§ 14-114. Fraudulent disposal of personal property on which there is a security interest. - North Carolina Statutes

Article20.

Frauds.

§ 14‑114.  Fraudulentdisposal of personal property on which there is a security interest.

(a)        If any person,after executing a security agreement on personal property for a lawful purpose,shall make any disposition of any property embraced in such security agreement,with intent to defeat the rights of the secured party, every person sooffending and every person with a knowledge of the security interest buying anyproperty embraced in which security agreement, and every person assisting,aiding or abetting the unlawful disposition of such property, with intent todefeat the rights of any secured party in such security agreement, shall beguilty of a Class 2 misdemeanor.

A person's refusal to turnover secured property to a secured party who is attempting to repossess theproperty without a judgment or order for possession shall not, by itself, be aviolation of this section.

(b)        Intent to committhe crime as set forth in subsection (a) may be presumed from proof ofpossession of the property embraced in such security agreement by the grantorthereof after execution of the security agreement, and while it is in force,the further proof of the fact that the sheriff or other officer charged withthe execution of process cannot after due diligence find such property underprocess directed to him for its seizure, for the satisfaction of such securityagreement.  However, this presumption may be rebutted by evidence that theproperty has, through no fault of the defendant, been stolen, lost, damagedbeyond repair, or otherwise disposed of by the defendant without intent todefeat the rights of the secured party. (1873‑4, c. 31; 1874‑5,c. 215; 1883, c. 61; Code, s. 1089; 1887, c. 14; Rev., s. 3435; C.S., s. 4287;1969, c. 984, s. 2; c. 1224, s. 4; 1987 (Reg. Sess., 1988), c. 1065, s. 1;1993, c. 539, s. 56; 1994, Ex. Sess., c. 24, s. 14(c).)