N.D. Cent. Code § 41-09-24
(9-304) Law governing perfection and priority of security interests in deposit accounts or certificates of deposit
Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
(1) The local law of a bank’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account or certificate of deposit maintained with that bank.
(1) The local law of a bank’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account or certificate of deposit maintained with that bank.
(2) The following rules determine a bank’s jurisdiction for purposes of this part: If an agreement between the bank and its customer governing the deposit account or certificate of deposit expressly provides that a particular jurisdiction is the bank’s jurisdiction for purposes of this part, this chapter, or this title, that jurisdiction is the bank’s jurisdiction.
(2) The following rules determine a bank’s jurisdiction for purposes of this part: If an agreement between the bank and its customer governing the deposit account or certificate of deposit expressly provides that a particular jurisdiction is the bank’s jurisdiction for purposes of this part, this chapter, or this title, that jurisdiction is the bank’s jurisdiction.
(3) If subdivision a does not apply and an agreement between the bank and its customer governing the deposit account or certificate of deposit expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.
(3) If subdivision a does not apply and an agreement between the bank and its customer governing the deposit account or certificate of deposit expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.
(4) If neither subdivision a nor b applies and an agreement between the bank and the bank’s customer governing the deposit account or certificate of deposit expressly provides that the deposit account or certificate of deposit is maintained at an office in a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.
(4) If neither subdivision a nor b applies and an agreement between the bank and the bank’s customer governing the deposit account or certificate of deposit expressly provides that the deposit account or certificate of deposit is maintained at an office in a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.
(5) If none of the preceding subdivisions applies, the bank’s jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer’s account is located.
(5) If none of the preceding subdivisions applies, the bank’s jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer’s account is located.
(6) If none of the preceding subdivisions applies, the bank’s jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
(6) If none of the preceding subdivisions applies, the bank’s jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
(7) Change in Law Governing Perfection. When the bank’s jurisdiction changes, the jurisdiction whose law governs perfection under subsection (a) changes, as well. Nevertheless, the change will not result in an immediate loss of perfection. See Section 9-316(f), (g).
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.