§ 45-36.3. Notification by mortgagee of satisfaction of provisions of deed of trust or mortgage, or other instrument; civil penalty.
§ 45‑36.3. Notificationby mortgagee of satisfaction of provisions of deed of trust or mortgage, orother instrument; civil penalty.
(a) After thesatisfaction of the provisions of any deed of trust or mortgage, or otherinstrument intended to secure with real property the payment of money or theperformance of any other obligation and registered as required by law, theholder of the evidence of the indebtedness, if it is a single instrument, or aduly authorized agent or attorney of such holder shall within 60 days:
(1) Discharge andrelease of record such documents and forward the cancelled documents to thegrantor, trustor or mortgagor; or,
(2) Alternatively, theholder of the evidence of the indebtedness or a duly authorized agent orattorney of such holder, at the request of the grantor, trustor or mortgagor,shall forward said instrument and the deed of trust or mortgage instrument,with payment and satisfaction acknowledged in accordance with the requirementsof G.S. 45‑37, to the grantor, trustor or mortgagor.
(b) Any person,institution or agent who fails to comply with this section may be required topay a civil penalty of not more than one thousand dollars ($1,000) in additionto reasonable attorneys' fees and any other damages awarded by the court to thegrantor, trustor or mortgagor, or to a subsequent purchaser of the propertyfrom the grantor, trustor or mortgagor. A five hundred dollar ($500.00) civilpenalty may be recovered by the grantor, trustor or mortgagor, and a fivehundred dollar ($500.00) penalty may be recovered by the purchaser of theproperty from the grantor, trustor or mortgagor. If that purchaser of theproperty consists of more than a single grantee, then the civil penalty will bedivided equally among all of the grantees. A petitioner may recover damagesunder this section only if he has given the mortgagee, obligee, beneficiary orother responsible party written notice of his intention to bring an actionpursuant to this section. Upon receipt of this notice, the mortgagee, obligee,beneficiary or other responsible party shall have 30 days, in addition to theinitial 60‑day period, to fulfill the requirements of this section.
(c) Should any person,institution or agent who is not the present holder of the evidence ofindebtedness be required to pay a civil penalty, attorneys' fees, or otherdamages under this section, they will have an action against the holder of theevidence of indebtedness for all sums they were required to pay.
(d) This sectionapplies only if the provisions of the deed of trust, mortgage, or otherinstrument are satisfied before October 1, 2005. (1979, c. 681, s. 1; 1987, c.662, ss. 1‑3; 2005‑123, s. 1.)