AGO 85-38.

• Court: North Dakota

North Dakota Attorney General Opinions 1985. AGO 85-38. Office of the Attorney General State of North Dakota Opinion No. 85-38Date Issued: October 11, 1985Requested by: Senator John M. Olson--QUESTIONS PRESENTED-- Whether a financial institution's disclosure to a realtor or closing agent of a customer's outstanding indebtedness on specific real property in relation to the sale or transfer of the property falls within the exception of N.D.C.C. § 6-08.1-02(6). Whether a financial institution's disclosure to a business of the sufficiency of a customer's account to cover a check issued by the customer to the business falls within the exception of N.D.C.C. § 6-08.1-02(6). --ATTORNEY GENERAL'S OPINION-- It is my opinion that a financial institution's disclosure to a realtor or closing agent of a customer's outstanding indebtedness on specific real property in relation to the sale or transfer of the property falls within the exception of N.D.C.C. § 6-08.1-02(6). It is my further opinion that a financial institution's disclosure to a business of the sufficiency of a customer's account to cover a check issued by the customer to the business falls within the exception of N.D.C.C. § 6-08.1-02(6). --ANALYSES-- I. N.D.C.C. Ch. 6-08.1 was enacted by the Legislative Assembly with the purpose of establishing specific statutory guidelines for financial institutions in responding to requests for disclosure of customer information. Generally, N.D.C.C. Ch. 6-08.1 prohibits disclosure of customer financial information in the absence of express customer consent or valid legal process. However, the requirements of N.D.C.C. Ch. 6-08.1 do not apply to:

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6. The exchange in the regular course of business of customer credit information between a financial institution and other financial institutions or commercial entities, directly, or through a customer reporting agency.

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N.D.C.C. § 6-08.1-02(6). The absence of a statutory definition of 'commercial entity' necessitates a determination of its ordinary meaning. N.D.C.C. § 1- 02-02. Although the legislature has not defined 'commercial entity,' it has articulated a definition of 'business entity' in N.D.C.C. Ch. 51-22. Inasmuch as 'commerce' is generally considered to be synonymous with 'business,' Webster's New World Dictionary, 285 (2d Ed. 1982), the legislature's definition of...