ND HB1191

An enforceable document creating a security interest in real property automatically creates an assignment of rents from that property, unless the document specifies otherwise.

An assignment of rents creates a presently effective security interest in all accrued and unaccrued rents, which is separate and distinct from any security interest in the real property itself.

A document creating an assignment of rents may be recorded in the county recorder's office, and upon recording, the security interest in rents becomes fully perfected regardless of any provisions that would otherwise defer enforcement.

An assignee may enforce an assignment of rents through notice to the assignor, notice to the tenant, or appointment of a receiver, and is entitled to collect all unpaid accrued rents and rents accruing after enforcement begins.

The act applies to documents signed before August 1, 2013, but does not affect actions commenced before that date or previously enforceable and perfected security interests.