41-09-38. (9-318) No interest retained in right to payment that is sold - Rights and title
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/nd/title-41/chapter-41-09-secured-transactions/41-09-38·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
of seller of account or chattel paper with respect to creditors and purchasers.
1. A debtor that has sold an account, chattel paper, payment intangible, or promissory
note does not retain a legal or equitable interest in the collateral sold.
2. For purposes of determining the rights of creditors of, and purchasers for value of an
account or chattel paper from, a debtor that has sold an account or chattel paper, while
the buyer's security interest is unperfected, the debtor is deemed to have rights and
title to the account or chattel paper identical to those the debtor sold.