In contrast to most commercial banks, Bank of North Dakota (BND) 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.
The deposit base of BND is unique. Its primary deposit base is the State of North Dakota. All state funds and funds of state institutions are deposited with Bank of North Dakota, as required by law. Other deposits are accepted from any source, private citizens to the U.S. government.
The state Industrial Commission oversees Bank of North Dakota, as mandated by the 1919 state legislature. Members of the Industrial Commission are the Governor, who acts as chairman, the Attorney General and the Commissioner of Agriculture of the State of North Dakota.
The Bank also has a seven-member Advisory Board appointed by the Governor. The members are knowledgeable in banking and finance. The Advisory Board reviews the Bank's operations and makes recommendations to the Industrial Commission relating to the Bank's management, services, policies and procedures.
Bank of North Dakota is a Correspondent Bank for most financial institutions in North Dakota. In this role, the Bank provides a secure, cost-effective service with high availability of funds. Currently, the Bank processes more than 3 million items per month.
Many North Dakota financial institutions maintain their check clearing with BND and use the Bank's account with the Federal Reserve Bank to settle their cash letter charges, ACH activity, or other activity received through the Federal Reserve System.
In addition, our Retail Department provides services to depositors of Bank of North Dakota. While BND does have retail products similar to other financial institutions, these services are limited in scope.
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 deposits in Bank of North Dakota are guaranteed by the state.
BND RETURNS PROFITS TO THE STATE GENERAL FUND (555m since 1945).
See the PDF file attached to this discussion topic for the BND CHARTER.