North Carolina § 45-82 - Priority of equity line security instrument.

§ 45-82. Priority of equity line security instrument.

An equity line security instrument shall, from the time and date of its registration, have the same priority to the extent of all advances secured by it as if the advances had been made at the time of the registration of the equity line security instrument, notwithstanding the fact that from time to time during the term of the equity line of credit no balance is outstanding. Interest that accrues on the equity line of credit and all payments made, sums advanced, and expenses incurred by the lender (i) for insurance, taxes, and assessments, (ii) to protect the lender's interest under the equity line security instrument, or (iii) to preserve and protect the value or condition of the property encumbered by the equity line security instrument shall be secured by the equity line security instrument and shall have the same priority as if they had been accrued, paid, advanced, and incurred at the time the equity line security instrument was registered. The accrued interest, payments, advances, and expenses shall not be considered in computing the principal amount that is secured by the equity line security instrument at any one time. History (1985, c. 207, s. 2; 2011-312, s. 21.) Effect of Amendments. - Session Laws 2011-312, s. 21, effective October 1, 2011, in the section catchline, inserted "equity line"; in the first sentence, substituted "An equity line security instrument" for "A mortgage or deed of trust which shows on its face that it secures an equity line of credit governed by the provisions of this Article," inserted "and date," and substituted "registration of the equity line security instrument" for "execution of the mortgage or deed of trust" and "term of the equity line of credit" for "term of the loan," deleted the former second sentence, which read: "Payments made by the lender for insurance, taxes, and assessments and other payments made by the lender pursuant to the deed of trust shall have the same priority as if made at the time of the execution of the mortgage or deed of trust, notwithstanding the maximum principal amount set forth in the mortgage or deed of trust," and added the last two sentences.