North Dakota Code 59-09-02 – (102) Scope
1. Except as provided in subsection 2, chapters 59-09, 59-10, 59-11, 59-12, 59-13, 59-14, 59-15, 59-16, 59-17, 59-18, and 59-19 apply to express trusts, whether charitable or noncharitable and testamentary or inter vivos, and to trusts created pursuant to a statute or a judgment or decree that requires the trust to be administered in the manner of an express trust.
Terms Used In North Dakota Code 59-09-02
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Inter vivos: Transfer of property from one living person to another living person.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Statute: A law passed by a legislature.
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
2. Chapters 59-09, 59-10, 59-11, 59-12, 59-13, 59-14, 59-15, 59-16, 59-17, 59-18, and 59-19 do not apply to:
a. A trust account established under a qualified tuition savings program pursuant to section 6-09-38.
b. Trust accounts maintained on behalf of clients or customers by licensed service professionals, including trust accounts maintained by attorneys pursuant to the North Dakota Rules of Professional Conduct and by real estate brokers pursuant to chapter 43-23.
c. An endowment care fund established by a cemetery authority pursuant to chapter 23-21.
d. Funds maintained by public bodies as defined by chapter 1-07 or other governmental unit entities.
e. Trust funds held for a single business transaction or an escrow arrangement.
f. Trusts created by a depository agreement with a financial institution.
g. An account maintained under the North Dakota Uniform Transfers to Minors Act as contained in chapter 47-24.1.
h. A fund maintained pursuant to court order in conjunction with a bankruptcy proceeding or a business liquidation.
i. A voting trust described in chapter 10-19.1.
j. Funds maintained to manage proceeds from class actions.
k. A trust created solely to secure the performance of an obligation. l. A trust created on behalf of a resident of a residential facility.
m. A trust managed by a nonprofit association for disabled individuals under 42 U.S.C. § 1396p(d)(4), as in effect on the effective date of chapters 59-09, 59-10, 59-11, 59-12, 59-13, 59-14, 59-15, 59-16, 59-17, 59-18, and 59-19 and under the rules adopted by the department of health and human services.
n. A resulting or constructive trust.