State Codes and Statutes
Statutes > North-carolina > Chapter_45 > GS_45-80Article8.
Instruments to SecureCertain Home Loans.
§ 45‑80. Priority ofsecurity instruments securing certain home loans.
(a) Notwithstanding anyother provision of law, a deed of trust or mortgage which secures a loan thatcomplies with subsection (b) below shall have priority and continue to havepriority from the time and date of registration thereof to the extent of allprincipal and interest secured by said deed of trust or mortgagenotwithstanding that the loan may be renewed or extended one or more times andnotwithstanding that the interest rate may be increased or decreased from timeto time. Interest which accrues pursuant to changes in the interest rate madepursuant to a method agreed to as provided in subsection (b) below (wheneversuch changes are made) shall be secured and have priority from the registrationof the deed of trust or mortgage and not from the time changes are made.
(b) With respect to aloan referred to in subsection (a) above:
(1) The parties mustprovide in a written instrument agreed to by the borrower at or beforeregistration of the deed of trust or mortgage that the loan may be renewed orextended in accordance with stated terms and that the interest rate may beincreased or decreased according to a stated method; and
(2) The loan must be aloan described in G.S. 24‑1.1A(a)(1) or (2).
(c) The provisions ofthis section shall not be deemed exclusive and no deed of trust or mortgage orother security instrument which is otherwise valid shall be invalidated byfailure to comply with the provisions of this section. (1979,2nd Sess., c. 1182.)
