13-06 Debt Adjusting - North Dakota Statutes

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CHAPTER 13-06DEBT ADJUSTING13-06-01. Definitions. As used in this chapter, the following words and phrases havethe following meaning, unless the context clearly indicates otherwise:1."Debt adjusting" means the making of a contract, express or implied, with a debtor
whereby the debtor agrees to pay a certain amount of money or other thing of value
periodically to the person engaged in the debt adjusting business who shall, for a
consideration, distribute the same among certain specified creditors in accordance
with a plan agreed upon. The term includes debt adjustment, budget counseling,
debt management, or debt pooling service or the holding of oneself out, by words of
similar import, as providing services to debtors in the management of their debts and
contracting with the debtor for a fee to:a.Effect the adjustment, compromise, or discharge of any account, note, or other
indebtedness, of the debtor; orb.Receive from the debtor and disburse to the debtor's creditors any money or
other thing of value.2."Person" means an individual, corporation, limited liability company, partnership,
trust, firm, association, or other legal entity.13-06-02. Penalties. Any person who engages in the business of debt adjusting, unlessexempted under the provisions of section 13-06-03, is guilty of a class A misdemeanor.13-06-03. Exemptions. This chapter does not apply to:1.Situations involving debt adjusting incurred incidentally in the lawful practice of law in
this state.2.Banks and fiduciaries, as duly authorized and admitted to transact business in this
state and performing credit and financial adjusting service in the regular course of
their principal business.3.Title insurers and abstract companies, while doing an escrow business.4.Judicial officers or others acting under court orders.5.Nonprofit or charitable corporations or associations engaged in debt adjusting.6.Situations involving debt adjusting incurred incidentally in connection with lawful
practice as a certified public accountant and licensed public accountant.7.Bona fide trade or mercantile associations in the course of arranging adjustment or
debts with business establishments.8.Employers for their employees.9.Any person who, at the request of a debtor, arranges for or makes a loan to the
debtor, and who, at the authorization of the debtor, acts as an adjuster of the
debtor's debts in the disbursement of the proceeds of the loan, without
compensation for services rendered in adjusting the debts.10.Licensed and bonded collection agencies.Page No. 1Document Outlinechapter 13-06 debt adjusting