North Dakota Code 41-09-45 – (9-325) Priority of security interests in transferred collateral
1. Except as otherwise provided in subsection 2, a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:
Terms Used In North Dakota Code 41-09-45
- 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
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
a. The debtor acquired the collateral subject to the security interest created by the other person; b. The security interest created by the other person was perfected when the debtor acquired the collateral; and
c. There is no period thereafter when the security interest is unperfected.
2. Subsection 1 subordinates a security interest only if the security interest:
a. Otherwise would have priority solely under subsection 1 of section 41-09-42 or section 41-09-44; or
b. Arose solely under subsection 3 of section 41-02-90 or subsection 5 of section 41-02.1-56.