Section 10-16-02-08 - Bank account and electronic funds transfer1. A retailer shall maintain a bank account at a financial institution that is insured by the federal deposit insurance corporation, federal credit union association, or federal savings and loan insurance corporation, located in North Dakota, and that is capable of electronic funds transfer. This account may be a special or general account used for deposit of money derived from selling a ticket. The amount deposited must be sufficient to cover the amount due the lottery. This amount is generally computed as gross sales, less the retailer's sales commission and value of validated redeemed winning tickets. The retailer shall deposit the amount in the account within one banking day after the date of the sale by the retailer. The lottery may transfer the amount due to the lottery on a weekly basis or on demand by electronic funds transfer on a day specified by the lottery. If the day specified for the transfer is on a federal or state holiday, the transfer will be done on the following business day. The lottery may establish a payment term with a retailer to address a situation unique to that retailer. The retailer shall hold the money derived from selling a ticket in trust and in a fiduciary capacity for the lottery. The retailer is personally liable for the money owed the lottery and may not pledge the money in the account as collateral for a loan. 2. The lottery shall notify a retailer of the amount that is to be transferred from the bank account to the lottery before the electronic funds transfer occurs. A retailer shall notify the lottery of an error or dispute of the amount twenty-four hours before the transfer occurs. 3. A retailer shall pay the amount of a nonsufficient electronic funds transfer immediately by a certified or cashier's check or money order. If a nonsufficient funds transfer is not immediately covered, the lottery may assess the retailer a monetary fine, service charge, disable the terminal until the amount is paid, and suspend or revoke the retailer's license. N.D. Admin Code 10-16-02-08
Effective February 1, 2004; amended effective April 1, 2006.General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-13