(9-304) Law governing perfection and priority of security interests in deposit accounts or certificates of deposit
N.D. Cent. Code § 41-09-24
in effect41-09-24. (9-304) Law governing perfection and priority of security interests in
deposit accounts or certificates of deposit.
1. The local law of a bank's jurisdiction governs perfection, the effect of perfection or
nonperfection, and the priority of a security interest in a deposit account or certificate
of deposit maintained with that bank even if the transaction does not bear any relation
to the bank's jurisdiction.
2. The following rules determine a bank's jurisdiction for purposes of this part:
a. If an agreement between the bank and its customer governing the deposit
account or certificate of deposit expressly provides that a particular jurisdiction is
the bank's jurisdiction for purposes of this part, this chapter, or this title, that
jurisdiction is the bank's jurisdiction.
b. If subdivision a does not apply and an agreement between the bank and its
customer governing the deposit account or certificate of deposit expressly
provides that the agreement is governed by the law of a particular jurisdiction,
that jurisdiction is the bank's jurisdiction.
c. If neither subdivision a nor b applies and an agreement between the bank and the
bank's customer governing the deposit account or certificate of deposit expressly
provides that the deposit account or certificate of deposit is maintained at an
office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
d. If none of the preceding subdivisions applies, the bank's jurisdiction is the
jurisdiction in which the office identified in an account statement as the office
serving the customer's account is located.
e. If none of the preceding subdivisions applies, the bank's jurisdiction is the
jurisdiction in which the chief executive office of the bank is located.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c09.pdf#nameddest=41-09-24Fetched: 10/16/2026