41-09-18. (9-208) Additional duties of secured party having control of collateral.
453 words·~2 min read·
/nd/title-41/chapter-41-09-secured-transactions/41-09-18·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. This section applies to cases in which there is no outstanding secured obligation and
the secured party is not committed to make advances, incur obligations, or otherwise
give value.
2. Within ten days after receiving a signed demand by the debtor:
a. A secured party having control of a deposit account or an uncertificated certificate
of deposit under subdivision b of subsection 1 of section 41-09-04 shall send to
the bank with which the deposit account or uncertificated certificate of deposit is
maintained a signed record that releases the bank from any further obligation to
comply with instructions originated by the secured party;
b. A secured party having control of a deposit account or an uncertificated certificate
of deposit under subdivision c of subsection 1 of section 41-09-04 shall:
(1)Pay the debtor the balance on deposit in the deposit account or
uncertificated certificate of deposit; or
(2)Transfer the balance on deposit into a deposit account or an uncertificated
certificate of deposit in the debtor's name;
c. A secured party, other than a buyer, having control under section 41-09-05 of an
authoritative electronic copy of a record evidencing chattel paper shall transfer
control of the electronic copy to the debtor or a person designated by the debtor;
d. A secured party having control of investment property under subdivision b of
subsection 4 of section 41-08-06 or subsection 2 of section 41-09-06 shall send
to the securities intermediary or commodity intermediary with which the security
entitlement or commodity contract is maintained a signed record that releases the
securities intermediary or commodity intermediary from any further obligation to
comply with entitlement orders or directions originated by the secured party;
e. A secured party having control of a letter-of-credit right under section 41-09-07
shall send to each person having an unfulfilled obligation to pay or deliver
proceeds of the letter of credit to the secured party a signed release from any
further obligation to pay or deliver proceeds of the letter of credit to the secured
party;
f. A secured party having control under section 41-07-06 of an authoritative
electronic copy of an electronic document of title shall transfer control of the
electronic copy to the debtor or a person designated by the debtor;
g. A secured party having control under section 41-09-05.1 of electronic money shall
transfer control of the electronic money to the debtor or a person designated by
the debtor; and
h. A secured party having control under section 41-12-05 of a controllable electronic
record, other than a buyer of a controllable account or controllable payment
intangible evidenced by the controllable electronic record, shall transfer control of
the controllable electronic record to the debtor or a person designated by the
debtor.