§ 45-37. Satisfaction of record of security instruments.
§ 45‑37. Satisfactionof record of security instruments.
(a) Subject to theprovisions of G.S. 45‑36.9(a) and G.S. 45‑73 relating to securityinstruments which secure future advances, any security instrument intended tosecure the payment of money or the performance of any other obligationregistered as required by law may be satisfied of record and thereby dischargedand released of record in the following manner:
(1) Security instrumentssatisfied of record prior to October 1, 2005, pursuant to this subdivision asit was in effect prior to October 1, 2005, shall be deemed satisfied of record,discharged, and released.
(2) By presentation ofany original security instrument accompanied with the original bond, note, orother instrument thereby secured to the register of deeds, with the endorsementof payment and satisfaction appearing thereon and made by:
a. The securedcreditor,
b. The trustee orsubstitute trustee, if the security instrument is a deed of trust,
c. An assignee of thesecured creditor, or
d. Any bank, savingsand loan association, savings bank, or credit union chartered under the laws ofthis or any other state or the United States having an office or branch in theState of North Carolina, when so endorsed in the name of the institution by anofficer thereof.
Theregister of deeds is not required to verify or make inquiry concerning theauthority of the person making the endorsement of payment and satisfaction todo so. Only upon presentation of the original instruments with endorsement ofpayment and satisfaction appearing thereon shall the register of deeds record arecord of satisfaction as described in G.S. 45‑37.2(b). The person soclaiming satisfaction, performance or discharge of the debt or other obligationmay retain possession of all of the instruments presented. The presentation ofthe security instrument alone to the register of deeds, with endorsement ofpayment, satisfaction, performance or discharge, shall be sufficient if thesecurity instrument itself sets forth the obligation secured or the performanceof any other obligation and does not call for or recite any note, bond or otherinstrument secured by it.
(3) By presentation tothe register of deeds by:
a. The grantor,
b. The mortgagor, or
c. An agent, attorneyor successor in title of the grantor or mortgagor
of anyoriginal security instrument intended to secure the payment of money or theperformance of any other obligation, together with the original bond, note orother instrument secured thereby, or by presentation of the original securityinstrument alone if such instrument itself sets forth the obligation secured orother obligation to be performed and does not call for or recite any note, bondor other instrument secured by it, if at the time of presentation, all such instrumentsare more than 10 years old counting from the maturity date of the lastobligation secured. If the instrument or instruments so presented have anendorsement of partial payment, satisfaction, performance or discharge withinthe said period of 10 years, the period of 10 years shall be counted from thedate of the most recent endorsement.
Onlyupon presentation of the original instruments shall the register of deedsrecord a record of satisfaction as described in G.S. 45‑37.2(b).
(4) By presentation tothe register of deeds of any original security instrument given to secure thebearer or holder of any negotiable instruments transferable by delivery,together with all the evidences of indebtedness secured thereby, marked paidand satisfied in full and signed by the bearer or holder thereof.
Onlyupon presentation of the original security instruments, and the originals ofevidences of indebtedness properly marked shall the register of deeds record arecord of satisfaction as described in G.S. 45‑37.2(b), which record ofsatisfaction shall be valid and binding upon all persons, if no personrightfully entitled to the security instrument or evidences of indebtedness haspreviously notified the register of deeds by means of a written affidavit ofthe loss or theft of the security instrument or evidences of indebtedness andhas caused the register of deeds to record the affidavit of loss or theft as aseparate document, as required by G.S. 161‑14.1.
Uponreceipt of an affidavit of loss or theft of the security instrument orevidences of indebtedness that identify the security instrument, the originalparties to the security instrument, and the recording data for the securityinstrument, the register of deeds shall record a record of satisfaction, asdescribed in G.S. 45‑37.2(b). The security instrument shall not bepresented for satisfaction after such recording of a record of satisfaction ormarginal entry until the ownership of said instrument shall have been lawfullydetermined. Nothing in this subdivision (4) shall be construed to impair thenegotiability of any instrument otherwise properly negotiable, nor to impairthe rights of any innocent purchaser for value thereof.
(5) Security instrumentssatisfied of record prior to October 1, 2005, pursuant to this subdivision asit was in effect prior to October 1, 2005, shall be deemed satisfied of record,discharged, and released.
(6) Security instrumentssatisfied of record prior to October 1, 2005, pursuant to this subdivision asit was in effect prior to October 1, 2005, shall be deemed satisfied of record,discharged, and released.
(7) By recording:
a. A satisfactiondocument that satisfies the requirements of G.S. 45‑36.10,
b. An affidavit ofsatisfaction that satisfies the requirements of G.S. 45‑36.16, or
c. A trustee'ssatisfaction that satisfies the requirements of G.S. 45‑36.20, but onlyif the security instrument is a deed of trust.
Theregister of deeds shall not be required to verify or make inquiry concerning(i) the truth of the matters stated in any satisfaction document, affidavit ofsatisfaction, or trustee's satisfaction, or (ii) the authority of the personexecuting any satisfaction document, affidavit, or trustee's satisfaction to doso.
(b) It shall beconclusively presumed that the conditions of any security instrument securingthe payment of money or securing the performance of any other obligation orobligations have been complied with or the debts secured thereby paid orobligations performed, as against creditors or purchasers for valuable considerationfrom the mortgagor or grantor, from and after the expiration of 15 years fromwhichever of the following occurs last:
(1) The date when theconditions of the security instrument were required by its terms to have beenperformed, or
(2) The date of maturityof the last installment of debt or interest secured thereby;
provided that the holder of theindebtedness secured by the security instrument or party secured by anyprovision thereof may file an affidavit with the register of deeds which affidavitshall specifically state:
(1) The amount of debtunpaid, which is secured by the security instrument; or
(2) In what respect anyother condition thereof shall not have been complied with; or
may record a separate instrumentsigned by the secured creditor and witnessed by the register of deeds stating:
(1) Any payments thathave been made on the indebtedness or other obligation secured by the securityinstrument including the date and amount of payments and
(2) The amount still dueor obligations not performed under the security instrument.
The effect of the filing of theaffidavit or the recording of a separate instrument made as herein providedshall be to postpone the effective date of the conclusive presumption ofsatisfaction to a date 15 years from the filing of the affidavit or from therecording of the separate instrument. There shall be only one postponement ofthe effective date of the conclusive presumption provided for herein. Theregister of deeds shall record and index the affidavit provided for herein orthe separate instrument made as herein provided as a subsequent instrument inaccordance with G.S. 161‑14.1. This subsection shall not apply to anysecurity instrument made or given by any railroad company, or to any agreementof conditional sale, equipment trust agreement, lease, chattel mortgage orother instrument relating to the sale, purchase or lease of railroad equipmentor rolling stock, or of other personal property.
(c) Repealed by SessionLaws 1991, c. 114, s. 4.
(d) Repealed by SessionLaws 2005‑123, s. 1.
(e) Any transactionsubject to the provisions of the Uniform Commercial Code, Chapter 25 of theGeneral Statutes, is controlled by the provisions of that act and not by thissection.
(f) Whenever thissection requires a signature or endorsement, that signature or endorsementshall be followed by the name of the person signing or endorsing the documentprinted, stamped, or typed so as to be clearly legible.
(g) The satisfaction ofrecord of a security instrument pursuant to this section shall operate and havethe same effect as a duly executed and recorded deed of release or reconveyanceof the property described in the security instrument and shall release anddischarge (i) all the interest of the secured creditor in the real propertyarising from the security instrument and, (ii) if the security instrument is adeed of trust, all the interest of the trustee or substitute trustee in thereal property arising from the deed of trust. (1870‑1, c. 217; Code, s. 1271; 1891, c. 180;1893, c. 36; 1901, c. 46; Rev., s. 1046; 1917, c. 49, s. 1; c. 50, s. 1; C.S.,s. 2594; 1923, c. 192, s. 1; c. 195; 1935, c. 47; 1945, c. 988; 1947, c. 880;1951, c. 292, s. 1; 1967, c. 765, ss. 1‑5; 1969, c. 746; 1975, c. 305;1985, c. 219; 1987, c. 405, s. 1; c. 620, s. 1; 1989, c. 434, s. 1; 1991, c.114, s. 4; 1995, c. 292, ss. 1, 2, 5; 1995 (Reg. Sess., 1996), c. 604, s. 1;2005‑123, s. 1; 2006‑226, s. 12; 2006‑259, s. 2; 2006‑264,s. 40(b).)