North Dakota Administrative Code
Title 13 - Department of Financial Institutions
Article 13-03 - Credit Unions
Chapter 13-03-22 - Investment Activities
Section 13-03-22-17 - Charitable donation accounts

1. The charitable donation account is structured as a hybrid charitable and investment vehicle used to provide charitable contributions and donations to a qualified charity.

2. The maximum book value of investment in all charitable donation accounts is limited to five percent of credit union net worth. Any credit union in violation of this limit must bring the investment into compliance with this limit within thirty days of the violation.

3. The charitable donation accounts will be held as a segregated custodial account or special purpose entity and must be specifically identified as a charitable donation account.

4. Any trust established for the charitable donation account must be regulated by a state or federal financial regulatory agency, and any trustee or persons making investment decisions for the charitable donation account must be a registered investment advisor or regulated by a state or federal agency.

5. The board of directors of the credit union has established policies governing the account consistent with the requirements of this section and safe and sound business practices.

6. The terms and conditions of the written agreement between the parties to the charitable donation account must:

7. The charitable donation account makes a distribution no less frequently than every five years, and distributes a minimum of fifty-one percent of the account's total return over the period since the last distribution.

8. Upon termination and liquidation of the charitable donation account, credit unions may receive a distribution in kind of remaining assets or cash if the assets are otherwise permissible investments for a credit union.