North Dakota Code 15-72-03 – Assets and custody
1. Any person proposing to pledge assets to the public service commission’s custody under North Dakota Administrative Code chapter 69-05.2-12 shall certify to the public service commission:
Terms Used In North Dakota Code 15-72-03
- Appraisal: A determination of property value.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- Property: includes property, real and personal. See North Dakota Code 1-01-49
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- 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
a. The trust will have first priority security interest in the pledged assets in accordance with North Dakota Administrative Code chapter 69-05.2-12.
b. The person has authority to place the assets in custody under all applicable federal and state law.
c. All other requirements of North Dakota Administrative Code chapter 69-05.2-12 have been satisfied.
2. Real property posted as a collateral bond by the person must:
a. Grant the regulatory authority a first mortgage, first deed of trust, or perfected first-lien security interest in the real property with a right to sell or dispose of the real property in the event of forfeiture; and
b. Include a schedule, submitted by the applicant, of the real property mortgaged or pledged to secure the obligations under the indemnity agreement. The schedule of the real property must allow the regulatory authority to evaluate the adequacy of the real property offered to satisfy collateral requirements. The schedule must include:
(1) A description of the property; (2) The fair market value of the property, as determined by an independent appraisal conducted by a certified appraiser; and
(3) Proof of possession and title to the real property.