§ 20-58. Perfection by indication of security interest on certificate of title. - North Carolina Statutes

§20‑58.  Perfection by indication of security interest on certificate oftitle.

(a)        Except as providedin G.S. 20‑58.8, a security interest in a vehicle of a type for which acertificate of title is required shall be perfected only as hereinafterprovided.

(1)        If the vehicle isnot registered in this State, the application for notation of a securityinterest shall be the application for certificate of title provided for in G.S.20‑52.

(2)        If the vehicle isregistered in this State, the application for notation of a security interestshall be in the form prescribed by the Division, signed by the debtor, andcontain the date of application of each security interest, and name and addressof the secured party from whom information concerning the security interest maybe obtained. The application must be accompanied by the existing certificate oftitle unless in the possession of a prior secured party. If there is anexisting certificate of title issued by this or any other jurisdiction in thepossession of a prior secured party, the application for notation of thesecurity interest shall in addition contain the name and address of such priorsecured party. An application for notation of a security interest may be signedby the secured party instead of the debtor when the application is accompaniedby documentary evidence of the applicant's security interest in that motorvehicle signed by the debtor and by affidavit of the applicant stating thereason the debtor did not sign the application. In the event the certificatecannot be obtained for recordation of the security interest, when title remainsin the name of the debtor, the Division shall cancel the certificate and issuea new certificate of title listing all the respective security interests.

(3)        If the applicationfor notation of security interest is made in order to continue the perfectionof a security interest perfected in another jurisdiction, it may be signed bythe secured party instead of the debtor. Such application shall be accompaniedby documentary evidence of a perfected security interest. No such applicationshall be valid unless an application for a certificate of title has been madein North Carolina. The security interest perfected herein shall be subject tothe provisions set forth in G.S. 20‑58.5.

(b)        When amanufacturer's statement of origin or an existing certificate of title on amotor vehicle is unavailable, a first lienholder who holds a valid license as amotor vehicle dealer issued by the Commissioner under Article 12 of thisChapter or his designee may file a notarized copy of an instrument creating andevidencing a security interest in the motor vehicle with the Division of MotorVehicles. A filing pursuant to this subsection shall constitute constructivenotice to all persons of the security interest in the motor vehicle describedin the filing. The constructive notice shall be effective from the date of thefiling if the filing is made within 20 days after the date of the securityagreement. The constructive notice shall date from the date of the filing withthe Division if it is made more than 20 days after the date of the securityagreement. The notation of a security interest created under this subsectionshall automatically expire 60 days after the date of the creation of the securityinterest, or upon perfection of the security interest as provided in subsection(a) of this section, whichever occurs first. A security interest notation madeunder this subsection and then later perfected under subsection (a) of thissection shall be presumed to have been perfected on the date of the earlierfiling. The Division may charge a fee not to exceed ten dollars ($10.00) foreach notation of security interest filed pursuant to this subsection. The feeshall be credited to the Highway Fund. A false filing with the Divisionpursuant to this subsection shall constitute a Class H felony. (1937,c. 407, s. 22; 1955, c. 554, s. 2; 1961, c. 835, s. 6; 1969, c. 838, s. 1;1975, c. 716, s. 5; 1979, c. 145, ss. 1, 2; c. 199; 2000‑182, s. 2.)