A BILL TO BE ENTITLED
AN ACT affecting certifications by registers of deeds.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 47‑14 reads as rewritten:
"§ 47‑14.  Register of deeds to verify the presence of proof or acknowledgment and register instruments; order by judge; instruments to which register of deeds is a party.
(a)	
The register of deeds shall not accept for recording any instrument that requires proof or acknowledgment unless the execution by one or more of the signers has been proved or acknowledged as required before an officer authorized to take proofs or acknowledgments, and that the proof or acknowledgment includes the officer's signature, commission expiration date, and official seal, if required. The register of deeds shall not file the instruments that do not require proof or acknowledgment unless that instrument meets all other statutory requirements pursuant to G.S. 161‑14. Any instrument previously recorded or a certified copy of any document previously recorded may be rerecorded without a statement of explanation if it is not being recorded pursuant to G.S. 47‑36.1 and does not require further certification of proof or acknowledgment.
(b)	If a register of deeds denies registration pursuant to subsection (a), the person offering the instrument for registration may present the instrument to a judge, as provided in subsection (c), and the court shall determine that if the instrument requires proof or acknowledgment and if the signature of one or more signers has been proved or acknowledged before an officer authorized to take proofs and acknowledgments, and if the proof or acknowledgment includes the officer's signature, commission expiration date, and official seal, if required, the court shall so adjudge, and shall order the instrument to be registered, and the register of deeds shall register accordingly.
(c)	When a district court has been established in the district including the county in which the instrument is to be registered, application for an order for registration pursuant to subsection (b) shall be made to any judge of the district court in the district including the county in which the instrument is to be registered. (d)	Registration of an instrument pursuant to this section is not effective with regard to parties who have not executed the instrument or whose execution thereof has not been duly proved or acknowledged.
(e)	Any instrument required or permitted by law to be registered in which the register of deeds of the county of registration is a party may be proved or acknowledged before any magistrate or any notary public. Any such instrument presented for registration shall be examined by the clerk of superior court of the county of registration and if it appears that the execution and acknowledgment are in due form he shall so certify and the instrument shall then be recorded in the office of the register of deeds."
SECTION 2.   G.S. 47‑37 is repealed.
SECTION 3.   G.S. 45‑36.2 reads as rewritten:
"§ 45‑36.2.  Register of deeds includes assistants and deputies; recording data.
(a)	The words "register of deeds" appearing in this Article shall be interpreted to mean "register of deeds, assistant register of deeds, or deputy register of deeds."
(b)	The words "recording data" appearing in this Article shall be interpreted to mean the book and page or instrument number or any unique data that indicate where a document is recorded in the office of the register of deeds."
SECTION 4.  G.S. 45‑37 reads as rewritten:
"§ 45‑37.  Discharge of record of mortgages, deeds of trust, and other instruments.
(a)	Subject to the provisions of G.S. 45‑73 relating to secured instruments which secure future advances, any deed of trust or mortgage or other instrument intended to secure the payment of money or the performance of any other obligation registered as required by law may be discharged and released of record in the following manner:
(1)	By acknowledgment of the satisfaction of the provisions of such deed of trust, mortgage or other instrument in the presence of the register of deeds by:
a.	The trustee,
b.	The mortgagee,
c.	The legal representative of a trustee or mortgagee, or
d.	A duly authorized agent or attorney of any of the above.
	The register of deeds is not required to verify or make inquiry concerning the authority of the person acknowledging the satisfaction to do so. Upon acknowledgment of satisfaction, the register of deeds shall record a record of satisfaction as described in G.S. 45‑37.2, which shall be signed by the trustee, mortgagee, legal representative, agent or attorney and witnessed by the register of deeds, who shall also affix his name thereto.
(2)	By presentation of any original deed of trust, mortgage or other instrument accompanied with the original bond, note, or other instrument thereby secured to the register of deeds, with the endorsement of payment and satisfaction appearing thereon and made by:
a.	The obligee,
b.	The mortgagee,
c.	The trustee,
d.	An assignee of the obligee, mortgagee, or trustee, or
e.	Any chartered banking institution, or savings and loan association, national or state, or credit union, qualified to do business in and having an office in the State of North Carolina, when so endorsed in the name of the institution by an officer thereof.
	The register of deeds is not required to verify or make inquiry concerning the authority of the person making the endorsement of payment and satisfaction to do so. Only upon presentation of the original instruments with the endorsement of payment and satisfaction appearing on them shall the register of deeds record a record of satisfaction as described in G.S. 45‑37.2. The person so claiming satisfaction, performance or discharge of the debt or other obligation may retain possession of all of the instruments exhibited. The presentation of the mortgage, deed of trust or other instrument alone to the register of deeds, with endorsement of payment, satisfaction, performance or discharge, shall be sufficient if the mortgage, deed of trust or other instrument itself sets forth the obligation secured or the performance of any other obligation and does not call for or recite any note, bond or other instrument secured by it.
(3)	By presentation to the register of deeds by:
a.	The grantor,
b.	The mortgagor, or
c.	An agent, attorney or successor in title of the grantor or mortgagor
	of any mortgage, deed of trust or other instrument intended to secure the payment of money or the performance of any other obligation, together with the original bond, note or other instrument secured thereby, or by presentation of the original mortgage, deed of trust or other instrument alone if such instrument itself sets forth the obligation secured or other obligation to be performed and does not call for or recite any note, bond or other instrument secured by it, if at the time of exhibition, all such instruments are more than 10 years old counting from the maturity date of the last obligation secured. If the instrument or instruments so presented have an endorsement of partial payment, satisfaction, performance or discharge within the said period of 10 years, the period of 10 years shall be counted from the date of the most recent endorsement.
		Only upon presentation of the original instruments shall the register of deeds record a record of satisfaction as described in G.S.  45‑37.2(b)(2).
(4)	By presentation to the register of deeds of any deed of trust given to secure the bearer or holder of any negotiable instruments transferable by delivery, together with all the evidences of indebtedness secured thereby, marked paid and satisfied in full and signed by the bearer or holder thereof.
		Upon presentation of the original deed of trust, and the originals of evidences of indebtedness properly marked, the register of deeds shall record a record of satisfaction as described in G.S. 45‑37.2(b)(2), shall be valid and binding upon all persons, if no person rightfully entitled to the deed of trust or evidences of indebtedness has previously notified the register of deeds in writing of the loss or theft of the instrument or evidences of indebtedness and has caused the register of deeds to record the notice or loss or theft in a separate document, as required by G.S. 161‑14.1.
		Upon receipt of an affidavit of loss or theft of the deed of trust or evidences of indebtedness which identifies the deed of trust with names of the original parties to the document and recording data for the deed of trust, the register of deeds shall record a record of satisfaction, as described in G.S. 45‑37.2(b)(2). The deed of trust shall not be presented for satisfaction after such recording of a record of satisfaction until the ownership of said instrument shall have been lawfully determined. Nothing in this subdivision (4) shall be construed to impair the negotiability of any instrument otherwise properly negotiable, nor to impair the rights of any innocent purchaser for value thereof.
		Every entry of acknowledgment of satisfaction or of satisfaction made or witnessed by the register of deeds as provided in subdivision (a)(1) shall operate and have the same effect to release and discharge all the interest of such trustee, mortgagee or representative in such deed or mortgage as if a deed of release or reconveyance thereof had been duly executed and recorded.
(5)	By presentation to the register of deeds of a notice of satisfaction of a deed of trust, mortgage, or other instrument which has been acknowledged by the trustee or the mortgagee before an officer authorized to take acknowledgments. The notice of satisfaction shall be substantially in the form set out in G.S. 47‑46.1. The notice of satisfaction shall recite the names of all parties to the original instrument, the amount of the obligation secured, the date of satisfaction of the obligation, and a reference to the recording data of the instrument satisfied. 
		Upon presentation of the notice of satisfaction, the register of deeds shall record the notice of satisfaction. No fee shall be charged for recording any documents or certifying any acknowledgments pursuant to this subdivision. The register of deeds shall not be required to verify or make inquiry concerning the authority of the person executing the notice of satisfaction to do so.
(6)	By presentation to the register of deeds of a certificate of satisfaction of a deed of trust, mortgage, or other instrument that has been acknowledged before an officer authorized to take acknowledgments by the owner of the note, bond, or other evidence of indebtedness secured by the deed of trust or mortgage. The certificate of satisfaction shall be accompanied by the note, bond, or other evidence of indebtedness, if available, with an endorsement of payment and satisfaction by the owner of the note, bond, or other evidence of indebtedness. If such evidence of indebtedness cannot be produced, an affidavit, hereafter referred to as an "affidavit of note", signed by the owner of the note, bond, or other evidence of indebtedness, shall be delivered to the register of deeds in lieu of the evidence of indebtedness certifying that the debt has been satisfied and stating: (i) the date of satisfaction; (ii) that the note, bond, or other evidence of indebtedness cannot be produced; and (iii) that the person signing the affidavit is the current owner of the note, bond, or other evidence of indebtedness. The certificate of satisfaction shall be substantially in the form set out in G.S. 47‑46.2 and shall recite the names of all parties to the original instrument, the amount of the obligation secured, the date of satisfaction of the obligation, and a reference to the recording data for the record of the instrument satisfied. The affidavit of note, if necessary, shall be substantially in the form set out in G.S. 47‑46.3. 
		Upon presentation of the certificate of satisfaction and accompanying evidence of indebtedness endorsed paid and satisfied, or upon presentation of an affidavit of note, the register of deeds shall record the certificate of satisfaction and either the accompanying evidence of indebtedness or the affidavit of note. No fee shall be charged for recording any documents or certifying any acknowledgments pursuant to this subdivision. The register of deeds shall not be required to verify or make inquiry concerning the authority of the person executing the certificate of satisfaction to do so.
(b)	It shall be conclusively presumed that the conditions of any deed of trust, mortgage or other instrument securing the payment of money or securing the performance of any other obligation or obligations have been complied with or the debts secured thereby paid or obligations performed, as against creditors or purchasers for valuable consideration from the mortgagor or grantor, from and after the expiration of 15 years from whichever of the following occurs last:
(1)	The date when the conditions of such instrument were required by its terms to have been performed, or
(2)	The date of maturity of the last installment of debt or interest secured thereby; 
provided that the holder of the indebtedness secured by such instrument or party secured by any provision thereof may file an affidavit with the register of deeds which affidavit shall specifically state:
(1)	The amount of debt unpaid, which is secured by said instrument; or
(2)	In what respect any other condition thereof shall not have been complied with; or 
may record a separate instrument signed by the holder or party secured and witnessed by the register of deeds stating:
(1)	Any payments that have been made on the indebtedness or other obligation secured by such instrument including the date and amount of payments and
(2)	The amount still due or obligations not performed under the instrument.
The effect of the filing of the affidavit or of the instrument recorded made as herein provided shall be to postpone the effective date of the conclusive presumption of satisfaction to a date 15 years from the filing of the affidavit or from the recording of the instrument. There shall be only one postponement of the effective date of the conclusive presumption provided for herein. The register of deeds shall record the affidavit provided for herein and shall record a separate instrument, as required by G.S. 161‑14.1, and index the affidavit or separate instrument according to G.S. 161.14.1. This subsection shall not apply to any deed, mortgage, deed of trust or other instrument made or given by any railroad company, or to any agreement of conditional sale, equipment trust agreement, lease, chattel mortgage or other instrument relating to the sale, purchase or lease of railroad equipment or rolling stock, or of other personal property.
(c)	Repealed by Session Laws 1991, c. 114, s. 4.
(d)	For the purposes of this section "register of deeds" means the register of deeds, his deputies or assistants of the county in which the mortgage, deed of trust, or other instrument intended to secure the payment of money or performance of other obligation is registered.
(e)	Any transaction subject to the provisions of the Uniform Commercial Code, Chapter 25 of the General Statutes, is controlled by the provisions of that act and not by this section.
(f)	Whenever this section requires a signature or endorsement, that signature or endorsement shall be followed by the name of the person signing or endorsing the document printed, stamped, or typed so as to be clearly legible. "
SECTION 5.  G.S. 45‑37.2 reads as rewritten:
"§ 45‑37.2.  Recording satisfactions of deeds of trust and mortgages.
(a)	When a notice of satisfaction is recorded pursuant to G.S. 45‑37(a)(5) or a certificate of satisfaction is recorded pursuant to G.S. 45‑37(a)(6), the register of deeds shall record and index the instrument in the same manner as the deed of trust, mortgage, or other security instrument in the names of the parties stated in the notice of satisfaction or the certificate of satisfaction and reference the recording data of the original security instrument as stated in the satisfaction document to each name indexed.
(b)	When a deed of trust, mortgage, or other instrument is satisfied by a method other than by means of a notice of satisfaction or certificate of satisfaction, the register of deeds shall record a record of satisfaction consisting of either a separate instrument or all or a portion of the original deed of trust or mortgage rerecorded. A separate instrument or original deed of trust or mortgage rerecorded pursuant to this subsection shall contain (i) names of all parties to the original instrument, (ii) the amount of the obligation secured, (iii) the date of satisfaction of the obligation, (iv) a reference to the recording data of the instrument satisfied, and (v) the date of recording the satisfaction, and when rerecording an original deed of trust or mortgage, the record of satisfaction shall also contain (vi) an endorsement of payment and satisfaction, and (vii) signatures of parties to the original security instrument. The register of deeds shall index the record of satisfaction in the same manner as the deed of trust, mortgage, or other instrument in the names of the parties on the satisfaction document and reference the recording data of the original security instrument as stated in the satisfaction document to each name indexed.
(b1)	The following form, when properly completed, is sufficient to satisfy the requirements of this section:
"RECORD OF SATISFACTION
(G.S. 45‑37.2)
This Record of Satisfaction applies to the following deed of trust, mortgage, or other security instrument.

Type of Security Instrument:  (Identify type of security instrument, such as deed of trust or mortgage)

Original Grantor(s):  (Identify original grantor(s), trustor(s), or mortgagor(s))

Original Trustee(s):  (Identify trustee on original deed of trust)

Original Secured Party(ies):  (Identify the original beneficiary(ies), mortgage(s), or secured party(ies) in the security instrument)

Recording Data:  The security instrument is recorded in Book______at Page_______or as document number ________in the office of the Register of Deeds for________County, North Carolina.

This Record of Satisfaction is recorded pursuant to the following statutory authority: (check applicable box)

[ ]  G.S. 45‑37(a)(2), the original security instrument and secured obligations having been presented to me with appropriate endorsement of payment and satisfaction appearing thereon as required by law.

[ ]  G.S. 45‑37(a)(3), the original security instrument and secured obligations having been presented to me, each such instrument being more than 10 years old as provided by law.

[ ]  G.S. 45‑37(a)(4), the original security instrument and all negotiable instruments transferable by delivery secured thereby having been presented to me, each having been marked paid and satisfied in full by the bearer or holder thereof.

[ ]  Other: (specify)

Date:__________________
	_______________________________
	(Signature of Register of Deeds)

	"
SECTION 6.  G.S. 45‑38 reads as rewritten:
"§ 45‑38.  Recording of foreclosure.
In case of foreclosure of any deed of trust, or mortgage, the trustee, mortgagee, or the trustee's or mortgagee's attorney shall record a notice of foreclosure that includes the date when, and the person to whom, a conveyance was made by reason of the foreclosure. In the event the entire obligation secured by a mortgage or deed of trust is satisfied by a sale of only a part of the property embraced within the terms of the mortgage or deed of trust, the trustee, mortgagee, or the trustee's or mortgagee's attorney shall indicate in the notice of foreclosure which property was sold and which was not sold.
A notice of foreclosure shall consist of a separate instrument, or that part of the original deed of trust or mortgage rerecorded, reciting the information required hereinabove, the names of all parties to the original instrument, the amount of the obligation secured, a reference to the recording data of the instrument foreclosed, and the date of recording the notice of foreclosure."
SECTION 7.  G.S. 45‑40 is repealed.
SECTION 8.  G.S. 45‑42.1 reads as rewritten:
"§ 45‑42.1.  Corporate cancellation of lost mortgages by register of deeds.
Upon affidavit of the secretary and treasurer of a corporation showing that the records of such corporation show that such corporation has fully paid and satisfied all of the notes secured by a mortgage or deed of trust executed by such corporation and such payment and satisfaction was made more than 25 years ago, and that such mortgage or deed of trust was made to a corporation which ceased to exist more than 25 years ago, and such affidavit shall further state that the records of such corporation show that no payments have been made on such mortgage by the corporation executing such mortgage or deed of trust for 25 years, the register of deeds of the county in which such mortgage or deed of trust is recorded may record the affidavit. The register of deeds shall index the affidavit according to G.S. 161‑22 using the names of parties stated in the affidavit and shall make reference to the recording data of the original security instrument as stated in the affidavit opposite each party indexed.  Upon recording an affidavit, the mortgage or deed of trust shall be deemed to be cancelled and satisfied. This section shall not apply to any mortgagor corporation except those in which the State of North Carolina owns more than a majority of the capital stock and shall not apply to any mortgage or deed of trust in which the principal amount secured thereby exceeds the sum of fifteen thousand dollars ($15,000):  Provided, such cancellation shall not bar any action to foreclose such mortgage or deed of trust instituted within 90 days after the same is cancelled."
SECTION 9.  G.S. 161‑14.1 reads as rewritten:
"§ 161‑14.1.  Recording subsequent entries as separate instruments.
(a)	In all cases in which the register of deeds is authorized or directed by law to make a subsequent entry upon the margin of the record of a deed of trust, mortgage, or other instrument, the register of deeds shall, except as provided in G.S. 45‑37.2 and 45‑38, record all subsequent entries as separate instruments. The register of deeds shall index the parties to the original instruments as stated on the subsequent instrument and reference the recording data of the original security instrument as stated in the subsequent document to each name indexed. Such instruments shall contain the information and notations required by law, a reference to the recording data of the instrument modified, and the date of recording the subsequent modifying instrument. In the recording of satisfactions or foreclosures of deeds of trust and mortgages, the register of deeds shall comply with the provisions of G.S. 45‑37.2 and 45‑38. 
(b)	For the purposes of this section, "recording data" means the book and page or instrument number or any unique data that indicate where a document is recorded in the office of the register of deeds."
SECTION 10.  G.S. 47‑46 is repealed.
SECTION 11.  G.S. 47‑46.3 reads as rewritten:
"§ 47‑46.3.  Affidavit of note.
The form of an affidavit of  note, if required pursuant to G.S. 45‑37(a)(6), shall be substantially as follows:
AFFIDAVIT OF NOTE
[Name of affiant] personally appeared before me in _____________ County, State of _____________, and having been duly sworn (or affirmed) made the following affidavit:
1.	The affiant is the owner of the note or other indebtedness secured by the deed of trust, mortgage, or other instrument executed by _________________ (grantor, mortgagor), _______________ (trustee), and ____________________ (beneficiary, mortgagee), and recorded in ______________ County at ________________ (book and page); and
2.	The note or other indebtedness cannot be produced.
3.	The affiant certifies that all indebtedness secured by the deed of trust, mortgage, or other instrument was satisfied on ___________________, ________________ (date of satisfaction), and the affiant is responsible for cancellation of the same.
		
	(Signature of affiant)
Sworn to (or affirmed) and subscribed before me this _______ day of __________________, ________.
[Signature and seal of notary public or other official authorized to administer oaths]."
SECTION 12.  This act becomes effective October 1, 2005.