N.D. Admin Code 13-02-09-02 - Definitions

In determining the total direct, indirect, or contingent liability of a borrower for purposes of North Dakota Century Code section 6-03-59, the following definitions apply:

1. "Contingent liability" includes a potential economic obligation of an enterprise if:

a. It is probable that a liability will be incurred; and

b. The amount of the liability can be reasonably estimated.

2. "Corporation" means any entity organized and incorporated under law, including a limited liability company.

3. "Direct liability" means all obligations of an enterprise for which it has primary responsibility for repayment.

4. "Indirect liability" includes a potential economic obligation of an enterprise if:

a. It is probable that a liability will be incurred; and

b. The amount of the liability can be reasonably estimated.

5. "Limited partnership" means a partnership formed by two or more persons having one or more general partners and one or more limited partners, and includes a limited liability partnership.

6. "Parent corporation" means a corporation which owns or controls one or more subsidiaries.

7. "Probable" means that a future event or events that would cause a contingency to become a liability are likely to occur.

8. "Subsidiary" means a corporation which is owned or controlled by a parent corporation.

Notes

N.D. Admin Code 13-02-09-02

Effective September 1, 1986; amended effective December 1, 1998.

General Authority: NDCC 6-01-04

Law Implemented: NDCC 6-03-59