N.D. Cent. Code § 41-09-112
(9-617) Rights of transferee of collateral
Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
(1) A secured party’s disposition of collateral after default: Transfers to a transferee for value all of the debtor’s rights in the collateral;
(1) A secured party’s disposition of collateral after default: Transfers to a transferee for value all of the debtor’s rights in the collateral;
(2) Discharges the security interest under which the disposition is made; and
(2) Discharges the security interest under which the disposition is made; and
(3) Discharges any subordinate security interest or other subordinate lien.
(3) Discharges any subordinate security interest or other subordinate lien.
(4) A transferee that acts in good faith takes free of the rights and interests described in subsection 1, even if the secured party fails to comply with this chapter or the requirements of any judicial proceeding.
(4) A transferee that acts in good faith takes free of the rights and interests described in subsection 1, even if the secured party fails to comply with this chapter or the requirements of any judicial proceeding.
(5) If a transferee does not take free of the rights and interests described in subsection 1, the transferee takes the collateral subject to: The debtor’s rights in the collateral;
(5) If a transferee does not take free of the rights and interests described in subsection 1, the transferee takes the collateral subject to: The debtor’s rights in the collateral;
(6) The security interest or agricultural lien under which the disposition is made; and
(6) The security interest or agricultural lien under which the disposition is made; and
(7) Any other security interest or other lien.
(7) Any other security interest or other lien.
(8) Title Taken by Nonqualifying Transferee. Subsection (c) specifies the consequences for a transferee who does not qualify for protection under subsections (a) and (b) (i.e., a transferee who does not act in good faith). The transferee takes subject to the rights of the debtor, the enforcing secured party, and other security interests or other liens.
Official source: North Dakota Legislative Branch. Reproduced from public-domain North Dakota statutes; confirm against the official source for the current text. Not legal advice.