N.D. Cent. Code § 41-09-09

Current through the 2023 Legislative Sessions
Section 41-09-09 - (9-109) Scope
1. Except as otherwise provided in subsections 3 and 4, this chapter applies to:
a. A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;
b. An agricultural lien;
c. A sale of accounts, chattel paper, payment intangibles, or promissory notes;
d. A consignment;
e. A security interest arising under section 41-02-46, section 41-02-53, subsection 3 of section 41-02-90, or subsection 5 of section 41-02.1-56, as provided in section 41-09-10; and
f. A security interest arising under section 41-04-22 or 41-05-18.
2. Except as provided in section 47-19-41, the application of this chapter to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this chapter does not apply.
3. This chapter does not apply to the extent that:
a. A statute, regulation, or treaty of the United States preempts this chapter;
b. A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or
c. The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under section 41-05-14.
4. This chapter does not apply to:
a. A landlord's lien, other than an agricultural lien;
b. A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but section 41-09-53 applies with respect to priority of the lien;
c. An assignment of a claim for wages, salary, or other compensation of an employee;
d. A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;
e. An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;
f. An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;
g. An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a pre-existing indebtedness;
h. A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health care provider of a health care insurance receivable and any subsequent assignment of the right to payment, but sections 41-09-35 and 41-09-42 apply with respect to proceeds and priorities in proceeds;
i. An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;
j. A right of recoupment or setoff, but:
(1) Section 41-09-60 applies with respect to the effectiveness of rights of recoupment or setoff against deposit accounts or certificates of deposit; and
(2) Section 41-09-66 applies with respect to defenses or claims of an account debtor;
k. The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
(1) Liens on real property in sections 41-09-13 and 41-09-28;
(2) Fixtures in section 41-09-54;
(3) Fixture filings in sections 41-09-72, 41-09-73, 41-09-87, and 41-09-90; and
(4) Security agreements covering personal and real property in section 41-09-101;
l. An assignment of a claim arising in tort, other than a commercial tort claim, but sections 41-09-35 and 41-09-42 apply with respect to proceeds and priorities in proceeds; or
m. A transfer by this state or a governmental unit of this state.

N.D.C.C. § 41-09-09