{"data":{"id":"us-nc/n.c.-gen.-stat.-25-9-334","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 25-9-334","heading":"Priority of security interests in fixtures and crops.","body":"(a)\tSecurity Interest in Fixtures Under this Article. - A security interest under this Article may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this Article in ordinary building materials incorporated into an improvement on land.\n(b)\tSecurity Interest in Fixtures Under Real Property Law. - This Article does not prevent creation of an encumbrance upon fixtures under real property law.\n(c)\tGeneral Rule for Subordination of Security Interest in Fixtures. - In cases not governed by subsections (d) through (h) of this section, a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.\n(d)\tFixtures Purchase-Money Priority. - Except as otherwise provided in subsection (h) of this section, a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and all of the following apply:\n(1)\tThe security interest is a purchase-money security interest.\n(2)\tThe interest of the encumbrancer or owner arises before the goods become fixtures.\n(3)\tThe security interest is perfected by a fixture filing before the goods become fixtures or within 20 days thereafter.\n(e)\tPriority of Security Interest in Fixtures over Interests in Real Property. - A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if any of the following applies:\n(1)\tThe debtor has an interest of record in the real property or is in possession of the real property and both of the following apply to the security interest:\na.\tThe security interest is perfected by a fixture filing before the interest of the encumbrancer or owner is of record.\nb.\tThe security interest has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner.\n(2)\tBefore the goods become fixtures, the security interest is perfected by any method permitted by this Article and the fixtures are any of the following readily removable goods:\na.\tFactory or office machines.\nb.\tEquipment that is not primarily used or leased for use in the operation of the real property.\nc.\tReplacements of domestic appliances that are consumer goods.\n(3)\tThe conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this Article.\n(4)\tThe security interest is created in a manufactured home in a manufactured-home transaction and perfected pursuant to a statute described in G.S. 25-9-311(a)(2).\n(f)\tPriority Based on Consent, Disclaimer, or Right to Remove. - A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if either of the following applies:\n(1)\tThe encumbrancer or owner has, in a signed record, consented to the security interest or disclaimed an interest in the goods as fixtures.\n(2)\tThe debtor has a right to remove the goods as against the encumbrancer or owner.\n(g)\tContinuation of Subdivision (f)(2) Priority. - The priority of the security interest under subdivision (f)(2) of this section continues for a reasonable time if the debtor's right to remove the goods as against the encumbrancer or owner terminates.\n(h)\tPriority of Construction Mortgage. - A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subsections (e) and (f) of this section, a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage.\n(i)\tPriority of Security Interest in Crops. - Except as provided in G.S. 42-15, a perfected security interest in crops growing on real property has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property. (1965, c. 700, s. 1; 1967, c. 562, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1; 2025-25, s. 88.)","path":["Chapter 25. Uniform Commercial Code.","Article 9. Secured Transactions.","Part 3. Perfection and Priority."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_25/GS_25-9-334.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T17:58:47Z","sha256":"6a4bd594b982c075a8e0fbb15fe9f1eca32558495114337fd1af09ed2390e22a","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-25-9-333","next":"us-nc/n.c.-gen.-stat.-25-9-335"},"notice":"GroundRules: Original legal text. Not legal advice."}