North Dakota Code 41-09-108 – (9-611) Notification before disposition of collateral
1. In this section, “notification date” means the earlier of the date on which:
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.