41-09-07.1. (9-107A) Control of controllable electronic record, controllable account, or
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controllable payment intangible.
1. A secured party has control of a controllable electronic record as provided in section
41-12-05.
2. A secured party has control of a controllable account or controllable payment
intangible if the secured party has control of the controllable electronic record that
evidences the controllable account or controllable payment intangible.
41-09-07.2. (9-107B) No requirement to acknowledge or confirm - No duties. 1. A person that has control under section 41-09-04, 41-09-05, or 41-09-05.1 is not
required to acknowledge that it has control on behalf of another person. 2. If a person acknowledges that it has or will obtain control on behalf of another person,
unless the person otherwise agrees or law other than this chapter otherwise provides,
the person does not owe any duty to the other person and is not required to confirm
the acknowledgment to any other person.
41-09-08. (9-108) Sufficiency of description. 1. Except as otherwise provided in subsections 3 through 5, a description of personal or
real property is sufficient, regardless of whether the description is specific, if the
description reasonably identifies what is described. 2. Except as otherwise provided in subsection 4, a description of collateral reasonably
identifies the collateral if it identifies the collateral by:
a. Specific listing;
b. Category;
c. Except as otherwise provided in subsection 5, a type of collateral defined in the
Uniform Commercial Code;
d. Quantity;
e. Computational or allocational formula or procedure; or
f. Except as otherwise provided in subsection 3, any other method, if the identity of
the collateral is objectively determinable. 3. A description of collateral as "all the debtor's assets" or "all the debtor's personal
property" or using words of similar import does not reasonably identify the collateral. 4. Except as otherwise provided in subsection 5, a description of a security entitlement,
securities account, or commodity account is sufficient if the description describes:
a. The collateral by those terms or as investment property; or
b. The underlying financial asset or commodity contract. 5. A description only by type of collateral defined in the Uniform Commercial Code is an
insufficient description of:
a. A commercial tort claim; or
b. A security entitlement, a securities account, or a commodity account.
41-09-09. (9-109) Scope. 1. Except as otherwise provided in subsections 3 and 4, this chapter applies to:
a. A transaction, regardless of its form, that creates a security interest in personal
property or fixtures by contract;
b. An agricultural lien;
c. A sale of accounts, chattel paper, payment intangibles, or promissory notes;
d. A consignment;
e. A security interest arising under section 41-02-46, section 41-02-53, subsection 3
of section 41-02-90, or subsection 5 of section 41-02.1-56, as provided in section
41-09-10; and
f. A security interest arising under section 41-04-22 or 41-05-18. 2. Except as provided in section 47-19-41, the application of this chapter to a security
interest in a secured obligation is not affected by the fact that the obligation is itself
secured by a transaction or interest to which this chapter does not apply. 3. This chapter does not apply to the extent that:
a. A statute, regulation, or treaty of the United States preempts this chapter;
b. A statute of another state, a foreign country, or a governmental unit of another
state or a foreign country, other than a statute generally applicable to security
interests, expressly governs creation, perfection, priority, or enforcement of a
security interest created by the state, country, or governmental unit; or
c. The rights of a transferee beneficiary or nominated person under a letter of credit
are independent and superior under section 41-05-14. 4. This chapter does not apply to:
a. A landlord's lien, other than an agricultural lien;
b. A lien, other than an agricultural lien, given by statute or other rule of law for
services or materials, but section 41-09-53 applies with respect to priority of the
lien;
c. An assignment of a claim for wages, salary, or other compensation of an
employee;
d. A sale of accounts, chattel paper, payment intangibles, or promissory notes as
part of a sale of the business out of which they arose;
e. An assignment of accounts, chattel paper, payment intangibles, or promissory
notes which is for the purpose of collection only;
f. An assignment of a right to payment under a contract to an assignee that is also
obligated to perform under the contract;
g. An assignment of a single account, payment intangible, or promissory note to an
assignee in full or partial satisfaction of a pre-existing indebtedness;
h. A transfer of an interest in or an assignment of a claim under a policy of
insurance, other than an assignment by or to a health care provider of a health
care insurance receivable and any subsequent assignment of the right to
payment, but sections 41-09-35 and 41-09-42 apply with respect to proceeds and
priorities in proceeds;
i. An assignment of a right represented by a judgment, other than a judgment taken
on a right to payment that was collateral;
j. A right of recoupment or setoff, but:
(1)Section 41-09-60 applies with respect to the effectiveness of rights of
recoupment or setoff against deposit accounts or certificates of deposit; and
(2)Section 41-09-66 applies with respect to defenses or claims of an account
debtor;
k. The creation or transfer of an interest in or lien on real property, including a lease
or rents thereunder, except to the extent that provision is made for:
(1)Liens on real property in sections 41-09-13 and 41-09-28;
(2)Fixtures in section 41-09-54;
(3)Fixture filings in sections 41-09-72, 41-09-73, 41-09-87, and 41-09-90; and
(4)Security agreements covering personal and real property in section
41-09-101;
l. An assignment of a claim arising in tort, other than a commercial tort claim, but
sections 41-09-35 and 41-09-42 apply with respect to proceeds and priorities in
proceeds; or
m. A transfer by this state or a governmental unit of this state.