This text of North Dakota § 41-09-48 ((9-328) Priority of security interests in investment property) 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.
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
Free access — add to your briefcase to read the full text and ask questions with AI
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.