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N.D. Cent. Code § 41-09-46

(9-326) Priority of security interests created by new debtor

Known as the Uniform Commercial Code

The act spans §§ 41–41 (597 sections).

1. Subject to subsection 2, a security interest that is created by a new debtor in collateral in which the new debtor has or acquired rights and perfected by a filed financing statement that would be ineffective to perfect the security interest but for the application of section 41-09-79 or of section 41-09-79 and subdivision a of subsection 9 of section 41-09-36 is subordinate to a security interest in the same collateral which is perfected other than by such a filed financing statement.

2. The other provisions of this part determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in subsection 1. However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound.

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.