On Mar. 26, ND LEG enacted bill re trustees, property receivership.
ND LEG approved Bill SB 2122 in order to create and enact chapter ND LEG 32-10.1 as well as a new section to chapter ND LEG 32-19.2 to the North Dakota century code.
Aims to address receivership powers and regulations related to real property interests.
Bill Provisions
Adds new definitions re mortgages, owners, spouses, rents, receiver and receivership.
Court may issue order before/after notice to give an opportunity for a hearing based on appropriate circumstances, applicable to a receivership for interest in real property.
Does not apply to a receivership for an interest in real property improved by one to four dwelling units, with conditions re interest, rents, or owner development plans.
Address appointment of a receiver, or power of the court to direct receiver or address property controversy, and may condition appointment of a receiver without prior notice
Court can also disqualify a receiver appointment, may post a bond with the court as additional security, including letter of credit/deposit of funds, but cannot use property.
Receiver becomes a lien creditor after appointment, and upon demand, property must be turned over; and after acquiring property, it is subject to a security agreement.
Outlines powers and duties or receiver and the owner, who cooperates with receiver.
With court approval, receiver may engage attorney, accountant, appraiser, auctioneer, broker, professional to assist in performing a duty or exercising a power of receiver.
Also addresses executory contracts, use or transfer of receivership property, interim and final reports, and other reporting obligations, appointments, fees and expenses.
Legislative History
On Jan. 7, 2025, bill introduced in Senate; on Jan. 16, 2025, bill passed in Senate.
On Jan. 17, 2025, bill delivered to House; on Mar. 10, 2025, bill was passed in House.
On Mar. 18, 2025, bill concurred in Senate; on Mar. 21, 2025, bill sent to governor.
On Mar. 25, 2025, bill approved by governor; on Mar. 26, 2025, filed with secretary.
Effectiveness
Per ND Constitution, upon approval by governor bill, becomes effective Aug. 1, 2025.
Regulators
ND LEG
Entity Types
Bank; CNSM; MG Orig
Reference
Bill SB2122, 3/26/2025; Citation: *ND LEG* 32, 32-19.2;
