Title 41, Uniform Commercial Code

1. A person has control of a certificated security, uncertificated security, or security entitlement as provided in section 41-08-06. 2. A secured party has control of a commodity contract if: a. The secured party is the commodity intermediary with which the commodity contract is…

A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under subsection 3 of section 41…

1. A secured party has control of a controllable electronic record as provided in section 41-12-05. 2. A secured party has control of a controllable account or controllable payment intangible if the secured party has control of the controllable electronic record that evidences th…

1. A person that has control under section 41-09-04, 41-09-05, or 41-09-05.1 is not required to acknowledge that it has control on behalf of another person. 2. If a person acknowledges that it has or will obtain control on behalf of another person, unless the person otherwise agr…

1. Except as otherwise provided in subsections 3 through 5, a description of personal or real property is sufficient, regardless of whether the description is specific, if the description reasonably identifies what is described. 2. Except as otherwise provided in subsection 4, a …

1. Except as otherwise provided in subsections 3 and 4, this chapter applies to: a. A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; b. An agricultural lien; c. A sale of accounts, chattel paper, payment intangi…

A security interest arising under section 41-02-46, section 41-02-53, subsection 3 of section 41-02-90, or subsection 5 of section 41-02.1-56 is subject to this chapter. However, until the debtor obtains possession of the goods: 1. The security interest is enforceable, even if su…

1. The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in section 41-09-99 if the standards are not manifestly unreasonable. 2. Subsection 1 does not apply to the…

1. If a security agreement covers both personal and real property, a secured party may proceed: a. Under this part as to the personal property without prejudicing any rights with respect to the real property; or b. As to both the personal property and the real property in accorda…

1. Except as provided in subsection 2, a secured party does not owe a duty based on its status as secured party: a. To a person that is a debtor or obligor, unless the secured party knows: (1) That the person is a debtor or obligor; (2) The identity of the person; and (3) How to …

For purposes of this part, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created or section 35-01-29.

1. If so agreed, and in any event after default, a secured party: a. May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party; b. May take any proceeds to which the secured part…

1. If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply: a. A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under section 41-09-104 in the following order to: …

1. After default, a secured party: a. May take possession of the collateral; and b. Without removal, may render equipment unusable and dispose of collateral on a debtor's premises under section 41-09-107. 2. A secured party may proceed under subsection 1: a. Pursuant to judicial …

1. After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing. 2. Every aspect of a disposition of collateral, including the method, mann…

1. In this section, "notification date" means the earlier of the date on which: a. A secured party sends to the debtor and any secondary obligor a signed notification of disposition; or b. The debtor and any secondary obligor waive the right to notification. 2. Except as otherwis…

1. Except as otherwise provided in subsection 2, whether a notification is sent within a reasonable time is a question of fact. 2. A notification of disposition sent after default and ten days before the earliest time of disposition set forth in the notification is sent within a …

1. Except as otherwise provided in this title, a security agreement is effective according to the security agreement's terms between the parties, against purchasers of the collateral, and against creditors. 2. A transaction, although subject to this chapter, is also subject to se…

1. The contents of a notification of disposition are sufficient if the notification: a. Describes the debtor and the secured party; b. Describes the collateral that is the subject of the intended disposition; c. States the method of intended disposition; d. States that the debtor…

1. A secured party shall apply or pay over for application the cash proceeds of disposition under section 41-09-107 in the following order to: a. The reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, and, to the extent provided for by…

1. A secured party's disposition of collateral after default: a. Transfers to a transferee for value all of the debtor's rights in the collateral; b. Discharges the security interest under which the disposition is made; and c. Discharges any subordinate security interest or other…

1. A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor: a. Receives an assignment of a secured obligation from the secured party; b. Receives a transfer of collateral from the secured party and agree…

1. In this section, "transfer statement" means a record signed by a secured party stating: a. That the debtor has defaulted in connection with an obligation secured by specified collateral; b. That the secured party has exercised its postdefault remedies with respect to the colla…

1. A secured party may accept collateral in full or partial satisfaction of the obligation it secures only if: a. The debtor consents to the acceptance under subsection 3; b. The secured party does not receive, within the time set forth in subsection 4, a notification of objectio…

1. A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to: a. Any person from which the secured party has received, before the debtor consented to the acceptance, a signed notification of a claim o…

1. A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures: a. Discharges the obligation to the extent consented to by the debtor; b. Transfers to the secured party all of a debtor's rights in the collateral; c. Discharges the secur…

1. A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral. 2. To redeem collateral, a person shall tender: a. Fulfillment of all obligations secured by the collateral; and b. The reasonable expenses and attorney's fees described in subdivi…

1. A debtor or secondary obligor may waive the right to notification of disposition of collateral under section 41-09-108 only by an agreement to that effect entered into and signed after default. 2. A debtor or secondary obligor may waive the right to redeem collateral under sec…

Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this chapter with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor.

1. If it is established that a secured party is not proceeding in accordance with this chapter, a court may order or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions. 2. Subject to subsections 3, 4, and 6, a person is liable for d…

In an action arising from a transaction in which the amount of a deficiency or surplus is in issue, the following rules apply: 1. A secured party need not prove compliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance unless the …

1. The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by the secured party is not of itself sufficient to preclude the secured party from establishing tha…

1. Subject to subsection 5, unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person: a. The secured party is not liable to the person, or to a secured party or lienholder that has filed a fi…

1. Except as otherwise provided in this part, this chapter applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before July 1, 2001. 2. Except as otherwise provided in subsection 3 and sections 41-09-125 through 41-09-131:…

1. A security interest that is enforceable immediately before July 1, 2001, and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under this chapter if, on July 1, 2001, the applicable requirements for enfor…

A security interest that is enforceable immediately before July 1, 2001, but which would be subordinate to the rights of a person that becomes a lien creditor at that time: 1. Remains an enforceable security interest until July 1, 2002; 2. Remains enforceable thereafter if the se…

1. If action, other than the filing of a financing statement, is taken before July 1, 2001, and the action would have resulted in priority of a security interest over the rights of a person that becomes a lien creditor had the security interest become enforceable before July 1, 2…

1. The filing of an initial financing statement in the office specified in section 41-09-72 continues the effectiveness of a financing statement filed before July 1, 2001, if: a. The filing of an initial financing statement in that office would be effective to perfect a security …

1. In this section, "pre-effective-date financing statement" means a financing statement filed before July 1, 2001. 2. After July 1, 2001, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in …

1. A security interest attaches to collateral when the security interest becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment. 2. Except as otherwise provided in subsections 3 through 9, a security i…

A person may file an initial financing statement or a continuation statement under this part if: 1. The secured party of record authorizes the filing; and 2. The filing is necessary under this part: a. To continue the effectiveness of a financing statement filed before July 1, 20…

1. This chapter determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before July 1, 2001, the former chapter 41-09 determines priority. 2. For purposes of subsection 1 of section 41-09-42, the priority of …

1. Except as otherwise provided in this section, this Act applies to a transaction or lien within its scope, even if the transaction or lien was entered or created before this Act takes effect. 2. This Act does not affect an action, case, or proceeding commenced before this Act t…

1. A security interest that is a perfected security interest immediately before this Act takes effect is a perfected security interest under this chapter as amended by this Act if, when this Act takes effect, the applicable requirements for attachment and perfection under this ch…

A security interest that is an unperfected security interest immediately before this Act takes effect becomes a perfected security interest: 1. Without further action, when this Act takes effect if the applicable requirements for perfection under this chapter as amended by this A…

1. The filing of a financing statement before this Act takes effect is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this chapter as amended by this Act. 2. This Act does not render ineffective an …