The following rules govern priority among conflicting security interests in the same
investment property:
1. A security interest held by a secured party having control of investment property under
section 41-09-06 has priority over a security interest held by a secured party that does
not have control of the investment property.
2. Except as otherwise provided in subsections 3 and 4, conflicting security interests held
by secured parties each of which has control under section 41-09-06 rank according to
priority in time of:
a. If the collateral is a security, obtaining control;
b. If the collateral is a security entitlement carried in a securities account and:
(1)If the secured party obtained control under subdivision a of subsection 4 of
section 41-08-06, the secured party's becoming the
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The following rules govern priority among conflicting security interests in the same
investment property:
1. A security interest held by a secured party having control of investment property under
section 41-09-06 has priority over a security interest held by a secured party that does
not have control of the investment property.
2. Except as otherwise provided in subsections 3 and 4, conflicting security interests held
by secured parties each of which has control under section 41-09-06 rank according to
priority in time of:
a. If the collateral is a security, obtaining control;
b. If the collateral is a security entitlement carried in a securities account and:
(1) If the secured party obtained control under subdivision a of subsection 4 of
section 41-08-06, the secured party's becoming the person for which the
securities account is maintained;
(2) If the secured party obtained control under subdivision b of subsection 4 of
section 41-08-06, the securities intermediary's agreement to comply with the
secured party's entitlement orders with respect to security entitlements
carried or to be carried in the securities account; or
(3) If the secured party obtained control through another person under
subdivision c of subsection 4 of section 41-08-06, the time on which priority
would be based under this subsection if the other person were the secured
party; or
c. If the collateral is a commodity contract carried with a commodity intermediary,
the satisfaction of the requirement for control specified in subdivision b of
subsection 2 of section 41-09-06 with respect to commodity contracts carried or
to be carried with the commodity intermediary.
3. A security interest held by a securities intermediary in a security entitlement or a
securities account maintained with the securities intermediary has priority over a
conflicting security interest held by another secured party.
4. A security interest held by a commodity intermediary in a commodity contract or a
commodity account maintained with the commodity intermediary has priority over a
conflicting security interest held by another secured party.
5. A security interest in a certificated security in registered form which is perfected by
taking delivery under subsection 1 of section 41-09-33 and not by control under
section 41-09-34 has priority over a conflicting security interest perfected by a method
other than control.
6. Conflicting security interests created by a broker, securities intermediary, or commodity
intermediary which are perfected without control under section 41-09-06 rank equally.
7. In all other cases, priority among conflicting security interests in investment property is
governed by sections 41-09-42 and 41-09-43.