North Carolina HB 1023: Provide Mortgage Cancellation.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION

CHAPTER 434
HOUSE BILL 1023

AN ACT TO MAKE IT CLEAR THAT THE REGISTER OF DEEDS MAY CANCEL
MORTGAGES UPON RECEIPT OF A NOTICE OF SATISFACTION.

The General Assembly of North Carolina enacts:

Section 1. G.S. 45-37(a) reads as rewritten:
"(a) Subject to the provisions of G.S. 45-73 relating to secured instruments which
secure future advances, any deed of trust or mortgage or other instrument intended to
secure the payment of money or the performance of any other obligation registered as
required by law may be discharged and released of record in the following manner:
(1) By acknowledgment of the satisfaction of the provisions of such deed
of trust, mortgage or other instrument in the presence of the register of
deeds by
a. The trustee,
b. The mortgagee,
c. The legal representative of a trustee or mortgagee, or
d. A duly authorized agent or attorney of any of the above.
Upon acknowledgment of satisfaction, the register of deeds shall
forthwith make upon the margin of the record of such deed of trust,
mortgage or other instrument an entry of such acknowledgment of
satisfaction which shall be signed by the trustee, mortgagee, legal
representative, agent or attorney and witnessed by the register of
deeds, who shall also affix his name thereto.
(2) By exhibition of any deed of trust, mortgage or other instrument
accompanied with the bond, note, or other instrument thereby secured
to the register of deeds, with the endorsement of payment and
satisfaction appearing thereon by
a. The obligee,
b. The mortgagee,
c. The trustee,
d. An assignee of the obligee, mortgagee, or trustee, or
e. Any chartered banking institution, or savings and loan
association, national or state, or credit union, qualified to do
business in and having an office in the State of North Carolina,
when so endorsed in the name of the institution by an officer
thereof.

Page 2 S.L. 1989-434 House Bill 1023
Upon exhibition of the instruments, the register of deeds shall cancel
the mortgage, deed of trust or other instrument by entry of satisfaction
on the margin of the record. The person so claiming satisfaction,
performance or discharge of the debt or other obligation may retain
possession of all of the instruments exhibited. The exhibition of the
mortgage, deed of trust or other instrument alone to the register of
deeds, with endorsement of payment, satisfaction, performance or
discharge, shall be sufficient if the mortgage, deed of trust or other
instrument itself sets forth the obligation secured or the performance of
any other obligation and does not call for or recite any note, bond or
other instrument secured by it. The register of deeds may require the
person exhibiting the instruments for cancellation to furnish him an
acknowledgment of cancellation of the mortgage, deed of trust or other
instrument for the purpose of showing upon whose request and
exhibition the mortgage, deed of trust or other instrument was
canceled.
(3) By exhibiting to the register of deeds by:
a. The grantor,
b. The mortgagor, or
c. An agent, attorney or successor in title of the grantor or
mortgagor
of any mortgage, deed of trust or other instrument intended to secure
the payment of money or the performance of any other obligation,
together with the bond, note or other instrument secured thereby, or by
exhibition of the mortgage, deed of trust or other instrument alone if
such instrument itself sets forth the obligation secured or other
obligation to be performed and does not call for or recite any note,
bond or other instrument secured by it, if at the time of exhibition, all
such instruments are more than 10 years old counting from the
maturity date of the last obligation secured. If the instrument or
instruments so exhibited have an endorsement of partial payment,
satisfaction, performance or discharge within the said period of 10
years, the period of 10 years shall be counted from the date of the most
recent endorsement.
The register of deeds shall make proper entry of cancellation and
satisfaction of said instrument on the margin of the record where the
same is recorded, whether there be any such entries on the original
papers or not.
(4) By exhibition to the register of deeds of any deed of trust given to
secure the bearer or holder of any negotiable instruments transferable
by delivery, together with all the evidences of indebtedness secured
thereby, marked paid and satisfied in full and signed by the bearer or
holder thereof.

House Bill 1023 S.L. 1989-434 Page 3
Upon exhibition of the deed of trust, and the evidences of
indebtedness properly marked, the register of deeds shall cancel such
deed of trust by entry of satisfaction upon the margin of the record,
which entry shall be valid and binding upon all persons, if no person
rightfully entitled to the deed of trust or evidences of indebtedness has
previously notified the register of deeds in writing of the loss or theft
of the instrument or evidences of indebt