When the obligation of a third person or an order upon such person is accepted in satisfaction, the creditor may rescind such acceptance if:

Ask a litigation question, get an answer ASAP!
Thousands of highly rated, verified litigation lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In North Dakota Code 9-13-11

  • 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.
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49

1.    The debtor prevents such person from complying with the order or from fulfilling the obligation; 2.    At the time the obligation or order is received, such person is insolvent and this fact is unknown to the creditor; or

    3.    Before the creditor with reasonable diligence can present the order to the person upon whom it is given, that person becomes insolvent.