GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION

CHAPTER 436
HOUSE BILL 1027

AN ACT PROVIDING THAT ANY FORUM SELECTION PROVISION IN A CONTRACT ENTERED INTO IN NORTH CAROLINA IS VOID AS AGAINST PUBLIC POLICY.

The General Assembly of North Carolina enacts:

Section 1.  The title of Article 1 of Chapter 22B of the General Statutes reads as rewritten:
" Invalid Agreements."
Sec. 2.  Chapter 22B of the General Statutes is amended by adding a new section to read:
"§ 22B-10.  Contracts with forum selection provisions.
Any provision in a contract entered into in North Carolina that requires the prosecution of any action or the arbitration of any dispute that arises from the contract to be instituted or heard in another state is against public policy and is void and unenforceable.  This prohibition shall not apply to non-consumer loan transactions."
Sec. 3.  This act becomes effective October 1, 1993, and applies to any contract entered into on or after that date.
In the General Assembly read three times and ratified this the 22nd day of July, 1993.

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Dennis A. Wicker
President of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives