Part 2.

305 words·~1 min read·/nc/chapter-25/2-12

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Part 2. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement.

Subpart 1. Effectiveness and Attachment.

§ 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 purchasers of the collateral, and against creditors.

(b)Applicable Consumer Laws and Other Law. - A transaction subject to this Article is subject to any applicable rule of law that establishes a different rule for consumers, to any other statute or rule of this State that regulates the rates, charges, agreements, and practices for loans, credit sales, or other extensions of credit, and to any consumer-protection statute or rule of this State, including Chapter 24 of the General Statutes, the Retail Installment Sales Act (Chapter 25A of the General Statutes), the North Carolina Consumer Finance Act (Article 15 of Chapter 53 of the General Statutes), and the Pawnbrokers and Currency Converters Modernization Act (Part 1 of Article 45 of Chapter 66 of the General Statutes).

(c)Other Applicable Law Controls. - In case of conflict between this Article and a rule of law described in subsection

(b)of this section, the rule of law controls. Failure to comply with a law described in subsection

(b)of this section has only the effect the law specifies.

(d)Further Deference to Other Applicable Law. - This Article does neither of the following:

(1)Validate any rate, charge, agreement, or practice that violates a rule of law described in subsection

(b)of this section.

(2)Extend the application of a rule of law to a transaction not otherwise subject to it. (1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1; 2011-325, s. 9; 2012-46, s. 24; 2025-25, s. 34(b).)