N.D. Admin Code 13-02-14-02 - Authority to purchase life insurance
Banks may purchase and hold an interest in individual or group life insurance policies on the life of its key persons, directors, and borrowers, and may purchase life insurance in connection with compensation and benefit plans for its officers, directors, and employees, subject to the limitations in this chapter. The bank is not authorized to purchase policies if the board's basis for its insurable interest is primarily based upon the employee or director being a shareholder of the bank or bank holding company. Funding for the payment of compensation and benefit plans may be made or split in a joint manner between the bank, employee, director, or bank holding company as in "split dollar" or other insurance plans.
Notes
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02
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