§ 25-9-318. No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers. - North Carolina Statutes

§25‑9‑318.  No interest retained in right to payment that is sold;rights and title of seller of account or chattel paper with respect tocreditors and purchasers.

(a)        Seller retains nointerest. – A debtor that has sold an account, chattel paper, paymentintangible, or promissory note does not retain a legal or equitable interest inthe collateral sold.

(b)        Deemed rights ofdebtor if buyer's security interest unperfected. – For purposes of determiningthe rights of creditors of, and purchasers for value of an account or chattelpaper from, a debtor that has sold an account or chattel paper, while thebuyer's security interest is unperfected, the debtor is deemed to have rightsand title to the account or chattel paper identical to those the debtor sold. (2000‑169,s. 1.)