Chapter 25

(a) Assignee's Rights Subject to Terms, Claims, and Defenses; Exceptions. - Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) through (e) of this section, the rights of an assignee are subject to both of th…

(a) Effect of modification on assignee. - A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the …

Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective. (a) Discharge of Account Debtor; Effect of Notification. - Subject to sub…

(a) Term restricting assignment generally ineffective. - Except as otherwise provided in subsection (b) of this section, a term in a lease agreement is ineffective to the extent that it: (1) Prohibits, restricts, or requires the consent of a party to the lease to the assignment o…

(a) Term Restricting Assignment Generally Ineffective. - Except as otherwise provided in subsection (b) of this section, a term in a promissory note or in an agreement between an account debtor and a debtor that relates to a health-care-insurance receivable or a general intangibl…

(a) Term or law restricting assignment generally ineffective. - A term in a letter of credit or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit which prohibits, restricts, or requires the consent of an applicant, issuer, or nominated per…

(a) Filing offices. - Except as otherwise provided in subsection (b) of this section, if the local law of this State governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural …

(a) Sufficiency of financing statement. - Subject to subsection (b) of this section, a financing statement is sufficient only if it: (1) Provides the name of the debtor; (2) Provides the name of the secured party or a representative of the secured party; and (3) Indicates the col…

(a) Sufficiency of debtor's name. - A financing statement sufficiently provides the name of the debtor: (1) Except as otherwise provided in subdivision (3) of this subsection, if the debtor is a registered organization or the collateral is held in a trust that is a registered org…

A financing statement sufficiently indicates the collateral that it covers if the financing statement provides: (1) A description of the collateral pursuant to G.S. 25-9-108; or (2) An indication that the financing statement covers all assets or all personal property. (1899, cc. …

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(a) Use of terms other than "debtor" and "secured party." - A consignor, lessor, or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in G.S. 25-9-311(a), using…

(a) Minor errors and omissions. - A financing statement substantially satisfying the requirements of this Part is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading. (b) Financing statement serious…

(a) Disposition. - A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the d…

(a) Financing statement naming original debtor. - Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the fina…

(a) Person Entitled to File Record. - A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if either of the following applies: (1) The debtor authorizes the…

(a) Filed record effective if authorized. - A filed record is effective only to the extent that it was filed by a person that may file it under G.S. 25-9-509. (b) Authorization by one secured party of record. - A record authorized by one secured party of record does not affect th…

(a) Secured party of record. - A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financi…

(a) Amendment of information in financing statement. - Subject to G.S. 25-9-509, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subsection (e) of this section, otherwise amend the information provided in, a financing s…

(a) Consumer Goods. - A secured party shall cause the secured party of record for a financing statement to file a termination statement for the financing statement if the financing statement covers consumer goods and either of the following applies: (1) There is no obligation sec…

(a) Assignment reflected on initial financing statement. - Except as otherwise provided in subsection (c) of this section, an initial financing statement may reflect an assignment of all of the secured party's power to authorize an amendment to the financing statement by providin…

(a) Five-year effectiveness. - Except as otherwise provided in subsections (b), (e), (f), and (g) of this section, a filed financing statement is effective for a period of five years after the date of filing. (b) Public-finance or manufactured-home transaction. - Except as otherw…

(a) What constitutes filing. - Except as otherwise provided in subsection (b) of this section, communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing. (b) Refusal to accept record; filing does …

The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record. (2000-169, s. 1.)

(a) Statement With Respect to Record Indexed Under Person's Name. - A person may file in the filing office an information statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed. (b) Con…

(a) Filing office duties. - For each record filed in a filing office, the filing office shall: (1) Assign a unique number to the filed record; (2) Create a record that bears the number assigned to the filed record and the date and time of filing; (3) Maintain the filed record for…

(a) Mandatory refusal to accept record. - A filing office shall refuse to accept a record for filing for a reason set forth in G.S. 25-9-516(b) and may refuse to accept a record for filing only for a reason set forth in G.S. 25-9-516(b). (b) Communication concerning refusal. - If…

(a) Initial financing statement form. - A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in G.S. 25-9-516(b): UCC FINANCING STATEMENT (Form UCC1) (Rev. 04-20-…

(a) Post-lapse maintenance and retrieval of information. - The filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under G.S. 25-9-515 with respect to …

(a) Acknowledgment of filing written record. - If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursuant to G.S. 25-9-519(a)(1) and the dat…

Delay by the filing office beyond a time limit prescribed by this Part is excused if: (1) The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond control of the filing office; and …

(a) Filing of initial financing statement or other record with the office of the Secretary of State: general rule. - Except as otherwise provided in subsection (e) of this section, the Secretary of State shall collect the following fees for filing and indexing a record under this…

(a) Adoption of filing-office rules. - The Secretary of State shall adopt and publish rules to implement the Secretary of State's responsibilities under this Part. The filing-office rules must be consistent with this Article. (b) Harmonization of rules. - To keep the filing-offic…

(a) Rights of Secured Party After Default. - After default, a secured party has the rights provided in this Part and, except as otherwise provided in G.S. 25-9-602, those provided by agreement of the parties. A secured party may do both of the following: (1) May reduce a claim to…

Except as otherwise provided in G.S. 25-9-624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed sections: (1) G.S. 25-9-207(b)(4)c., which deals wi…

(a) Agreed standards. - The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in G.S. 25-9-602 if the standards are not manifestly unreasonable. (b) Agreed standard…

(a) Enforcement: personal and real property. - If a security agreement covers both personal and real property, a secured party may proceed: (1) Under this Part as to the personal property without prejudicing any rights with respect to the real property; or (2) As to both the pers…

(a) No Duty Generally Owed by Secured Party. - Except as provided in subsection (b) of this section, a secured party does not owe a duty based on its status as secured party to either of the following: (1) To a person that is a debtor or obligor, unless the secured party knows al…

For purposes of this Part, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created. (2000-169, s. 1.)

(a) Collection and enforcement generally. - If so agreed, and in any event after default, a secured party: (1) May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party; (2) May …

(a) Application of Proceeds, Surplus, and Deficiency If Obligation Secured. - If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply: (1) A secured party shall apply or pay over for application the cash proceeds of c…

(a) Possession; rendering equipment unusable; disposition on debtor's premises. - After default, a secured party: (1) May take possession of the collateral; and (2) Without removal, may render equipment unusable and dispose of collateral on a debtor's premises under G.S. 25-9-610…

(a) Disposition after default. - After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing. (b) Commercially reasonable disposition. - E…

(a) Notification Date. - In this section, notification date means the date of the earlier of the following: (1) A secured party sends to the debtor and any secondary obligor a signed notification of disposition. (2) The debtor and any secondary obligor waive the right to notifica…

(a) Reasonable time is question of fact. - Except as otherwise provided in subsection (b) of this section, whether a notification is sent within a reasonable time is a question of fact. (b) Ten-day period sufficient in nonconsumer transaction. - In a transaction other than a cons…

(a) Contents and Form of Notification. - Except in a consumer-goods transaction, the following rules apply: (1) The contents of a notification of disposition are sufficient if the notification does all of the following: a. Describes the debtor and the secured party. b. Describes …

(a) Contents and Form of Notification. - In a consumer-goods transaction, the following rules apply: (1) A notification of disposition must provide all of the following information: a. The information specified in G.S. 25-9-613(a)(1). b. A description of any liability for a defic…

(a) Application of Proceeds. - A secured party shall apply or pay over for application the cash proceeds of disposition under G.S. 25-9-610 to the following in the following order: (1) The reasonable expenses of retaking, holding, preparing for disposition, processing, and dispos…

(a) Definitions. - In this section, the following definitions apply: (1) Explanation. - A record that does all of the following: a. States the amount of the surplus or deficiency. b. Provides information in accordance with subsection (c) of this section explaining how the secured…