NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 743

HOUSE BILL 1263

 

 

AN ACT TO AUTHORIZE CITIES AND COUNTIES TO CREATE PURCHASE MONEY SECURITY INTERESTS IN REAL AND PERSONAL PROPERTY.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Chapter 160A of the General Statutes is hereby amended by inserting a new section 160A-20 to read:

"§ 160A-20.  Purchase money security interests. — Cities and counties are authorized to purchase real or personal property by installment contracts which create in the property purchased a security interest to secure payment of the purchase money. A contract entered into under this section is subject to the applicable provisions of Article 8 of Chapter 159 of the General Statutes. No deficiency judgment may be rendered against any city or county in any action for breach of a contractual obligation authorized by this section, and the taxing power of a city or county is not and may not be pledged directly or indirectly to secure any moneys due to the seller. Any contract made or entered into by a city or county before the effective date of this act which would have been valid hereunder is hereby validated, ratified and confirmed."

Sec. 2.  This act is effective upon ratification.

In the General Assembly read three times and ratified, this the 1st day of June, 1979.