Opinion ID: 1822097
Heading Depth: 1
Heading Rank: 4

Heading: Place of filing

Text: Northwestern filed a financing statement with the Morton County Register of Deeds on April 19, 1978, and with the secretary of state on June 21, 1978. MSB filed a financing statement with the secretary of state on May 10, 1978. The trial court determined that the proper place of filing for accounts receivable was with the secretary of state and that MSB's security interest had priority over Elhard's. At the time the financing statements involved were filed in 1978, § 41-09-40(1), N.D.C.C., [§ 9-401(1), U.C.C.] provided:  41-09-40. (9-401) Place of filing Erroneous filingRemoval of collateral. 1. The proper place to file in order to perfect a security interest is as follows: a. When the collateral is equipment used in farming operations, or farm products, or accounts, or general intangibles arising from or relating to the sale of farm products by a farmer, or consumer goods, then in the office of register of deeds in the county of the debtor's residence ....       c. In all other cases, in the office of the secretary of state. The section was amended in 1983 by deleting the comma immediately following the word accounts in subsection 1(a); 1983 S.L., Ch. 82, § 87. Elhard asserts that [t]he disjunctive nature of this subsection, as it existed in 1978, indicates that the proper place to file to perfect a security interest in accounts was with the register of deeds. We disagree. With or without the comma deleted in 1983, § 41-09-40(1)(a), N.D.C.C., [§ 9-401(1), U.C.C.] relates only to farm-related collateral and consumer goods. The collateral involved here is neither of those. Therefore, the proper place to file was in the office of the secretary of state. See Uniform Commercial Code (U.L.A.) § 9-401, 1972 Official Comment. Since MSB was the first to file in the office of the secretary of state, its security interest in accounts had priority over Elhard's. Conflicting security interests rank according to priority in time of filing or perfection. Section 41-09-33(5)(a), N.D.C.C. [§ 9-312(5)(a), U.C.C.].