§ 45-36.9. Secured creditor to submit satisfaction for recording; liability for failure. - North Carolina Statutes

§ 45‑36.9.  Securedcreditor to submit satisfaction for recording; liability for failure.

(a)        A secured creditorshall submit for recording a satisfaction of a security instrument within 30days after the creditor receives full payment or performance of the securedobligation. If a security instrument secures a line of credit or futureadvances, the secured obligation is fully performed only if, in addition tofull payment, the secured creditor has received a notification requesting thecreditor to terminate the line of credit or containing a statement sufficientto terminate the effectiveness of the provision for future advances in thesecurity instrument.

(b)        Except as otherwiseprovided in G.S. 45‑36.12, a secured creditor that is required to submita satisfaction of a security instrument for recording and does not do so by theend of the period specified in subsection (a) of this section is liable to thelandowner for any actual damages caused by the failure, but not punitivedamages.

(c)        Except as otherwiseprovided in subsection (d) of this section and in G.S. 45‑36.12, asecured creditor that is required to submit a satisfaction of a securityinstrument for recording and does not do so by the end of the period specifiedin subsection (a) of this section is also liable to the landowner for onethousand dollars ($1,000) and any reasonable attorneys' fees and court costsincurred if, after the expiration of the period specified in subsection (a) ofthis section, all of the following occur:

(1)        The landowner givesthe secured creditor a notification, by any method authorized by G.S. 45‑36.5that provides proof of receipt, demanding that the secured creditor submit asatisfaction for recording.

(2)        The secured creditordoes not submit a satisfaction for recording within 30 days after the securedcreditor's receipt of the notification.

(3)        The securityinstrument is not satisfied of record by any of the methods provided in G.S. 45‑37(a)within 30 days after the secured creditor's receipt of the notification.

The right to receive theadditional one thousand dollars ($1,000) is personal to the landowner who givesthe secured creditor notification under this subsection and may not beassigned.

(d)        Subsection (c) ofthis section does not apply if the secured creditor received full payment orperformance of the secured obligation before October 1, 2005.

(e)        This section doesnot apply if the security instrument is satisfied of record by any of themethods provided in G.S. 45‑37(a) within 30 days after the secured creditorreceives full payment or performance of the secured obligation. (2005‑123, s. 1.)