§ 45-37.2. Recording satisfactions of security instruments. - North Carolina Statutes

§ 45‑37.2.  Recordingsatisfactions of security instruments.

(a)        When a satisfactiondocument, affidavit of satisfaction, or trustee's satisfaction is recordedpursuant to G.S. 45‑37(a)(7), the register of deeds shall record andindex the instrument in accordance with G.S. 161‑14.1. No fee shall becharged by the register of deeds for recording a satisfaction document,affidavit of satisfaction, or a trustee's satisfaction.

(b)        When a securityinstrument is satisfied of record by a method other than by means of recordinga satisfaction document, satisfaction affidavit, or trustee's satisfactionpursuant to G.S. 45‑37(a)(7), the register of deeds shall record andindex in accordance with G.S. 161.14.1 a record of satisfaction as provided forin this subsection. If the security instrument is being satisfied of recordpursuant to G.S. 45‑37(a)(2), the record of satisfaction may consist ofeither (i) all or a portion of the original security instrument rerecorded asdescribed in subdivision (1) of this subsection or (ii) a separate instrumentas described in subdivision (2) of this subsection. In all other cases, therecord of satisfaction shall consist of a separate instrument as described insubdivision (2) of this subsection. No fee shall be charged by the register ofdeeds for recording a record of satisfaction.

(1)        If the securityinstrument is being satisfied of record pursuant to G.S. 45‑37(a)(2), allor a portion of the security instrument rerecorded is a sufficient record ofsatisfaction if it identifies the security instrument, the original parties tothe security instrument, and the recording data for the security instrument asoriginally recorded. In addition, the rerecorded security instrument mustcontain either (i) an endorsement of payment and satisfaction made by a personauthorized under G.S. 45‑37(a)(2) to make such an endorsement, or (ii) anendorsement signed by the register of deeds that states substantially thefollowing: "This security instrument is satisfied of record pursuant toG.S. 45‑37(a)(2), the original security instrument and securedobligations having been presented to me with appropriate endorsement of paymentand satisfaction appearing thereon as required by law."

(2)        A separateinstrument is a sufficient record of satisfaction if it complies with all ofthe following:

a.         Identifies thesecurity instrument, the original parties to the security instrument, therecording data for the security instrument, and the office in which thesecurity instrument is recorded.

b.         States the statutoryauthority pursuant to which the security instrument is being satisfied ofrecord.

c.         Contains languageterminating the effectiveness of the security instrument.

d.         Is signed by theregister of deeds.

No particular phrasing isrequired for a record of satisfaction. The following form, when properlycompleted, is sufficient to satisfy the requirements of this subdivision:

"RECORD OF SATISFACTION

(G.S. 45‑37.2)

This Record of Satisfactionapplies to the following security instrument:

Type of Security Instrument: (Identify type ofsecurity instrument, such as deed of trust or mortgage)

Original Grantor(s): (Identify original grantor(s),trustor(s), or mortgagor(s))

Original Secured Party(ies): (Identify the originalbeneficiary(ies), mortgagee(s), or secured party(ies) in the securityinstrument)

Recording Data: The security instrument is recorded inBook ____ at Page ____ or as document number ________ in the office of theRegister of Deeds for __________ County, North Carolina.

This Record of Satisfaction terminates theeffectiveness of the security instrument pursuant to the following statutoryauthority: (check applicable box)

[ ]         G.S. 45‑37(a)(2),the original security instrument and secured obligations having been presentedto me with appropriate endorsement of payment and satisfaction appearingthereon as required by law.

[ ]         G.S. 45‑37(a)(3),the original security instrument and secured obligations having been presentedto me, each such instrument being more than 10 years old as provided by law.

[ ]         G.S. 45‑37(a)(4),the original security instrument and all negotiable instruments transferable bydelivery secured thereby having been presented to me, each having been markedpaid and satisfied in full by the bearer or holder thereof.

Other:(specify)

Date: ______________                                   ______________________________

                                                                        (Signatureof register of deeds)".

(1963,c. 1021, s. 1; 1967, c. 765, s. 6; 1987, c. 620, s. 2; 1991, c. 114, s. 2;1993, c. 425, s. 3; 1995, c. 292, s. 6; 2005‑123, s. 1.)