Maintenance of permissible investments
N.D. Cent. Code § 13-09.1-34
in effect13-09.1-34. Maintenance of permissible investments
1. A licensee shall maintain at all times permissible investments that have a market value
computed in accordance with United States generally accepted accounting principles
of not less than the aggregate amount of all of its outstanding money transmission
obligations.
2. Except for permissible investments enumerated in subsection 1 of section 13-09.1-35,
the commissioner, with respect to any licensee, may by rule or order limit the extent to
which a specific investment maintained by a licensee within a class of permissible
investments may be considered a permissible investment, if the specific investment
represents undue risk to customers, not reflected in the market value of investments.
3. Permissible investments, even if commingled with other assets of the licensee, are
held in trust for the benefit of the purchasers and holders of the licensee's outstanding
money transmission obligations in the event of insolvency, the filing of a petition by or
against the licensee under the federal bankruptcy code [11 U.S.C. Section 101-110] for
bankruptcy or reorganization, the filing of a petition by or against the licensee for
receivership, the commencement of any other judicial or administrative proceeding for
its dissolution or reorganization, or in the event of an action by a creditor against the
licensee who is not a beneficiary of this statutory trust. No permissible investments
impressed with a trust pursuant to this subsection may be subject to attachment, levy
of execution, or sequestration by order of any court, except for a beneficiary of this
statutory trust.
4. Upon the establishment of a statutory trust in accordance with subsection 3 or when
any funds are drawn on a letter of credit pursuant to subdivision d of subsection 1 of
section 13-09.1-35, the commissioner shall notify the applicable regulator of each state
in which the licensee is licensed to engage in money transmission, if any, of the
establishment of the trust or the funds drawn on the letter of credit, as applicable.
Notice must be deemed satisfied if performed pursuant to a multistate agreement or
through the nationwide system. Funds drawn on a letter of credit, and any other
permissible investments held in trust for the benefit of the purchasers and holders of
the licensee's outstanding money transmission obligations, are deemed held in trust
for the benefit of the purchasers and holders on a pro rata and equitable basis in
accordance with statutes pursuant to which permissible investments are required to be
held in this state, and other states, as applicable. Any statutory trust must be
terminated upon extinguishment of all of the licensee's outstanding money
transmission obligations.
5. The commissioner by rule or by order may allow other types of investments that the
commissioner determines are of sufficient liquidity and quality to be a permissible
investment. The commissioner may participate in efforts with other state regulators to
determine that other types of investments are of sufficient liquidity and quality to be a
permissible investment.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t13c09-1.pdf#nameddest=13-09p1-34Fetched: 10/16/2026