Document dated Apr. 10, 2025, was received on Apr. 24, 2025, due to a fixed feed.
Removal of Officers
Current or former officer, director, employee, other participating in conduct of affairs of financial corp. or institution, CU issued order permanently suspend, prohibiting person.
From participation if convicted of any charge involving dishonesty or breach of trust.
Suspension or removal order effective immediately upon issuance on current or former officer, director, employee and upon financial corporation, financial institution, or CU.
Data Security Program
Financial corporation must develop, implement, maintain a comprehensive information security program; program must be written in one or more readily accessible parts.
Program must maintain administrative, technical, physical safeguards appropriate to financial corporation's size, complexity, nature, scope of financial corporation activities.
Must develop program that ensures security, confidentiality of customer information.
Protects against anticipated threats, hazards to security, integrity of such information; protects against unauthorized access to or use of info that could result in harm.
If designate individual employed by affiliate or service provider as qualified individual, must retain responsibility for compliance, require provider maintain info sec program.
A financial corporation must base financial corporation's information security program on a risk assessment that assesses sufficiency of safeguards in place to control risks.
Must design and implement safeguards to control risks identified via risk assessment.
Regularly test, monitor effectiveness of safeguards' key controls, systems, procedures.
Must implement policies and procedures to ensure the financial corporation's personnel are able to enact the financial corporation's information security program.
Oversee service providers by taking steps select, retain service providers; requiring, by contract, implement and maintain appropriate safeguards; periodically assessing.
Money Brokers
Added definition of loan to mean contract by which one delivers sum of money to another, latter agrees return at future time sum equivalent to which person borrowed.
Includes alternative financing products as identified by commissioner through order.
Legislative History
On Jan. 7, 2025, bill introduced in the House; on Feb. 14, 2025, bill passed the House.
On Feb. 18, 2025, bill introduced into Senate; on Mar. 13, 2025, bill passed Senate.
On Apr. 2, 2025, House concurred amendments; on Apr. 8, 2025, signed by House.
On Apr. 8, 2025, delivered to governor; on Apr. 10, 2025, bill signed by governor.
Effectiveness
Per ND Constitution, upon approval by governor, bill becomes effective Aug. 1, 2025.
Regulators
ND LEG
Entity Types
Bank; Corp; CU; MSB
Reference
Bill HB1127, 4/10/2025; Citation: *ND FIN* 6-01-04.1, 13-04.1-01.1, 13;
