12.1-23-08. Defrauding secured creditors

12.1-23-08. Defrauding secured creditors

1. An owner of property who creates a security interest in such property may not

intentionally alter, conceal, destroy, damage, encumber, transfer, remove, or otherwise

deal with property that is subject to the security interest without the prior consent of the

secured party if that action has the effect of hindering the enforcement of the security

interest.

2. A person may not destroy, remove, damage, conceal, encumber, transfer, or otherwise

deal with property that is subject to a security interest with the intent to prevent

collection of the debt represented by the security interest.

3. A person may not, at the time of sale of property that is subject to a security interest, or

is described in a certificate provided for under section 41-09-28, make false

statements as to the existence of security interests in the property, or as to the

ownership or location of the property.

4. A violation of subsection 2 or 3 must be prosecuted as theft under section 12.1-23-02

or 12.1-23-04. Violation of subsection 2 or 3 is a class C felony if the property has a

value of more than one thousand dollars, as determined under subsection 7 of section