North Carolina General Statutes Chapter 25 Uniform Commercial Code

Article 1 - General Provisions.

N.C. Gen. Stat. § 25-1-101. Short titles
(a) This Chapter may be cited as the Uniform Commercial Code. (b) This Article may be cited as Uniform Commercial Code - General Provisions....
N.C. Gen. Stat. § 25-1-102. Scope of Article
Except as provided in G.S. 25-1-301, this Article applies to a transaction to the extent that it is governed by another Article of this...
N.C. Gen. Stat. § 25-1-103. Construction of this Chapter to promote its purposes and policies; applicability of supplemental principles of law
(a) This Chapter shall be liberally construed and applied to promote its underlying purposes and policies, which are: (1) To simplify, clarify, and modernize...
N.C. Gen. Stat. § 25-1-104. Construction against implied repeal
This Chapter being a general act intended as a unified coverage of its subject matter, no part of it shall be deemed to be...
N.C. Gen. Stat. § 25-1-105. Severability
If any provision or clause of this Chapter or its application to any person or circumstance is held invalid, the invalidity does not affect...
N.C. Gen. Stat. § 25-1-106. Use of singular and plural; gender
In this Chapter, unless the statutory context otherwise requires: (1) Words in the singular number include the plural, and those in the plural include...
N.C. Gen. Stat. § 25-1-107. Section captions
Section captions are part of this Chapter. The subsection headings in Article 9 of this Chapter are not parts of this Chapter. (1965, c....
N.C. Gen. Stat. § 25-1-108. Relation to Electronic Signatures in Global and National Commerce Act
This Article modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001, et seq., except that nothing...
N.C. Gen. Stat. § 25-1-201. General definitions
(a) Unless the context otherwise requires, words or phrases defined in this section, or in the additional definitions contained in other Articles of this...
N.C. Gen. Stat. § 25-1-202. Notice; knowledge
(a) Subject to subsection (f) of this section, a person has "notice" of a fact if the person: (1) Has actual knowledge of it;...
N.C. Gen. Stat. § 25-1-203. Lease distinguished from security interest
(a) Whether a transaction in the form of a lease creates a lease or security interest is determined by the facts of each case....
N.C. Gen. Stat. § 25-1-204. Value
Except as otherwise provided in Articles 3, 4, and 5 of this Chapter, a person gives value for rights if the person acquires them:...
N.C. Gen. Stat. § 25-1-205. Reasonable time; seasonableness
(a) Whether a time for taking an action required by this Chapter is reasonable depends on the nature, purpose, and circumstances of the action....
N.C. Gen. Stat. § 25-1-206. Presumptions
Whenever this Chapter creates a "presumption" with respect to a fact, or provides that a fact is "presumed," the trier of fact must find...
N.C. Gen. Stat. § 25-1-301. Territorial applicability; parties' power to choose applicable law
(a) Except as otherwise provided in this section, when a transaction bears a reasonable relation to this State and also to another state or...
N.C. Gen. Stat. § 25-1-302. Variation by agreement
(a) Except as otherwise provided in subsection (b) of this section or elsewhere in this Chapter, the effect of provisions of this Chapter may...
N.C. Gen. Stat. § 25-1-303. Course of performance, course of dealing, and usage of trade
(a) A "course of performance" is a sequence of conduct between the parties to a particular transaction that exists if: (1) The agreement of...
N.C. Gen. Stat. § 25-1-304. Obligation of good faith
Every contract or duty within this Chapter imposes an obligation of good faith in its performance and enforcement. (1965, c. 700, s. 1; 2006-112,...
N.C. Gen. Stat. § 25-1-305. Remedies to be liberally administered
(a) The remedies provided by this Chapter shall be liberally administered to the end that the aggrieved party may be put in as good...
N.C. Gen. Stat. § 25-1-306. Waiver or renunciation of claim or right after breach
A claim or right arising out of an alleged breach may be discharged in whole or in part without consideration by agreement of the...
N.C. Gen. Stat. § 25-1-307. Prima facie evidence by third-party documents
A document in due form purporting to be a bill of lading, policy or certificate of insurance, official weigher's or inspector's certificate, consular invoice,...
N.C. Gen. Stat. § 25-1-308. Performance or acceptance under reservation of rights
(a) A party that with explicit reservation of rights performs or promises performance or assents to performance in a manner demanded or offered by...
N.C. Gen. Stat. § 25-1-309. Option to accelerate at will
A term providing that one party or that party's successor in interest may accelerate payment or performance or require collateral or additional collateral "at...
N.C. Gen. Stat. § 25-1-310. Subordinated obligations
An obligation may be issued as subordinated to performance of another obligation of the person obligated, or a creditor may subordinate its right to...

Article 2 - Sales.

N.C. Gen. Stat. § 25-2-101. Short title
This article shall be known and may be cited as Uniform Commercial Code-Sales. (1965, c. 700, s. 1.)
N.C. Gen. Stat. § 25-2-102. Scope; certain security and other transactions excluded from this article
Unless the context otherwise requires, this article applies to transactions in goods; it does not apply to any transaction which although in the form...
N.C. Gen. Stat. § 25-2-103. Definitions and index of definitions
(1) In this article unless the context otherwise requires (a) "Buyer" means a person who buys or contracts to buy goods. (b) Repealed by...
N.C. Gen. Stat. § 25-2-107. Goods to be severed from realty; recording
(1) A contract for the sale of minerals or the like (including oil and gas) or a structure or its materials to be removed...
N.C. Gen. Stat. § 25-2-201. Formal requirements; statute of frauds
(1) Except as otherwise provided in this section a contract for the sale of goods for the price of five hundred dollars ($500.00) or...
N.C. Gen. Stat. § 25-2-202. Final written expression; parol or extrinsic evidence
Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a writing intended by the...
N.C. Gen. Stat. § 25-2-203. Seals inoperative
The affixing of a seal to a writing evidencing a contract for sale or an offer to buy or sell goods does not constitute...
N.C. Gen. Stat. § 25-2-204. Formation in general
(1) A contract for sale of goods may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes...
N.C. Gen. Stat. § 25-2-205. Firm offers
An offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be...
N.C. Gen. Stat. § 25-2-206. Offer and acceptance in formation of contract
(1) Unless otherwise unambiguously indicated by the language or circumstances (a) an offer to make a contract shall be construed as inviting acceptance in...
N.C. Gen. Stat. § 25-2-207. Additional terms in acceptance or confirmation
(1) A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even...
N.C. Gen. Stat. § 25-2-208. Repealed by Session Laws 2006-112, s. 4, effective October 1, 2006
N.C. Gen. Stat. § 25-2-209. Modification, rescission and waiver
(1) An agreement modifying a contract within this article needs no consideration to be binding. (2) A signed agreement which excludes modification or rescission...
N.C. Gen. Stat. § 25-2-210. Delegation of performance; assignment of rights
(1) A party may perform his duty through a delegate unless otherwise agreed or unless the other party has a substantial interest in having...
N.C. Gen. Stat. § 25-2-301. General obligations of parties
The obligation of the seller is to transfer and deliver and that of the buyer is to accept and pay in accordance with the...
N.C. Gen. Stat. § 25-2-302. Unconscionable contract or clause
(1) If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the...
N.C. Gen. Stat. § 25-2-303. Allocation or division of risks
Where this article allocates a risk or a burden as between the parties "unless otherwise agreed," the agreement may not only shift the allocation...
N.C. Gen. Stat. § 25-2-304. Price payable in money, goods, realty, or otherwise
(1) The price can be made payable in money or otherwise. If it is payable in whole or in part in goods each party...
N.C. Gen. Stat. § 25-2-305. Open price term
(1) The parties if they so intend can conclude a contract for sale even though the price is not settled. In such a case...
N.C. Gen. Stat. § 25-2-306. Output, requirements and exclusive dealings
(1) A term which measures the quantity by the output of the seller or the requirements of the buyer means such actual output or...
N.C. Gen. Stat. § 25-2-307. Delivery in single lot or several lots
Unless otherwise agreed all goods called for by a contract for sale must be tendered in a single delivery and payment is due only...
N.C. Gen. Stat. § 25-2-308. Absence of specified place for delivery
Unless otherwise agreed (a) the place for delivery of goods is the seller's place of business or if he has none, his residence; but...
N.C. Gen. Stat. § 25-2-309. Absence of specific time provisions; notice of termination
(1) The time for shipment or delivery or any other action under a contract if not provided in this article or agreed upon shall...
N.C. Gen. Stat. § 25-2-310. Open time for payment or running of credit; authority to ship under reservation
Unless otherwise agreed (a) payment is due at the time and place at which the buyer is to receive the goods even though the...
N.C. Gen. Stat. § 25-2-311. Options and cooperation respecting performance
(1) An agreement for sale which is otherwise sufficiently definite (subsection (3) of G.S. 25-2-204) to be a contract is not made invalid by...
N.C. Gen. Stat. § 25-2-312. Warranty of title and against infringement; buyer's obligation against infringement
(1) Subject to subsection (2) there is in a contract for sale a warranty by the seller that (a) the title conveyed shall be...
N.C. Gen. Stat. § 25-2-313. Express warranties by affirmation, promise, description, sample
(1) Express warranties by the seller are created as follows: (a) Any affirmation of fact or promise made by the seller to the buyer...
N.C. Gen. Stat. § 25-2-314. Implied warranty: Merchantability; usage of trade
(1) Unless excluded or modified (G.S. 25-2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if...
N.C. Gen. Stat. § 25-2-315. Implied warranty: Fitness for particular purpose
Where the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the...
N.C. Gen. Stat. § 25-2-316. Exclusion or modification of warranties
(1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit warranty shall be...
N.C. Gen. Stat. § 25-2-317. Cumulation and conflict of warranties express or implied
Warranties whether express or implied shall be construed as consistent with each other and as cumulative, but if such construction is unreasonable the intention...
N.C. Gen. Stat. § 25-2-318. Third party beneficiaries of warranties express or implied
A seller's warranty whether express or implied extends to any natural person who is in the family or household of his buyer or who...
N.C. Gen. Stat. § 25-2-319. F.O.B. and F.A.S. terms
(1) Unless otherwise agreed the term F.O.B. (which means "free on board") at a named place, even though used only in connection with the...
N.C. Gen. Stat. § 25-2-320. C.I.F. and C. & F. terms
(1) The term C.I.F. means that the price includes in a lump sum the cost of the goods and the insurance and freight to...
N.C. Gen. Stat. § 25-2-321. C.I.F. or C. & F.: "Net landed weights"; "payment on arrival"; warranty of condition on arrival
Under a contract containing a term C.I.F. or C. & F. (1) Where the price is based on or is to be adjusted according...
N.C. Gen. Stat. § 25-2-324. "No arrival, no sale" term
Under a term "no arrival, no sale" or terms of like meaning, unless otherwise agreed, (a) the seller must properly ship conforming goods and...
N.C. Gen. Stat. § 25-2-326. Sale on approval and sale or return; rights of creditors
(1) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is: (a)...
N.C. Gen. Stat. § 25-2-327. Special incidents of sale on approval and sale or return
(1) Under a sale on approval unless otherwise agreed (a) although the goods are identified to the contract the risk of loss and the...
N.C. Gen. Stat. § 25-2-328. Sale by auction
(1) In a sale by auction if goods are put up in lots each lot is the subject of a separate sale. (2) A...
N.C. Gen. Stat. § 25-2-401. Passing of title; reservation for security; limited application of this section
Each provision of this article with regard to the rights, obligations and remedies of the seller, the buyer, purchasers or other third parties applies...
N.C. Gen. Stat. § 25-2-402. Rights of seller's creditors against sold goods
(1) Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified...
N.C. Gen. Stat. § 25-2-501. Insurable interest in goods; manner of identification of goods
(1) The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract...
N.C. Gen. Stat. § 25-2-502. Buyer's right to goods on seller's repudiation, failure to deliver, or insolvency
(1) Subject to subsections (2) and (3) of this section and even though the goods have not been shipped, a buyer who has paid...
N.C. Gen. Stat. § 25-2-503. Manner of seller's tender of delivery
(1) Tender of delivery requires that the seller put and hold conforming goods at the buyer's disposition and give the buyer any notification reasonably...
N.C. Gen. Stat. § 25-2-504. Shipment by seller
Where the seller is required or authorized to send the goods to the buyer and the contract does not require him to deliver them...
N.C. Gen. Stat. § 25-2-505. Seller's shipment under reservation
(1) Where the seller has identified goods to the contract by or before shipment: (a) his procurement of a negotiable bill of lading to...
N.C. Gen. Stat. § 25-2-506. Rights of financing agency
(1) A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of...
N.C. Gen. Stat. § 25-2-507. Effect of seller's tender; delivery on condition
(1) Tender of delivery is a condition to the buyer's duty to accept the goods and, unless otherwise agreed, to his duty to pay...
N.C. Gen. Stat. § 25-2-508. Cure by seller of improper tender or delivery; replacement
(1) Where any tender or delivery by the seller is rejected because nonconforming and the time for performance has not yet expired, the seller...
N.C. Gen. Stat. § 25-2-509. Risk of loss in the absence of breach
(1) Where the contract requires or authorizes the seller to ship the goods by carrier (a) if it does not require him to deliver...
N.C. Gen. Stat. § 25-2-510. Effect of breach on risk of loss
(1) Where a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk...
N.C. Gen. Stat. § 25-2-511. Tender of payment by buyer; payment by check
(1) Unless otherwise agreed tender of payment is a condition to the seller's duty to tender and complete any delivery. (2) Tender of payment...
N.C. Gen. Stat. § 25-2-512. Payment by buyer before inspection
(1) Where the contract requires payment before inspection nonconformity of the goods does not excuse the buyer from so making payment unless (a) the...
N.C. Gen. Stat. § 25-2-513. Buyer's right to inspection of goods
(1) Unless otherwise agreed and subject to subsection (3), where goods are tendered or identified to the contract for sale, the buyer has a...
N.C. Gen. Stat. § 25-2-514. When documents deliverable on acceptance; when on payment
Unless otherwise agreed documents against which a draft is drawn are to be delivered to the drawee on acceptance of the draft if it...
N.C. Gen. Stat. § 25-2-515. Preserving evidence of goods in dispute
In furtherance of the adjustment of any claim or dispute (a) either party on reasonable notification to the other and for the purpose of...
N.C. Gen. Stat. § 25-2-601. Buyer's rights on improper delivery
Subject to the provisions of this article on breach in installment contracts (G.S. 25-2-612) and unless otherwise agreed under the sections on contractual limitations...
N.C. Gen. Stat. § 25-2-602. Manner and effect of rightful rejection
(1) Rejection of goods must be within a reasonable time after their delivery or tender. It is ineffective unless the buyer seasonably notifies the...
N.C. Gen. Stat. § 25-2-603. Merchant buyer's duties as to rightfully rejected goods
(1) Subject to any security interest in the buyer (subsection (3) of G.S. 25-2-711), when the seller has no agent or place of business...
N.C. Gen. Stat. § 25-2-604. Buyer's options as to salvage of rightfully rejected goods
Subject to the provisions of the immediately preceding section [G.S. 25-2-603] on perishables if the seller gives no instructions within a reasonable time after...
N.C. Gen. Stat. § 25-2-605. Waiver of buyer's objections by failure to particularize
(1) The buyer's failure to state in connection with rejection a particular defect which is ascertainable by reasonable inspection precludes him from relying on...
N.C. Gen. Stat. § 25-2-606. What constitutes acceptance of goods
(1) Acceptance of goods occurs when the buyer (a) after a reasonable opportunity to inspect the goods signifies to the seller that the goods...
N.C. Gen. Stat. § 25-2-607. Effect of acceptance; notice of breach; burden of establishing breach after acceptance; notice of claim or litigation to person answerable over
(1) The buyer must pay at the contract rate for any goods accepted. (2) Acceptance of goods by the buyer precludes rejection of the...
N.C. Gen. Stat. § 25-2-608. Revocation of acceptance in whole or in part
(1) The buyer may revoke his acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to him if he has...
N.C. Gen. Stat. § 25-2-609. Right to adequate assurance of performance
(1) A contract for sale imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired. When...
N.C. Gen. Stat. § 25-2-610. Anticipatory repudiation
When either party repudiates the contract with respect to a performance not yet due the loss of which will substantially impair the value of...
N.C. Gen. Stat. § 25-2-611. Retraction of anticipatory repudiation
(1) Until the repudiating party's next performance is due he can retract his repudiation unless the aggrieved party has since the repudiation cancelled or...
N.C. Gen. Stat. § 25-2-612. "Installment contract"; breach
(1) An "installment contract" is one which requires or authorizes the delivery of goods in separate lots to be separately accepted, even though the...
N.C. Gen. Stat. § 25-2-613. Casualty to identified goods
Where the contract requires for its performance goods identified when the contract is made, and the goods suffer casualty without fault of either party...
N.C. Gen. Stat. § 25-2-614. Substituted performance
(1) Where without fault of either party the agreed berthing, loading, or unloading facilities fail or an agreed type of carrier becomes unavailable or...
N.C. Gen. Stat. § 25-2-615. Excuse by failure of presupposed conditions
Except so far as a seller may have assumed a greater obligation and subject to the preceding section [G.S. 25-2-614] on substituted performance: (a)...
N.C. Gen. Stat. § 25-2-616. Procedure on notice claiming excuse
(1) Where the buyer receives notification of a material or indefinite delay or an allocation justified under the preceding section [G.S. 25-2-615] he may...
N.C. Gen. Stat. § 25-2-701. Remedies for breach of collateral contracts not impaired
Remedies for breach of any obligation or promise collateral or ancillary to a contract for sale are not impaired by the provisions of this...
N.C. Gen. Stat. § 25-2-702. Seller's remedies on discovery of buyer's insolvency
(1) Where the seller discovers the buyer to be insolvent he may refuse delivery except for cash including payment for all goods theretofore delivered...
N.C. Gen. Stat. § 25-2-703. Seller's remedies in general
Where the buyer wrongfully rejects or revokes acceptance of goods or fails to make a payment due on or before delivery or repudiates with...
N.C. Gen. Stat. § 25-2-704. Seller's right to identify goods to the contract notwithstanding breach or to salvage unfinished goods
(1) An aggrieved seller under the preceding section [G.S. 25-2-703] may (a) identify to the contract conforming goods not already identified if at the...
N.C. Gen. Stat. § 25-2-705. Seller's stoppage of delivery in transit or otherwise
(1) The seller may stop delivery of goods in the possession of a carrier or other bailee when he discovers the buyer to be...
N.C. Gen. Stat. § 25-2-706. Seller's resale including contract for resale
(1) Under the conditions stated in G.S. 25-2-703 on seller's remedies, the seller may resell the goods concerned or the undelivered balance thereof. Where...
N.C. Gen. Stat. § 25-2-708. Seller's damages for nonacceptance or repudiation
(1) Subject to subsection (2) and to the provisions of this article with respect to proof of market price (G.S. 25-2-723), the measure of...
N.C. Gen. Stat. § 25-2-709. Action for the price
(1) When the buyer fails to pay the price as it becomes due the seller may recover, together with any incidental damages under the...
N.C. Gen. Stat. § 25-2-710. Seller's incidental damages
Incidental damages to an aggrieved seller include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody...
N.C. Gen. Stat. § 25-2-711. Buyer's remedies in general; buyer's security interest in rejected goods
(1) Where the seller fails to make delivery or repudiates or the buyer rightfully rejects or justifiably revokes acceptance then with respect to any...
N.C. Gen. Stat. § 25-2-712. "Cover"; buyer's procurement of substitute goods
(1) After a breach within the preceding section [G.S. 25-2-711] the buyer may "cover" by making in good faith and without unreasonable delay any...
N.C. Gen. Stat. § 25-2-713. Buyer's damages for nondelivery or repudiation
(1) Subject to the provisions of this article with respect to proof of market price (G.S. 25-2-723), the measure of damages for nondelivery or...
N.C. Gen. Stat. § 25-2-714. Buyer's damages for breach in regard to accepted goods
(1) Where the buyer has accepted goods and given notification (subsection (3) of G.S. 25-2-607) he may recover as damages for any nonconformity of...
N.C. Gen. Stat. § 25-2-715. Buyer's incidental and consequential damages
(1) Incidental damages resulting from the seller's breach include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected,...
N.C. Gen. Stat. § 25-2-716. Buyer's right to specific performance or replevin
(1) Specific performance may be decreed where the goods are unique or in other proper circumstances. (2) The decree for specific performance may include...
N.C. Gen. Stat. § 25-2-717. Deduction of damages from the price
The buyer on notifying the seller of his intention to do so may deduct all or any part of the damages resulting from any...
N.C. Gen. Stat. § 25-2-718. Liquidation or limitation of damages; deposits
(1) Damages for breach by either party may be liquidated in the agreement but only at an amount which is reasonable in the light...
N.C. Gen. Stat. § 25-2-719. Contractual modification or limitation of remedy
(1) Subject to the provisions of subsections (2) and (3) of this section and of the preceding section [G.S. 25-2-718] on liquidation and limitation...
N.C. Gen. Stat. § 25-2-720. Effect of "cancellation" or "rescission" on claims for antecedent breach
Unless the contrary intention clearly appears, expressions of "cancellation" or "rescission" of the contract or the like shall not be construed as a renunciation...
N.C. Gen. Stat. § 25-2-721. Remedies for fraud
Remedies for material misrepresentation or fraud include all remedies available under this article for nonfraudulent breach. Neither rescission or a claim for rescission of...
N.C. Gen. Stat. § 25-2-722. Who can sue third parties for injury to goods
Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a...
N.C. Gen. Stat. § 25-2-723. Proof of market price; time and place
(1) If an action based on anticipatory repudiation comes to trial before the time for performance with respect to some or all of the...
N.C. Gen. Stat. § 25-2-724. Admissibility of market quotations
Whenever the prevailing price or value of any goods regularly bought and sold in any established commodity market is in issue, reports in official...
N.C. Gen. Stat. § 25-2-725. Statute of limitations in contracts for sale
(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By...

Article 2A - Leases.

N.C. Gen. Stat. § 25-2A-101. Short title
This Article shall be known and may be cited as the Uniform Commercial Code - Leases. (1993, c. 463, s. 1.)
N.C. Gen. Stat. § 25-2A-102. Scope
This Article applies to any transaction, regardless of form, that creates a lease. (1993, c. 463, s. 1.)
N.C. Gen. Stat. § 25-2A-103. Definitions and index of definitions
(1) In this Article unless the context otherwise requires: (a) "Buyer in ordinary course of business" means a person who, in good faith and...
N.C. Gen. Stat. § 25-2A-104. Leases subject to other law
(1) A lease, although subject to this Article, is also subject to any applicable: (a) certificate of title statute of this State (G.S. 20-50,...
N.C. Gen. Stat. § 25-2A-105. Territorial application of Article to goods covered by certificate of title
Subject to the provisions of G.S. 25-2A-304(3) and G.S. 25-2A-305(3), with respect to goods covered by a certificate of title issued under a statute...
N.C. Gen. Stat. § 25-2A-106. Limitation on power of parties to consumer lease to choose applicable law and judicial forum
(1) If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the...
N.C. Gen. Stat. § 25-2A-107. Waiver or renunciation of claim or right after default
Any claim or right arising out of an alleged default or breach of warranty may be discharged in whole or in part without consideration...
N.C. Gen. Stat. § 25-2A-108. Unconscionability
(1) If the court as a matter of law finds a lease contract or any clause of a lease contract to have been unconscionable...
N.C. Gen. Stat. § 25-2A-109. Option to accelerate at will
(1) A term providing that one party or his successor in interest may accelerate payment or performance or require collateral or additional collateral "at...
N.C. Gen. Stat. § 25-2A-201. Statute of frauds
(1) A lease contract is not enforceable by way of action or defense unless: (a) the total payments to be made under the lease...
N.C. Gen. Stat. § 25-2A-202. Final written expression: parol or extrinsic evidence
Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a writing intended by the...
N.C. Gen. Stat. § 25-2A-203. Seals inoperative
The affixing of a seal to a writing evidencing a lease contract or an offer to enter into a lease contract does not render...
N.C. Gen. Stat. § 25-2A-204. Formation in general
(1) A lease contract may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of...
N.C. Gen. Stat. § 25-2A-205. Firm offers
An offer by a merchant to lease goods to or from another person in a signed writing that by its terms gives assurance it...
N.C. Gen. Stat. § 25-2A-206. Offer and acceptance in formation of lease contract
(1) Unless otherwise unambiguously indicated by the language or circumstances, an offer to make a lease contract must be construed as inviting acceptance in...
N.C. Gen. Stat. § 25-2A-207. Repealed by Session Laws 2006-112, s. 6, effective October 1, 2006
N.C. Gen. Stat. § 25-2A-208. Modification, rescission and waiver
(1) An agreement modifying a lease contract needs no consideration to be binding. (2) A signed lease agreement that excludes modification or rescission except...
N.C. Gen. Stat. § 25-2A-209. Lessee under finance lease as beneficiary of supply contract
(1) The benefit of a supplier's promises to the lessor under the supply contract and of all warranties, whether express or implied, including those...
N.C. Gen. Stat. § 25-2A-210. Express warranties
(1) Express warranties by the lessor are created as follows: (a) any affirmation of fact or promise made by the lessor to the lessee...
N.C. Gen. Stat. § 25-2A-211. Warranties against interference and against infringement; lessee's obligation against infringement
(1) There is in a lease contract a warranty that for the lease term no person holds a claim to or interest in the...
N.C. Gen. Stat. § 25-2A-212. Implied warranty of merchantability
(1) Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract if the lessor is...
N.C. Gen. Stat. § 25-2A-213. Implied warranty of fitness for particular purpose
Except in a finance lease, if the lessor at the time the lease contract is made has reason to know of any particular purpose...
N.C. Gen. Stat. § 25-2A-214. Exclusion or modification of warranties
(1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit a warranty must...
N.C. Gen. Stat. § 25-2A-215. Cumulation and conflict of warranties express or implied
Warranties, whether express or implied, must be construed as consistent with each other and as cumulative, but if that construction is unreasonable, the intention...
N.C. Gen. Stat. § 25-2A-216. Third-party beneficiaries of express and implied warranties
A warranty to or for the benefit of a lessee under this Article, whether express or implied, extends to any natural person who is...
N.C. Gen. Stat. § 25-2A-217. Identification
Identification of goods as goods to which a lease contract refers may be made at any time and in any manner explicitly agreed to...
N.C. Gen. Stat. § 25-2A-218. Insurance and proceeds
(1) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are nonconforming and...
N.C. Gen. Stat. § 25-2A-219. Risk of loss
(1) Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass to the lessee....
N.C. Gen. Stat. § 25-2A-220. Effect of default on risk of loss
(1) Where risk of loss is to pass to the lessee and the time of passage is not stated: (a) if a tender or...
N.C. Gen. Stat. § 25-2A-221. Casualty to identified goods
If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault of the lessee, the...
N.C. Gen. Stat. § 25-2A-301. Enforceability of lease contract
Except as otherwise provided in this Article, a lease contract is effective and enforceable according to its terms between the parties, against purchasers of...
N.C. Gen. Stat. § 25-2A-302. Title to and possession of goods
Except as otherwise provided in this Article, each provision of this Article applies whether the lessor or a third party has title to the...
N.C. Gen. Stat. § 25-2A-303. Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights
(1) As used in this section, "creation of a security interest" includes the sale of a lease contract that is subject to Article 9...
N.C. Gen. Stat. § 25-2A-304. Subsequent lease of goods by lessor
(1) Subject to G.S. 25-2A-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the...
N.C. Gen. Stat. § 25-2A-305. Sale or sublease of goods by lessee
(1) Subject to the provisions of G.S. 25-2A-303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to...
N.C. Gen. Stat. § 25-2A-306. Priority of certain liens arising by operation of law
If a person in the ordinary course of his business furnishes services or materials with respect to goods subject to a lease contract, a...
N.C. Gen. Stat. § 25-2A-307. Priority of liens arising by attachment or levy on, security interests in, and other claims to goods
(1) Except as otherwise provided in G.S. 25-2A-306, a creditor of a lessee takes subject to the lease contract. (2) Except as otherwise provided...
N.C. Gen. Stat. § 25-2A-308. Special rights of creditors
(1) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as...
N.C. Gen. Stat. § 25-2A-309. Lessor's and lessee's rights when goods become fixtures
(1) In this section: (a) goods are "fixtures" when they become so related to particular real estate that an interest in them arises under...
N.C. Gen. Stat. § 25-2A-310. Lessor's and lessee's rights when goods become accessions
(1) Goods are "accessions" when they are installed in or affixed to other goods. (2) The interest of a lessor or a lessee under...
N.C. Gen. Stat. § 25-2A-401. Insecurity: adequate assurance of performance
(1) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired. (2) If...
N.C. Gen. Stat. § 25-2A-402. Anticipatory repudiation
If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance...
N.C. Gen. Stat. § 25-2A-403. Retraction of anticipatory repudiation
(1) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has...
N.C. Gen. Stat. § 25-2A-404. Substituted performance
(1) If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading, or unloading facilities fail, or the agreed type...
N.C. Gen. Stat. § 25-2A-405. Excused performance
Subject to G.S 25-2A-404 on substituted performance, the following rules apply: (a) delay in delivery or nondelivery in whole or in part by a...
N.C. Gen. Stat. § 25-2A-406. Procedure on excused performance
(1) If the lessee receives notification of a material or indefinite delay or an allocation justified under G.S. 25-2A-405, the lessee may, by written...
N.C. Gen. Stat. § 25-2A-407. Irrevocable promises: finance leases
(1) In the case of a finance lease that is not a consumer lease, the lessee's promises under the lease contract become irrevocable and...
N.C. Gen. Stat. § 25-2A-501. Default: procedure
(1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this Article. (2)...
N.C. Gen. Stat. § 25-2A-502. Notice after default
Except as otherwise provided in this Article or the lease agreement, the lessor or lessee in default under the lease contract is not entitled...
N.C. Gen. Stat. § 25-2A-503. Modification or impairment of rights and remedies
(1) Except as otherwise provided in this Article, the lease agreement may include rights and remedies for default in addition to or in substitution...
N.C. Gen. Stat. § 25-2A-504. Liquidation of damages
(1) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits...
N.C. Gen. Stat. § 25-2A-505. Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies
(1) On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior...
N.C. Gen. Stat. § 25-2A-506. Statute of limitations
(1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four years after the cause...
N.C. Gen. Stat. § 25-2A-507. Proof of market rent: time and place
(1) Damages based on market rent (G.S. 25-2A-519 or G.S. 25-2A-528) are determined according to the rent for the use of the goods concerned...
N.C. Gen. Stat. § 25-2A-508. Lessee's remedies
(1) If a lessor fails to deliver the goods in conformity to the lease contract (G.S. 25-2A-509) or repudiates the lease contract (G.S. 25-2A-402),...
N.C. Gen. Stat. § 25-2A-509. Lessee's rights on improper delivery; rightful rejection
(1) Subject to the provisions of G.S. 25-2A-510 on default in installment lease contracts, if the goods or the tender or delivery fail in...
N.C. Gen. Stat. § 25-2A-510. Installment lease contracts; rejection and default
(1) Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that...
N.C. Gen. Stat. § 25-2A-511. Merchant lessee's duties as to rightfully rejected goods
(1) Subject to any security interest of a lessee (G.S. 25-2A-508(5)), if a lessor or a supplier has no agent or place of business...
N.C. Gen. Stat. § 25-2A-512. Lessee's duties as to rightfully rejected goods
(1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (G.S. 25-2A-511) and subject to any security interest...
N.C. Gen. Stat. § 25-2A-513. Cure by lessor of improper tender or delivery; replacement
(1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet...
N.C. Gen. Stat. § 25-2A-514. Waiver of lessee's objections
(1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on...
N.C. Gen. Stat. § 25-2A-515. Acceptance of goods
(1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and: (a) the lessee signifies or acts...
N.C. Gen. Stat. § 25-2A-516. Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over
(1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or...
N.C. Gen. Stat. § 25-2A-517. Revocation of acceptance of goods
(1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee...
N.C. Gen. Stat. § 25-2A-518. Cover; substitute goods
(1) After a default by a lessor under the lease contract of the type described in G.S. 25-2A-508(1), or, if agreed, after other default...
N.C. Gen. Stat. § 25-2A-519. Lessee's damages for nondelivery, repudiation, default, and breach of warranty in regard to accepted goods
(1) Except as otherwise provided with respect to damages liquidated in the lease agreement (G.S. 25-2A-504) or otherwise determined pursuant to agreement of the...
N.C. Gen. Stat. § 25-2A-520. Lessee's incidental and consequential damages
(1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected...
N.C. Gen. Stat. § 25-2A-521. Lessee's right to specific performance or replevin
(1) Specific performance may be decreed if the goods are unique or in other proper circumstances. (2) A decree for specific performance may include...
N.C. Gen. Stat. § 25-2A-522. Lessee's right to goods on lessor's insolvency
(1) Subject to subsection (2) of this section and even though the goods have not been shipped, a lessee who has paid a part...
N.C. Gen. Stat. § 25-2A-523. Lessor's remedies
(1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to...
N.C. Gen. Stat. § 25-2A-524. Lessor's right to identify goods to lease contract
(1) After default by the lessee under the lease contract of the type described in G.S. 25-2A-523(1) or G.S. 25-2A-523(3)(a) or, if agreed, after...
N.C. Gen. Stat. § 25-2A-525. Lessor's right to possession of goods
(1) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. (2) After a default by the...
N.C. Gen. Stat. § 25-2A-526. Lessor's stoppage of delivery in transit or otherwise
(1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to...
N.C. Gen. Stat. § 25-2A-527. Lessor's rights to dispose of goods
(1) After a default by a lessee under the lease contract of the type described in G.S. 25-2A-523(1) or G.S. 25-2A-523(3)(a) or after the...
N.C. Gen. Stat. § 25-2A-528. Lessor's damages for nonacceptance, failure to pay, repudiation, or other default
(1) Except as otherwise provided with respect to damages liquidated in the lease agreement (G.S. 25-2A-504) or otherwise determined pursuant to agreement of the...
N.C. Gen. Stat. § 25-2A-529. Lessor's action for the rent
(1) After default by the lessee under the lease contract of the type described in G.S. 25-2A-523(1) or G.S. 25-2A-523(3)(a) or, if agreed, after...
N.C. Gen. Stat. § 25-2A-530. Lessor's incidental damages
Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation, care, and custody...
N.C. Gen. Stat. § 25-2A-531. Standing to sue third parties for injury to goods
(1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a...
N.C. Gen. Stat. § 25-2A-532. Lessor's rights to residual interest
In addition to any other recovery permitted by this Article or other law, the lessor may recover from the lessee an amount that will...

Article 3 - Negotiable Instruments.

N.C. Gen. Stat. § 25-3-101. Short title
This Article may be cited as Uniform Commercial Code - Negotiable Instruments. (1899, c. 733, ss. 128, 191; Rev., ss. 2278, 2340; C.S., ss....
N.C. Gen. Stat. § 25-3-102. Subject matter
(a) This Article applies to negotiable instruments. It does not apply to money, to payment orders governed by Article 4A, or to securities governed...
N.C. Gen. Stat. § 25-3-103. Definitions
(a) In this Article: (1) "Acceptor" means a drawee who has accepted a draft. (2) "Drawee" means a person ordered in a draft to...
N.C. Gen. Stat. § 25-3-104. Negotiable instrument
(a) Except as provided in subsections (c) and (d) of this section, "negotiable instrument" means an unconditional promise or order to pay a fixed...
N.C. Gen. Stat. § 25-3-105. Issue of instrument
(a) "Issue" means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of...
N.C. Gen. Stat. § 25-3-106. Unconditional promise or order
(a) Except as provided in this section, for the purposes of G.S. 25-3-104(a), a promise or order is unconditional unless it states (i) an...
N.C. Gen. Stat. § 25-3-107. Instrument payable in foreign money
Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in...
N.C. Gen. Stat. § 25-3-108. Payable on demand or at definite time
(a) A promise or order is "payable on demand" if it (i) states that it is payable on demand or at sight, or otherwise...
N.C. Gen. Stat. § 25-3-109. Payable to bearer or to order
(a) A promise or order is payable to bearer if it: (1) States that it is payable to bearer or to the order of...
N.C. Gen. Stat. § 25-3-110. Identification of person to whom instrument is payable
(a) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as,...
N.C. Gen. Stat. § 25-3-111. Place of payment
Except as otherwise provided for items in Article 4, an instrument is payable at the place of payment stated in the instrument. If no...
N.C. Gen. Stat. § 25-3-112. Interest
(a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable...
N.C. Gen. Stat. § 25-3-113. Date of instrument
(a) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed...
N.C. Gen. Stat. § 25-3-114. Contradictory terms of instrument
If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers. (1899, c....
N.C. Gen. Stat. § 25-3-115. Incomplete instrument
(a) "Incomplete instrument" means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing...
N.C. Gen. Stat. § 25-3-116. Joint and several liability; contribution
(a) Except as otherwise provided in the instrument, two or more persons who have the same liability on an instrument as makers, drawers, acceptors,...
N.C. Gen. Stat. § 25-3-117. Other agreements affecting instrument
Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the...
N.C. Gen. Stat. § 25-3-118. Statute of limitations
(a) Except as provided in subsection (e) of this section, an action to enforce the obligation of a party to pay a note payable...
N.C. Gen. Stat. § 25-3-119. Notice of right to defend action
In an action for breach of an obligation for which a third person is answerable over pursuant to this Article or Article 4, the...
N.C. Gen. Stat. § 25-3-201. Negotiation
(a) "Negotiation" means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person...
N.C. Gen. Stat. § 25-3-202. Negotiation subject to rescission
(a) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud,...
N.C. Gen. Stat. § 25-3-203. Transfer of instrument; rights acquired by transfer
(a) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person...
N.C. Gen. Stat. § 25-3-204. Indorsement
(a) "Indorsement" means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is...
N.C. Gen. Stat. § 25-3-205. Special indorsement; blank indorsement; anomalous indorsement
(a) If an indorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the...
N.C. Gen. Stat. § 25-3-206. Restrictive indorsement
(a) An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent...
N.C. Gen. Stat. § 25-3-207. Reacquisition
Reacquisition of an instrument occurs if it is transferred to a former holder by negotiation or otherwise. A former holder who reacquires the instrument...
N.C. Gen. Stat. § 25-3-301. Person entitled to enforce instrument
"Person entitled to enforce" an instrument means (i) the holder of the instrument, (ii) a nonholder in possession of the instrument who has the...
N.C. Gen. Stat. § 25-3-302. Holder in due course
(a) Subject to subsection (c) of this section and G.S. 25-3-106(d), "holder in due course" means the holder of an instrument if: (1) The...
N.C. Gen. Stat. § 25-3-303. Value and consideration
(a) An instrument is issued or transferred for value if: (1) The instrument is issued or transferred for a promise of performance, to the...
N.C. Gen. Stat. § 25-3-304. Overdue instrument
(a) An instrument payable on demand becomes overdue at the earliest of the following times: (1) On the day after the day demand for...
N.C. Gen. Stat. § 25-3-305. Defenses and claims in recoupment
(a) Except as stated in subsection (b) of this section, the right to enforce the obligation of a party to pay an instrument is...
N.C. Gen. Stat. § 25-3-306. Claims to an instrument
A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a...
N.C. Gen. Stat. § 25-3-307. Notice of breach of fiduciary duty
(a) In this section: (1) "Fiduciary" means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect...
N.C. Gen. Stat. § 25-3-308. Proof of signatures and status as holder in due course
(a) In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless...
N.C. Gen. Stat. § 25-3-309. Enforcement of lost, destroyed, or stolen instrument
(a) A person not in possession of an instrument is entitled to enforce the instrument if (i) the person was in possession of the...
N.C. Gen. Stat. § 25-3-310. Effect of instrument on obligation for which taken
(a) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is taken for an obligation, the obligation is discharged to the...
N.C. Gen. Stat. § 25-3-311. Accord and satisfaction by use of instrument
(a) If a person against whom a claim is asserted proves that (i) that person in good faith tendered an instrument to the claimant...
N.C. Gen. Stat. § 25-3-312. Lost, destroyed, or stolen cashier's check, teller's check, or certified check
(a) In this section: (1) "Check" means a cashier's check, teller's check, or certified check. (2) "Claimant" means a person who claims the right...
N.C. Gen. Stat. § 25-3-401. Signature
(a) A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by an...
N.C. Gen. Stat. § 25-3-402. Signature by representative
(a) If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person...
N.C. Gen. Stat. § 25-3-403. Unauthorized signature
(a) Unless otherwise provided in this Article or Article 4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in...
N.C. Gen. Stat. § 25-3-404. Impostors; fictitious payees
(a) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor,...
N.C. Gen. Stat. § 25-3-405. Employer's responsibility for fraudulent indorsement by employee
(a) In this section: (1) "Employee" includes an independent contractor and employee of an independent contractor retained by the employer. (2) "Fraudulent indorsement" means...
N.C. Gen. Stat. § 25-3-406. Negligence contributing to forged signature or alteration of instrument
(a) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged...
N.C. Gen. Stat. § 25-3-407. Alteration
(a) "Alteration" means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii)...
N.C. Gen. Stat. § 25-3-408. Drawee not liable on unaccepted draft
A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its...
N.C. Gen. Stat. § 25-3-409. Acceptance of draft; certified check
(a) "Acceptance" means the drawee's signed agreement to pay a draft as presented. It must be written on the draft and may consist of...
N.C. Gen. Stat. § 25-3-410. Acceptance varying draft
(a) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and...
N.C. Gen. Stat. § 25-3-411. Refusal to pay cashier's checks, teller's checks, and certified checks
(a) In this section, "obligated bank" means the acceptor of a certified check or the issuer of a cashier's check or teller's check bought...
N.C. Gen. Stat. § 25-3-412. Obligation of issuer of note or cashier's check
The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (i) according to...
N.C. Gen. Stat. § 25-3-413. Obligation of acceptor
(a) The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even...
N.C. Gen. Stat. § 25-3-414. Obligation of drawer
(a) This section does not apply to cashier's checks or other drafts drawn on the drawer. (b) If an unaccepted draft is dishonored, the...
N.C. Gen. Stat. § 25-3-415. Obligation of indorser
(a) Subject to subsections (b), (c), (d), and (e) of this section and to G.S. 25-3-419(d), if an instrument is dishonored, an indorser is...
N.C. Gen. Stat. § 25-3-416. Transfer warranties
(a) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee...
N.C. Gen. Stat. § 25-3-417. Presentment warranties
(a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the...
N.C. Gen. Stat. § 25-3-418. Payment or acceptance by mistake
(a) Except as provided in subsection (c) of this section, if the drawee of a draft pays or accepts the draft and the drawee...
N.C. Gen. Stat. § 25-3-419. Instruments signed for accommodation
(a) If an instrument is issued for value given for the benefit of a party to the instrument, the "accommodated party", and another party...
N.C. Gen. Stat. § 25-3-420. Conversion of instrument
(a) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other...
N.C. Gen. Stat. § 25-3-501. Presentment
(a) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument (i) to pay the instrument made...
N.C. Gen. Stat. § 25-3-502. Dishonor
(a) Dishonor of a note is governed by the following rules: (1) If the note is payable on demand, the note is dishonored if...
N.C. Gen. Stat. § 25-3-503. Notice of dishonor
(a) The obligation of an indorser stated in G.S. 25-3-415(a) and the obligation of a drawer stated in G.S. 25-3-414(d) may not be enforced...
N.C. Gen. Stat. § 25-3-504. Excused presentment and notice of dishonor
(a) Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence...
N.C. Gen. Stat. § 25-3-505. Evidence of dishonor
(a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (1) A document regular...
N.C. Gen. Stat. § 25-3-506. Collection of processing fee for returned checks
A person who accepts a check in payment for goods or services or his assignee may charge and collect a processing fee, not to...
N.C. Gen. Stat. § 25-3-601. Discharge and effect of discharge
(a) The obligation of a party to pay the instrument is discharged as stated in this Article or by an act or agreement with...
N.C. Gen. Stat. § 25-3-602. Payment
(a) Subject to subsection (b) of this section, an instrument is paid to the extent payment is made (i) by or on behalf of...
N.C. Gen. Stat. § 25-3-603. Tender of payment
(a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect...
N.C. Gen. Stat. § 25-3-604. Discharge by cancellation or renunciation
(a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (i)...
N.C. Gen. Stat. § 25-3-605. Discharge of indorsers and accommodation parties
(a) In this section, the term "indorser" includes a drawer having the obligation described in G.S. 25-3-414(d). (b) Discharge, under G.S. 25-3-604, of the...

Article 4 - Bank Deposits and Collections.

N.C. Gen. Stat. § 25-4-101. Short title
This Article may be cited as Uniform Commercial Code - Bank Deposits and Collections. (1965, c. 700, s. 1; 1995, c. 232, s. 2.)
N.C. Gen. Stat. § 25-4-102. Applicability
(a) To the extent that items within this Article are also within Articles 3 and 8, they are subject to those Articles. If there...
N.C. Gen. Stat. § 25-4-103. Variation by agreement; measure of damages; action constituting ordinary care
(a) The effect of the provisions of this Article may be varied by agreement, but the parties to the agreement cannot disclaim a bank's...
N.C. Gen. Stat. § 25-4-104. Definitions and index of definitions
(a) In this Article, unless the context otherwise requires: (1) "Account" means any deposit or credit account with a bank, including a demand, time,...
N.C. Gen. Stat. § 25-4-105. "Bank"; "depositary bank"; "intermediary bank"; "collecting bank"; "payor bank"; "presenting bank"
In this Article: (1) "Bank" means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union,...
N.C. Gen. Stat. § 25-4-105.1. Payable through or payable at bank; collecting bank
(a) If an item states that it is "payable through" a bank identified in the item, (i) the item designates the bank as a...
N.C. Gen. Stat. § 25-4-106. Separate office of a bank
A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the...
N.C. Gen. Stat. § 25-4-107. Time of receipt of items
(a) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position...
N.C. Gen. Stat. § 25-4-108. Delays
(a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other...
N.C. Gen. Stat. § 25-4-109. Repealed by Session Laws 1995, c. 232, s. 2
N.C. Gen. Stat. § 25-4-110. Electronic presentment
(a) "Agreement for electronic presentment" means an agreement, clearing-house rule, or federal reserve regulation or operating circular, providing that presentment of an item may...
N.C. Gen. Stat. § 25-4-111. Statute of limitations
An action to enforce an obligation, duty, or right arising under this Article must be commenced within three years after the cause of action...
N.C. Gen. Stat. § 25-4-201. Status of collecting bank as agent and provisional status of credits; applicability of Article; item indorsed "pay any bank"
(a) Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or...
N.C. Gen. Stat. § 25-4-202. Responsibility for collection or return; when action timely
(a) A collecting bank must exercise ordinary care in: (1) Presenting an item or sending it for presentment; (2) Sending notice of dishonor or...
N.C. Gen. Stat. § 25-4-203. Effect of instructions
Subject to Article 3 concerning conversion of instruments (G.S. 25-3-420) and restrictive indorsements (G.S. 25-3-206), only a collecting bank's transferor can give instructions that...
N.C. Gen. Stat. § 25-4-204. Methods of sending and presenting; sending directly to payor
(a) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number...
N.C. Gen. Stat. § 25-4-205. Depositary bank holder of unindorsed item
If a customer delivers an item to a depositary bank for collection: (1) The depositary bank becomes a holder of the item at the...
N.C. Gen. Stat. § 25-4-206. Transfer between banks
Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank. (1965, c. 700, s. 1; 1995,...
N.C. Gen. Stat. § 25-4-207. Transfer warranties
(a) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any...
N.C. Gen. Stat. § 25-4-207.1. Presentment warranties
(a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the...
N.C. Gen. Stat. § 25-4-207.2. Encoding and retention warranties
(a) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the...
N.C. Gen. Stat. § 25-4-208. Security interest of collecting bank in items, accompanying documents and proceeds
(a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: (1) In case of...
N.C. Gen. Stat. § 25-4-209. When bank gives value for purposes of holder in due course
For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security...
N.C. Gen. Stat. § 25-4-210. Presentment by notice of item not payable by, through, or at a bank; liability of drawer or indorser
(a) Unless otherwise instructed, a collecting bank may present an item not payable by, through or at a bank by sending to the party...
N.C. Gen. Stat. § 25-4-211. Medium and time of settlement by bank
(a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by federal reserve regulations or circulars, clearing-house...
N.C. Gen. Stat. § 25-4-212. Right of charge-back or refund; liability of collecting bank; return of item
(a) If a collecting bank has made provisional settlement with its customer for an item and itself fails by reason of dishonor, suspension of...
N.C. Gen. Stat. § 25-4-213. Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal
(a) An item is finally paid by a payor bank when the bank has first done any of the following: (1) Paid the item...
N.C. Gen. Stat. § 25-4-214. Insolvency and preference
(a) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has...
N.C. Gen. Stat. § 25-4-301. Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank
(a) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter...
N.C. Gen. Stat. § 25-4-302. Payor bank's responsibility for late return of item
(a) If an item is presented to and received by a payor bank, the bank is accountable for the amount of: (1) A demand...
N.C. Gen. Stat. § 25-4-303. When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified
(a) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to...
N.C. Gen. Stat. § 25-4-401. When bank may charge customer's account
(a) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge...
N.C. Gen. Stat. § 25-4-402. Bank's liability to customer for wrongful dishonor; time of determining insufficiency of account
(a) Except as otherwise provided in this Article, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable,...
N.C. Gen. Stat. § 25-4-403. Customer's right to stop payment; burden of proof of loss
(a) A customer or any person authorized to draw on the account if there is more than one person may stop payment of any...
N.C. Gen. Stat. § 25-4-404. Bank not obligated to pay check more than six months old
A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is...
N.C. Gen. Stat. § 25-4-405. Death or incompetence of customer
(a) A payor or collecting bank's authority to accept, pay, or collect an item or to account for proceeds of its collection, if otherwise...
N.C. Gen. Stat. § 25-4-406. Customer's duty to discover and report unauthorized signature or alteration
(a) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either...
N.C. Gen. Stat. § 25-4-407. Payor bank's right to subrogation on improper payment
If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has...
N.C. Gen. Stat. § 25-4-501. Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor
A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment, and upon learning that...
N.C. Gen. Stat. § 25-4-502. Presentment of "on arrival" drafts
If a draft or the relevant instructions require presentment "on arrival," "when goods arrive" or the like, the collecting bank need not present until...
N.C. Gen. Stat. § 25-4-503. Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need
Unless otherwise instructed and except as provided in Article 5, a bank presenting a documentary draft: (1) Must deliver the documents to the drawee...
N.C. Gen. Stat. § 25-4-504. Privilege of presenting bank to deal with goods; security interest for expenses
(a) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable...

Article 4A - Funds Transfers.

N.C. Gen. Stat. § 25-4A-101. Short title
This Article may be cited as Uniform Commercial Code-Funds Transfers. (1993, c. 157, s. 1.)
N.C. Gen. Stat. § 25-4A-102. Subject matter
Except as otherwise provided in G.S. 25-4A-108, this Article applies to funds transfers defined in G.S. 25-4A-104. (1993, c. 157, s. 1.)
N.C. Gen. Stat. § 25-4A-103. Payment order - definitions
(a) In this Article: (1) "Payment order" means an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to...
N.C. Gen. Stat. § 25-4A-104. Funds transfer - definitions
In this Article: (a) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment...
N.C. Gen. Stat. § 25-4A-105. Other definitions
(a) In this Article: (1) "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source...
N.C. Gen. Stat. § 25-4A-106. Time payment order is received
(a) The time of receipt of a payment order or communication cancelling or amending a payment order is determined by the rules applicable to...
N.C. Gen. Stat. § 25-4A-107. Federal reserve regulations and operating circulars
Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of...
N.C. Gen. Stat. § 25-4A-108. Relationship to Electronic Fund Transfer Act
(a) Except as provided in subsection (b) of this section, this Article does not apply to a funds transfer any part of which is...
N.C. Gen. Stat. § 25-4A-201. Security procedure
"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment...
N.C. Gen. Stat. § 25-4A-202. Authorized and verified payment orders
(a) A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the...
N.C. Gen. Stat. § 25-4A-203. Unenforceability of certain verified payment orders
(a) If an accepted payment order is not, under G.S. 25-4A-202(a), an authorized order of a customer identified as sender, but is effective as...
N.C. Gen. Stat. § 25-4A-204. Refund of payment and duty of customer to report with respect to unauthorized payment order
(a) If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and...
N.C. Gen. Stat. § 25-4A-205. Erroneous payment orders
(a) If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously...
N.C. Gen. Stat. § 25-4A-206. Transmission of payment order through funds-transfer or other communication system
(a) If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to...
N.C. Gen. Stat. § 25-4A-207. Misdescription of beneficiary
(a) Subject to subsection (b), if, in a payment order received by the beneficiary's bank, the name, bank account number, or other identification of...
N.C. Gen. Stat. § 25-4A-208. Misdescription of intermediary bank or beneficiary's bank
(a) This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number. (1) The receiving...
N.C. Gen. Stat. § 25-4A-209. Acceptance of payment order
(a) Subject to subsection (d), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order. (b) Subject...
N.C. Gen. Stat. § 25-4A-210. Rejection of payment order
(a) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally, electronically, or in writing....
N.C. Gen. Stat. § 25-4A-211. Cancellation and amendment of payment order
(a) A communication of the sender of a payment order cancelling or amending the order may be transmitted to the receiving bank orally, electronically,...
N.C. Gen. Stat. § 25-4A-212. Liability and duty of receiving bank regarding unaccepted payment order
If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for...
N.C. Gen. Stat. § 25-4A-301. Execution and execution date
(a) A payment order is "executed" by the receiving bank when it issues a payment order intended to carry out the payment order received...
N.C. Gen. Stat. § 25-4A-302. Obligations of receiving bank in execution of payment order
(a) Except as provided in subsections (b) through (d), if the receiving bank accepts a payment order pursuant to G.S. 25-4A-209(a), the bank has...
N.C. Gen. Stat. § 25-4A-303. Erroneous execution of payment order
(a) A receiving bank that (i) executes the payment order of the sender by issuing a payment order in an amount greater than the...
N.C. Gen. Stat. § 25-4A-304. Duty of sender to report erroneously executed payment order
If the sender of a payment order that is erroneously executed as stated in G.S. 25-4A-303 receives notification from the receiving bank that the...
N.C. Gen. Stat. § 25-4A-305. Liability for late or improper execution or failure to execute payment order
(a) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of G.S. 25-4A-302 results in...
N.C. Gen. Stat. § 25-4A-401. Payment date
"Payment date" of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary's...
N.C. Gen. Stat. § 25-4A-402. Obligation of sender to pay receiving bank
(a) This section is subject to G.S. 25-4A-205 and G.S. 25-4A-207. (b) With respect to a payment order issued to the beneficiary's bank, acceptance...
N.C. Gen. Stat. § 25-4A-403. Payment by sender to receiving bank
(a) Payment of the sender's obligation under G.S. 25-4A-402 to pay the receiving bank occurs as follows: (1) If the sender is a bank,...
N.C. Gen. Stat. § 25-4A-404. Obligation of beneficiary's bank to pay and give notice to beneficiary
(a) Subject to G.S. 25-4A-211(e), 25-4A-405(d), and 25-4A-405(e), if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount...
N.C. Gen. Stat. § 25-4A-405. Payment by beneficiary's bank to beneficiary
(a) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under G.S. 25-4A-404(a) occurs...
N.C. Gen. Stat. § 25-4A-406. Payment by originator to beneficiary; discharge of underlying obligation
(a) Subject to G.S. 25-4A-211(e), 25-4A-405(d), and 25-4A-405(e), the originator of a funds transfer pays the beneficiary of the originator's payment order (i) at...
N.C. Gen. Stat. § 25-4A-501. Variation by agreement and effect of funds-transfer system rule
(a) Except as otherwise provided in this Article, the rights and obligations of a party to a funds transfer may be varied by agreement...
N.C. Gen. Stat. § 25-4A-502. Creditor process served on receiving bank; setoff by beneficiary's bank
(a) As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf...
N.C. Gen. Stat. § 25-4A-503. Injunction or restraining order with respect to funds transfer
For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a...
N.C. Gen. Stat. § 25-4A-504. Order in which items and payment orders may be charged to account; order of withdrawals from account
(a) If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items...
N.C. Gen. Stat. § 25-4A-505. Preclusion of objection to debit of customer's account
If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as...
N.C. Gen. Stat. § 25-4A-506. Rate of interest
(a) If, under this Article, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the...
N.C. Gen. Stat. § 25-4A-507. Choice of law
(a) The following rules apply unless the affected parties otherwise agree or subsection (c) applies: (1) The rights and obligations between the sender of...

Article 5 - Letters of Credit.

N.C. Gen. Stat. § 25-5-101. Short title
This article may be cited as Uniform Commercial Code - Letters of Credit. (1999-73, s. 1.)
N.C. Gen. Stat. § 25-5-102. Definitions
(a) In this Article: (1) "Adviser" means a person who, at the request of the issuer, a confirmer, or another adviser, notifies or requests...
N.C. Gen. Stat. § 25-5-103. Scope
(a) This Article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (b) The...
N.C. Gen. Stat. § 25-5-104. Formal requirements
A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a record and is authenticated (i)...
N.C. Gen. Stat. § 25-5-105. Consideration
Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. (1999-73, s. 1.)
N.C. Gen. Stat. § 25-5-106. Issuance, amendment, cancellation, and duration
(a) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits...
N.C. Gen. Stat. § 25-5-107. Confirmer, nominated person, and adviser
(a) A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of...
N.C. Gen. Stat. § 25-5-108. Issuer's rights and obligations
(a) Except as otherwise provided in G.S. 25-5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in...
N.C. Gen. Stat. § 25-5-109. Fraud and forgery
(a) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit,...
N.C. Gen. Stat. § 25-5-110. Warranties
(a) If its presentation is honored, the beneficiary warrants: (1) To the issuer, any other person to whom presentation is made, and the applicant...
N.C. Gen. Stat. § 25-5-111. Remedies
(a) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or...
N.C. Gen. Stat. § 25-5-112. Transfer of letter of credit
(a) Except as otherwise provided in G.S. 25-5-113, unless a letter of credit provides that it is transferable, the right of a beneficiary to...
N.C. Gen. Stat. § 25-5-113. Transfer by operation of law
(a) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the...
N.C. Gen. Stat. § 25-5-114. Assignment of proceeds
(a) In this section, "proceeds of a letter of credit" means the cash, check, accepted draft, or other item of value paid or delivered...
N.C. Gen. Stat. § 25-5-115. Statute of limitations
An action to enforce a right or obligation arising under this Article must be commenced within one year after the expiration date of the...
N.C. Gen. Stat. § 25-5-116. Choice of law and forum
(a) The liability of an issuer, nominated person, or adviser for action or omission is governed by the law of the jurisdiction chosen by...
N.C. Gen. Stat. § 25-5-117. Subrogation of issuer, applicant, and nominated person
(a) An issuer that honors a beneficiary's presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer...
N.C. Gen. Stat. § 25-5-118. Security interest of issuer or nominated person
(a) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the...

Article 6 - Bulk Transfers.

N.C. Gen. Stat. § 25-6-101 through 25-6-105. Repealed by Session Laws 2004-190, s. 1, effective January 1, 2005
N.C. Gen. Stat. § 25-6-106. Repealed by Session Laws 1967, c. 562, s. 1, effective at midnight June 30, 1967
N.C. Gen. Stat. § 25-6-107 through 25-6-111. Repealed by Session Laws 2004-190, s. 1, effective January 1, 2005

Article 7 - Documents of Title.

N.C. Gen. Stat. § 25-7-101. Short title
This Article may be cited as Uniform Commercial Code - Documents of Title. (1965, c. 700, s. 1; 2006-112, s. 25.)
N.C. Gen. Stat. § 25-7-102. Definitions and index of definitions
(a) In this Article, unless the context otherwise requires: (1) "Bailee" means a person that by a warehouse receipt, bill of lading, or other...
N.C. Gen. Stat. § 25-7-103. Relation of Article to treaty or statute
(a) This Article is subject to any treaty or statute of the United States or regulatory statute of this State to the extent the...
N.C. Gen. Stat. § 25-7-104. Negotiable and nonnegotiable document of title
(a) Except as otherwise provided in subsection (c) of this section, a document of title is negotiable if by its terms the goods are...
N.C. Gen. Stat. § 25-7-105. Reissuance in alternative medium
(a) Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document...
N.C. Gen. Stat. § 25-7-106. Control of electronic document of title
(a) A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic...
N.C. Gen. Stat. § 25-7-201. Person that may issue a warehouse receipt; storage under bond
(a) A warehouse receipt may be issued by any warehouse. (b) If goods, including distilled spirits and agricultural commodities, are stored under a statute...
N.C. Gen. Stat. § 25-7-202. Form of warehouse receipt; effect of omission
(a) A warehouse receipt need not be in any particular form. (b) Unless a warehouse receipt provides for each of the following, the warehouse...
N.C. Gen. Stat. § 25-7-203. Liability for nonreceipt or misdescription
A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon...
N.C. Gen. Stat. § 25-7-204. Duty of care; contractual limitation of warehouse's liability
(a) A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise care with regard...
N.C. Gen. Stat. § 25-7-205. Title under warehouse receipt defeated in certain cases
A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying...
N.C. Gen. Stat. § 25-7-206. Termination of storage at warehouse's option
(a) A warehouse, by giving notice to the person on whose account the goods are held and any other person known to claim an...
N.C. Gen. Stat. § 25-7-207. Goods must be kept separate; fungible goods
(a) Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all...
N.C. Gen. Stat. § 25-7-208. Altered warehouse receipts
If a blank in a negotiable tangible warehouse receipt has been filled in without authority, a good-faith purchaser for value and without notice of...
N.C. Gen. Stat. § 25-7-209. Lien of warehouse
(a) A warehouse has a lien against the bailor on the goods covered by a warehouse receipt or storage agreement or on the proceeds...
N.C. Gen. Stat. § 25-7-210. Enforcement of warehouse's lien
(a) Except as otherwise provided in subsection (b) of this section, a warehouse's lien may be enforced by public or private sale of the...
N.C. Gen. Stat. § 25-7-301. Liability for nonreceipt or misdescription; "said to contain"; "shipper's weight, load, and count"; improper handling
(a) A consignee of a nonnegotiable bill of lading which has given value in good faith, or a holder to which a negotiable bill...
N.C. Gen. Stat. § 25-7-302. Through bills of lading and similar documents of title
(a) The issuer of a through bill of lading, or other document of title embodying an undertaking to be performed in part by a...
N.C. Gen. Stat. § 25-7-303. Diversion; reconsignment; change of instructions
(a) Unless the bill of lading otherwise provides, a carrier may deliver the goods to a person or destination other than that stated in...
N.C. Gen. Stat. § 25-7-304. Tangible bills of lading in a set
(a) Except as customary in international transportation, a tangible bill of lading may not be issued in a set of parts. The issuer is...
N.C. Gen. Stat. § 25-7-305. Destination bills
(a) Instead of issuing a bill of lading to the consignor at the place of shipment, a carrier, at the request of the consignor,...
N.C. Gen. Stat. § 25-7-306. Altered bills of lading
An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor. (1919,...
N.C. Gen. Stat. § 25-7-307. Lien of carrier
(a) A carrier has a lien on the goods covered by a bill of lading or on the proceeds thereof in its possession for...
N.C. Gen. Stat. § 25-7-308. Enforcement of carrier's lien
(a) A carrier's lien on goods may be enforced by public or private sale of the goods, in bulk or in packages, at any...
N.C. Gen. Stat. § 25-7-309. Duty of care; contractual limitation of carrier's liability
(a) A carrier that issues a bill of lading, whether negotiable or nonnegotiable, shall exercise the degree of care in relation to the goods...
N.C. Gen. Stat. § 25-7-401. Irregularities in issue of receipt or bill or conduct of issuer
The obligations imposed by this Article on an issuer apply to a document of title even if: (1) The document does not comply with...
N.C. Gen. Stat. § 25-7-402. Duplicate document of title; overissue
A duplicate or any other document of title purporting to cover goods already represented by an outstanding document of the same issuer does not...
N.C. Gen. Stat. § 25-7-403. Obligation of bailee to deliver; excuse
(a) A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections (b) and...
N.C. Gen. Stat. § 25-7-404. No liability for good-faith delivery pursuant to document of title
A bailee that in good faith has received goods and delivered or otherwise disposed of the goods according to the terms of a document...
N.C. Gen. Stat. § 25-7-501. Form of negotiation and requirements of due negotiation
(a) The following rules apply to a negotiable tangible document of title: (1) If the document's original terms run to the order of a...
N.C. Gen. Stat. § 25-7-502. Rights acquired by due negotiation
(a) Subject to G.S. 25-7-205 and G.S. 25-7-503, a holder to which a negotiable document of title has been duly negotiated acquires thereby: (1)...
N.C. Gen. Stat. § 25-7-503. Document of title to goods defeated in certain cases
(a) A document of title confers no right in goods against a person that before issuance of the document had a legal interest or...
N.C. Gen. Stat. § 25-7-504. Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery
(a) A transferee of a document of title, whether negotiable or nonnegotiable, to which the document has been delivered but not duly negotiated, acquires...
N.C. Gen. Stat. § 25-7-505. Indorser not guarantor for other parties
The indorsement of a tangible document of title issued by a bailee does not make the indorser liable for any default by the bailee...
N.C. Gen. Stat. § 25-7-506. Delivery without indorsement; right to compel indorsement
The transferee of a negotiable tangible document of title has a specifically enforceable right to have its transferor supply any necessary indorsement, but the...
N.C. Gen. Stat. § 25-7-507. Warranties on negotiation or delivery of document of title
If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under G.S. 25-7-508, unless otherwise agreed,...
N.C. Gen. Stat. § 25-7-508. Warranties of collecting bank as to documents of title
A collecting bank or other intermediary known to be entrusted with documents of title on behalf of another or with collection of a draft...
N.C. Gen. Stat. § 25-7-509. Adequate compliance with commercial contract
Whether a document of title is adequate to fulfill the obligations of a contract for sale, a contract for lease, or the conditions of...
N.C. Gen. Stat. § 25-7-601. Lost, stolen, or destroyed documents of title
(a) If a document of title is lost, stolen, or destroyed, a court may order delivery of the goods or issuance of a substitute...
N.C. Gen. Stat. § 25-7-602. Judicial process against goods covered by negotiable document of title
Unless a document of title was originally issued upon delivery of the goods by a person that did not have power to dispose of...
N.C. Gen. Stat. § 25-7-603. Conflicting claims; interpleader
If more than one person claims title to or possession of the goods, the bailee is excused from delivery until the bailee has a...

Article 8 - Investment Securities.

N.C. Gen. Stat. § 25-8-101. Short title
This Article may be cited as Uniform Commercial Code - Investment Securities. (1965, c. 700, s. 1; 1997-181, s. 1.)
N.C. Gen. Stat. § 25-8-102. Definitions
(a) In this Article: (1) "Adverse claim" means a claim that a claimant has a property interest in a financial asset and that it...
N.C. Gen. Stat. § 25-8-103. Rules for determining whether certain obligations and interests are securities or financial assets
(a) A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security. (b) An...
N.C. Gen. Stat. § 25-8-104. Acquisition of security or financial asset or interest therein
(a) A person acquires a security or an interest therein, under this Article, if: (1) The person is a purchaser to whom a security...
N.C. Gen. Stat. § 25-8-105. Notice of adverse claim
(a) A person has notice of an adverse claim if: (1) The person knows of the adverse claim; (2) The person is aware of...
N.C. Gen. Stat. § 25-8-106. Control
(a) A purchaser has "control" of a certificated security in bearer form if the certificated security is delivered to the purchaser. (b) A purchaser...
N.C. Gen. Stat. § 25-8-107. Whether indorsement, instruction, or entitlement order is effective
(a) "Appropriate person" means: (1) With respect to an indorsement, the person specified by a security certificate or by an effective special indorsement to...
N.C. Gen. Stat. § 25-8-108. Warranties in direct holding
(a) A person who transfers a certificated security to a purchaser for value warrants to the purchaser, and an indorser, if the transfer is...
N.C. Gen. Stat. § 25-8-109. Warranties in indirect holding
(a) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that: (1) The entitlement order is made...
N.C. Gen. Stat. § 25-8-110. Applicability; choice of law
(a) The local law of the issuer's jurisdiction, as specified in subsection (d) of this section, governs: (1) The validity of a security; (2)...
N.C. Gen. Stat. § 25-8-111. Clearing corporation rules
A rule adopted by a clearing corporation governing rights and obligations among the clearing corporation and its participants in the clearing corporation is effective...
N.C. Gen. Stat. § 25-8-112. Creditor's legal process
(a) The interest of a debtor in a certificated security may be reached by a creditor only by actual seizure of the security certificate...
N.C. Gen. Stat. § 25-8-113. Statute of frauds inapplicable
A contract or modification of a contract for the sale or purchase of a security is enforceable whether or not there is a writing...
N.C. Gen. Stat. § 25-8-114. Evidentiary rules concerning certificated securities
The following rules apply in an action on a certificated security against the issuer: (1) Unless specifically denied in the pleadings, each signature on...
N.C. Gen. Stat. § 25-8-115. Securities intermediary and others not liable to adverse claimant
A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that...
N.C. Gen. Stat. § 25-8-116. Securities intermediary as purchaser for value
A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is...
N.C. Gen. Stat. § 25-8-201. Issuer
(a) With respect to an obligation on or a defense to a security, an "issuer" includes a person that: (1) Places or authorizes the...
N.C. Gen. Stat. § 25-8-202. Issuer's responsibility and defenses; notice of defect or defense
(a) Even against a purchaser for value and without notice, the terms of a certificated security include terms stated on the certificate and terms...
N.C. Gen. Stat. § 25-8-203. Staleness as notice of defect or defense
After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented...
N.C. Gen. Stat. § 25-8-204. Effect of issuer's restriction on transfer
A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against a person without knowledge of the...
N.C. Gen. Stat. § 25-8-205. Effect of unauthorized signature on security certificate
An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor...
N.C. Gen. Stat. § 25-8-206. Completion of alteration of security certificate
(a) If a security certificate contains the signatures necessary to its issue or transfer but is incomplete in any other respect: (1) Any person...
N.C. Gen. Stat. § 25-8-207. Rights and duties of issuer with respect to registered owners
(a) Before due presentment for registration of transfer of a certificated security in registered form or of an instruction requesting registration of transfer of...
N.C. Gen. Stat. § 25-8-208. Effect of signature of authenticating trustee, registrar, or transfer agent
(a) A person signing a security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the...
N.C. Gen. Stat. § 25-8-209. Issuer's lien
A lien in favor of an issuer upon a certificated security is valid against a purchaser only if the right of the issuer to...
N.C. Gen. Stat. § 25-8-210. Overissue
(a) In this section, "overissue" means the issue of securities in excess of the amount the issuer has corporate power to issue, but an...
N.C. Gen. Stat. § 25-8-301. Delivery
(a) Delivery of a certificated security to a purchaser occurs when: (1) The purchaser acquires possession of the security certificate; (2) Another person, other...
N.C. Gen. Stat. § 25-8-302. Rights of purchaser
(a) Except as otherwise provided in subsections (b) and (c) of this section, a purchaser of a certificated or uncertificated security acquires all rights...
N.C. Gen. Stat. § 25-8-303. Protected purchaser
(a) "Protected purchaser" means a purchaser of a certificated or uncertificated security, or of an interest therein, who: (1) Gives value; (2) Does not...
N.C. Gen. Stat. § 25-8-304. Indorsement
(a) An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom...
N.C. Gen. Stat. § 25-8-305. Instruction
(a) If an instruction has been originated by an appropriate person but is incomplete in any other respect, any person may complete it as...
N.C. Gen. Stat. § 25-8-306. Effect of guaranteeing signature, indorsement, or instruction
(a) A person who guarantees a signature of an indorser of a security certificate warrants that at the time of signing: (1) The signature...
N.C. Gen. Stat. § 25-8-307. Purchaser's right to requisites for registration of transfer
Unless otherwise agreed, the transferor of a security on due demand shall supply the purchaser with proof of authority to transfer or with any...
N.C. Gen. Stat. § 25-8-401. Duty of issuer to register transfer
(a) If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented...
N.C. Gen. Stat. § 25-8-402. Assurance that indorsement or instruction is effective
(a) An issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized: (1) In all cases, a...
N.C. Gen. Stat. § 25-8-403. Demand that issuer not register transfer
(a) A person who is an appropriate person to make an indorsement or originate an instruction may demand that the issuer not register transfer...
N.C. Gen. Stat. § 25-8-404. Wrongful registration
(a) Except as otherwise provided in G.S. 25-8-406, an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer...
N.C. Gen. Stat. § 25-8-405. Replacement of lost, destroyed, or wrongfully taken security certificate
(a) If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed, or wrongfully...
N.C. Gen. Stat. § 25-8-406. Obligation to notify issuer of lost, destroyed, or wrongfully taken security certificate
If a security certificate has been lost, apparently destroyed, or wrongfully taken, and the owner fails to notify the issuer of that fact within...
N.C. Gen. Stat. § 25-8-407. Authenticating trustee, transfer agent, and registrar
A person acting as authenticating trustee, transfer agent, registrar, or other agent for an issuer in the registration of a transfer of its securities,...
N.C. Gen. Stat. § 25-8-501. Securities account; acquisition of security entitlement from securities intermediary
(a) "Securities account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the...
N.C. Gen. Stat. § 25-8-502. Assertion of adverse claim against entitlement holder
An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may...
N.C. Gen. Stat. § 25-8-503. Property interest of entitlement holder in financial asset held by securities intermediary
(a) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in...
N.C. Gen. Stat. § 25-8-504. Duty of securities intermediary to maintain financial asset
(a) A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements...
N.C. Gen. Stat. § 25-8-505. Duty of securities intermediary with respect to payments and distributions
(a) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary...
N.C. Gen. Stat. § 25-8-506. Duty of securities intermediary to exercise rights as directed by entitlement holder
A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary...
N.C. Gen. Stat. § 25-8-507. Duty of securities intermediary to comply with entitlement order
(a) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has...
N.C. Gen. Stat. § 25-8-508. Duty of securities intermediary to change entitlement holder's position to other form of security holding
A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for...
N.C. Gen. Stat. § 25-8-509. Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder
(a) If the substance of a duty imposed upon a securities intermediary by G.S. 25-8-504 through G.S. 25-8-508 is the subject of other statute,...
N.C. Gen. Stat. § 25-8-510. Rights of purchaser of security entitlement from entitlement holder
(a) In a case not covered by the priority rules in Article 9 of this Chapter or the rules stated in subsection (c) of...
N.C. Gen. Stat. § 25-8-511. Priority among security interests and entitlement holders
(a) Except as otherwise provided in subsections (b) and (c) of this section, if a securities intermediary does not have sufficient interests in a...

Article 9 - Secured Transactions.

N.C. Gen. Stat. § 25-9-101. Short title
This Article may be cited as Uniform Commercial Code-Secured Transactions. (1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1.)
N.C. Gen. Stat. § 25-9-102. Definitions and index of definitions
(a) Article 9 definitions. - In this Article: (1) "Accession" means goods that are physically united with other goods in such a manner that...
N.C. Gen. Stat. § 25-9-103. Purchase-money security interest; application of payments; burden of establishing
(a) Definitions. - In this section: (1) "Purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with respect to that collateral;...
N.C. Gen. Stat. § 25-9-103.1. Production-money crops; production-money obligation; production-money security interest; burden of establishing
(a) Production-money crops. - A security interest in crops is a production-money security interest to the extent that the crops are production-money crops. (b)...
N.C. Gen. Stat. § 25-9-104. Control of deposit account
(a) Requirements for control. - A secured party has control of a deposit account if: (1) The secured party is the bank with which...
N.C. Gen. Stat. § 25-9-105. Control of electronic chattel paper
(a) General Rule: Control of Electronic Chattel Paper. - A secured party has control of electronic chattel paper if a system employed for evidencing...
N.C. Gen. Stat. § 25-9-106. Control of investment property
(a) Control under G.S. 25-8-106. - A person has control of a certificated security, uncertificated security, or security entitlement as provided in G.S. 25-8-106....
N.C. Gen. Stat. § 25-9-107. Control of letter-of-credit right
A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any...
N.C. Gen. Stat. § 25-9-108. Sufficiency of description
(a) Sufficiency of description. - Except as otherwise provided in subsections (c), (d), and (e) of this section, a description of personal or real...
N.C. Gen. Stat. § 25-9-109. Scope
(a) General scope of Article. - Except as otherwise provided in subsections (c) and (d) of this section, this Article applies to: (1) A...
N.C. Gen. Stat. § 25-9-110. Security interests arising under Article 2 or 2A of this Chapter
A security interest arising under G.S. 25-2-401, 25-2-505, 25-2-711(3), or 25-2A-508(5) is subject to this Article. However, until the debtor obtains possession of the...
N.C. Gen. Stat. § 25-9-111. Deleted or Recodified
N.C. Gen. Stat. § 25-9-112. Deleted or Recodified
N.C. Gen. Stat. § 25-9-113. Deleted or Recodified
N.C. Gen. Stat. § 25-9-114. Deleted or Recodified
N.C. Gen. Stat. § 25-9-115. Deleted or Recodified
N.C. Gen. Stat. § 25-9-116. Deleted or Recodified
N.C. Gen. Stat. § 25-9-201. General effectiveness of security agreement
(a) General effectiveness. - Except as otherwise provided in this Chapter, a security agreement is effective according to its terms between the parties, against...
N.C. Gen. Stat. § 25-9-202. Title to collateral immaterial
Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this Article...
N.C. Gen. Stat. § 25-9-203. Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites
(a) Attachment. - A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement...
N.C. Gen. Stat. § 25-9-204. After-acquired property; future advances
(a) After-acquired collateral. - Except as otherwise provided in subsection (b) of this section, a security agreement may create or provide for a security...
N.C. Gen. Stat. § 25-9-205. Use or disposition of collateral permissible
(a) When security interest not invalid or fraudulent. - A security interest is not invalid or fraudulent against creditors solely because: (1) The debtor...
N.C. Gen. Stat. § 25-9-206. Security interest arising in purchase or delivery of financial asset
(a) Security interest when person buys through securities intermediary. - A security interest in favor of a securities intermediary attaches to a person's security...
N.C. Gen. Stat. § 25-9-207. Rights and duties of secured party having possession or control of collateral
(a) Duty of care when secured party in possession. - Except as otherwise provided in subsection (d) of this section, a secured party shall...
N.C. Gen. Stat. § 25-9-208. Additional duties of secured party having control of collateral
(a) Applicability of section. - This section applies to cases in which there is no outstanding secured obligation and the secured party is not...
N.C. Gen. Stat. § 25-9-209. Duties of secured party if account debtor has been notified of assignment
(a) Applicability of section. - Except as otherwise provided in subsection (c) of this section, this section applies if: (1) There is no outstanding...
N.C. Gen. Stat. § 25-9-210. Request for accounting; request regarding list of collateral or statement of account
(a) Definitions. - In this section: (1) "Request" means a record of a type described in subdivision (2), (3), or (4) of this subsection....
N.C. Gen. Stat. § 25-9-301. Law governing perfection and priority of security interests
Except as otherwise provided in G.S. 25-9-303 through G.S. 25-9-306, the following rules determine the law governing perfection, the effect of perfection or nonperfection,...
N.C. Gen. Stat. § 25-9-302. Law governing perfection and priority of agricultural liens
While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the...
N.C. Gen. Stat. § 25-9-303. Law governing perfection and priority of security interests in goods covered by a certificate of title
(a) Applicability of section. - This section applies to goods covered by a certificate of title, even if there is no other relationship between...
N.C. Gen. Stat. § 25-9-304. Law governing perfection and priority of security interests in deposit accounts
(a) Law of bank's jurisdiction governs. - The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the...
N.C. Gen. Stat. § 25-9-305. Law governing perfection and priority of security interests in investment property
(a) Governing law: general rules. - Except as otherwise provided in subsection (c) of this section, the following rules apply: (1) While a security...
N.C. Gen. Stat. § 25-9-306. Law governing perfection and priority of security interests in letter-of-credit rights
(a) Governing law: issuer's or nominated person's jurisdiction. - Subject to subsection (c) of this section, the local law of the issuer's jurisdiction or...
N.C. Gen. Stat. § 25-9-307. Location of debtor
(a) "Place of business." - In this section, "place of business" means a place where a debtor conducts its affairs. (b) Debtor's location: general...
N.C. Gen. Stat. § 25-9-308. When security interest or agricultural lien is perfected; continuity of perfection
(a) Perfection of security interest. - Except as otherwise provided in this section and G.S. 25-9-309, a security interest is perfected if it has...
N.C. Gen. Stat. § 25-9-309. Security interest perfected upon attachment
The following security interests are perfected when they attach: (1) A purchase-money security interest in consumer goods, except as otherwise provided in G.S. 25-9-311(b)...
N.C. Gen. Stat. § 25-9-310. When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply
(a) General rule: perfection by filing. - Except as otherwise provided in subsection (b) of this section and G.S. 25-9-312(b), a financing statement must...
N.C. Gen. Stat. § 25-9-311. Perfection of security interests in property subject to certain statutes, regulations, and treaties
(a) Security interest subject to other law. - Except as otherwise provided in subsection (d) of this section, the filing of a financing statement...
N.C. Gen. Stat. § 25-9-312. Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; perfection by permissive filing; temporary perfection without filing or transfer of possession
(a) Perfection by filing permitted. - A security interest in chattel paper, negotiable documents, instruments, or investment property may be perfected by filing. (b)...
N.C. Gen. Stat. § 25-9-313. When possession by or delivery to secured party perfects security interest without filing
(a) Perfection by possession or delivery. - Except as otherwise provided in subsection (b) of this section, a secured party may perfect a security...
N.C. Gen. Stat. § 25-9-314. Perfection by control
(a) Perfection by control. - A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper, or electronic documents may be perfected...
N.C. Gen. Stat. § 25-9-315. Secured party's rights on disposition of collateral and in proceeds
(a) Disposition of collateral: continuation of security interest or agricultural lien; proceeds. - Except as otherwise provided in this Article and in G.S. 25-2-403(2):...
N.C. Gen. Stat. § 25-9-316. Effect of change in governing law
(a) General rule: effect on perfection of change in governing law. - A security interest perfected pursuant to the law of the jurisdiction designated...
N.C. Gen. Stat. § 25-9-317. Interests that take priority over or take free of security interest or agricultural lien
(a) Conflicting security interests and rights of lien creditors. - A security interest or agricultural lien is subordinate to the rights of: (1) A...
N.C. Gen. Stat. § 25-9-318. No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers
(a) Seller retains no interest. - A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a...
N.C. Gen. Stat. § 25-9-319. Rights and title of consignee with respect to creditors and purchasers
(a) Consignee has consignor's rights. - Except as otherwise provided in subsection (b) of this section, for purposes of determining the rights of creditors...
N.C. Gen. Stat. § 25-9-320. Buyer of goods
(a) Buyer in ordinary course of business. - Except as otherwise provided in subsection (e) of this section, a buyer in ordinary course of...
N.C. Gen. Stat. § 25-9-321. Licensee of general intangible and lessee of goods in ordinary course of business
(a) "Licensee in ordinary course of business". - In this section, "licensee in ordinary course of business" means a person that becomes a licensee...
N.C. Gen. Stat. § 25-9-322. Priorities among conflicting security interests in and agricultural liens on same collateral
(a) General priority rules. - Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral...
N.C. Gen. Stat. § 25-9-323. Future advances
(a) When priority based on time of advance. - Except as otherwise provided in subsection (c) of this section, for purposes of determining the...
N.C. Gen. Stat. § 25-9-324. Priority of purchase-money security interests
(a) General rule: purchase-money priority. - Except as otherwise provided in subsection (g) of this section, a perfected purchase-money security interest in goods other...
N.C. Gen. Stat. § 25-9-324.1. Priority of production-money security interests and agricultural liens
(a) Priority over conflicting security interests. - Except as otherwise provided in subsections (c), (d), and (e) of this section, if the requirements of...
N.C. Gen. Stat. § 25-9-325. Priority of security interests in transferred collateral
(a) Subordination of security interest in transferred collateral. - Except as otherwise provided in subsection (b) of this section, a security interest created by...
N.C. Gen. Stat. § 25-9-326. Priority of security interests created by new debtor
(a) Subordination of security interest created by new debtor. - Subject to subsection (b) of this section, a security interest that is created by...
N.C. Gen. Stat. § 25-9-327. Priority of security interests in deposit account
The following rules govern priority among conflicting security interests in the same deposit account: (1) A security interest held by a secured party having...
N.C. Gen. Stat. § 25-9-328. Priority of security interests in investment property
The following rules govern priority among conflicting security interests in the same investment property: (1) A security interest held by a secured party having...
N.C. Gen. Stat. § 25-9-329. Priority of security interests in letter-of-credit right
The following rules govern priority among conflicting security interests in the same letter-of-credit right: (1) A security interest held by a secured party having...
N.C. Gen. Stat. § 25-9-330. Priority of purchaser of chattel paper or instrument
(a) Purchaser's priority: security interest claimed merely as proceeds. - A purchaser of chattel paper has priority over a security interest in the chattel...
N.C. Gen. Stat. § 25-9-331. Priority of rights of purchasers of instruments, documents, and securities under other Articles; priority of interests in financial assets and security entitlements under Article 8
(a) Rights under Articles 3, 7, and 8 not limited. - This Article does not limit the rights of a holder in due course...
N.C. Gen. Stat. § 25-9-332. Transfer of money; transfer of funds from deposit account
(a) Transferee of money. - A transferee of money takes the money free of a security interest unless the transferee acts in collusion with...
N.C. Gen. Stat. § 25-9-333. Priority of certain liens arising by operation of law
(a) "Possessory lien." - In this section, "possessory lien" means an interest, other than a security interest or an agricultural lien: (1) Which secures...
N.C. Gen. Stat. § 25-9-334. Priority of security interests in fixtures and crops
(a) Security interest in fixtures under this Article. - A security interest under this Article may be created in goods that are fixtures or...
N.C. Gen. Stat. § 25-9-335. Accessions
(a) Creation of security interest in accession. - A security interest may be created in an accession and continues in collateral that becomes an...
N.C. Gen. Stat. § 25-9-336. Commingled goods
(a) "Commingled goods." - In this section, "commingled goods" means goods that are physically united with other goods in such a manner that their...
N.C. Gen. Stat. § 25-9-337. Priority of security interests in goods covered by certificate of title
If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this State issues a certificate of...
N.C. Gen. Stat. § 25-9-338. Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information
If a security interest or agricultural lien is perfected by a filed financing statement providing information described in G.S. 25-9-516(b)(5) which is incorrect at...
N.C. Gen. Stat. § 25-9-339. Priority subject to subordination
This Article does not preclude subordination by agreement by a person entitled to priority. (1965, c. 700, s. 1; 1975, c. 862, s. 7;...
N.C. Gen. Stat. § 25-9-340. Effectiveness of right of recoupment or setoff against deposit account
(a) Exercise of recoupment or setoff. - Except as otherwise provided in subsection (c) of this section, a bank with which a deposit account...
N.C. Gen. Stat. § 25-9-341. Bank's rights and duties with respect to deposit account
Except as otherwise provided in G.S. 25-9-340(c), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect...
N.C. Gen. Stat. § 25-9-342. Bank's right to refuse to enter into or disclose existence of control agreement
This Article does not require a bank to enter into an agreement of the kind described in G.S. 25-9-104(a)(2), even if its customer so...
N.C. Gen. Stat. § 25-9-401. Alienability of debtor's rights
(a) Other law governs alienability; exceptions. - Except as otherwise provided in subsection (b) of this section and G.S. 25-9-406, 25-9-407, 25-9-408, and 25-9-409,...
N.C. Gen. Stat. § 25-9-402. Secured party not obligated on contract of debtor or in tort
The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not...
N.C. Gen. Stat. § 25-9-403. Agreement not to assert defenses against assignee
(a) "Value." - In this section, "value" has the meaning provided in G.S. 25-3-303(a). (b) Agreement not to assert claim or defense. - Except...
N.C. Gen. Stat. § 25-9-404. Rights acquired by assignee; claims and defenses against assignee
(a) Assignee's rights subject to terms, claims, and defenses; exceptions. - Unless an account debtor has made an enforceable agreement not to assert defenses...
N.C. Gen. Stat. § 25-9-405. Modification of assigned contract
(a) Effect of modification on assignee. - A modification of or substitution for an assigned contract is effective against an assignee if made in...
N.C. Gen. Stat. § 25-9-406. Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective
(a) Discharge of account debtor; effect of notification. - Subject to subsections (b) through (i) of this section, an account debtor on an account,...
N.C. Gen. Stat. § 25-9-407. Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest
(a) Term restricting assignment generally ineffective. - Except as otherwise provided in subsection (b) of this section, a term in a lease agreement is...
N.C. Gen. Stat. § 25-9-408. Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective
(a) Term restricting assignment generally ineffective. - Except as otherwise provided in subsection (b) of this section, a term in a promissory note or...
N.C. Gen. Stat. § 25-9-409. Restrictions on assignment of letter-of-credit rights ineffective
(a) Term or law restricting assignment generally ineffective. - A term in a letter of credit or a rule of law, statute, regulation, custom,...
N.C. Gen. Stat. § 25-9-501. Filing offices
(a) Filing offices. - Except as otherwise provided in subsection (b) of this section, if the local law of this State governs perfection of...
N.C. Gen. Stat. § 25-9-502. Contents of financing statement; record of mortgage as financing statement; time of filing financing statement
(a) Sufficiency of financing statement. - Subject to subsection (b) of this section, a financing statement is sufficient only if it: (1) Provides the...
N.C. Gen. Stat. § 25-9-503. Name of debtor and secured party
(a) Sufficiency of debtor's name. - A financing statement sufficiently provides the name of the debtor: (1) Except as otherwise provided in subdivision (3)...
N.C. Gen. Stat. § 25-9-504. Indication of collateral
A financing statement sufficiently indicates the collateral that it covers if the financing statement provides: (1) A description of the collateral pursuant to G.S....
N.C. Gen. Stat. § 25-9-504.1. Deleted
N.C. Gen. Stat. § 25-9-504.2. Deleted
N.C. Gen. Stat. § 25-9-505. Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions
(a) Use of terms other than "debtor" and "secured party." - A consignor, lessor, or other bailor of goods, a licensor, or a buyer...
N.C. Gen. Stat. § 25-9-506. Effect of errors or omissions
(a) Minor errors and omissions. - A financing statement substantially satisfying the requirements of this Part is effective, even if it has minor errors...
N.C. Gen. Stat. § 25-9-507. Effect of certain events on effectiveness of financing statement
(a) Disposition. - A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and...
N.C. Gen. Stat. § 25-9-508. Effectiveness of financing statement if new debtor becomes bound by security agreement
(a) Financing statement naming original debtor. - Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective...
N.C. Gen. Stat. § 25-9-509. Persons entitled to file a record
(a) Person entitled to file record. - A person may file an initial financing statement, amendment that adds collateral covered by a financing statement,...
N.C. Gen. Stat. § 25-9-510. Effectiveness of filed record
(a) Filed record effective if authorized. - A filed record is effective only to the extent that it was filed by a person that...
N.C. Gen. Stat. § 25-9-511. Secured party of record
(a) Secured party of record. - A secured party of record with respect to a financing statement is a person whose name is provided...
N.C. Gen. Stat. § 25-9-512. Amendment of financing statement
(a) Amendment of information in financing statement. - Subject to G.S. 25-9-509, a person may add or delete collateral covered by, continue or terminate...
N.C. Gen. Stat. § 25-9-513. Termination statement
(a) Consumer goods. - A secured party shall cause the secured party of record for a financing statement to file a termination statement for...
N.C. Gen. Stat. § 25-9-514. Assignment of powers of secured party of record
(a) Assignment reflected on initial financing statement. - Except as otherwise provided in subsection (c) of this section, an initial financing statement may reflect...
N.C. Gen. Stat. § 25-9-515. Duration and effectiveness of financing statement; effect of lapsed financing statement
(a) Five-year effectiveness. - Except as otherwise provided in subsections (b), (e), (f), and (g) of this section, a filed financing statement is effective...
N.C. Gen. Stat. § 25-9-516. What constitutes filing; effectiveness of filing
(a) What constitutes filing. - Except as otherwise provided in subsection (b) of this section, communication of a record to a filing office and...
N.C. Gen. Stat. § 25-9-517. Effect of indexing errors
The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record. (2000-169, s. 1.)
N.C. Gen. Stat. § 25-9-518. Claim concerning inaccurate or wrongfully filed record
(a) Statement With Respect to Record Indexed Under Person's Name. - A person may file in the filing office an information statement with respect...
N.C. Gen. Stat. § 25-9-519. Numbering, maintaining, and indexing records; communicating information provided in records
(a) Filing office duties. - For each record filed in a filing office, the filing office shall: (1) Assign a unique number to the...
N.C. Gen. Stat. § 25-9-520. Acceptance, refusal to accept record, and cancellation of record
(a) Mandatory refusal to accept record. - A filing office shall refuse to accept a record for filing for a reason set forth in...
N.C. Gen. Stat. § 25-9-521. Uniform form of written financing statement and amendment
(a) Initial financing statement form. - A filing office that accepts written records may not refuse to accept a written initial financing statement in...
N.C. Gen. Stat. § 25-9-522. Maintenance and destruction of records
(a) Post-lapse maintenance and retrieval of information. - The filing office shall maintain a record of the information provided in a filed financing statement...
N.C. Gen. Stat. § 25-9-523. Information from filing office
(a) Acknowledgment of filing written record. - If a person that files a written record requests an acknowledgment of the filing, the filing office...
N.C. Gen. Stat. § 25-9-524. Delay by filing office
Delay by the filing office beyond a time limit prescribed by this Part is excused if: (1) The delay is caused by interruption of...
N.C. Gen. Stat. § 25-9-525. Fees
(a) Initial financing statement or other record: general rule. - Except as otherwise provided in subsection (e) of this section, the fee for filing...
N.C. Gen. Stat. § 25-9-526. Filing-office rules
(a) Adoption of filing-office rules. - The Secretary of State shall adopt and publish rules to implement the Secretary of State's responsibilities under this...
N.C. Gen. Stat. § 25-9-527. Reserved for future codification purposes
N.C. Gen. Stat. § 25-9-601. Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes
(a) Rights of secured party after default. - After default, a secured party has the rights provided in this Part and, except as otherwise...
N.C. Gen. Stat. § 25-9-602. Waiver and variance of rights and duties
Except as otherwise provided in G.S. 25-9-624, to the extent that they give rights to a debtor or obligor and impose duties on a...
N.C. Gen. Stat. § 25-9-603. Agreement on standards concerning rights and duties
(a) Agreed standards. - The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and...
N.C. Gen. Stat. § 25-9-604. Procedure if security agreement covers real property or fixtures
(a) Enforcement: personal and real property. - If a security agreement covers both personal and real property, a secured party may proceed: (1) Under...
N.C. Gen. Stat. § 25-9-605. Unknown debtor or secondary obligor
A secured party does not owe a duty based on its status as secured party: (1) To a person that is a debtor or...
N.C. Gen. Stat. § 25-9-606. Time of default for agricultural lien
For purposes of this Part, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce...
N.C. Gen. Stat. § 25-9-607. Collection and enforcement by secured party
(a) Collection and enforcement generally. - If so agreed, and in any event after default, a secured party: (1) May notify an account debtor...
N.C. Gen. Stat. § 25-9-608. Application of proceeds of collection or enforcement; liability for deficiency and right to surplus
(a) Application of proceeds, surplus, and deficiency if obligation secured. - If a security interest or agricultural lien secures payment or performance of an...
N.C. Gen. Stat. § 25-9-609. Secured party's right to take possession after default
(a) Possession; rendering equipment unusable; disposition on debtor's premises. - After default, a secured party: (1) May take possession of the collateral; and (2)...
N.C. Gen. Stat. § 25-9-610. Disposition of collateral after default
(a) Disposition after default. - After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral...
N.C. Gen. Stat. § 25-9-611. Notification before disposition of collateral
(a) "Notification date." - In this section, "notification date" means the earlier of the date on which: (1) A secured party sends to the...
N.C. Gen. Stat. § 25-9-612. Timeliness of notification before disposition of collateral
(a) Reasonable time is question of fact. - Except as otherwise provided in subsection (b) of this section, whether a notification is sent within...
N.C. Gen. Stat. § 25-9-613. Contents and form of notification before disposition of collateral: general
Except in a consumer-goods transaction, the following rules apply: (1) The contents of a notification of disposition are sufficient if the notification: a. Describes...
N.C. Gen. Stat. § 25-9-614. Contents and form of notification before disposition of collateral: consumer-goods transaction
In a consumer-goods transaction, the following rules apply: (1) A notification of disposition must provide the following information: a. The information specified in G.S....
N.C. Gen. Stat. § 25-9-615. Application of proceeds of disposition; liability for deficiency and right to surplus
(a) Application of proceeds. - A secured party shall apply or pay over for application the cash proceeds of disposition under G.S. 25-9-610 in...
N.C. Gen. Stat. § 25-9-616. Explanation of calculation of surplus or deficiency
(a) Definitions. - In this section: (1) "Explanation" means a writing that: a. States the amount of the surplus or deficiency; b. Provides an...
N.C. Gen. Stat. § 25-9-617. Rights of transferee of collateral
(a) Effects of disposition. - A secured party's disposition of collateral after default: (1) Transfers to a transferee for value all of the debtor's...
N.C. Gen. Stat. § 25-9-618. Rights and duties of certain secondary obligors
(a) Rights and duties of secondary obligor. - A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured...
N.C. Gen. Stat. § 25-9-619. Transfer of record or legal title
(a) "Transfer statement." - In this section, "transfer statement" means a record authenticated by a secured party stating: (1) That the debtor has defaulted...
N.C. Gen. Stat. § 25-9-620. Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral
(a) Conditions to acceptance in satisfaction. - Except as otherwise provided in subsection (g) of this section, a secured party may accept collateral in...
N.C. Gen. Stat. § 25-9-621. Notification of proposal to accept collateral
(a) Persons to which proposal to be sent. - A secured party that desires to accept collateral in full or partial satisfaction of the...
N.C. Gen. Stat. § 25-9-622. Effect of acceptance of collateral
(a) Effect of acceptance. - A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures: (1) Discharges the...
N.C. Gen. Stat. § 25-9-623. Right to redeem collateral
(a) Persons that may redeem. - A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral. (b) Requirements for...
N.C. Gen. Stat. § 25-9-624. Waiver
(a) Waiver of disposition notification. - A debtor or secondary obligor may waive the right to notification of disposition of collateral under G.S. 25-9-611...
N.C. Gen. Stat. § 25-9-625. Remedies for secured party's failure to comply with Article
(a) Judicial orders concerning noncompliance. - If it is established that a secured party is not proceeding in accordance with this article, a court...
N.C. Gen. Stat. § 25-9-626. Action in which deficiency or surplus is in issue
(a) Applicable rules if amount of deficiency or surplus in issue. - In an action arising from a transaction, other than a consumer transaction,...
N.C. Gen. Stat. § 25-9-627. Determination of whether conduct was commercially reasonable
(a) Greater amount obtainable under other circumstances; no preclusion of commercial reasonableness. - The fact that a greater amount could have been obtained by...
N.C. Gen. Stat. § 25-9-628. Nonliability and limitation on liability of secured party; liability of secondary obligor
(a) Limitation of liability of secured party for noncompliance with Article. - Unless a secured party knows that a person is a debtor or...
N.C. Gen. Stat. § 25-9-701. Effective date
This act takes effect on July 1, 2001. References in this Part to "this act" refer to PARTS I, II, and III of the...
N.C. Gen. Stat. § 25-9-702. Savings clause
(a) Pre-effective-date transactions or liens. - Except as otherwise provided in this Part, this act applies to a transaction or lien within its scope,...
N.C. Gen. Stat. § 25-9-703. Security interest perfected before effective date
(a) Continuing priority over lien creditor: perfection requirements satisfied. - A security interest that is enforceable immediately before July 1, 2001 and would have...
N.C. Gen. Stat. § 25-9-704. Security interest unperfected before effective date
A security interest that is enforceable immediately before July 1, 2001 but which would be subordinate to the rights of a person that becomes...
N.C. Gen. Stat. § 25-9-705. Effectiveness of action taken before effective date
(a) Pre-effective-date action; one-year perfection period unless reperfected. - If action, other than the filing of a financing statement, is taken before July 1,...
N.C. Gen. Stat. § 25-9-706. When initial financing statement suffices to continue effectiveness of financing statement
(a) Initial financing statement in lieu of continuation statement. - The filing of an initial financing statement in the office specified in G.S. 25-9-501...
N.C. Gen. Stat. § 25-9-707. Amendment of pre-effective-date financing statement
(a) "Pre-effective-date financing statement". - In this section, "pre-effective-date financing statement" means a financing statement filed before July 1, 2001. (b) Applicable law. -...
N.C. Gen. Stat. § 25-9-708. Persons entitled to file initial financing statement or continuation statement
A person may file an initial financing statement or a continuation statement under this Part if: (1) The secured party of record authorizes the...
N.C. Gen. Stat. § 25-9-709. Priority
(a) Law governing priority. - This act determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were...
N.C. Gen. Stat. § 25-9-710. Special transitional provision for maintaining and searching local-filing office records
(a) In this section: (1) "Former-Article-9 records" means: a. Financing statements and other records that have been filed in the local-filing office before July...

Article 10 - Effective Date and Repealer.

N.C. Gen. Stat. § 25-10-101. Effective date
This act shall become effective at midnight on June 30, 1967. It applies to transactions entered into and events occurring after that date. (1965,...
N.C. Gen. Stat. § 25-10-102. Specific repealer; provision for transition
(1) The following acts and all other acts and parts of acts inconsistent herewith are hereby repealed: Uniform Negotiable Instruments Act, G.S. 25-1 through...
N.C. Gen. Stat. § 25-10-103. General repealer
Except as provided in the following section, all acts and parts of acts inconsistent with this act are hereby repealed. (1965, c. 700, s.
N.C. Gen. Stat. § 25-10-104. Repealed by Session Laws 2006-112, s. 56, effective October 1, 2006
N.C. Gen. Stat. § 25-10-105. Repealed by Session Laws 1967, c. 562, s. 3
N.C. Gen. Stat. § 25-10-106. Covered transactions not subject to prior registration statutes
Any security interest subject to article 9 of the Uniform Commercial Code and which is perfected by filing or otherwise under the Uniform Commercial...
N.C. Gen. Stat. § 25-10-107. Repealed by Session Laws 1967, c. 562, s. 5

Article 11 - 1975 Amendatory Act - Effective Date and Transition Provisions.

N.C. Gen. Stat. § 25-11-101. Repealed by Session Laws 2012-194, s. 11, effective July 17, 2012
N.C. Gen. Stat. § 25-11-101.1. Repealed by Session Laws 2012-194, s. 11, effective July 17, 2012
N.C. Gen. Stat. § 25-11-102. Repealed by Session Laws 2012-194, s. 11, effective July 17, 2012
N.C. Gen. Stat. § 25-11-103. Repealed by Session Laws 2012-194, s. 11, effective July 17, 2012
N.C. Gen. Stat. § 25-11-104. Repealed by Session Laws 2012-194, s. 11, effective July 17, 2012
N.C. Gen. Stat. § 25-11-105. Repealed by Session Laws 2012-194, s. 11, effective July 17, 2012
N.C. Gen. Stat. § 25-11-106. Repealed by Session Laws 2012-194, s. 11, effective July 17, 2012
N.C. Gen. Stat. § 25-11-107. Repealed by Session Laws 2012-194, s. 11, effective July 17, 2012
N.C. Gen. Stat. § 25-11-108. Repealed by Session Laws 2012-194, s. 11, effective July 17, 2012

Last modified: March 23, 2014