North Dakota Code 41-09-19 – (9-209) Duties of secured party if account debtor has been notified of assignment
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1. Except as otherwise provided in subsection 3, this section applies if:
Terms Used In North Dakota Code 41-09-19
- 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
- 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.
- paper: means any flexible material upon which it is usual to write. See North Dakota Code 1-01-27
a. There is no outstanding secured obligation; and
b. The secured party is not committed to make advances, incur obligations, or otherwise give value.
2. Within ten days after receiving a signed demand by the debtor, a secured party shall send to an account debtor that has received notification under subsection 1 of section 41-09-68 or subsection 2 of section 41-12-06 of an assignment to the secured party as assignee a signed record that releases the account debtor from any further obligation to the secured party.
3. This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.