§ 45-70. Priority of security instrument. - North Carolina Statutes

§ 45‑70.  Priority ofsecurity instrument.

(a)        Any securityinstrument that conforms to the requirements of this Article shall, from thetime and date of registration thereof, have the same priority to the extent ofall future advances and future obligations secured by it, as if all theadvances had been made and all the obligations incurred at the time thesecurity instrument was registered.

(b)        Repealed by SessionLaws 1989, c. 496, s. 3.

(c)        Payments made bythe secured creditor for fire and extended coverage insurance, taxes,assessments, or other necessary expenditures for the preservation of thesecurity shall be secured by the security instrument and shall have the samepriority as if such payments had been made at the time the security instrumentwas registered. The provisions of G.S. 45‑68 shall not be applicable tosuch payments, nor shall such payments or accrued interest be considered incomputing the maximum principal amount which may be secured by the instrument.

(d)        Notwithstanding anyother provision of this Article, any security instrument hereafter executedwhich secures an obligation or obligations of an electric or telephonemembership corporation incorporated or domesticated in North Carolina to theUnited States of America or any of its agencies, or to any other financinginstitution, or of an electric or gas utility operating in North Carolina,shall from the time and date of registration of said security instrument havethe same priority to the extent of all future advances secured by it as if allthe advances had been made at the time of the execution of the instrument,regardless of whether the making of such advances is obligatory or whether thesecurity instrument meets the requirements of G.S. 45‑68.  (1969, c. 736, s. 1; 1971,c. 565; 1979, c. 594; 1989, c. 496, s. 3; 2009‑197, s. 4.)