§ 25-9-201. General effectiveness of security agreement. - North Carolina Statutes

Part 2.

EFFECTIVENESS OF SECURITYAGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITYAGREEMENT.

SUBPART 1.  Effectivenessand Attachment.

§ 25‑9‑201. General effectiveness of security agreement.

(a)        Generaleffectiveness. – Except as otherwise provided in this Chapter, a securityagreement is effective according to its terms between the parties, againstpurchasers of the collateral, and against creditors.

(b)        Applicable consumerlaws and other law. – A transaction subject to this Article is subject to anyapplicable rule of law which establishes a different rule for consumers, to anyother statute, rule, or regulation of this State that regulates the rates,charges, agreements, and practices for loans, credit sales, or other extensionsof credit, and to any consumer‑protection statute, rule, or regulation ofthis State, including Chapter 24 of the General Statutes, the RetailInstallment Sales Act (Chapter 25A of the General Statutes), the North CarolinaConsumer Finance Act (Article 15 of Chapter 53 of the General Statutes), andthe Pawnbrokers Modernization Act of 1989 (Chapter 91A of the GeneralStatutes).

(c)        Other applicablelaw controls. – In case of conflict between this Article and a rule of law,statute, or regulation described in subsection (b) of this section, the rule oflaw, statute, or regulation controls. Failure to comply with a statute orregulation described in subsection (b) of this section has only the effect thestatute or regulation specifies.

(d)        Further deference toother applicable law. – This Article does not:

(1)        Validate any rate,charge, agreement, or practice that violates a rule of law, statute, orregulation described in subsection (b) of this section; or

(2)        Extend theapplication of the rule of law, statute, or regulation to a transaction nototherwise subject to it. (1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7;2000‑169, s. 1.)