North Dakota Code 41-09-117 – (9-622) Effect of acceptance of collateral
Current as of: 2023 | Check for updates
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1. A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures:
Terms Used In North Dakota Code 41-09-117
- 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.
- 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.
a. Discharges the obligation to the extent consented to by the debtor; b. Transfers to the secured party all of a debtor’s rights in the collateral; c. Discharges the security interest or agricultural lien that is the subject of the debtor’s consent and any subordinate security interest or other subordinate lien; and d. Terminates any other subordinate interest.
2. A subordinate interest is discharged or terminated under subsection 1, even if the secured party fails to comply with this chapter.