State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-426

§ 53‑426.  Waiver ofequity of redemption.

(a)        Notwithstanding anyother provision of law, except to the extent otherwise set forth in thetransaction documents relating to a securitization, all of the following apply:

(1)        Any property,assets, or rights purported to be transferred, in whole or in part, in asecuritization or in connection with a securitization are considered no longerthe property, assets, or rights of the transferor, to the extent purported tobe transferred.

(2)        A transferor in thesecuritization, its creditors, and, in any insolvency proceeding with respectto the transferor or the transferor's property, a bankruptcy trustee, receiver,debtor, debtor in possession, or similar person, to the extent the transfer isgoverned by State law, has no rights, legal or equitable, to reacquire,reclaim, recover, repudiate, disaffirm, redeem, or recharacterize as propertyof the transferor any property, assets, or rights purported to be transferredto the special purpose entity, in whole or in part, by the transferor.

(3)        In the event of abankruptcy, receivership, or other insolvency proceeding with respect to thetransferor or the transferor's property, to the extent the transfer ofproperty, assets, and rights are governed by State law, the property, assets,and rights are not considered part of the transferor's property, assets,rights, or estate.

(b)        Nothing in thisArticle:

(1)        Requires anysecuritization to be treated as a sale for federal or state tax purposes;

(2)        Precludes thetreatment of any securitization as debt for federal or state tax purposes; or

(3)        Changes anyapplicable laws relating to the perfection and priority of security orownership interests of persons other than the transferor, any hypothetical liencreditor of the transferor, or, in the event of a bankruptcy, receivership, orother insolvency proceeding with respect to the transferor or its property, abankruptcy trustee, receiver, debtor, debtor in possession, or other similarperson. (2002‑88,s. 1; 2002‑159, s. 33.)