N.D. Cent. Code § 41-09-61
(9-341) Bank's rights and duties with respect to deposit account or certificate of deposit
Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
Except as otherwise provided in subsection 3 of section 41-09-60, and unless the bank otherwise agrees in an authenticated record, a bank’s rights and duties with respect to a deposit account or certificate of deposit maintained with the bank are not terminated, suspended, or modified by:
Except as otherwise provided in subsection 3 of section 41-09-60, and unless the bank otherwise agrees in an authenticated record, a bank’s rights and duties with respect to a deposit account or certificate of deposit maintained with the bank are not terminated, suspended, or modified by:
(1) The creation, attachment, or perfection of a security interest in the deposit account or certificate of deposit;
(1) The creation, attachment, or perfection of a security interest in the deposit account or certificate of deposit;
(2) The bank’s knowledge of the security interest; or
(2) The bank’s knowledge of the security interest; or
(3) The bank’s receipt of instructions from the secured party.
(3) The bank’s receipt of instructions from the secured party.
(4) Liability of Bank. This Article does not determine whether a bank that pays out funds from an encumbered deposit is liable to the holder of a security interest. Although the fact that a secured party has control over the deposit account and the manner by which control was achieved may be relevant to the imposition of liability, whatever rule applies generally when a bank pays out funds in which a third party has an interest would determine liability to a secured party. Often, this rule is found in a non-UCC adverse claim statute.
(5) Certificates of Deposit. This section does not address the obligations of banks that issue instruments evidencing deposits (e.g., certain certificates of deposit).
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.