§ 41-09-101 — (9-604) Procedure if security agreement covers real property or fixtures

North Dakota § 41-09-101

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-09: Secured Transactions

Text

1. If a security agreement covers both personal and real property, a secured party may
proceed:
a. Under this part as to the personal property without prejudicing any rights with
respect to the real property; or
b. As to both the personal property and the real property in accordance with the
rights with respect to the real property, in which case the other provisions of this
part do not apply.
2. Subject to subsection 3, if a security agreement covers goods that are or become
fixtures, a secured party may proceed:
a. Under this part; or
b. In accordance with the rights with respect to real property, in which case the other
provisions of this part do not apply.
3. Subject to the other provisions of this part, if a secured party holding a security interest
in fixtures has priority over all owners and encumbrancers of the real property, the
secured party, after default, may remove the collateral from the real property.
4. A secured party that removes collateral shall promptly reimburse any encumbrancer or
owner of the real property, other than the debtor, for the cost of repair of any physical
injury caused by the removal. The secured party need not reimburse the
encumbrancer or owner for any diminution in value of the real property caused by the
absence of the goods removed or by any necessity of replacing them. A person
entitled to reimbursement may refuse permission to remove until the secured party
gives adequate assurance for the performance of the obligation to reimburse.