1.    Except as otherwise provided in section 41-02.1-36, a creditor of a lessee takes subject to the lease contract.

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Terms Used In North Dakota Code 41-02.1-37

  • Contract: A legal written agreement that becomes binding when signed.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.

2.    Except as otherwise provided in subsection 3 and in sections 41-02.1-36 and 41-02.1-38, a creditor of a lessor takes subject to the lease contract unless the creditor holds a lien that attached to the goods before the lease contract became enforceable.

3.    Except as otherwise provided in sections 41-09-37, 41-09-41, and 41-09-43, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.