Senate committee substitute to the 2nd edition makes the following changes. Amends the act’s title.

Amends Article 4 of GS Chapter 64, which is now title Prohibit Adversarial Foreign Party Acquisition of Certain Lands, as follows.

Amends the purpose of the act under GS 64-61 to allow include guarding military installation from potential adversarial foreign government control. Also seeks to protect national security for the benefit of the people of the US and NC; removes references to vital resources.

Substantially rewrites GS 64-63 to now prohibit a foreign party from purchasing, acquiring, leasing, or holding a direct interest in agricultural land or property situated within a 50-mile radius of a military installation. Prohibits a prohibited foreign party from acquiring any interest other than a de minimis direct interest, in that land regardless of how it would be used. Prohibits knowingly holding land as an agent, trustee, or fiduciary for a prohibited foreign party. Specifies that a prohibited foreign party that acquires the land remains in violations as long as it holds an interest in the land. Allows a prohibited foreign party that has acquired any direct interest in the described land before the country of residence was added to 22 CFR Part 126, to continue to own or hold that interest, but prohibits it from acquiring by grant, purchase, devise, descent, or otherwise, any additional interest in that land and requires registration with the Secretary of State. Requires the Secretary of State’s Office to produce monthly reports on the registered prohibited foreign parties, which is a public record and will be on their website. Requires the Secretary of State to provide the registry to the Attorney General one year from the act becoming law and then every six months thereafter. Sets out fines for late registration. Requires a prohibited foreign party that acquires prohibited land on or after the effective date of the section, by devise or descent, through the enforcement of security interests, or through the collection of debts, other than a de minimis direct interest, to sell, transfer, or otherwise divest itself of the land within one year after acquiring the land. Requires the buyer to provide an affidavit attesting that they are not a prohibited foreign party and that they are in compliance with the statute; sets out exceptions for specified types of financial entities. Requires the NC Real Estate Commission to establish the form for the affidavit. Sets out actions that the Attorney General must take to enforce violations upon receiving information that leads the Attorney General to believe that a prohibited foreign party has not divested itself of the land. Violations may be deemed by the noteholder to be a default on a loan, mortgage, or deed of trust. Places responsibility for determining whether an entity is subject to the Article with the prohibited foreign party and the State. Specifies that title to land is not invalid or subject to divestiture due to a violation by any former owner or other person holding or owning a former interest in the land. Specifies that no individual, real estate broker, or other entity, other than a prohibited foreign part bears civil or criminal liability for failing to: (1) determine or make inquiry of whether any entity is a prohibited foreign party, or (2) obtain, maintain, or otherwise comply with the affidavit requirements. Makes it a Class 2 misdemeanor to knowingly sell an interest in land in violation of the statute or to have actual knowledge that the transaction will result in a violation but aiding or abetting a party in knowingly making the sale.

Amends the definitions under GS 64-62 as follows. Amends the definition of agricultural land to refer to any land, not real property. Defines foreign government as any government other than: (i) the federal government, (ii) the government of a state, (iii) a political subdivision of a state, or (iv) federally or state recognized tribal governments. Defines prohibited foreign party as: a. an adversarial foreign government or a foreign government formed within an adversarial foreign government; b. an entity or trust, other than a government, that is created or organized under the laws of a foreign government within an adversarial foreign government; c. an entity or trust, other than a government, that: 1. is created or organized under the laws of any state, or any foreign government, 2. a significant interest or substantial control is directly or indirectly held or is capable of being exercised by a foreign government listed above or a party referred to above; d. an agent, trustee, or other fiduciary of an entity in this subdivision (also sets out exclusions from this definition. Amends the definition of interest. Amends what is considered a military installation, sets out exclusions, and requires the North Carolina Real Estate Commission to work with the Department of Military and Veterans Affairs on a map with the base and lines drawn for the applicable mileage from the military boundaries for public use. Defines the terms de minimis direct interest, party, and significant interest or substantial control. Removes the term controlling interest.

Amends the divestiture procedure in GS 64-64 by adding that for receivership proceedings under the statute, the receiver must honor and give priority to any default that has been triggered on a loan, mortgage, or deed of trust before the commencement of a receivership. Makes conforming changes.

Enacts new GS 161-14.04 requiring the register of deeds, when recording a document conveying an ownership interest in lad described in GS 64-63 to attach the required affidavit. Specifies that there is no liability for the register of deeds for failing to include the affidavit.

Makes conforming changes to GS 1-507.24(e1).

Changes the effective date of the above provisions to April 1, 2027.

Requires that the map of military boundaries be published by April 1, 2027, and updated annually.