§ 26.1-48-02 — North Dakota aftermarket risk contract

North Dakota § 26.1-48-02

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-48: Aircraft Aftermarket Risk Contracts and Insurance

Text

The sale of aircraft and aircraft components sold by an aviation manufacturer and the
performance of any modification, maintenance, alteration, repair, or installation of components
in aircraft in this state are governed by an aftermarket risk contract. The contract between the
seller or aviation manufacturer and the purchaser must be executed at the time of purchase and
reconsidered at each subsequent resale. The first and subsequent seller or aviation
manufacturer shall agree to be bound by North Dakota law and the aftermarket risk contract or
to provide a fully paid aftermarket product liability insurance policy that covers exposure to tort
liability within the United States. The option of providing the insurance policy applies only to
aircraft or aircraft components that sell for more than two thousand dollars.
26.1-48-03. Aftermarket risk insurance requirements - Encumbrances.
1. An aftermarket risk insurance policy purchased pursuant to section 26.1-48-02 must
hold harmless all aviation manufacturers that manufactured, modified, maintained,
repaired, or altered the aircraft or aircraft component assembled or first sold in this
state.
2. The aviation manufacturer or seller of the aircraft or aircraft component may offer in
the sales contract aftermarket risk insurance based on continued choice of North
Dakota law. The aftermarket risk insurance option must be attached to the original
sales contract as a lien on the aircraft holding the first owner and each subsequent
owner financially responsible for the cost of purchasing and maintaining aftermarket
risk insurance and binding the owner to governance by North Dakota law. An
aftermarket insurance obligation must be recorded as a lien on the aircraft at the
federal aviation administration aircraft registry.