N.D. Cent. Code § 41-09-15: (9-205) Use or disposition of collateral permissible

1.A security interest is not invalid or fraudulent against creditors solely because:

a.The debtor has the right or ability to:

(1)Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;

(2)Collect, compromise, enforce, or otherwise deal with collateral;

(3)Accept the return of collateral or make repossessions; or

(4)Use, commingle, or dispose of proceeds; or

b.The secured party fails to require the debtor to account for proceeds or replace collateral.

2.This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.