System of registration
N.D. Cent. Code § 21-03.1-02
in effect21-03.1-02. System of registration
1. Each issuer is authorized to establish and maintain a system of registration with
respect to each obligation which it issues. The system may either be:
a. A system pursuant to which only certificated registered public obligations are
issued.
b. A system pursuant to which only uncertificated registered public obligations are
issued.
c. A system pursuant to which both certificated and uncertificated registered public
obligations are issued.
The issuer may amend, discontinue, and reinstitute any system, from time to time,
subject to covenants.
2. The system must be established, amended, discontinued, or reinstituted for the issuer
by, and must be maintained for the issuer as provided by, the official or official body.
3. The system must be described in the registered public obligation or in the official
actions which provide for original issuance of the registered public obligation, and in
subsequent official actions providing for amendments and other matters from time to
time. Such description may be by reference to a program of the issuer which is
established by the official or official body.
4. The system must define the method or methods by which transfer of the registered
public obligation shall be effective with respect to the issuer, and by which payment of
principal and any interest must be made. The system may permit the issuance of
registered public obligations in any denomination to represent several registered public
obligations of smaller denominations. The system may also provide for the form of any
certificated registered public obligation or of any writing relating to an uncertificated
registered public obligation, for identifying numbers or other designations, for a
sufficient supply of certificates for subsequent transfers, for record and payment dates,
for varying denominations, for communications to holders or owners of obligations,
and for accounting, canceled certificate destruction registration and release of security
interests and other incidental matters. Unless the issuer otherwise provides, the record
date for interest payable on the first or fifteenth day of a month must be the fifteenth
day or the last business day of the preceding month, respectively, and for interest
payable on other than the first or fifteenth day of a month, must be the fifteenth
calendar day before the interest payment date.
5. Under a system pursuant to which both certificated and uncertificated registered public
obligations are issued, both types of registered public obligations may be regularly
issued, or one type may be regularly issued and the other type issued only under
described circumstances or to particular described categories of owners and provision
may be made for registration and release of security interests in registered public
obligations.
6. The system may include covenants of the issuer as to amendments, discontinuances,
and reinstitutions of the system and the effect of such on the exemption of interest
from the income tax provided for by the Code.
7. Whenever an issuer issues an uncertificated registered public obligation, the system of
registration may provide that a true copy of the official actions of the issuer relating to
such uncertificated registered public obligation be maintained by the issuer or by the
person, if any, maintaining such system on behalf of the issuer, so long as the
uncertificated registered public obligation remains outstanding and unpaid. A copy of
such official actions, verified to be such by an authorized officer, is admissible before
any court of record, administrative body, or arbitration panel without further
authentication.
8. Nothing in this chapter precludes a conversion from one of the forms of registered
public obligations provided for by this chapter to a form of obligations not provided for
by this chapter if interest on the obligation so converted will continue to be exempt
from the income tax provided for by the Code.
9. The rights provided by other laws with respect to obligations in forms not provided for
by this chapter, to the extent not inconsistent with this chapter, apply with respect to
registered public obligations issued in forms authorized by this chapter.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t21c03-1.pdf#nameddest=21-03p1-02Fetched: 10/16/2026