AN ACT to create and enact chapter 32-10.1 and a new section to chapter 32-19.2 of the North Dakota Century Code, relating to the Uniform Commercial Real Estate Receivership Act and trustees for commercial buildings during foreclosures; to provide for a legislative management study; and to provide for application.
SB 2122 adopts the Uniform Commercial Real Estate Receivership Act in North Dakota by creating a new chapter governing court-appointed receivers for commercial real estate and related personal property. The bill defines key terms, sets when a receiver may be appointed, and establishes procedures for notice, hearings, receiver qualifications, bonding, reporting, creditor claims, compensation, and termination of the receivership. It also addresses how receivers may manage, operate, lease, sell, or otherwise dispose of property, and how executory contracts and leases may be adopted or rejected during the receivership.
The bill also makes a conforming change to the foreclosure statutes by providing that the commercial real estate receivership chapter controls over the existing trustee provisions for commercial buildings during foreclosures. In addition, it directs the Legislative Management to study all North Dakota receivership laws during the 2025-26 interim to determine whether they should be consolidated into a single chapter. The act applies prospectively only and does not affect receiverships in which a receiver was appointed before the effective date.
SB 2122 creates a new statutory framework in North Dakota Century Code chapter 32-10.1 for commercial real estate receiverships, giving district courts express authority to appoint and supervise receivers in commercial foreclosure and related cases. It affects mortgagees, mortgagors, owners, creditors, tenants, professionals hired by receivers, and other parties with interests in commercial property by setting rules for possession, turnover, stays, lien priority, contract rejection, distributions, and deficiency rights. It also amends chapter 32-19.2 to exclude commercial real estate receiverships governed by the new chapter, thereby aligning foreclosure-related trustee procedures with the new receivership law.
The bill appears to have broad bipartisan support and little visible opposition. It passed the Senate and House overwhelmingly, including a 93-0 House vote and a 45-1 Senate vote on the later Senate reading, indicating general agreement that North Dakota should adopt a uniform receivership framework for commercial real estate. The absence of committee transcript opposition suggests the measure was viewed as a technical, modernization-oriented bill rather than a controversial policy change.
The main policy issues embedded in the bill concern when a receiver may be appointed, how much authority the receiver should have over property and contracts, and how the law balances creditor remedies against owner and tenant protections. Potential points of contention include the broad powers to stay actions against property, reject executory contracts, sell property free of junior liens, and impose duties on owners to cooperate and turn over records. However, the voting record suggests these issues did not generate significant opposition in practice, and the bill’s uniform-law origin likely reduced controversy.