Satisfaction of Security Instruments

Effective October 1, 2011 Session Law 2011-246 (H312) ends the use of Satisfaction by presentation of original security instrument and notes.

Secured creditors must submit a satisfaction record within thirty days after full payment of the secured obligation. NC General Statutes (hereinafter GS) 45-36.9(a). In 2005 the General Assembly enacted legislation to provide for a simplified filing of a satisfaction instrument by the secured creditor or trustee consistent with nationwide uniform law recommendations. A satisfaction of security instrument or trustee's satisfaction of a deed of trust identifies the type of security instrument, the original parties, and the original instrument recording information. A satisfaction must be signed by a trustee or substitute trustee. Both must be acknowledged. GS 45-36.10, .11, .20, .21. Secured creditors or trustees may also continue to use a notice of satisfaction form, and owners of notes and secured creditors may use a certificate of satisfaction form (both forms were already in use in 2005). GS 47-46.1, .2. The law also still allows a mortgagee or trustee to make record of satisfaction with a quitclaim deed or release deed or other conveyance instrument signed, acknowledge, and recorded. GS 45-39