Bank of North Dakota Expands College SAVE to Financial Advisors

BISMARCK–December 1, 2010– Bank of North Dakota recently announced the expansion of North Dakota’s 529 college savings plan, College SAVE, to the financial advisor community.

The expansion will offer families who work with financial advisors a flexible, smart way to move one step closer to the goal of saving for a higher education.

North Dakota residents and their financial advisors will benefit from:
• Federal and state tax-deferred growth and tax-free qualified withdrawals¹
• A state tax deduction for North Dakota taxpayers of up to $10,000 if married and filing jointly, and up to $5,000 if single (per year in both cases)²
• An opportunity to qualify for a matching grant of up to $300 from Bank of North Dakota³
• Flexible investment options and control over the account

"We recognize that financial advisors are among the best resources a family can have while making important investment decisions,” explained Eric Hardmeyer, Bank of North Dakota president. “This expansion brings the benefits of College SAVE to that powerful relationship, offering another way to make saving for college part of our families’ overall financial strategy.”

Families who choose to work with a financial advisor to invest in College SAVE will not be charged any additional fees by the Plan. The costs are the same as when a participant chooses to open an account directly through the College SAVE Web site at www.collegesave4u.com or by contacting a Bank of North Dakota representative at 1.866.728.3529. Advisors will now receive a 0.30% annual servicing fee borne by the program manager.

A total of 167 available advisors reside in cities that include Bismarck, Minot, Fargo, Grand Forks, Kenmare, Lamoure, Jamestown, Beulah, Bottineau, Bowman, Devils Lake, and Williston.

"Every day we are working to help support financial advisors use effective tools to help their clients save for college. Now North Dakota residents may choose to work with an advisor for their College SAVE investing needs in a community close to where they live,” said Hardmeyer.

College SAVE is administered by Bank of North Dakota. The nation’s only state-owned bank, BND was established in 1919 to encourage and promote agriculture, commerce and industry in North Dakota. BND is overseen by the Industrial Commission of North Dakota, consisting of Governor John Hoeven as chairman, Attorney General Wayne Stenehjem, and Agriculture Commissioner Doug Goehring.

For more information about North Dakota’s College SAVE Plan, call 1-866-SAVE-529
(1-866-728-3529) or visit www.collegesave4u.com to obtain a Plan Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Disclosure Statement; read and consider it carefully before investing. Upromise Investments, Inc. serves as Distributor and Underwriter.

¹Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

²Rollovers from another state’s 529 plan are not eligible for the state income tax deduction.

³Matching grants are subject to the availability of funds and can be reduced or stopped at BND’s discretion.

If you are not a North Dakota taxpayer, consider before investing whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.

The College SAVE Plan is a 529 plan established by the State of North Dakota. Bank of North Dakota acts as trustee of the College SAVE Trust and is responsible for administering the Plan. Upromise Investments, Inc., and Upromise Investment Advisors, LLC, serve as the Plan Manager and Recordkeeping and Servicing Agent, respectively, with overall responsibility for the day-to-day operations, including marketing and distribution of the Plan. The Vanguard Group, Inc. provides underlying investments for the Plan. The Plan’s Portfolios, although they invest in mutual funds, are not mutual funds. Units of the Portfolios are municipal fund securities and the value of units will vary with market conditions.

Investment returns are not guaranteed, and you could lose money by investing in the College SAVE Plan.

The Plan Manager may pay financial intermediaries for certain shareholder support servicing activities and administrative or other client services for accounts held in the Plan (the “Administrative Services Payment”). The Administrative Services Payment shall not be borne by the Plan or its participants, but rather shall be made from the Plan Manager’s own resources. For additional information please refer to the Plan Disclosure Statement or contact your financial advisor.

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