13-01 General Provisions

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TITLE 13DEBTOR AND CREDITOR RELATIONSHIPCHAPTER 13-01GENERAL PROVISIONS13-01-01. Definitions of creditor and debtor. In this chapter, unless the context orsubject matter otherwise requires:1."Creditor" means one in whose favor an obligation exists by reason of which the<br>person is or may become entitled to the payment of money.2."Debtor" means one who, by reason of an existing obligation, is or may become<br>liable to pay money to another, whether such liability is certain or contingent.13-01-02. Debtor's contract valid in absence of fraud. In the absence of fraud, everycontract of a debtor is valid against all of the debtor's creditors, existing or subsequent, who have<br>not acquired a lien on the property affected by the contract.13-01-03.Creditors may be preferred.Except as otherwise provided in section13-02.1-05, a debtor may pay one creditor in preference to another, or may give to one creditor<br>security for the payment of that creditor's demand in preference to another.13-01-04. Marshalling funds - Rights of creditors. When a creditor is entitled to resortto each of several funds for the satisfaction of the creditor's claim and another person has an<br>interest in, or is entitled as a creditor to resort to, some but not all of them, the latter may require<br>the former to seek satisfaction from those funds to which the latter has no such claim so far as it<br>can be done without impairing the right of the former to complete satisfaction and without doing<br>injustice to third persons. This section does not apply to execution sales of real estate mortgage<br>foreclosures.13-01-05. Transfers with intent to defraud or delay creditors are void. 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t13/pdf/t13c01.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eTITLE 13DEBTOR AND CREDITOR RELATIONSHIPCHAPTER 13-01GENERAL PROVISIONS13-01-01. Definitions of creditor and debtor. In this chapter, unless the context orsubject matter otherwise requires:1.\u0026quot;Creditor\u0026quot; means one in whose favor an obligation exists by reason of which the\u003cbr\u003eperson is or may become entitled to the payment of money.2.\u0026quot;Debtor\u0026quot; means one who, by reason of an existing obligation, is or may become\u003cbr\u003eliable to pay money to another, whether such liability is certain or contingent.13-01-02. Debtor's contract valid in absence of fraud. In the absence of fraud, everycontract of a debtor is valid against all of the debtor's creditors, existing or subsequent, who have\u003cbr\u003enot acquired a lien on the property affected by the contract.13-01-03.Creditors may be preferred.Except as otherwise provided in section13-02.1-05, a debtor may pay one creditor in preference to another, or may give to one creditor\u003cbr\u003esecurity for the payment of that creditor's demand in preference to another.13-01-04. Marshalling funds - Rights of creditors. When a creditor is entitled to resortto each of several funds for the satisfaction of the creditor's claim and another person has an\u003cbr\u003einterest in, or is entitled as a creditor to resort to, some but not all of them, the latter may require\u003cbr\u003ethe former to seek satisfaction from those funds to which the latter has no such claim so far as it\u003cbr\u003ecan be done without impairing the right of the former to complete satisfaction and without doing\u003cbr\u003einjustice to third persons. This section does not apply to execution sales of real estate mortgage\u003cbr\u003eforeclosures.13-01-05. Transfers with intent to defraud or delay creditors are void. 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