North Dakota Code 35-01-15 – Order of resort for payment – Marshalling securities
When a person has a lien upon several things and other persons have subordinate liens upon or interests in some but not all of the same things, the person having the prior lien, if that person can do so without the risk of loss to that person or of injustice to other persons, on the demand of any party interested, must resort to the property in the following order:
Terms Used In North Dakota Code 35-01-15
- following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- Property: includes property, real and personal. See North Dakota Code 1-01-49
1. To the things upon which that person has an exclusive lien.
2. To the things which are subject to the fewest subordinate liens.
3. In like manner inversely to the number of subordinate liens upon the same thing.
4. When several things are within one of the foregoing classes, and subject to the same number of liens, resort must be had:
a. To things which have not been transferred since the prior lien was created; b. To the things which have been so transferred without a valuable consideration; and c. To the things which have been so transferred for a valuable consideration in the inverse order of the transfers.