North Dakota Code 41-09-120 – (9-625) Remedies for secured party’s failure to comply with chapter
1. If it is established that a secured party is not proceeding in accordance with this chapter, a court may order or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions.
Terms Used In North Dakota Code 41-09-120
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Debtor: means a natural person whose name was provided in a financing statement record as an individual debtor or one of the types of persons listed in section 41-09-76. See North Dakota Code 41-10-01
- Individual: means a human being. See North Dakota Code 1-01-49
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
2. Subject to subsections 3, 4, and 6, a person is liable for damages in the amount of any loss caused by a failure to comply with this chapter. Loss caused by a failure to comply with a request under section 41-09-20 may include loss resulting from the debtor‘s inability to obtain, or increase costs of, alternative financing.
3. Except as otherwise provided in section 41-09-123:
a. A person that, at the time of the failure, was a debtor, was an obligor, or held a security interest in or other lien on the collateral may recover in an individual action damages under subsection 2 for its loss; and
b. If the collateral is consumer goods, a person that was a debtor or a secondary obligor at the time a secured party failed to comply with this part may recover in an individual action for that failure in any event an amount not less than the credit service charge plus ten percent of the principal amount of the obligation or the time-price differential plus ten percent of the cash price.
4. A debtor whose deficiency is eliminated under section 41-09-121 may recover in an individual action damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is eliminated or reduced under section 41-09-121 may not otherwise recover under subsection 2 for noncompliance with the provisions of sections 41-09-98 through 41-09-123 relating to collection, enforcement, disposition, or acceptance.
5. In addition to any damages recoverable under subsection 2, the debtor or person named as a debtor in a filed record, as applicable, may recover in an individual action one hundred dollars in each case from a person that:
a. Fails to comply with section 41-09-18; b. Fails to comply with section 41-09-19; c. Files a record that the person is not entitled to file under subsection 1 of section 41-09-80; or
d. Fails to comply with section 41-09-84.
6. A debtor or consumer obligor may recover in an individual action damages under subsection 2 and, in addition, one hundred dollars in each case from a person that, without reasonable cause, fails to comply with a request under section 41-09-20. A recipient of a request under section 41-09-20 which never claimed an interest in the collateral or obligations that are the subject of a request under that section has a reasonable excuse for failure to comply with the request within the meaning of this subsection.
7. If a secured party fails to comply with a request regarding a list of collateral or a statement of account under section 41-09-20, the secured party may claim a security interest only as shown in the list or statement included in the request as against a person that is reasonably misled by the failure.