§ 39-6.6. Subordination agreements. - North Carolina Statutes

§ 39‑6.6.  Subordinationagreements.

(a)        A subordinationagreement shall be given effect in accordance with its terms and is notrequired to state any interest rate, principal amount secured, or otherfinancial terms.

(b)        The trustee of adeed of trust shall not be a necessary party to a subordination agreementunless the deed of trust provides otherwise.

(c)        For purposes ofG.S. 1‑47, a subordination agreement is deemed a conveyance of aninterest in real property.

(d)        This section is notexclusive. No subordination agreement that is otherwise valid shall beinvalidated by this section.

(e)        This sectionapplies to a subordination agreement regardless of when the agreement wassigned by the party or parties thereto, except that this section does not applyto an agreement that (i) is the subject of litigation pending on the effectivedate of this subsection, and (ii) was filed or recorded before October 1, 2003.

(f)         In this section:

(1)        "Interest inreal property" includes all rights, title, and interest in and to land,buildings, and other improvements of an owner, tenant, subtenant, securedlender, materialman, judgment creditor, lienholder, or other person, whetherthe interest in real property is evidenced by a deed, easement, lease,sublease, deed of trust, mortgage, assignment of leases and rents, judgment,claim of lien, or any other record, instrument, document, or entry of court.

(2)        "Subordinationagreement" means a written commitment or agreement to subordinate or thatsubordinates an interest in real property signed by a person entitled topriority. (2003‑219,s. 1; 2005‑212, s. 1.)