24.42.090 Scope

(a) Except as otherwise provided in subsections (c) and (d), Chapters 24.42 through 24.48 apply to:

(1) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;

(2) A sale of accounts, chattel paper, payment intangibles, or promissory notes;

(3) A consignment;

(4) A security interest arising under Section 24.05.010, Section 24.06.050, subsection (c) of Section 24.08.110, or subsection € of Section 24.13.080, as provided in Section 24.42.100; and

(5) A security interest arising under Section 24.21.100 or Section 24.30.180.

(b) Except as provided in subsection (a), the application of Chapters 24.42 through 24.48 to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which Chapters 24.42 through 24.48 do not apply.

(1) An unrecorded conveyance of real estate is void as against any subsequent purchaser in good faith, and for a valuable consideration, of the same real estate or any part of the same real estate, regardless of whether recorded in the form of a warranty deed or deed of quitclaim and release or the form in common use first is recorded or as against an attachment on the property or judgment, against the owner of record, before the recording of the conveyance. The fact that the first recorded conveyance is a quitclaim deed does not affect the question of good faith of the subsequent purchaser, or be of itself notice of any unrecorded conveyance of the same real estate or any part of the same real estate. This subsection is notice to all who claim under unrecorded instruments that prior recording of later instruments may nullify their title to or lien on affected real property. An action affecting any title to or lien on real property may not be commenced or defense or counterclaim asserted on the ground that a recorded instrument was not entitled to be recorded. The record of all instruments whether or not entitled to be recorded is deemed valid and sufficient as the legal record of the instruments. (NOTE: this is ND Cen Code 47-19-41, which was directly referenced in Chapter 9 of the ND UCC)

(1) An applicable statute, regulation, or treaty of the United States preempts Chapters 24.42 through 24.48;

(2) A statute of another Tribe, state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or

(3) The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Section 24.30.140.

(d) Chapters 24.42 through 24.48 do not apply to:

(1) A landlord's lien, other than an agricultural lien;

(2) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Section 24.44.330 applies with respect to priority of the lien;

(3) An assignment of a claim for wages, salary, or other compensation of an employee;

(4) A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;

(5) An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;

(6) An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;

(7) An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a pre-existing indebtedness;

(8) A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health care provider of a health care insurance receivable and any subsequent assignment of the right to payment, but Section 24.44.150 and Section 24.44.220 apply with respect to proceeds and priorities in proceeds;

(9) An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;

(10) A right of recoupment or setoff, but:

(A) Section 24.44.400 applies with respect to the effectiveness of rights of recoupment or setoff against deposit accounts or certificates of deposit; and

(B) Section 24.45.040 applies with respect to defenses or claims of an account debtor;

(11) The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:

(A) Liens on real property in Section 24.43.030 and Section 24.44.080;

(B) Fixtures in Section 24.44.340;

(D) Security agreements covering personal and real property in Section 24.47.040;

(12) An assignment of a claim arising in tort, other than a commercial tort claim, but Section 24.44.150 and Section 24.44.220 apply with respect to proceeds and priorities in proceeds; or

(13) A transfer by this state or a governmental unit of this state.