Bill Summaries: S 429 COMM. RECEIVERSHIP AND REAL PROPERTY AMENDS.

Tracking:
  • Summary date: Mar 31 2021 - More information

    Part I.

    Makes a technical change to no longer provide for a receiver to be appointed in cases provided in GS 1-507.1 and in similar cases regarding property within the State of foreign corporations under GS 1-502 (GS 1-507.1 has since been repealed).

    Makes the following changes to the Commercial Receivership Act, Article 38A, GS Chapter 1.

    Makes technical changes to the definitions set forth in GS 1-507.20. Corrects a statutory cross-reference. No longer qualifies the definitions provided upon context.

    Regarding the clerk's duty to provide a copy of an order appointed a receiver for an individual business debtor of a limited receiver appointed for an entity pursuant to GS 1-507.24, requires provision of the copy of the order to the senior resident superior court judge or the chief district court judge (previously referred to the senior district judge) for the court in which the receivership is pending. Makes technical changes.

    Makes clarifying changes to the duties of the debtor under GS 1-507.30, to require the debtor to deliver to the receiver, immediately upon the receiver's appointment and demand, all receivership property in the debtor's possession, custody, or control, and all related papers and documents (previously did not specify the duty is also conditioned upon the demand of the receiver). Makes technical changes. 

    Makes technical changes to GS 1-507.40 regarding turnover of receivership property and GS 1-507.42 regarding stays resulting from entry of orders appointing a receiver. Corrects a federal statutory reference in GS 1-507.42.

    Adds orders relating to the appointment of a receiver pursuant to GS 1-502(6) for the real property under Article 38A of GS Chapter 1, as amended, to the orders a court is explicitly authorized to make in the best interest of the parties before final determination of a proceeding to partition real property, subject to application of the parties, under GS 46A-28.

    Revises GS 53C-9-401 to make the provisions of Article 38A of GS Chapter 1, as amended, relating to receivers, applicable to the liquidation of banks under Article 9 of GS Chapter 53C, to the extent the provisions are consistent with Article 9 (previously specifically referenced GS 1-507.1 through GS 1-507.11, since repealed, rather than Article 38A in its entirety).

    Part II.

    Amends GS 10B-65 to validate notary acknowledgements performed before July 1, 2013 (was, December 1, 2005), that bear a notary seal. Specifies that the statute, which validates acts of notaries public in a number of specified instances, applies to notarial acts performed on or before April 1, 2021 (was, April 1, 2013). Makes additional clarifying changes.

    Amends GS 10B-9 to deem a notarial certificate that was contained in a form issued by a State agency before April 1, 2021 (was, April 1, 2013), to be valid so long as the certificate complied with the law at the time the form was issued.

    Amends GS 10B-71, which validates any acknowledgment taken and any instrument notarized by a person who after recommissioning failed to again take the oath as a notary public, to make the statute applicable to notarial acts performed on or after May 15, 2004, and before April 1, 2021 (was, April 1, 2013). Makes clarifying changes.

    Amends GS 47-48 (clerks’ and register of deeds’ certificate failing to pass on all prior certificates), to make the statute applicable to all instruments recorded in any of the State’s counties before April 1, 2021 (was, April 1, 2013). Makes clarifying changes. Makes language gender neutral.

    Amends GS 47-51 to provide that all deeds executed before April 1, 2021 (was, April 1, 2013) by an officer authorized to execute a deed by virtue of the office or appointment, in which the officer has omitted to affix a seal after the officer's signature, are not invalid on account of the omission of the seal. Makes clarifying changes. Makes language gender neutral.

    Amends GS 47-53, concerning validation when seals have been omitted in the execution of any deed, mortgage, or other instrument required to be registered, to make the statute applicable to acknowledgements, private examinations, or proofs taken before April 1, 2021 (was, April 1, 2013). Makes additional clarifying changes.

    Amends GS 47-53.1, concerning the validation of an acknowledgement that lacks the required seal, to make the statute applicable to deeds and other instruments acknowledged before April 1, 2021 (was, April 1, 2013). Makes clarifying changes.

    Amends GS 47-72 to provide that in all cases before April 1, 2021 (was, April 1, 2013), where a deed conveying lands purported to be executed by a corporation fails to include the corporate name, but the deed contains the required signatures and has been registered in the appropriate county, the defective execution is considered valid. Makes clarifying changes.

    Amends GS 47-97, concerning the validation of a corporate deed when there is a mistake as to the officers’ names, to apply to deed executed before April 1, 2021 (was, April 1, 2013).

    Amends GS 47-97.1, concerning the validation of deeds of a corporation that include an error in the acknowledgement or probate, to apply to cases where deed was filed for registration before April 1, 2021 (was, April 1, 2013). Makes clarifying changes.

    Amends GS 47-108.6, concerning the validation of certain conveyances of foreign dissolved corporations, to apply to cases before April 1, 2021 (was, April 1, 2013). Makes clarifying changes.

    Amends GS 47-108.11, concerning the validation of recorded instruments where seals have been omitted, to make the statute applicable to instruments recorded or registered before April 1, 2021 (was, April 1, 2013). Makes additional clarifying changes.

    Amends GS 47-108.20, concerning the validation of certain recorded instruments that were not acknowledged, to make the statute applicable to instruments recorded before April 1, 2021 (was, April 1, 2013). Makes conforming changes.

    Repeals GS 10B-72, which validated any acknowledgment taken and any instrument notarized by a person who after recommissioning failed to again take the oath as a notary public if the act was performed on or after August 28, 2010, and before January 12, 2012.

    Amends GS 47-2.2 to provide that if the proof or acknowledgment of any instrument before a notary public of any state other than North Carolina and the instrument does not state, as part of the proof or acknowledgement or as part of the notary's seal, (previously did not require that be a part of the proof or acknowledgement or a part of the seal) that the notary's commission does not expire or is a lifetime appointment, then the certificate of proof or acknowledgment must be accompanied by the certificate of the county official before whom the notary qualifies for office or of a state officer authorized to issue certificates regarding notary commission status, stating that the notary public was at the time the certificate bears date an acting notary public of such that state, and that it is the notary’s genuine signature. Makes clarifying changes. Makes language gender neutral.

    Amends GS 47-37.1 to deem a notarial certificate that complies with the provisions of Part 5 (Certificate Forms) of Article 2  of GS Chapter 10B as a sufficient from of probate or acknowledgment for the purposes of GS Chapter 47 (Probate and Registration). Makes conforming and clarifying changes. 

    Effective October 1, 2021.

    Part III.

    Revises GS 41-56 regarding the creation of tenancy by the entirety in real property. Makes a clarifying change to refer to a grantor rather than an individual. Makes joinder of spouses subject to the provisions of GS 52-10.1, which governs separation agreements, rather than GS 52-11, which governs antenuptial contracts and torts. Makes technical and clarifying changes. 

    Revises the exemptions set forth in GS 41-75, exempting from the provisions governing joint tenancy of Article 6, accounts established under GS 41-2.1 (governs right of survivorship in bank deposits created by written agreement) or GS 41-2.2 (governing joint ownership of securities) to the extent the provisions are inconsistent with Article 6 (previously erroneously referenced statutes in GS Chapter 42, which provides landlord/tenant law). 

    Expands GS 47-18 to deem no rights of first refusal, rights of first offer, and options to purchase valid to pass any property interest as against lien creditors or purchasers for valuable consideration from the donor, bargainor, or lessor except from the time of the rights or option's registration in the specified county (previously only specified land conveyances, contracts to convey, and options to convey). Makes technical changes. 

    Makes the following changes to GS 93A-12 regarding disputed monies in real property transactions. Adds a new provision defining an escrow agent to mean a licensed real estate broker, a title insurance company or a title insurance agent licensed to conduct business in the State, or an attorney licensed to practice in the State. Makes changes throughout the statute to replace references to licensed real estate brokers and attorneys with "escrow agent," thereby expanding the statute by making the authorities and requirements regarding disputed monies applicable title insurance companies or title insurance agents licensed to practice in the State. Makes technical changes. 

    Amends SL 2017-110 to revise the scope of the act to apply to instruments filed on or after August 31, 2018 (was curative affidavits; SL 2017-110 provided for changes in correcting nonmaterial errors in recorded instruments of title, created a curative procedure for obvious descriptions errors in title documents, and created a seven-year curative provision for certain defects in records title instruments).

    Effective October 1, 2021. 

    Part IV.

    Provides that the act is effective when it becomes law unless otherwise provided. 


© 2021 School of Government The University of North Carolina at Chapel Hill

This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.

Printer-friendly: Click to view