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To deliver quality, sound financial services that promote agriculture, commerce and industry in North Dakota.


During the early 1900's, North Dakota's economy was based on agriculture. Serious in-state problems prevented

cohesive efforts in buying and selling crops and financing farm operations. Grain dealers outside the state

suppressed grain prices; farm suppliers increased their prices; and interest rates on farm loans climbed.

By 1919, popular consensus wanted state ownership and control of marketing and credit agencies. Thus, the

state legislature established Bank of North Dakota and the North Dakota Mill and Elevator Association.

BND opened July 28, 1919, with $2 million of capital. Over the years, our fiscal responsibilities to the state have

increased dramatically. Today, the Bank operates with more than $270 million in capital. The State of North

Dakota began using bank profits in 1945 when money was first transferred into the General Fund. Since that

time, capital transfers have become the norm to augment state revenues.

In partnership with more than 100 other North Dakota financial institutions, Bank of North Dakota continues to

meet and expand its 90-plus year mission to promote the development of agriculture, commerce and industry in

North Dakota.

Organizational Structure of the Bank

Industrial Commission

The 1919 State Legislature created the State Industrial Commission whose function was to conduct and

manage, on behalf of the State of North Dakota, certain utilities, industries, enterprises, and business

projects. The Industrial Commission was charged with the operation, management, and control of Bank

of North Dakota. The Industrial Commission is composed of the Governor (who acts as Chairman), the

Attorney General, and the Agriculture Commissioner of the State of North Dakota.

Advisory Board

Also joining the State Industrial Commission in overseeing the operations of Bank of North Dakota is the

Bank of North Dakota Advisory Board of Directors, which was established by state statute in 1969. The

Governor of North Dakota was given the power to appoint Advisory Board members knowledgeable in

banking and finance to the five-member board. The Advisory Board has since been expanded to include

seven members. Duties of the Advisory Board include review of the Bank's operations and

recommendations to the Industrial Commission concerning management, services, policies and


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Executive Committee

Bank of North Dakota’s Executive Committee consists of seven members including the president and

CEO and leaders in Lending, Banking, Accounting and Treasury, Student Loans, Human Resources and

Information Technology.


There are 168 people employed by Bank of North Dakota.

Bank of North Dakota Is an Economic Development Bank

Bank of North Dakota has resided in Bismarck for over 90 years, moving to its current location in 2008. There are

no branches of the Bank.

Participation with ND’s Financial Institution

BND works in partnership with most financial institutions in North Dakota among a broad range of

services and products. This efficient business model allows us to promote the state’s programs and work

with knowledgeable people that have the best interests of North Dakota taxpayers in mind.

Retail Banking – While BND does have retail products similar to other financial institutions,

these services are limited in scope. Retail deposits only account for approximately 1.5 percent of

our total deposits.

Federal Banking Laws and Regulations mandate financial institutions the responsibility to obtain

and document appropriate identification and other pertinent information of their customers.

Procedures require that all new customers open accounts in person at the Bank.

Demand Deposit and NOW accounts (checking accounts) are limited to North Dakota residents.

Savings accounts and Certificates of Deposit are available to all U.S. Citizens.

The Majority of Bank Deposits come from Tax Collections and State Fees

The deposit base of Bank of North Dakota is unique. The original act of 1919 provided that all

public funds were to be deposited with the Bank of North Dakota. An initiated measure in 1921

changed this by providing that all political subdivisions, with the exception of the state itself,

make deposits either with private institutions or with the Bank of North Dakota. Because the

law requires that all monies of the state and state institutions must be deposited with Bank of

North Dakota, the state does not have the problem of allocating funds to various financial

institutions. "The Bank of North Dakota may receive deposits

As described in Section 9 of the original act:

from any source, including the United States Government and any foreign or domestic

individual, corporation, association, municipality, bank or government". The Bank of North

Dakota pays comparable interest on all deposits whether state or private.

2 Find Bank of North Dakota @

BND Returns Profits to the State

Beginning in 1945 BND began transferring profits to the general fund. Since then BND has returned over

$555 million to the general fund.

BND is Not FDIC Insured

In contrast to most commercial banks, Bank of North Dakota is not a member of the Federal Deposit

Insurance Corporation (FDIC). North Dakota Century Code 6-09-10 provides that all BND deposits are

guaranteed by the full faith and credit of the State of North Dakota.

Minneapolis Federal Reserve Bank

BND is an online member of the Minneapolis Federal Reserve Bank. We do check processing, maintain a

reserve requirement, safe keep all our Fed book entry securities and have discount window borrowing


Bank of North Dakota Service Areas

Lending Services:

On behalf of the State of North Dakota, the Bank administers several lending programs that promote

agriculture, commerce and industry. Financing economic development is the thrust of Bank of North

Dakota’s efforts. The Bank is specifically authorized to assist numerous other financial institutions in

providing financing to stimulate economic development in the state.

BND is involved in two types of lending: direct lending and participation loans.

BND by statute can do anything any other bank can do, unless restricted by statute. Mostly by practice

we do not make direct loans. However, legislative action has given express lending authority to BND for:

The purchase or acquisition of bank stock or the formation of a bank holding company.

• The acquisition or refinancing of farm real estate by qualified individuals.

• Assistance with post secondary educational costs (i.e., student loans).

All other lending by BND is through participation with a lead financial institution. This lead lender can be

any qualified financial institution - most notably a bank, savings and loan, credit union or Farm Credit


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Lending Service programs include: (See for in-depth details.)

Farm/Ranch Financing Programs

• Farm and Ranch Participation Loan Program

BND's Farm and Ranch Participation Loan Program is founded on two principles: to serve the

agricultural credit needs of the state, and to ensure credit decisions are made on a sound and

collectible basis. This program is broadly defined to accommodate the wide variety of credit

needs in North Dakota's agricultural market.

• Beginning and Established Farmer/Rancher Financing Programs

Any farmer or rancher will tell you that the business of agriculture is more difficult today than it

has ever been. The challenges to the young or beginning farmer are even greater. Bank of North

Dakota can help you meet those challenges through one of a number of farm loan programs

that makes financing more affordable and easier to access.

• Livestock Retention/Improvement Programs

In order to position North Dakota farmers and ranchers to survive in today's agricultural climate,

Bank of North Dakota offers assistance to livestock producers with multiple programs.

• Farm Income Diversification, Value-Added Equity Financing, and Irrigation Programs

In another effort to bolster North Dakota’s farms and ranches, Bank of North Dakota has

concentrated on helping producers diversify their incomes.

• Guarantee Loan Programs for Farmers and Ranchers

Bank of North Dakota offers two Guarantee Loan programs to farmers and ranchers, the

Livestock Loan Guarantee Program and the Farm Real Estate Loan Guarantee Program. A loan

guarantee is an agreement that in the event of default under the promissory note, the Bank

shall pay to the lender the percentage as described in the specific program material referenced

under the Farm Real Estate Loan Guarantee Program.

Business Financing Programs

Bank of North Dakota (BND) offers a number of programs that make financing easier to access, and less

expensive. BND’s business financing programs include:

Commercial Bank Participation Loan Program

BND's Commercial Bank Participation Loan Program is founded on the principles that all loans

should serve the legitimate credit needs of the state & be made on a sound and collectible basis.

4 Find Bank of North Dakota @




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Corso di laurea: Corso di laurea in servizio sociale
Docente: Soci Anna
Università: Bologna - Unibo
A.A.: 2011-2012

I contenuti di questa pagina costituiscono rielaborazioni personali del Publisher Atreyu di informazioni apprese con la frequenza delle lezioni di Elementi di economia e studio autonomo di eventuali libri di riferimento in preparazione dell'esame finale o della tesi. Non devono intendersi come materiale ufficiale dell'università Bologna - Unibo o del prof Soci Anna.

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