# N.D. Cent. Code § 10-32.1-08: 10-32.1-08. Powers > North Dakota · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-08 ## Section - **Citation:** N.D. Cent. Code § 10-32.1-08 - **Heading:** 10-32.1-08. Powers - **Jurisdiction:** North Dakota - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** ND Code / Title 10 / Chapter 10-32.1 / Section 10-32.1-08 ## Text 10-32.1-08. Powers 1. Except as provided in subsection 2, a limited liability company has the capacity to sue and be sued in its own name and the power to do all things necessary or convenient to carry on its activities. With respect to loans, guarantees, and suretyship: a. Without in any way limiting the generality of the power of a limited liability company to do all things necessary or convenient to carry on its activities, a limited liability company may lend money to, guarantee an obligation of, become a surety for, or otherwise financially assist a person, if the transaction, or a class of transactions to which the transaction belongs, is approved pursuant to this chapter and the operating agreement of the limited liability company, and: (1) Is in the usual and regular course of business of the limited liability company; (2) Is with, or for the benefit of, a related organization, an organization in which the limited liability company has a financial interest, an organization with which the limited liability company has a business relationship, or an organization to which the limited liability company has the power to make donations, any of which relationships constitute consideration sufficient to make the loan, guarantee, suretyship, or other financial assistance so approved enforceable against the limited liability company; (3) Is with, or for the benefit of, a member who provides services to the limited liability company, or a manager or other employee of the limited liability company or a subsidiary, including a member, manager, or employee who is a governor of the limited liability company or a subsidiary, and may reasonably be expected, in the judgment of the board of governors, to benefit the limited liability company; or (4) Whether or not any separate consideration has been paid or promised to the limited liability company, has been approved by: (a) The owners of two-thirds of the voting power of persons other than the interested person or persons; or (b) The unanimous vote of all members, whether or not ordinarily entitled to vote. b. Any loan, guaranty, surety contract, or other financial assistance described in subdivision a may be with or without interest and may be unsecured or may be secured in any manner including, without limitation, a grant of a security interest in the transferable interest of a member in the limited liability company. c. This subsection does not grant any authority to act as a bank or to carry on the business of banking. 2. Until a limited liability company has or has had at least one member, the company lacks the capacity to do any act or carry on any activity except: a. Delivering to the secretary of state for filing: (1) A statement of change under section 10-32.1-17; (2) An amendment to the certificate under section 10-32.1-21; (3) A statement of correction under section 10-32.1-88; (4) An annual report under section 10-32.1-89; (5) A notice of termination under section 10-32.1-51; and (6) Articles of dissolution and termination under section 10-32.1-51; b. Admitting a member under section 10-32.1-27; and c. Dissolving under section 10-32.1-50. 3. A limited liability company that has or has had at least one member may ratify an act or activity that occurred when the company lacked capacity under subsection 2. 4. A limited liability company only may seek to obtain a license or permit required by the state after the articles of organization are filed with the secretary of state and the limited liability company has one or more members. ## Nearby sections - [N.D. Cent. Code § 10-32.1-01 10-32.1-01. Citation](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-01.md) - [N.D. Cent. Code § 10-32.1-02 10-32.1-02. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-02.md) - [N.D. Cent. Code § 10-32.1-03 10-32.1-03. Legal recognition of electronic records and electronic signatures](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-03.md) - [N.D. Cent. Code § 10-32.1-04 10-32.1-04. Knowledge and notice](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-04.md) - [N.D. Cent. Code § 10-32.1-05 10-32.1-05. Application to existing relationships](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-05.md) - [N.D. Cent. Code § 10-32.1-06 10-32.1-06. Reservation of legislative right](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-06.md) - [N.D. Cent. Code § 10-32.1-07 10-32.1-07. Nature, purpose, and duration of a limited liability company](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-07.md) - [N.D. Cent. Code § 10-32.1-08 10-32.1-08. Powers](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-08.md) - [N.D. Cent. Code § 10-32.1-09 10-32.1-09. Governing law](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-09.md) - [N.D. Cent. Code § 10-32.1-10 10-32.1-10. Supplemental principles of law](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-10.md) - [N.D. Cent. Code § 10-32.1-11 10-32.1-11. Limited liability company name](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-11.md) - [N.D. Cent. Code § 10-32.1-13 10-32.1-13. Operating agreement - Scope - Function - Limitations](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-13.md) - [N.D. Cent. Code § 10-32.1-14 10-32.1-14. Operating agreement effect on a limited liability company and persons becoming members - Preformation agreement](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-14.md) - [N.D. Cent. Code § 10-32.1-15 10-32.1-15. Operating agreement - Effect on third parties and relationship to records effective on behalf of a limited liability company](https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-15.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_ND_T10_C10-32.1_S10-32.1-08. Check the current official text before relying on it. Not legal advice.