This bill proposes the establishment of a new chapter in Title 6 of the North Dakota Century Code, creating a nursing and basic care facility loan guarantee program administered by the Bank of North Dakota. The program aims to guarantee loans for the construction or renovation of nursing and basic care facilities, with the Bank responsible for determining eligible loan types and projects. Additionally, the Bank may accept property and income from various sources to support the program, and it is specified that the guarantee obligations will only be payable from funds made available under this chapter.

To ensure the program's sustainability, the Bank of North Dakota is required to establish a guarantee reserve fund, which may be supplemented by transfers from the strategic investment and improvements fund, capped at $100 million. The fund will be used to reimburse lenders for guaranteed loans in default, and any interest earned will also contribute to the reserve. The bill outlines procedures for handling defaults, including the reimbursement process for lenders and the collection of guaranteed loans, while allowing the Bank to charge reasonable fees to participating lenders to cover administrative costs.