All Roll Calls
Yes: 185 • No: 1
North DakotaSB 21222025 Regular SessionSenateWALLET
AN ACT to create and enact chapter 32-10.1 and a new section to chapter 32-19.2 of the North Dakota Century Code, relating to the Uniform Commercial Real Estate Receivership Act and trustees for commercial buildings during foreclosures; to provide for a legislative management study; and to provide for application.
Sponsored By: Senate Industry and Business
Became Law
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 0 benefits, 0 costs, 5 mixed.
How creditors file and get paid
The receiver must mail notice to creditors and publish notice if the court orders it. Creditors have at least 90 days after the later of mailing or last publication to file claims, signed under penalty of perjury with supporting records. The court may limit unsecured claims if assets are short and pays secured creditors by lien priority. The court may approve receiver and professional fees from the estate. If funds are short or the appointment was wrongful or in bad faith, the court can order the requester or responsible person to pay fees and damages. Receivers file interim and final reports, and the court can remove or replace a receiver or end an unnecessary receivership. The receiver is discharged after court approval and full distribution.
How receivers run and protect property
Receivers can collect rents, manage the property or business, and hire professionals with court approval and itemized bills. They may adopt or reject contracts tied to the property; if they do not ask the court in a reasonable time, the contract is treated as rejected. Damage claims from rejection must be filed by the later of the receivership claim deadline or 30 days after the court approves the rejection. People who owe money to the property must pay the receiver, and holders of property must turn it over, with protection for creditors whose lien depends on possession. Appointment generally pauses other actions against the property, with exceptions like foreclosure by the party who sought appointment, criminal cases, and tax disputes. The receiver is treated as a lien creditor, and property acquired after appointment stays subject to prior security interests. Owners must cooperate, turn over records and passwords, and can face damages and contempt for refusing.
Receiver sales and lender rights
With court approval, a receiver can sell, lease, or transfer property outside the ordinary course. Sales are free of subordinate liens and the lien of the party who got the receiver appointed; senior liens remain, and wiped liens attach to the sale money. A creditor with a valid lien may buy and offset the lien amount if it pays costs and any senior liens. A good‑faith sale stays valid even if the order changes later, unless a court stayed the order before the sale. A lender that asked for a receiver does not become the owner’s agent or lose rights, and deficiency judgments remain available under state law unless another law says otherwise.
What properties and cases this covers
The law creates a uniform system for commercial real estate receiverships. It covers interests in real property and related business property. One‑to‑four unit dwellings are generally excluded unless used for business, planned for unit sales or leases, or the owner collects rent; governmental receiverships under other laws are also excluded. When this chapter applies, a different trustee chapter does not. Courts can recognize out‑of‑state receivers and aim for uniform results across states. The law preserves certain federal e‑signature rules and does not allow e‑delivery of some notices. It does not apply to receivers appointed before the law takes effect.
When courts appoint receivers and safeguards
Courts can appoint a receiver before or after judgment to protect property, including in foreclosure when collateral is short, the owner agreed in writing, or to stop waste. Courts give notice and a chance to be heard, but can act fast in urgent cases. Receivers must be independent; nominees swear they have no disqualifying conflicts, and the court cannot appoint a disqualified person. Receivers must post a bond or other approved security; claims against the bond must be filed within 12 months after discharge. The appointing court has exclusive control of the case, and you can sue a receiver personally only if that court allows it.
Sponsors & Cosponsors
Sponsor
Senate Industry and Business
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/18/2025
Second reading, passed, yeas 45 nays 1
Yes: 45 • No: 1
House vote • 3/10/2025
Second reading, passed as amended, yeas 93 nays 0
Yes: 93 • No: 0
Senate vote • 1/16/2025
Second reading, passed, yeas 47 nays 0
Yes: 47 • No: 0
Actions Timeline
Filed with Secretary Of State 03/25
3/26/2025HouseSigned by Governor 03/24
3/24/2025SenateSent to Governor
3/21/2025SenateSigned by President
3/21/2025SenateSigned by Speaker
3/20/2025HouseSecond reading, passed, yeas 45 nays 1
3/18/2025SenateConcurred
3/18/2025SenateReturned to Senate (12)
3/11/2025SenateSecond reading, passed as amended, yeas 93 nays 0
3/10/2025HouseAmendment adopted, placed on calendar
3/7/2025HouseReported back amended, do pass, amendment placed on calendar 11 0 2
3/7/2025HouseCommittee Hearing 03:00
3/5/2025HouseIntroduced, first reading, referred Industry, Business and Labor Committee
2/13/2025HouseReceived from Senate
1/17/2025HouseSecond reading, passed, yeas 47 nays 0
1/16/2025SenateReported back, do pass, place on calendar 5 0 0
1/15/2025SenateCommittee Hearing 09:30
1/13/2025SenateIntroduced, first reading, referred Industry and Business Committee
1/7/2025Senate
Bill Text
Enrollment
INTRODUCED
Prepared by the Legislative Council staff for Representative Klemin
SENATE BILL NO. 2122 with House Amendments
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