{"data":{"id":"us-nc/n.c.-gen.-stat.-25-9-607","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 25-9-607","heading":"Collection and enforcement by secured party.","body":"(a)\tCollection and enforcement generally. - If so agreed, and in any event after default, a secured party:\n(1)\tMay notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;\n(2)\tMay take any proceeds to which the secured party is entitled under G.S. 25-9-315;\n(3)\tMay enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;\n(4)\tIf it holds a security interest in a deposit account perfected by control under G.S. 25-9-104(a)(1), may apply the balance of the deposit account to the obligation secured by the deposit account; and\n(5)\tIf it holds a security interest in a deposit account perfected by control under G.S. 25-9-104(a)(2) or (a)(3), may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.\n(b)\tNonjudicial enforcement of mortgage. - If necessary to enable a secured party to exercise under subdivision (a)(3) of this section the right of a debtor to enforce a mortgage nonjudicially, the secured party may record in the office in which a record of the mortgage is recorded:\n(1)\tA copy of the security agreement that creates or provides for a security interest in the obligation secured by the mortgage; and\n(2)\tThe secured party's sworn affidavit in recordable form stating that:\na.\tA default has occurred with respect to the obligation secured by the mortgage; and\nb.\tThe secured party is entitled to enforce the mortgage nonjudicially.\n(c)\tCommercially reasonable collection and enforcement. - A secured party shall proceed in a commercially reasonable manner if the secured party:\n(1)\tUndertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral; and\n(2)\tIs entitled to charge back uncollected collateral or otherwise to full or limited recourse against the debtor or a secondary obligor.\n(d)\tExpenses of collection and enforcement. - A secured party may deduct from the collections made pursuant to subsection (c) of this section reasonable expenses of collection and enforcement, including reasonable attorney's fees and legal expenses incurred by the secured party.\n(e)\tDuties to secured party not affected. - This section does not determine whether an account debtor, bank, or other person obligated on collateral owes a duty to a secured party. (1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1; 2012-70, s. 17.)","path":["Chapter 25. Uniform Commercial Code.","Article 9. Secured Transactions.","Part 6. Default."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_25/GS_25-9-607.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T17:58:47Z","sha256":"a4dca6e4643a0a10ab91ff5424521e1aecc17bbcc6361f8000ed1c6932806397","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-25-9-606","next":"us-nc/n.c.-gen.-stat.-25-9-608"},"notice":"GroundRules: Original legal text. Not legal advice."}