§ 41-09-78 — (9-507) Effect of certain events on effectiveness of financing statement

North Dakota § 41-09-78

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

Text

1. A filed financing statement remains effective with respect to collateral that is sold,
exchanged, leased, licensed, or otherwise disposed of and in which a security interest
or agricultural lien continues, even if the secured party knows of or consents to the
disposition.
2. Except as otherwise provided in subsection 3 and section 41-09-79, a financing
statement is not rendered ineffective if, after the financing statement is filed, the
information provided in the financing statement becomes seriously misleading under
section 41-09-77.
3. If the name that a filed financing statement provides for a debtor becomes insufficient
as the name of the debtor under subsection 1 of section 41-09-74 so that the financing
statement becomes seriously misleading under section 41-09-77:
a. The financing statement is effective to perfect a security interest in collateral
acquired by the debtor before, or within four months after, the filed financing
statement becomes seriously misleading; and
b. The financing statement is not effective to perfect a security interest in collateral
acquired by the debtor more than four months after the filed financing statement
becomes seriously misleading, unless an amendment to the financing statement
which renders the financing statement not seriously misleading is filed within four
months after that event.