1. A security interest perfected pursuant to the law of the jurisdiction designated in subsection 1 of section 41-09-21, subsection 3 of section 41-09-25, subsection 4 of section 41-09-26.1, or subsection 2 of section 41-09-26.2 remains perfected until the earliest of: a. The time perfection would have ceased under the law of that jurisdiction; b. The expiration of four months after a change of the debtor's location to another jurisdiction; or c. The expiration of one year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction. 2. If a security interest described in subsection 1 becomes perfected under the law of the other jurisdiction before the earliest time or event described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value. 3. A possessory security interest in collateral, other than goods covered by a certificate of title and as-extracted collateral consisting of goods, remains continuously perfected if: a. The collateral is located in one jurisdiction and subject to a security interest perfected under the law of that jurisdiction; b. Thereafter the collateral is brought into another jurisdiction; and c. Upon entry into the other jurisdiction, the security interest is perfected under the law of the other jurisdiction. 4. Except as otherwise provided in subsection 5, a security interest in goods covered by a certificate of title which is perfected by any method under the law of another jurisdiction when the goods become covered by a certificate of title from this state remains perfected until the security interest would have become unperfected under the law of the other jurisdiction had the goods not become so covered. 5. A security interest described in subsection 4 becomes unperfected as against a purchaser of the goods for value and is deemed never to have been perfected as against a purchaser of the goods for value if the applicable requirements for perfection under subsection 2 of section 41-09-31 or section 41-09-33 are not satisfied before the earlier of: a. The time the security interest would have become unperfected under the law of the other jurisdiction had the goods not become covered by a certificate of title from this state; or b. The expiration of four months after the goods had become so covered. 6. A security interest in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, certificates of deposit, letter-of-credit rights, or investment property which is perfected under the law of the chattel paper's jurisdiction, the controllable electronic record's jurisdiction, the bank's jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, the securities intermediary's jurisdiction, or the commodity intermediary's jurisdiction, as applicable, remains perfected until the earlier of: a. The time the security interest would have become unperfected under the law of that jurisdiction; or b. The expiration of four months after a change of the applicable jurisdiction to another jurisdiction. 7. If a security interest described in subsection 6 becomes perfected under the law of the other jurisdiction before the earlier of the time or the end of the period described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier of that time or the end of that period, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value. 8. The following rules apply to collateral to which a security interest attaches within four months after the debtor changes its location to another jurisdiction:
a. A financing statement filed before the change pursuant to the law of the jurisdiction designated in subsection 1 of section 41-09-21 or subsection 3 of section 41-09-25 is effective to perfect a security interest in the collateral if the financing statement would have been effective to perfect a security interest in the collateral if the debtor had not changed its location. b. If a security interest that is perfected by a financing statement that is effective under subdivision a becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in subsection 1 of section 41-09-21 or subsection 3 of section 41-09-25 or the expiration of the four-month period, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value. 9. If a financing statement naming an original debtor is filed pursuant to the law of the jurisdiction designated in subsection 1 of section 41-09-21 or subsection 3 of section 41-09-25 and the new debtor is located in another jurisdiction, the following rules apply: a. The financing statement is effective to perfect a security interest in collateral in which the new debtor has or acquires rights before or within four months after the new debtor becomes bound under subsection 4 of section 41-09-13, if the financing statement would have been effective to perfect a security interest in the collateral if the collateral had been acquired by the original debtor. b. A security interest that is perfected by the financing statement and which becomes perfected under the law of the other jurisdiction before the earlier of the expiration of the four-month period or the time the financing statement would have become ineffective under the law of the jurisdiction designated in subsection 1 of section 41-09-21 or subsection 3 of section 41-09-25 remains perfected thereafter. A security interest that is perfected by the financing statement but which does not become perfected under the law of the other jurisdiction before the earlier time or event becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.
41-09-37. (9-317) Interests that take priority over or take free of security interest or agricultural lien. 1. A security interest or an agricultural lien is subordinate to the rights of: a. A person entitled to priority under section 41-09-42; and b. Except as otherwise provided in subsection 5, a person that becomes a lien creditor before the earlier of the time: (1) The security interest or agricultural lien is perfected; or (2) One of the conditions specified in subdivision c of subsection 2 of section 41-09-13 is met and a financing statement covering the collateral is filed. 2. Except as otherwise provided in subsection 5, a buyer, other than a secured party, of goods, instruments, tangible documents, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected. 3. Except as otherwise provided in subsection 5, a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected. 4. Subject to subsections 6 through 9, a licensee of a general intangible or a buyer, other than a secured party, of collateral other than electronic money, goods, instruments, tangible documents, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.
5. Except as otherwise provided in sections 41-09-40 and 41-09-41, if a person files a financing statement with respect to a purchase-money security interest before or within twenty days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches and the time of filing. 6. A buyer, other than a secured party, of chattel paper takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and: a. Receives delivery of each authoritative tangible copy of the record evidencing the chattel paper; and b. If each authoritative electronic copy of the record evidencing the chattel paper can be subjected to control under section 41-09-05, obtains control of each authoritative electronic copy. 7. A buyer of an electronic document takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and, if each authoritative electronic copy of the document can be subjected to control under section 41-07-06, obtains control of each authoritative electronic copy. 8. A buyer of a controllable electronic record takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and obtains control of the controllable electronic record. 9. A buyer, other than a secured party, of a controllable account or a controllable payment intangible takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and obtains control of the controllable account or controllable payment intangible.
41-09-38. (9-318) No interest retained in right to payment that is sold - Rights and title of seller of account or chattel paper with respect to creditors and purchasers. 1. A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold. 2. For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer's security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.
41-09-39. (9-319) Rights and title of consignee with respect to creditors and purchasers. 1. Except as otherwise provided in subsection 2, for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the goods identical to those the consignor had or had power to transfer. 2. For purposes of determining the rights of a creditor of a consignee, law other than this chapter determines the rights and title of a consignee while goods are in the consignee's possession if, under this part, a perfected security interest held by the consignor would have priority over the rights of the creditor.