§ 25-8-203. Staleness as notice of defect or defense. - North Carolina Statutes

§25‑8‑203.  Staleness as notice of defect or defense.

After an act or event, otherthan a call that has been revoked, creating a right to immediate performance ofthe principal obligation represented by a certificated security or setting adate on or after which the security is to be presented or surrendered forredemption or exchange, a purchaser is charged with notice of any defect in itsissue or defense of the issuer, if the act or event:

(1)        Requires the paymentof money, the delivery of a certificated security, the registration of transferof an uncertificated security, or any of them on presentation or surrender ofthe security certificate, the money or security is available on the date setfor payment or exchange, and the purchaser takes the security more than oneyear after that date; or

(2)        Is not covered bysubdivision (1) of this section and the purchaser takes the security more thantwo years after the date set for surrender or presentation or the date on whichperformance became due. (1899, c. 733, ss. 52, 53; Rev., ss. 2201, 2202; C.S.,ss. 3033, 3034; 1965, c. 700, s. 1; 1989, c. 588, s. 1; 1997‑181, s. 1.)