§ 45-72. Termination of future optional advances. - North Carolina Statutes

§45‑72.  Termination of future optional advances.

(a)        The holder of asecurity instrument conforming to the provisions of this Article shall, at therequest of the maker of the security instrument or his successor in titlepromptly furnish to him a statement duly executed and acknowledged in such formas to meet the requirements for the execution and acknowledgment of deeds,setting forth in substance the following:

"Thisis to certify that the total outstanding balance of all obligations, thepayment of which is secured by that certain instrument executed by____________,dated__________, recorded in book _________ at page ____ in the office of theRegister of Deeds of ______ County, North Carolina, is $________, of whichamount $________ represents principal.

Nofuture advances will be made under the aforesaid instrument, except suchexpense as it may become necessary to advance to preserve the security nowheld.

This __________ day of ______________________ , 19_________ .

      ____________________________

(Signature andAcknowledgment)"

(b)        Such statement,when duly executed and acknowledged, shall be entitled to probate andregistration, and upon filing for registration shall be effective from the dateof the statement. It shall have the effect of limiting the lien or encumbranceof the holder of the security instrument to the amount therein stated, plus anynecessary advances made to preserve the security, and interest on the unpaidprincipal. It shall bar any further advances under the security instrumenttherein referred to except such as may be necessary to preserve the securitythen held as provided in G.S. 45‑70(c). (1969, c. 736, s. 1; 1989, c.496, s. 4; 1999‑456, s. 59.)