(9-206) Security interest arising in purchase or delivery of financial asset
N.D. Cent. Code § 41-09-16
in effect41-09-16. (9-206) Security interest arising in purchase or delivery of financial asset
1. A security interest in favor of a securities intermediary attaches to a person's security
entitlement if:
a. The person buys a financial asset through the securities intermediary in a
transaction in which the person is obligated to pay the purchase price to the
securities intermediary at the time of the purchase; and
b. The securities intermediary credits the financial asset to the buyer's securities
account before the buyer pays the securities intermediary.
2. The security interest described in subsection 1 secures the person's obligation to pay
for the financial asset.
3. A security interest in favor of a person that delivers a certificated security or other
financial asset represented by a writing attaches to the security or other financial asset
if:
a. The security or other financial asset:
(1) In the ordinary course of business is transferred by delivery with any
necessary indorsement or assignment; and
(2) Is delivered under an agreement between persons in the business of
dealing with such securities or financial assets; and
b. The agreement calls for delivery against payment.
4. The security interest described in subsection 3 secures the obligation to make
payment for the delivery.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c09.pdf#nameddest=41-09-16Fetched: 10/16/2026