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You are asking . . .

Q. How are the Article 9 provisions going to impact lending in the State of North Dakota?

A. Revised Article 9 will have no immediate impact. Any version that is passed will not be immediately effective. Initially, the supporters behind the revision wanted all states to have passed the revision by now and to have them take effect simultaneously in 2001. This would allow a year or more between the passage and effective dates. Although a significant period of time is necessary prior to the effective date, many states have been cautious in reviewing the changes and have not yet adopted any of the revisions. Thus, it is unlikely that a state that has not passed any legislation, such as North Dakota, would allow any to take effect in less than a year after passage. Accordingly, it is doubtful that the revisions would have any impact prior to 2002, if not later.

The impact that the revised Article 9 will have in the future is uncertain. The North Dakota Legislature has still not passed any version of the revised Article 9. Although most people believe that North Dakota will revise its Article 9, the extent to which it will be revised is still not clear. Thus, it's impact for the future is uncertain.