North Dakota § 32-10.1-15 Use or transfer of receivership property not in ordinary course of business

North Dakota Statutes

§ 32-10.1-15 — Use or transfer of receivership property not in ordinary course of business

North Dakota § 32-10.1-15

Title 32Judicial Remedies

Ch. 32-10.1Uniform Commercial Real Estate Receivership Act

This text of North Dakota § 32-10.1-15 (Use or transfer of receivership property not in ordinary course of business) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 32-10.1-15 (2026).

Text

business.

1.As used in this section, "good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.

2.With court approval, a receiver may use receivership property other than in the ordinary course of business.

3.With court approval, a receiver may transfer receivership property other than in the ordinary course of business by sale, lease, license, exchange, or other disposition. Unless the agreement of sale provides otherwise, a sale under this section is free of a lien of the person that obtained appointment of the receiver, any subordinate lien, and any right of redemption but is subject to a senior lien.

4.A lien on receivership property which is extinguished by a transfer under subsection 3 attaches to the proceeds of the transfer with th

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business.
1. As used in this section, "good faith" means honesty in fact and the observance of
reasonable commercial standards of fair dealing.
2. With court approval, a receiver may use receivership property other than in the
ordinary course of business.
3. With court approval, a receiver may transfer receivership property other than in the
ordinary course of business by sale, lease, license, exchange, or other disposition.
Unless the agreement of sale provides otherwise, a sale under this section is free of a
lien of the person that obtained appointment of the receiver, any subordinate lien, and
any right of redemption but is subject to a senior lien.
4. A lien on receivership property which is extinguished by a transfer under subsection 3
attaches to the proceeds of the transfer with the same validity, perfection, and priority
the lien had on the property immediately before the transfer, even if the proceeds are
not sufficient to satisfy all obligations secured by the lien.
5. A transfer under subsection 3 may occur by means other than a public auction sale. A
creditor holding a valid lien on the property to be transferred may purchase the
property and offset against the purchase price part or all of the allowed amount
secured by the lien, if the creditor tenders funds sufficient to satisfy in full the
reasonable expenses of transfer and the obligation secured by any senior lien
extinguished by the transfer.
6. A reversal or modification of an order approving a transfer under subsection 3 does not
affect the validity of the transfer to a person that acquired the property in good faith or
revive against the person any lien extinguished by the transfer, whether the person
knew before the transfer of the request for reversal or modification, unless the court
stayed the order before the transfer.