North Dakota Century Code Title 6. Banks and Banking § 6-08.6-11. Duties and liability of bank or credit union

1. A bank or credit union does not have a fiduciary duty to any person with respect to a special deposit.

2. When the bank or credit union holding a special deposit becomes obligated to pay a beneficiary, a debtor-creditor relationship arises between the bank or credit union and beneficiary.

3. The bank or credit union holding a special deposit has a duty to a beneficiary to comply with the account agreement and this chapter.

4. If the bank or credit union holding a special deposit does not comply with the account agreement or this chapter, the bank or credit union is liable to a depositor or beneficiary only for damages proximately caused by the noncompliance. Except as provided by other law, the bank or credit union is not liable for consequential, special, or exemplary damages.

5. The bank or credit union holding a special deposit may rely on records presented in compliance with the account agreement to determine whether the bank or credit union is obligated to pay a beneficiary.

6. If the account agreement requires payment on presentation of a record, the bank or credit union shall determine within a reasonable time whether the record is sufficient to require payment. If the agreement requires action by the bank or credit union on presentation of a record, the bank or credit union is not liable for relying in good faith on the genuineness of the record if the record appears on its face to be genuine.

7. Unless the account agreement provides otherwise, the bank or credit union is not required to determine whether a permissible purpose stated in the agreement continues to exist.