Bill Summary for S 198 (2021-2022)

Summary date: 

Mar 8 2021

Bill Information:

View NCGA Bill Details2021
Senate Bill 198 (Public) Filed Monday, March 8, 2021
AN ACT TO PROVIDE THAT A SETTLEMENT AGENT MAY DISBURSE SETTLEMENT PROCEEDS IN RELIANCE ON A CHECK DRAWN ON THE ACCOUNT OF OR ISSUED BY A LICENSED MORTGAGE LENDER, TO MAKE AMENDMENTS RELATING TO THE NORTH CAROLINA COMMERCIAL RECEIVERSHIP ACT, AND TO MAKE TECHNICAL CHANGES TO VARIOUS LAWS REGULATING FINANCIAL PRACTICES, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.
Intro. by Edwards, Galey.

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Bill summary

Part I.

Amends GS 45A-4 by amending the ways in which a settlement agency can make a disbursement of settlement proceeds from its trust or escrow account in reliance on that deposit, to include a check drawn on the account of or issued by a licensed mortgage lender (was, by a licensed mortgage banker that has posed a surety bond of at least $300,000). Makes additional clarifying changes and updates a statutory cross-reference for the definition of mortgage broker.

Part II.

Amends GS 1-502 to no longer allow appointing a receiver in cases provided in GS 1-507.1 (repealed) and in similar cases regarding foreign corporations' property in this State. Deletes references to previously repealed provisions.

Amends GS 1-504.20 Amends the definition of receivership property to also exclude the debtor's property that is exempt from the enforcement of claims of creditors under GS 131E-91(d)(5) (concerning debts arising from the provision of care by a hospital or ambulatory surgical center). Makes clarifying changes and updates statutory cross-references.

Amends GS 1-507.24 to require a copy of the order appointing a receiver for an individual business debtor or for a limited receiver appointed for an entity, to be provided to the senior resident superior court judge or chief district court judge (was, or the senior district judge) for the court in which the receivership is pending. Makes additional clarifying changes.

Amends the debtor's duties under GS 1-507.30 to include delivering the receivership property in the debtor's possession, custody, or control, to the receiver, immediately upon the receiver's appointment and demand (was, appointment). Makes additional clarifying and technical changes.

Makes clarifying changes to GS 1-507.40 and GS 1-507.42.

Amends GS 46A-28 to allow the court, on application of any of the parties, to make orders related to the appointment of a receiver under GS 1-502(6) (cases involving partition of real property).

Amends GS 53C-9-401 to update statutory cross-references to account for repealed statutes.

Part III.

Amends GS 53-249 by making technical and clarifying changes. Makes language gender neutral.

Amends GS 53-258 by updating statutory cross-references to account for repealed statutes and making conforming changes.

Amends GS 53-277 by updating statutory cross-references to account for repealed statutes and making conforming changes. Makes additional clarifying changes.

Amends GS 53-366 by updating statutory cross-references to account for repealed statutes and making conforming changes. Makes additional clarifying and technical changes.

Amends GS 66-106 by updating statutory cross-references to account for repealed statutes and making conforming changes. Makes additional organizational, clarifying and technical changes.

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