North Dakota Code 41-09-46 – (9-326) Priority of security interests created by new debtor
1. Subject to subsection 2, a security interest that is created by a new debtor in collateral in which the new debtor has or acquired rights and perfected by a filed financing statement that would be ineffective to perfect the security interest but for the application of section 41-09-79 or of section 41-09-79 and subdivision a of subsection 9 of section 41-09-36 is subordinate to a security interest in the same collateral which is perfected other than by such a filed financing statement.
Terms Used In North Dakota Code 41-09-46
- 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
2. The other provisions of this part determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in subsection 1. However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor’s having become bound.