N.D. Cent. Code § 41-09-115: (9-620) Acceptance of collateral in full or partial satisfaction of obligation - Compulsory disposition of collateral

1.A secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:

a.The debtor consents to the acceptance under subsection 3;

b.The secured party does not receive, within the time set forth in subsection 4, a notification of objection to the proposal signed by:

(1)A person to which the secured party was required to send a proposal under section 41-09-116; or

(2)Any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal.

2.A purported or apparent acceptance of collateral under this section is ineffective unless:

a.The secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and

b.The conditions of subsection 1 are met.

3.For purposes of this section:

a.A debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and

b.A debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party:

(1)Sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;

(2)In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and

(3)Does not receive a notification of objection signed by the debtor within twenty days after the proposal is sent.

4.To be effective under subdivision c of subsection 1, a notification of objection must be received by the secured party:

a.In the case of a person to which the proposal was sent pursuant to section 41-09-116, within twenty days after notification was sent to that person; and

b.In other cases:

(1)Within twenty days after the last notification was sent pursuant to section 41-09-116; or

(2)If a notification was not sent, before the debtor consents to the acceptance under subsection 3.