41-09-32. (9-312) Perfection of security interests in chattel paper, controllable
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/nd/title-41/chapter-41-09-secured-transactions/41-09-32·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
accounts, controllable electronic records, controllable payment intangibles, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, money, and uncertificated certificates of deposit - Perfection by permissive filing - Temporary perfection without filing or transfer of possession.
1. A security interest in chattel paper, controllable accounts, controllable electronic
records, controllable payment intangibles, instruments, investment property, or
negotiable documents may be perfected by filing.
2. Except as otherwise provided in subsections 3 and 4 of section 41-09-35 for proceeds:
a. A security interest in a deposit account or an uncertificated certificate of deposit
may be perfected only by control under section 41-09-34;
b. Except as otherwise provided in subsection 4 of section 41-09-28, a security
interest in a letter-of-credit right may be perfected only by control under section
41-09-34;
c. A security interest in tangible money or a certificated certificate of deposit may be
perfected only by the secured party's taking possession under section 41-09-33;
and
d. A security interest in electronic money may be perfected only by control under
section 41-09-34.
3. While goods are in the possession of a bailee that has issued a negotiable document
covering the goods:
a. A security interest in the goods may be perfected by perfecting a security interest
in the document; and
b. A security interest perfected in the document has priority over any security
interest that becomes perfected in the goods by another method during that time.
4. While goods are in the possession of a bailee that has issued a non-negotiable
document covering the goods, a security interest in the goods may be perfected by:
a. Issuance of a document in the name of the secured party;
b. The bailee's receipt of notification of the secured party's interest; or
c. Filing as to the goods.
5. A security interest in certificated certificates of deposit, certificated securities,
negotiable documents, or instruments is perfected without filing or the taking of
possession or control for a period of twenty days from the time it attaches to the extent
that it arises for new value given under a signed security agreement.
6. A perfected security interest in a negotiable document or goods in possession of a
bailee, other than one that has issued a negotiable document for the goods, remains
perfected for twenty days without filing if the secured party makes available to the
debtor the goods or documents representing the goods for the purpose of:
a. Ultimate sale or exchange; or
b. Loading, unloading, storing, shipping, trans-shipping, manufacturing, processing,
or otherwise dealing with them in a manner preliminary to their sale or exchange.
7. A perfected security interest in a certificated certificate of deposit, certificated security,
or instrument remains perfected for twenty days without filing if the secured party
delivers the security certificate, certificated certificate of deposit, or instrument to the
debtor for the purpose of:
a. Ultimate sale or exchange; or
b. Presentation, collection, enforcement, renewal, or registration of transfer.
8. After the twenty-day period specified in subsection 5, 6, or 7 expires, perfection
depends upon compliance with this chapter.