Index
Civic & GovernmentNorth Dakota, USA

The Bank of North Dakota (State-Owned Bank)

Summary

North Dakota is the only state in the U.S. that owns and operates its own bank. By law, all state funds must be deposited in the Bank of North Dakota (BND).

Rights & Rules

  • 01.
    The state government must deposit all state tax collections and fees into the BND.
  • 02.
    The bank's primary purpose is to promote agriculture, commerce, and industry within North Dakota, not to maximize profit for private shareholders.
  • 03.
    The BND partners with local community banks to provide low-interest loans to farmers, small businesses, and students in the state.
  • 04.
    Unlike private banks, the BND's deposits are guaranteed directly by the sovereign power of the State of North Dakota, not the FDIC.

Penalties

  • 01.
    State agencies or officials who attempt to deposit state funds in private out-of-state banks are violating the core statute.

Verified Citations

North Dakota Century Code Section 6-09

Source
"All state funds, and funds of all state penal, educational, and industrial institutions, must be deposited in the Bank of North Dakota by the persons having control of such funds..."