§ 20-279.24. Bond as proof. - North Carolina Statutes

§ 20‑279.24.  Bond asproof.

(a)        Proof of financialresponsibility may be furnished by filing with the Commissioner the bond of asurety company duly authorized to transact business in the State or a bond withat least two individual sureties each owning real estate within this State, andtogether having equities in such real estate over and above any encumbrancesthereon equal in value to at least twice the amount of such bond, which realestate shall be scheduled in the bond which shall be approved by the clerk ofthe superior court of the county wherein the real estate is situated. Such bondshall be conditioned for payments in amounts and under the same circumstancesas would be required in a motor vehicle liability policy, and shall not becancellable except after 20 days' written notice to the Commissioner. Acertificate of the county tax supervisor or person performing the duties of thetax supervisor, showing the assessed valuation of each tract or parcel of realestate for tax purposes shall accompany a bond with individual sureties and,upon acceptance and approval by the Commissioner, the execution of such bondshall be proved before the clerk of the superior court of the county orcounties wherein the land or any part thereof lies, and such bond shall berecorded in the office of the register of deeds of such county or counties.Such bond shall constitute a lien upon the real estate therein described fromand after filing for recordation to the same extent as in the case of ordinarymortgages and shall be regarded as the equivalent of a mortgage or deed oftrust. In the event of default in the terms of the bond the Commissioner mayforeclose the lien thereof by making public sale upon publishing notice thereofas provided by G.S. 45‑21.17; provided, that any such sale shall besubject to the provisions for upset or increased bids and resales and theprocedure therefor as set out in Part 2 of Article 2A of Chapter 45 of theGeneral Statutes. The proceeds of such sale shall be applied by the Commissionertoward the discharge of liability upon the bond, any excess to be paid over tothe surety whose property was sold. The Commissioner shall have power to sosell as much of the property of either or both sureties described in the bondas shall be deemed necessary to discharge the liability under the bond, andshall not be required to apportion or prorate the liability as betweensureties.

If any surety is a marriedperson, his or her spouse shall be required to execute the bond, but only forthe purpose of releasing any dower or curtesy interest in the propertydescribed in the bond, and the signing of such bond shall constitute aconveyance of dower or curtesy interest, as well as the homestead exemption ofthe surety, for the purpose of the bond, and the execution of the bond shall beduly acknowledged as in the case of deeds of conveyance. The Commissioner mayrequire a certificate of title of a duly licensed attorney which shall show allliens and encumbrances with respect to each parcel of real estate described inthe bond and, if any parcel of such real estate has buildings or otherimprovements thereon, the Commissioner may, in his discretion, require thefiling with him of a policy or policies of fire and other hazard insurance,with loss clauses payable to the Commissioner as his interest may appear. Allcosts and expenses in connection with furnishing such bond and the registrationthereof, and the certificate of title, insurance and other necessary items ofexpense shall be borne by the principal obligor under the bond, except that thecosts of foreclosure may be paid from the proceeds of sale.

(b)        If such a judgment,rendered against the principal on such bond shall not be satisfied within 60days after it has become final,  the judgment creditor may, for his own use andbenefit and at his sole expense, bring an action or actions in the name of theState against the company or persons executing such bond, including an actionor proceeding to foreclose any lien that may exist upon the real estate of a personwho has executed such bond. (1953, c. 1300, s. 24; 1993,c. 553, s. 10.)