North Dakota § 41-02.1-09 (2A-109) Option to accelerate at will

North Dakota Statutes

§ 41-02.1-09 — (2A-109) Option to accelerate at will

North Dakota § 41-02.1-09

Title 41Uniform Commercial Code

Ch. 41-02.1Leases

This text of North Dakota § 41-02.1-09 ((2A-109) Option to accelerate at will) 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 § 41-02.1-09 (2026).

Text

1.A term providing that one party or that party's successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" or "when he or she deems himself or herself insecure" or in words of similar import must be construed to mean that the party has power to do so only if the party in good faith believes that the prospect of payment or performance is impaired.

2.With respect to a consumer lease, the burden of establishing good faith under subsection 1 is on the party who exercised the power. Otherwise, the burden of establishing lack of good faith is on the party against whom the power has been exercised.

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1. A term providing that one party or that party's successor in interest may accelerate
payment or performance or require collateral or additional collateral "at will" or "when
he or she deems himself or herself insecure" or in words of similar import must be
construed to mean that the party has power to do so only if the party in good faith
believes that the prospect of payment or performance is impaired.
2. With respect to a consumer lease, the burden of establishing good faith under
subsection 1 is on the party who exercised the power. Otherwise, the burden of
establishing lack of good faith is on the party against whom the power has been
exercised.