(8-511) Priority among security interests and entitlement holders
N.D. Cent. Code § 41-08-51
in effect41-08-51. (8-511) Priority among security interests and entitlement holders
1. Except as otherwise provided in subsections 2 and 3, if a securities intermediary does
not have sufficient interests in a particular financial asset to satisfy both its obligations
to entitlement holders who have security entitlements to that financial asset and its
obligation to a creditor of the securities intermediary who has a security interest in that
financial asset, the claims of entitlement holders, other than the creditor, have priority
over the claim of the creditor.
2. A claim of a creditor of a securities intermediary who has a security interest in a
financial asset held by a securities intermediary has priority over claims of the
securities intermediary's entitlement holders who have security entitlements with
respect to that financial asset if the creditor has control over the financial asset.
3. If a clearing corporation does not have sufficient financial assets to satisfy both its
obligations to entitlement holders who have security entitlements with respect to a
financial asset and its obligation to a creditor of the clearing corporation who has a
security interest in that financial asset, the claim of the creditor has priority over the
claims of entitlement holders.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c08.pdf#nameddest=41-08-51Fetched: 10/16/2026