North Dakota Code § 41-12-04

controllable payment intangible.
1. This section applies to the acquisition and purchase of rights in a controllable account 
or controllable payment intangible, including the rights and benefits under 
subsections 3, 4, 5, 7, and 8 of a purchaser and qualifying purchaser, in the same 
manner this section applies to a controllable electronic record.
2. To determine whether a purchaser of a controllable account or a controllable payment 
intangible is a qualifying purchaser, the purchaser obtains control of the account or 
payment intangible if it obtains control of the controllable electronic record that 
evidences the account or payment intangible.
3. Except as provided in this section, law other than this chapter determines whether a 
person acquires a right in a controllable electronic record and the right the person 
acquires.
4. A purchaser of a controllable electronic record acquires all rights in the controllable 
electronic record that the transferor had or had power to transfer, except that a 
purchaser of a limited interest in a controllable electronic record acquires rights only to 
the extent of the interest purchased.

5. A qualifying purchaser acquires its rights in the controllable electronic record free of a 
claim of a property right in the controllable electronic record.
6. Except as provided in subsections 1 and 5 for a controllable account and a controllable 
payment intangible or law other than this chapter, a qualifying purchaser takes a right 
to payment, right to performance, or other interest in property evidenced by the 
controllable electronic record subject to a claim of a property right in the right to 
payment, right to performance, or other interest in property.
7. An action may not be asserted against a qualifying purchaser based on both a 
purchase by the qualifying purchaser of a controllable electronic record and a claim of 
a property right in another controllable electronic record, whether the action is framed 
in conversion, replevin, constructive trust, equitable lien, or other theory.
8. Filing of a financing statement under chapter 41 -09 is not notice of a claim of a 
property right in a controllable electronic record.

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