§ 25A-23. Collateral taken by the seller. - North Carolina Statutes

§25A‑23.  Collateral taken by the seller.

(a)        The seller in aconsumer credit sale may take a security interest only in the followingproperty of the buyer to secure the debt arising from the sale:

(1)        The property sold,

(2)        Property previouslysold by the seller to the buyer and in which the seller has an existingsecurity interest,

(3)        Personal property towhich the property sold is installed, if the amount financed is more than threehundred dollars ($300.00),

(4)        Real property towhich the property sold is affixed, if the amount financed is more than onethousand dollars ($1,000), and

(5)        A self‑propelledmotor vehicle to which repairs are made, if the amount financed exceeds onehundred dollars ($100.00).

(6)        Any property whichis used for agricultural purposes, if the  property sold is to be used in theoperation of an agricultural business.

(b)        A security interesttaken in property other than that permitted in subsection (a) of this sectionshall be void and not enforceable.

(c)        Nothing in thissection shall affect any right or liens granted by Chapter 44A of the GeneralStatutes.

(d)        The provisions ofG.S. 24‑11(a), limiting the taking of a security interest in propertyunder an open end credit or similar plan, shall not apply to revolving chargeaccount contracts regulated by this Chapter; provided, however, the applicationof payments rule set out in G.S. 25A‑27 shall apply to such contracts;provided further, that in any action initiated by the seller for the possessionof such property, a judgment for the possession thereof shall be restricted tocommercial units (as defined in G.S. 25‑2‑105(6)) for which thecash price was one hundred dollars ($100.00) or more. (1971,c. 796, s. 1; 1977, c. 508; c. 789, s. 1.)