North Dakota Code 41-09-26.2 – (9-306B) Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles
1. Except as provided in subsection 2, the local law of the controllable electronic record’s jurisdiction specified in subsections 3 and 4 of section 41-12-07 governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a controllable electronic record and a security interest in a controllable account or controllable payment intangible evidenced by the controllable electronic record.
Terms Used In North Dakota Code 41-09-26.2
- 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
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
2. The local law of the jurisdiction in which the debtor is located governs:
a. Perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible by filing; and
b. Automatic perfection of a security interest in a controllable payment intangible created by a sale of the controllable payment intangible.