1.    A security interest that is enforceable immediately before July 1, 2001, and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under this chapter if, on July 1, 2001, the applicable requirements for enforceability and perfection under this chapter are satisfied without further action.

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Terms Used In North Dakota Code 41-09-125

  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
  • year: means twelve consecutive months. See North Dakota Code 1-01-33

2.    Except as otherwise provided in section 41-09-127, if, immediately before July 1, 2001, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under this chapter are not satisfied on July 1, 2001, the security interest:

a.    Is a perfected security interest for one year after this chapter takes effect; b.    Remains enforceable thereafter only if the security interest becomes enforceable under section 41-09-13 before the year expires; and

c.    Remains perfected thereafter only if the applicable requirements for perfection under this chapter are satisfied before the year expires.