§ 35-03-17 — Collateral real estate mortgages

North Dakota § 35-03-17

• Jurisdiction: North Dakota
• Title 35: Liens
• Ch. 35-03: Mortgage of Real Property

Text

A mortgage which contains the following statement in printed or typed capital letters: "THE
PARTIES AGREE THAT THIS MORTGAGE CONSTITUTES A COLLATERAL REAL ESTATE
MORTGAGE PURSUANT TO NORTH DAKOTA CENTURY CODE CHAPTER 35-03" is subject
to the provisions of this section. A mortgage executed pursuant to this section must be entitled
in printed or typed capital letters: "MORTGAGE - COLLATERAL REAL ESTATE MORTGAGE".
A mortgage made pursuant to this section, notwithstanding the fact that from time to time during
the term thereof no indebtedness is due from the mortgagor to the mortgagee, constitutes a
continuing lien against the real property covered thereby for the amount stated in the mortgage.
Any sums not exceeding the face amount of the mortgage, together with interest thereon as
provided in the instrument secured by the mortgage, advanced by the mortgagee during the
term of the mortgage have a lien priority as of the date the mortgage was filed. At any time the
indebtedness due the mortgagee is zero, the mortgagor may demand in writing that the
mortgage be satisfied, and the mortgagee shall within ten days thereafter execute and record a
satisfaction thereof. Collateral real estate mortgages may be used to secure commercial,
agricultural, or consumer loans or lines of credit including, but not limited to, revolving notes and
credits and overdraft checking plans.
A filed collateral real estate mortgage which states a maturity date of the instrument secured
thereby of five years or less is effective until such maturity date and thereafter for a period of
sixty days. Any other filed collateral real estate mortgage is effective for a period of five years
from the date of filing and thereafter for a period of sixty days. A filed collateral real estate
mortgage which states that the instrument secured thereby is payable on demand is effective for
five years from the date of filing and thereafter for a period of sixty days. The effectiveness of a
filed collateral real estate mortgage lapses upon the expiration of the sixty-day period unless an
addendum to the collateral real estate mortgage extending its effective date is filed prior to the
lapse. If a filed collateral real estate mortgage exists at the time insolvency proceedings are
commenced by or against the debtor, the mortgage remains effective until sixty days after
termination of the insolvency proceeding or until expiration of the five-year period, whichever
occurs later. Upon such lapse, the lien created by the collateral real estate mortgage terminates.
An addendum continuing the effectiveness of the lien of the collateral real estate mortgage may
be filed by the mortgagee:
1. Within six months before and sixty days after a stated maturity date of five years or
less; and

2. Otherwise within six months before and sixty days after the expiration of the five-year
effective date period.
An addendum to a collateral real estate mortgage for the sole purpose of continuing the
effectiveness of its lien need be signed only by the mortgagee. Upon the timely filing of such an
addendum to a collateral real estate mortgage, the effectiveness of the collateral real estate
mortgage will be continued for five years after the stated maturity date in those instances in
which the original collateral real estate mortgage provided a maturity date or for five years after
the expiration of the five-year period whereupon it lapses in the same manner as provided
above unless another addendum to the collateral real estate mortgage continuing the
effectiveness of its lien is filed prior to such lapse. Succeeding addendums to collateral real
estate mortgages may be filed in the same manner to continue the effectiveness of the lien of
the collateral real estate mortgage.