§ 25A-23. Collateral taken by the seller.

300 words·~1 min read·/nc/chapter-25a/25a-23

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

(a)The seller in a consumer credit sale may take a security interest only in the following property of the buyer to secure the debt arising from the sale:

(1)The property sold,

(2)Property previously sold by the seller to the buyer and in which the seller has an existing security interest,

(3)Personal property to which the property sold is installed, if the amount financed is more than three hundred dollars ($300.00),

(4)Real property to which the property sold is affixed, if the amount financed is more than one thousand dollars ($1,000), and

(5)A self-propelled motor vehicle to which repairs are made, if the amount financed exceeds one hundred dollars ($100.00).

(6)Any property which is used for agricultural purposes, if the property sold is to be used in the operation of an agricultural business.

(b)A security interest taken in property other than that permitted in subsection

(a)of this section shall be void and not enforceable.

(c)Nothing in this section shall affect any right or liens granted by Chapter 44A of the General Statutes.

(d)The provisions of G.S. 24-11(a), limiting the taking of a security interest in property under an open end credit or similar plan, shall not apply to revolving charge account contracts regulated by this Chapter; provided, however, the application of payments rule set out in G.S. 25A-27 shall apply to such contracts; provided further, that in any action initiated by the seller for the possession of such property, a judgment for the possession thereof shall be restricted to commercial units (as defined in G.S. 25-2-105(f)) for which the cash price was one hundred dollars ($100.00) or more. (1971, c. 796, s. 1; 1977, c. 508; c. 789, s. 1; 2025-25, s. 112.)