Assignment of an encumbrance.

85-04-04-07. Assignment of an encumbrance. 1. An encumbrance may not be assigned unless specifically authorized by the terms of the encumbrance or upon written consent of the commissioner. 2. If specifically authorized by the terms of the encumbrance: a. The assignor is responsible for compliance with all terms of the encumbrance, this chapter, and applicable laws until the department is notified of the assignment. b. Upon the department's notification, the assignee is responsible for compliance with all terms of the encumbrance, this chapter, and applicable law. 3. a. A consent to assignment may not be deemed valid unless provided in writing by the commissioner. b. The assignor remains responsible for compliance with all terms of the encumbrance and this chapter until consent to the assignment is provided by the commissioner. Upon approval, the assignee is responsible for compliance with all terms of the encumbrance, this chapter, and applicable law. History: Effective April 1, 2026. General Authority: NDCC 15-01-02, 28-32-02 3 Law Implemented: NDCC 15-01-02, 15-02-05, 15-05-01 4