§ 30.1-19-09 — (3-809) Secured claims

Payment of a secured claim is upon the basis of the amount allowed if the creditor
surrenders the security. Otherwise, payment is upon the basis of one of the following:
1. If the creditor exhausts the security before receiving payment, unless precluded by
other law, upon the amount of the claim allowed less the fair value of the security.
2. If the creditor does not have the right to exhaust the security or has not done so, upon
the amount of the claim allowed less the value of the security determined by
converting it into money according to the terms of the agreement pursuant to which the
security was delivered to the creditor, or by the creditor and personal representative by
agreement, arbitration, compromise, or litigation.