N.D. Cent. Code § 41-09-108

Current through the 2023 Legislative Sessions

Section 41-09-108 - (9-611) Notification before disposition of collateral

1. In this section, "notification date" means the earlier of the date on which:

a. A secured party sends to the debtor and any secondary obligor a signed notification of disposition; or

b. The debtor and any secondary obligor waive the right to notification.

2. Except as otherwise provided in subsection 4, a secured party that disposes of collateral under section 41-09-107 shall send to the persons specified in subsection 3 a reasonable signed notification of disposition.

3. To comply with subsection 2, the secured party shall send a signed notification of disposition to:

a. The debtor;

b. Any secondary obligor;

c. Any other person from which the secured party has received, before the notification date, a signed notification of a claim of an interest in the collateral;

d. Any other secured party or lienholder that, ten days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:

(1) Identified the collateral;

(2) Was indexed under the debtor's name as of that date; and

(3) Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and

e. Any other secured party that, ten days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in subsection 1 of section 41-09-31.

4. Subsection 2 does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market.

5. A secured party complies with the requirements for notification prescribed by paragraph 2 of subdivision c of subsection 3 if:

a. Not later than twenty days or earlier than thirty days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor's name in the office indicated in paragraph 2 of subdivision c of subsection 3; and

b. Before the notification date, the secured party:

(1) Did not receive a response to the request for information; or

(2) Received a response to the request for information and sent a signed notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.

N.D.C.C. § 41-09-108

Amended by S.L. 2023 , ch. 371( HB 1082 ), § 81, eff. 8/1/2023.