North Carolina § 45-69 - Fluctuation of obligations within maximum amount.

§ 45-69. Fluctuation of obligations within maximum amount.

Unless the security instrument provides to the contrary, if the maximum amount secured by the security instrument has not been advanced or if any obligation secured thereby is paid or is reduced by partial payment, further advances may be made and additional obligations secured by the security instrument may be incurred from time to time within the time limit fixed by the security instrument. Such further advances and obligations, together with interest thereon, shall be secured to the same extent as original advances and obligations under the security instrument, if the provisions of G.S. 45-68 are complied with. History (1969, c. 736, s. 1; 2009-197, s. 3; 2011-312, s. 17.) Editor's Note. - Session Laws 2009-197, which, in s. 3, rewrote the section, in s. 5, provides: "This act applies to all security instruments, whether registered before, after, or on the effective date of this act [October 1, 2009]. Any security instrument registered before the effective date of this act shall be conclusively presumed to comply with the provisions of G.S. 45-68, as enacted by this act, if the security instrument either (i) complies with the provisions of G.S. 45-68, as enacted by this act, or (ii) complied with the provisions of G.S. 45-68 in effect prior to the effective date of this act." Effect of Amendments. - Session Laws 2009-197, s. 3, effective October 1, 2009, rewrote the section. Session Laws 2011-312, s. 17, effective October 1, 2011, in the last sentence, inserted "together with interest thereon," and deleted the former last sentence, which read: "However, if at any time the aggregate outstanding principal balance of the obligation or obligations secured by the security instrument exceeds the maximum principal amount that may be secured by the security instrument at any one time, then the excess shall not be secured by the security instrument." Legal Periodicals. - For article, "Future Advances Lending in North Carolina," see 13 Wake Forest L. Rev. 297 (1977).