1.    In this section, “notification date” means the earlier of the date on which:

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Terms Used In North Dakota Code 41-09-108

  • 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
  • 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
  • Statute: A law passed by a legislature.

a.    A secured party sends to the debtor and any secondary obligor a signed notification of disposition; or

b.    The debtor and any secondary obligor waive the right to notification.

2.    Except as otherwise provided in subsection 4, a secured party that disposes of collateral under section 41-09-107 shall send to the persons specified in subsection 3 a reasonable signed notification of disposition.

3.    To comply with subsection 2, the secured party shall send a signed notification of disposition to:

a.    The debtor; b.    Any secondary obligor; c.    Any other person from which the secured party has received, before the notification date, a signed notification of a claim of an interest in the collateral; d.    Any other secured party or lienholder that, ten days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:

(1) Identified the collateral; (2) Was indexed under the debtor’s name as of that date; and

(3) Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and

e.    Any other secured party that, ten days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in subsection 1 of section 41-09-31.

4.    Subsection 2 does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market.

5.    A secured party complies with the requirements for notification prescribed by paragraph 2 of subdivision c of subsection 3 if:

a.    Not later than twenty days or earlier than thirty days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor’s name in the office indicated in paragraph 2 of subdivision c of subsection 3; and

b.    Before the notification date, the secured party:

(1) Did not receive a response to the request for information; or

(2) Received a response to the request for information and sent a signed notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.