North Carolina § 28A-15-4 - Encumbered assets.

§ 28A-15-4. Encumbered assets.

When any assets of the estate are encumbered by mortgage, pledge, lien or other security interest, the personal representative may pay the underlying debt secured by the encumbrance or any part of the underlying debt, renew or extend any obligation secured by the encumbrance, or convey or transfer the encumbered assets to the creditor in satisfaction of the underlying debt, in whole or in part, whether or not the holder of the encumbrance has filed a claim, if it appears to be for the best interest of the estate; provided that payment of an underlying debt shall not increase the share of the distributee entitled to the encumbered assets unless the distributee is entitled to exoneration by express provisions of the will. History (1973, c. 1329, s. 3; 2011-344, s. 4; 2019-113, s. 1.) Editor's Note. - Session Laws 2019-113, s. 7, made the amendments to this section by Session Laws 2019-113, s. 1, effective July 11, 2019, and applicable to decedents dying, estates filed, and pleadings filed on or after that date. Effect of Amendments. - Session Laws 2011-344, s. 4, effective January 1, 2012, and applicable to estates of decedents dying on or after that date, substituted "the creditor's lien" for "his lien" near the middle of the section. Session Laws 2019-113, s. 1, substituted "underlying debt secured by the encumbrance or any part of the underlying debt" for "encumbrance or any part thereof" near the beginning, "underlying debt" for "creditor's lien" near the middle, and "an underlying debt" for "an encumbrance" near the end. For effective date and applicability, see Editor's note.