North Dakota § 41-09-15 (9-205) Use or disposition of collateral permissible

North Dakota Statutes

§ 41-09-15 — (9-205) Use or disposition of collateral permissible

North Dakota § 41-09-15

Title 41Uniform Commercial Code

Ch. 41-09Secured Transactions

This text of North Dakota § 41-09-15 ((9-205) Use or disposition of collateral permissible) 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 § 41-09-15 (2026).

Text

1. A security interest is not invalid or fraudulent against creditors solely because: a. The debtor has the right or ability to:

(1)Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;

(2)Collect, compromise, enforce, or otherwise deal with collateral;

(3)Accept the return of collateral or make repossessions; or

(4)Use, commingle, or dispose of proceeds; or b. The secured party fails to require the debtor to account for proceeds or replace collateral. 2. This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.

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1. A security interest is not invalid or fraudulent against creditors solely because:
a. The debtor has the right or ability to:
(1) Use, commingle, or dispose of all or part of the collateral, including returned
or repossessed goods;
(2) Collect, compromise, enforce, or otherwise deal with collateral;
(3) Accept the return of collateral or make repossessions; or
(4) Use, commingle, or dispose of proceeds; or
b. The secured party fails to require the debtor to account for proceeds or replace
collateral.
2. This section does not relax the requirements of possession if attachment, perfection,
or enforcement of a security interest depends upon possession of the collateral by the
secured party.