Title 41, Uniform Commercial Code

This chapter does not require a bank to enter into an agreement of the kind described in subdivision b of subsection 1 of section 41-09-04, even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the …

1. Except as otherwise provided in subsection 2 and sections 41-09-68 through 41-09-71, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this chapter. 2. An agreement between the debtor and secured party which p…

The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.

1. In this section, "value" has the meaning provided in subsection 1 of section 41-03-29. 2. Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may hav…

1. Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections 2 through 5, the rights of an assignee are subject to: a. All terms of the agreement between the account debtor and assignor and any defense or claim in reco…

1. A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitution is a breac…

1. Subject to subsections 2 through 9 and 12, an account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, signed by the assignor or the assignee, that…

1. Except as otherwise provided in subsection 2, a term in a lease agreement is ineffective to the extent that the term: a. Prohibits, restricts, or requires the consent of a party to the lease to the assignment, transfer, creation, attachment, perfection, or enforcement of a sec…

1. Except as otherwise provided in subsections 2 and 6, a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health care insurance receivable or a general intangible, including a contract, permit, license, or franchise, and whic…

1. A term in a letter of credit or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit which prohibits, restricts, or requires the consent of an applicant, issuer, or nominated person to a beneficiary's assignment of or creation of a securit…

1. Except as otherwise provided in subsection 2, if the local law of this state governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is: a. The office designated for…

1. Subject to subsection 2, a financing statement is sufficient only if the statement: a. Provides the name of the debtor; b. Provides the name of the secured party or a representative of the secured party; c. Indicates the collateral covered by the financing statement; and d. If…

1. A financing statement sufficiently provides the name of the debtor: a. Except as otherwise provided in subdivision c, if the debtor is a registered organization, or the collateral is held in a trust that is a registered organization, only if the financing statement provides th…

A financing statement sufficiently indicates the collateral that it covers if the financing statement provides: 1. A description of the collateral pursuant to section 41-09-08; or 2. An indication that the financing statement covers all assets or all personal property.

1. A consignor, lessor, or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in subsection 1 of section 41-09-31, using the terms "consignor", "consignee", "les…

1. A financing statement substantially satisfying the requirements of this part is effective, even if the financing statement has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading. 2. Except as otherwise provided in subsec…

1. A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition. 2. E…

1. Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had t…

1. A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if: a. The debtor authorizes the filing in a signed record or pursuant to subsection 2 or 3; or b. T…

1. A filed record is effective only to the extent that it was filed by a person that may file it under section 41-09-80. 2. A record authorized by one secured party of record does not affect the financing statement with respect to another secured party of record. 3. A continuatio…

1. A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financing statement is filed under …

1. Subject to section 41-09-80, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subsection 5, otherwise amend the information provided in, a financing statement by filing an amendment that: a. Identifies, by its file nu…

1. If a financing statement covering consumer goods is filed after December 31, 1973, then within one month or within ten days following written demand by the debtor after there is no outstanding secured obligation and no commitment to make advances, incur obligations, or otherwi…

1. Except as otherwise provided in subsection 3, an initial financing statement may reflect an assignment of all of the secured party's power to authorize an amendment to the financing statement by providing the name and mailing address of the assignee as the name and address of …

1. Except as otherwise provided in subsections 5, 6, and 7, a financing statement filed in the personal property records or recorded in real property records is effective for a period of five years after the date of filing. 2. Except as otherwise provided in subsections 5, 6, and…

1. Except as otherwise provided in subsection 2, communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing. 2. Filing does not occur with respect to a record that a filing office refuses to accept…

The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record.

1. A person may file in the filing office an information statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed. 2. An information statement under subsection 1 must: a. Identify the rec…

1. For each record filed in a filing office, the filing office shall: a. Assign a unique number to the filed record; b. Create a record that bears the number assigned to the filed record and the date and time of filing; c. Maintain the filed record for public inspection; and d. I…

1. A filing office shall refuse to accept a record for filing for a reason set forth in subsection 2 of section 41-09-87 and may refuse to accept a record for filing only for a reason set forth in subsection 2 of section 41-09-87. 2. If a filing office refuses to accept a record …

1. A filing office that accepts written records may not refuse to accept a written initial financing statement in the form and format established by the secretary of state, except for a reason set forth in subsection 2 of section 41-09-87. 2. A filing office that accepts written …

1. The filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under section 41-09-86 with respect to all secured parties of record. The record must be ret…

1. Any person may request electronically an acknowledgment of a filing. The central indexing system shall provide to the person detailed information and an image of the record, if not filed electronically, showing the number assigned to the record pursuant to subdivision a of sub…

Delay by the filing office beyond a time limit prescribed by this part is excused if: 1. The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond control of the filing office; and 2…

1. The fee for filing and indexing an original statement under this title is forty dollars. An additional fee may not be charged for the same statement to gain protection under the central notice system. 2. The fee for filing and indexing an amendment, assignments, releases, or c…

The secretary of state shall adopt and publish rules to implement this chapter. The rules must be: 1. Consistent with this chapter; and 2. Adopted and published in accordance with chapter 28-32.

1. After default, a secured party has the rights provided in this part and, except as otherwise provided in section 41-09-99, those provided by agreement of the parties. A secured party: a. May reduce a claim to judgment, foreclose, or otherwise enforce the claim, security intere…

Except as otherwise provided in section 41-09-119, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed sections: 1. Paragraph 3 of subdivision d of su…

As used in this chapter: 1. "Authorized", when used with reference to a financing statement record, means that the financing statement record was filed by a person authorized to do so as provided in sections 41-09-80 and 41-09-130. 2. "Debtor" means a natural person whose name wa…

1. A person commits an offense if the person knowingly causes to be presented for filing in a filing office, or promotes the filing in a filing office, of a financing statement record that the person knows: a. Not to be authorized under section 41-09-80 or 41-09-130 by the natura…

1. A person shall not knowingly cause to be presented for filing in a filing office or promote the filing of a financing statement record in a filing office that the person knows: a. Not to be authorized under section 41-09-80 or 41-09-130 by the natural person whose name was pro…

1. The following persons may bring an action to enjoin violation of this chapter or to recover civil damages under this chapter: a. The natural person whose name was provided as an individual debtor in the financing statement record filed without that person's authorization under…

An action under this chapter may be brought in any district court in a county where any of the persons who may bring an action under this chapter reside.

This law is cumulative of other law under which a person may obtain judicial relief with respect to any filed or recorded document.

This chapter may be cited as Transitional Provisions for Uniform Commercial Code Amendments (2022).

1. In this chapter: a. "Adjustment date" means July 1, 2025. b. "Article 12 property" means a controllable account, controllable electronic record, or controllable payment intangible. 2. The following definitions in other chapters of this title apply to this chapter. a. "Controll…