August 1, 2003.
HB 1321 This Bill creates a new section to N.D.C.C. Ch. 6-09.7, and
permits the Bank of North Dakota to guarantee an agricultural loan
up to a loan-to-value ratio of 80% and up to $400,000.
Effective August 1, 2003, and expires July 31, 2007.
HB 1355 Removes the required notice of payment of interest on an
escrow account. New statute only requires that the lender annually
furnish each mortgagor a detailed statement showing all debits and
credits to the account.
Effective August 1, 2003.
HB 1360 Amendment clarifies how long a financing statement recorded
as a fixture filing against real property is effective. Fixture filing
is effective for five years after the date of recording.
Effective August 1, 2003.
|