§ 45-36.7. Payoff statement: request and content. - North Carolina Statutes

§ 45‑36.7.  Payoffstatement: request and content.

(a)        An entitled person,or an agent authorized by an entitled person to request a payoff statement, maygive to the secured creditor a notification requesting a payoff statement for aspecified payoff date not more than 30 days after the notification is given.The notification must contain all of the following:

(1)        The entitledperson's name.

(2)        If given by a personother than an entitled person, the name of the person giving the notificationand a statement that the person is an authorized agent of the entitled person.

(3)        A direction whetherthe statement is to be sent to the entitled person or that person's authorizedagent.

(4)        The address to whichthe creditor must send the statement.

(5)        Sufficient informationto enable the creditor to identify the secured obligation and the real propertyencumbered by the security interest.

(b)        If a notificationunder subsection (a) of this section directs the secured creditor to send thepayoff statement to a person identified as an authorized agent of the entitledperson, the secured creditor must send the statement to the agent, unless thesecured creditor knows that the entitled person has not authorized the request.

(c)        A person who givesto a secured creditor a notification requesting a payoff statement therebyrepresents that the person is an entitled person or the authorized agent of anentitled person. A secured creditor may rely on that representation inproviding a payoff statement unless the secured creditor knows that therequesting person is neither an entitled person nor the authorized agent of anentitled person. A secured creditor has no duty to make inquiry as to whether,or to verify that, the person requesting a payoff statement is an entitledperson or the authorized agent of an entitled person.

(d)        Within 10 daysafter the effective date of a notification that complies with subsection (a) ofthis section, the secured creditor shall issue a payoff statement and send itas directed pursuant to subdivision (a)(3) of this section in the mannerprescribed in G.S. 45‑36.5 for giving a notification. A secured creditorthat sends a payoff statement to the entitled person or the authorized agentmay not claim that the notification did not satisfy subsection (a) of thissection. If the person to whom the notification is given once held an interestin the secured obligation but has since assigned that interest, the person neednot send a payoff statement but shall give (i) a notification of the assignmentto the person to whom the payoff statement otherwise would have been sent,providing the name and address of the assignee, or (ii) a notification to theperson to whom the payoff statement otherwise would have been sent, statingthat the recipient claims no interest in the security instrument or the securedobligation, that the secured obligation was assigned, but that the identity andaddress of the assignee is not known.

(e)        A payoff statementmust contain:

(1)        The date on which itwas prepared and the payoff amount as of that date, including the amount bytype of each fee, charge, or other sum included within the payoff amount;

(2)        The informationreasonably necessary to calculate the payoff amount as of the requested payoffdate, including the per diem interest amount; and

(3)        The payment cutofftime, if any, the address or place where payment must be made, and anylimitation as to the authorized method of payment.

(f)         A payoff statementmay contain the amount of any fees authorized under this section not includedin the payoff amount. A secured creditor may require the payment in full of anyfees authorized under this section before issuing a payoff statement.

(g)        A secured creditormay not qualify a payoff amount or state that it is subject to change beforethe payoff date unless the payoff statement provides information sufficient topermit the entitled person or the person's authorized agent to request anupdated payoff amount at no charge and to obtain that updated payoff amountduring the secured creditor's normal business hours on the payoff date or theimmediately preceding business day.

(h)        A secured creditormust provide upon request one payoff statement without charge during any six‑monthperiod. A secured creditor may charge a fee of twenty‑five dollars($25.00) for each additional payoff statement requested during that six‑monthperiod. However, a secured creditor may not charge a fee for providing anupdated payoff amount under subsection (f) of this section or a correctedpayoff statement under G.S. 45‑36.8(a).

(i)         Unless thesecurity instrument provides otherwise, a secured creditor is not required tosend a payoff statement by means other than first‑class mail. If thecreditor agrees to send a statement by another means, it may charge areasonable fee for complying with the requested manner of delivery.

(j)         Except asotherwise provided in G.S. 45‑36.12, if a secured creditor to which anotification has been given pursuant to subsection (a) of this section does notsend a timely payoff statement that substantially complies with subsection (d)of this section, the creditor is liable to the entitled person for any actualdamages caused by the failure, but not punitive damages. A creditor that doesnot pay the damages provided in this subsection within 30 days after receipt ofa notification demanding payment shall also be liable for reasonable attorneys'fees and costs.

(k)        This section doesnot apply unless the notification requesting a payoff statement is given on orafter October 1, 2005. (2005‑123, s. 1.)