A BILL TO BE ENTITLED
AN ACT amending the methods for recording satisfaction of a security instrument with the register of deeds, clarifying the requirements for electronically registering plats with the register of deeds, and amending restrictions on access to military discharge documents recorded with the register of deeds.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 45‑6 reads as rewritten:
"§ 45‑6.  Renunciation by representative; clerk appoints trustee.
The executor or administrator of any deceased mortgagee or trustee in any mortgage or deed of trust heretofore or hereafter executed may renounce in writing, before the clerk of the superior court before whom he qualifies, the trust under the mortgage or deed of trust at the time he qualifies as executor or administrator, or at any time thereafter before he intermeddles with or exercises any of the duties under said mortgage or deed of trust, except to preserve the property until a trustee can be appointed. In every such case of renunciation the clerk of the superior court of any county wherein the said mortgage or deed of trust is registered has power and authority, upon proper proceedings instituted before him, as in other cases of special proceedings, to appoint some person to act as trustee and execute said mortgage or deed of trust. The clerk, in addition to recording his proceedings in his book of orders and decrees, shall record a separate instrument, as required by G.S. 161‑14.1, containing the name of the substituted trustee or mortgagee, with the register of deeds of said county."
SECTION 2.  G.S. 45‑21.17A(b) reads as rewritten:
"§ 45‑21.17A.  Requests for copies of notice.
…
(b)	Register of Deeds' Duties. – Upon the filing for record of such request, the register of deeds shall index in the general index of grantors the names of the trustors (mortgagors) recited therein, and the names of the persons requesting copies, with a reference in the index of the book and page of the recorded security instrument to which the request refers; or upon the filing for record of such request, the register of deeds may, instead of indexing such request on the general index of grantors, stamp upon the face of the security instrument referred to in the request the book and page of each request for notice thereunder.
…."
SECTION 3.  G.S. 45‑36.9(e) is repealed.
SECTION 4.  G.S. 45‑37(a) reads as rewritten:
"(a)	Subject to the provisions of G.S. 45‑36.9(a) and G.S. 45‑73 relating to security instruments which secure future advances, any security instrument intended to secure the payment of money or the performance of any other obligation registered as required by law may be satisfied of record and thereby discharged and released of record in the following manner:
(1)	Security instruments satisfied of record prior to October 1, 2005, pursuant to this subdivision as it was in effect prior to October 1, 2005, shall be deemed satisfied of record, discharged, and released.
(2)					Security instruments satisfied of record prior to October 1, 2011, pursuant to this subdivision as it was in effect prior to October 1, 2011, shall be deemed satisfied of record, discharged, and released.
(3)				Security instruments satisfied of record prior to October 1, 2011, pursuant to this subdivision as it was in effect prior to October 1, 2011, shall be deemed satisfied of record, discharged, and released.
(4)	Security instruments satisfied of record prior to October 1, 2011, pursuant to this subdivision as it was in effect prior to October 1, 2011, shall be deemed satisfied of record, discharged, and released.
(5)	Security instruments satisfied of record prior to October 1, 2005, pursuant to this subdivision as it was in effect prior to October 1, 2005, shall be deemed satisfied of record, discharged, and released.
(6)	Security instruments satisfied of record prior to October 1, 2005, pursuant to this subdivision as it was in effect prior to October 1, 2005, shall be deemed satisfied of record, discharged, and released.
(7)	By recording:
a.	A satisfaction document that satisfies the requirements of G.S. 45‑36.10,
b.	An affidavit of satisfaction that satisfies the requirements of G.S. 45‑36.16, or
c.	A trustee's satisfaction that satisfies the requirements of G.S. 45‑36.20, but only if the security instrument is a deed of trust.
The register of deeds shall not be required to verify or make inquiry concerning (i) the truth of the matters stated in any satisfaction document, affidavit of satisfaction, or trustee's satisfaction, or (ii) the authority of the person executing any satisfaction document, affidavit, or trustee's satisfaction to do so."
SECTION 5.  G.S. 45‑37.2 reads as rewritten:
"§ 45‑37.2.  Indexing satisfactions of security instruments.
	When a satisfaction document, affidavit of satisfaction, or trustee's satisfaction is recorded pursuant to G.S. 45‑37(a)(7), the register of deeds shall record and index the instrument in accordance with G.S. 161‑14.1.												"SECTION 6.  G.S. 46‑73 reads as rewritten:
"§ 45‑73.  Cancellation of record; presentation of notes described in security instrument sufficient.
The provisions of G.S. 45‑37 apply to discharge of record of instruments executed under this Article."
SECTION 7.  G.S. 47‑30 is amended by adding a new subsection to read as follows:
"§ 47‑30.  Plats and subdivisions; mapping requirements.
…
(o)	The requirements of this section regarding plat size, reproducible form, and evidence of required certifications shall be met with respect to a plat that is an "electronic document," as that term is defined in G.S. 47‑16.2(3), if all of the following conditions have been met:
(1)	The register of deeds has authorized the submitter to electronically register the electronic document.
(2)	The plat is submitted by a United States federal or a state governmental unit or instrumentality or a trusted submitter. For purposes of this subsection, "a trusted submitter" means a person or entity that has entered into a memorandum of understanding regarding electronic recording with the register of deeds in the county in which the electronic document is to be submitted.
(3)	Evidence of required certifications appear on the digitized image of the document as it will appear on the public record.
(4)	With respect to a plat submitted by a trusted submitter, the digitized image of the document as it will appear on the public record contains the submitter's name in the following completed statement on the first page of the document image:  "Submitted electronically by – – – – – – –  (submitter's name) in compliance with North Carolina statutes governing recordable documents and the terms of the submitter agreement with the – – – – – (insert county name) County Register of Deeds.
(5)	Except as otherwise provided in this subsection, the digitized image of the plat conforms to all other applicable laws and rules that prescribe recordation."
SECTION 8.  G.S. 47‑113.2(b)(1) reads as rewritten:
"(1)	Authorized party. – Four categories of authorized parties are recognized with respect to access to military discharge documents under subsection (d) of this section:
a.	The subject of the document or the subject's widow or widower.
b.	Agents and representatives of the subject authorized in writing:
1.	By the subject or subject's widow or widower in a notarized authorization,
2.	By a court to represent subject, or
3.	By the subject's executor acting on behalf of a deceased subject.
c.	Authorized agents of the Division of Veterans Affairs, the United States Department of Veterans Affairs, the Department of Defense, or a court official with an interest in assisting the subject or the deceased subject's beneficiaries to obtain a benefit.
d.	Agents or representatives of the North Carolina State Archives."
SECTION 9.  G.S. 58‑74‑10 reads as rewritten:
"§ 58‑74‑10.  Cancellation of mortgage in such proceedings.
Any mortgage given by any person in lieu of bond as administrator, executor, guardian, collector, receiver or as an officer required to give an official bond, or as agent or surety of such person or officer, or in lieu of bond or undertaking or recognizance for his appearance at any court in any criminal proceeding, or for the security of any cost or fine in a criminal action which has been registered, when such party as administrator, executor, guardian, collector, or receiver has filed his final account and when the time required by statute for the bond given by any administrator, executor, guardian, collector, or receiver to remain in force for the purpose of action thereon has expired, or when the officer required to give an official bond has fully complied with the conditions of such bond and the time within which suit is allowed by law to be brought thereon has expired, or when the person giving such mortgage in lieu of bond has made his appearance at the court to which he was bound and did not depart the court without leave, or paid the cost or fine required, may be canceled or discharged by the clerk of the superior court of the county where such action was pending or where the mortgage in lieu of bond is recorded by recording a satisfaction document pursuant to G.S. 45‑37(a)(7), and such satisfaction document shall have the effect to discharge and release all the right, title and interest of the State of North Carolina in and to the property described in such mortgage."
SECTION 10.  Section 7 of this act becomes effective October 1, 2011, and applies to plats registered on or after that date.  Section 8 of this act is effective when it becomes law.   The remainder of this act becomes effective October 1, 2011.