{"data":{"id":"us-nd/n.d.-cent.-code-41-09-54","jurisdiction":"us-nd","citation":"N.D. Cent. Code § 41-09-54","heading":"(9-334) Priority of security interests in fixtures and crops","body":"1.A security interest under this chapter may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this chapter in ordinary building materials incorporated into an improvement on land.\n2.This chapter does not prevent creation of an encumbrance upon fixtures under real-property law.\n3.In cases not governed by subsections 4 through 8, a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.\n4.Except as otherwise provided in subsection 8, a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and:\na.The security interest is a purchase-money security interest;\nb.The interest of the encumbrancer or owner arises before the goods become fixtures; and\nc.The security interest is perfected by a fixture filing before the goods become fixtures or within twenty days thereafter.\n5.A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:\na.The debtor has an interest of record in the real property or is in possession of the real property and the security interest:\n(1)Is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and\n(2)Has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;\nb.Before the goods become fixtures, the security interest is perfected by any method permitted by this chapter and the fixtures are readily removable:\n(1)Factory or office machines;\n(2)Equipment that is not primarily used or leased for use in the operation of the real property; or\n(3)Replacements of domestic appliances that are consumer goods;\nc.The conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this chapter; or\nd.The security interest is:\n(1)Created in a manufactured home in a manufactured-home transaction; and\n(2)Perfected pursuant to a statute described in subdivision b of subsection 1 of section 41-09-31.\n6.A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if:\na.The encumbrancer or owner has, in a signed record, consented to the security interest or disclaimed an interest in the goods as fixtures; or\nb.The debtor has a right to remove the goods as against the encumbrancer or owner.\n7.The priority of the security interest under subdivision b of subsection 6 continues for a reasonable time if the debtor's right to remove the goods as against the encumbrancer or owner terminates.\n8.A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subsections 5 and 6, a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage.\n9.A perfected security interest in crops growing on real property has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property.\n10.Subsection 9 prevails over any inconsistent provisions of section 47-16-03.","path":["Title 41 Uniform Commercial Code","Chapter 41-09 Secured Transactions"],"source_url":"https://ndlegis.gov/cencode/t41c09.pdf","current_through":"2026-07-31T11:12:02","vintage":"","retrieved_at":"2026-09-02T21:04:14Z","sha256":"10cf85822e8a1291ee13d51757eaca9430a075ab6b3f1b73e288151b0ce46b42","source_id":"us-nd","stale":true,"prev":"us-nd/n.d.-cent.-code-41-09-53","next":"us-nd/n.d.-cent.-code-41-09-55"},"notice":"GroundRules: Original legal text. Not legal advice."}