North Dakota Code 41-09-34 – (9-314) Perfection by control
1. A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, uncertificated certificates of deposit, electronic documents, electronic money, investment property, or letter-of-credit rights may be perfected by control of the collateral under section 41-07-06, 41-09-04, 41-09-05.1, 41-09-06, 41-09-07, or 41-09-07.1.
Terms Used In North Dakota Code 41-09-34
- Debtor: means a natural person whose name was provided in a financing statement record as an individual debtor or one of the types of persons listed in section 41-09-76. See North Dakota Code 41-10-01
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- 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
- Property: includes property, real and personal. See North Dakota Code 1-01-49
2. A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, uncertificated certificates of deposit, electronic money, or letter-of-credit rights is perfected by control under section 41-07-06, 41-09-04, 41-09-05.1, 41-09-07, or 41-09-07.1 not earlier than the time the secured party obtains control and remains perfected by control only while the secured party retains control.
3. A security interest in investment property is perfected by control under section 41-09-06 not earlier than the time the secured party obtains control and remains perfected by control until:
a. The secured party does not have control; and b. One of the following occurs:
(1) If the collateral is a certificated security, the debtor has or acquires possession of the security certificate; (2) If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or
(3) If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.