(1) A person commits the offense of defrauding secured creditors if he or she knowingly destroys, conceals, encumbers, transfers, removes from the Reservation, or otherwise deals with property subject to a security interest with the purpose to hinder enforcement of that interest.

(2) “Security interest” means an interest in personal property or fixtures that secures payment or performance of an obligation.

(3) Defrauding creditors is a Class C offense for the first offense. All subsequent offenses shall be Class E offenses.