By Michael Sauvante • CommonWealthGroup.org
According to North Dakota’s statutes, BND is a DBA of the state. If a state bank is chartered as a DBA of the state (which is a government corporation), then the assets and liabilities of the bank become synonymous with the assets and liabilities of the state (i.e., its balance sheet), thereby enabling the state to use all of its assets to determine the amount of new credit it can generate for the state’s benefit. No assets would have to be assigned, pledged or transferred into the bank. This would be similar to an existing corporation obtaining a bank charter (like a license) from a regulatory agency, wherein all the corporation’s existing assets would automatically be considered the assets of the bank once the charter has been granted.
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