North Dakota Code 6-03-55 – Powers of pledgee of bank assets
Holders of pledged or hypothecated notes or other evidences of indebtedness pledged by state banking associations have the right to collect and enforce payment, and to renew or extend the time of payment thereof for a period not longer than fifteen months, if no endorser, guarantor, or joint maker would be released by such renewal or extension. Such holders also have the right:
Terms Used In North Dakota Code 6-03-55
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Banking: means the business of receiving deposits, making loans, discounting commercial paper, issuing drafts, traveler's checks, and similar instruments, handling and making collections, cashing checks and drafts, and buying and selling exchange. See North Dakota Code 6-01-02
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- 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
1. To accept from the makers of such pledged or hypothecated notes or other evidences of debt, security, or additional security for the payment thereof.
2. To execute and give discharges and releases of instruments and securities to the maker upon payment in full thereof.
3. To sell, assign, and transfer any note with the security pledged therefor.
The pledgee is entitled to be reimbursed from the pledged assets, or from the proceeds of the sale thereof, for the reasonable and necessary expenses incurred and expended in collecting, renewing, securing, and otherwise protecting the assets pledged or hypothecated to the pledgee.