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Code · North Dakota · Title 41 · Chapter 41-09 — Secured Transactions

41-09-31. (9-311) Perfection of security interests in property subject to certain

349 words·~2 min read·/nd/title-41/chapter-41-09-secured-transactions/41-09-31·

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statutes, regulations, and treaties.
1. Except as otherwise provided in subsection 4, the filing of a financing statement is not
necessary or effective to perfect a security interest in property subject to:
a. A statute, regulation, or treaty of the United States whose requirements for a
security interest's obtaining priority over the rights of a lien creditor with respect to
the property preempt subsection 1 of section 41-09-30;
b. Section 35-01-05.1; or
c. A statute of another jurisdiction which provides for a security interest to be
indicated on a certificate of title as a condition or result of the security interest's
obtaining priority over the rights of a lien creditor with respect to the property.
2. Compliance with the requirements of a statute, regulation, or treaty described in
subsection 1 for obtaining priority over the rights of a lien creditor is equivalent to the
filing of a financing statement under this chapter. Except as otherwise provided in
subsection 4 and section 41-09-33 and subsections 4 and 5 of section 41-09-36 for
goods covered by a certificate of title, a security interest in property subject to a
statute, regulation, or treaty described in subsection 1 may be perfected only by
compliance with those requirements, and a security interest so perfected remains
perfected notwithstanding a change in the use or transfer of possession of the
collateral.
3. Except as otherwise provided in subsection 4 and subsections 4 and 5 of section
41-09-36, duration and renewal of perfection of a security interest perfected by
compliance with the requirements prescribed by a statute, regulation, or treaty
described in subsection 1 are governed by the statute, regulation, or treaty. In other
respects, the security interest is subject to this chapter.
4. During any period in which collateral subject to a statute specified in subdivision b of
subsection 1 is inventory held for sale or lease by a person or leased by that person as
lessor and that person is in the business of selling goods of that kind, this section does
not apply to a security interest in that collateral created by that person.
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