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  • Summary date: Apr 24 2024 - View Summary

    Section 1.

    Amends GS 6-21.2 (pertaining to attorneys’ fees in debt instruments), as follows. Adds defined terms creditor, debt instrument, debtor, and person. Specifies that GS 6-21.2 only applies to debt instruments governed by the law of the State.

    Changes enforcement trigger for collection of attorneys’ fees under a debt instrument to after a debtor’s default (currently, a holder can collect attorneys’ fees using an attorney after maturity). Specifies that attorneys’ fees may not exceed 15% of the principal and interest owed at the time the lawsuit began or, in the case of a conditional sale contract, 15% of the time price balance owed at the time the lawsuit began. (Currently, 15% cap only applies to debt instruments that provide for certain percentages and those that provide for no percentages at all.) Extends time for payment of outstanding debts in response to notice of collection from five days to fourteen days.

    Makes organizational changes and clarifying changes.  Modernizes language. 

    Section 2.

    Modernizes outdated language, makes conforming changes, and makes clarifying changes to GS 45-21.31 (pertaining to dispositions of proceeds of sale of real property). Requires that the surplus remaining, after the proceeds of the sale under power of sale have been applied, be paid to the clerk of the superior court in cases where the person that made the sale (was, the mortgagee, trustee, or vendor) is in doubt as to who is entitled to the surplus. Makes conforming changes. Removes the provision making the clerk liable, on his official bond, for the safekeeping of the money received until it is paid to the entitled party or under court order.

    Effective October 1, 2024, and applies to debt instruments executed on or after that date.