North Dakota Code 41-09-15 – (9-205) Use or disposition of collateral permissible
Current as of: 2023 | Check for updates
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1. A security interest is not invalid or fraudulent against creditors solely because:
Terms Used In North Dakota Code 41-09-15
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- 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
a. The debtor has the right or ability to:
(1) Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods; (2) Collect, compromise, enforce, or otherwise deal with collateral; (3) Accept the return of collateral or make repossessions; or
(4) Use, commingle, or dispose of proceeds; or
b. The secured party fails to require the debtor to account for proceeds or replace collateral.
2. This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.