Any person, firm, or limited liability company who applies for a loan or obtains money from the development corporation shall be required to invest in the stock of the corporation in an amount to be fixed by the board of directors of not less than two percent nor more than five percent of the funds obtained. The requirement of this section may be waived by a majority vote of the board of directors for unusual circumstances or when a loan or obligation is insured or guaranteed in whole or in part by the state or federal government or any agency of either. The board may provide for repurchase of a borrower’s stock when the loan has been repaid in full.

Terms Used In North Dakota Code 10-30-12

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
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