§ 45-45.1. Release of mortgagor by dealings between mortgagee and assuming grantee. - North Carolina Statutes

§45‑45.1.  Release of mortgagor by dealings between mortgagee and assuminggrantee.

Except where otherwiseprovided in the mortgage or deed of trust or in the note or other instrumentsecured thereby, or except where the mortgagor, or grantor of a deed of trustotherwise consents:

(1)        Whenever realproperty which is encumbered by a mortgage or deed of trust is sold and thegrantee assumes and agrees to pay such mortgage or deed of trust, andthereafter the mortgagee or secured creditor under the deed of trust gives thegrantee a legally binding extension of time, or releases  the grantee fromliability on the obligation, the mortgagor or grantor of the deed of trust isreleased from any further  liability on the obligation.

(2)        Whenever realproperty which is encumbered by a mortgage or deed of trust is sold and thegrantee assumes and agrees to pay such mortgage or deed of trust, andthereafter the mortgagee or secured creditor under the deed of trust or trusteeacting in his behalf releases any of the real property included in the mortgageor deed of trust, the mortgagor or grantor of the deed of trust is released tothe extent of the value of the property released, which shall be the value atthe time of the release or at the time an action is commenced on the obligationsecured by the mortgage or deed of trust, whichever value is the greater.

(3)        Whenever realproperty which is encumbered by a mortgage or deed of trust is sold expresslysubject to the mortgage or deed of trust, but the grantee does not assume thesame, and  thereafter the mortgagee or secured creditor under the deed of trustmakes a binding extension of time of the mortgage or deed of trust, themortgagor or grantor of the deed of trust is released to the extent of thevalue of the property at the time of the extension agreement.

(4)        Whenever realproperty which is encumbered by a mortgage or deed of trust is sold expresslysubject to the mortgage or deed of trust, but the grantee does not assume thesame, and  thereafter the mortgagee or secured creditor under the deed oftrust, or trustee acting in his behalf, releases any of the real propertyincluded in the mortgage or deed of trust, the mortgagor or grantor of the deedof trust is released to the extent of the value of the property released, whichshall be the value at the time of the release or at the time an action iscommenced on the obligation secured by the mortgage or deed of trust, whichevervalue is the greater. (1961, c. 356.)