{"data":{"id":"us-nc/n.c.-gen.-stat.-25-9-620","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 25-9-620","heading":"Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral.","body":"(a)\tConditions to Acceptance in Satisfaction. - Except as otherwise provided in subsection (g) of this section, a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if all of the following apply:\n(1)\tThe debtor consents to the acceptance under subsection (c) of this section.\n(2)\tThe secured party does not receive, within the time set forth in subsection (d) of this section, a notification of objection to the proposal signed by either of the following:\na.\tA person to which the secured party was required to send a proposal under G.S. 25-9-621.\nb.\tAny other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal.\n(3)\tIf the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance.\n(4)\tSubsection (e) of this section does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to G.S. 25-9-624.\n(b)\tPurported Acceptance Ineffective. - A purported or apparent acceptance of collateral under this section is ineffective unless both of the following apply:\n(1)\tThe secured party consents to the acceptance in a signed record or sends a proposal to the debtor.\n(2)\tThe conditions of subsection (a) of this section are met.\n(c)\tDebtor's Consent. - For purposes of this section, both of the following apply:\n(1)\tA debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default.\n(2)\tA debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or all of the following apply:\na.\tThe secured party sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained.\nb.\tIn the proposal, the secured party proposes to accept collateral in full satisfaction of the obligation it secures.\nc.\tThe secured party does not receive a notification of objection signed by the debtor within 20 days after the proposal is sent.\n(d)\tEffectiveness of Notification. - To be effective under subdivision (a)(2) of this section, a notification of objection shall be received by the secured party as follows:\n(1)\tIn the case of a person to which the proposal was sent pursuant to G.S. 25-9-621, within 20 days after notification was sent to that person.\n(2)\tIn other cases as follows:\na.\tWithin 20 days after the last notification was sent pursuant to G.S. 25-9-621.\nb.\tIf a notification was not sent, before the debtor consents to the acceptance under subsection (c) of this section.\n(e)\tMandatory Disposition of Consumer Goods. - A secured party that has taken possession of collateral shall dispose of the collateral pursuant to G.S. 25-9-610 within the time specified in subsection (f) of this section if either of the following applies:\n(1)\tSixty percent (60%) of the cash price has been paid in the case of a purchase-money security interest in consumer goods.\n(2)\tSixty percent (60%) of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.\n(f)\tCompliance with Mandatory Disposition Requirement. - To comply with subsection (e) of this section, the secured party shall dispose of the collateral within either of the following time periods:\n(1)\tWithin 90 days after taking possession.\n(2)\tWithin any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default.\n(g)\tNo Partial Satisfaction in Consumer Transaction. - In a consumer transaction, a secured party shall not accept collateral in partial satisfaction of the obligation it secures. (1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1; 2025-25, s. 104.)","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_25-9-620.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T17:58:47Z","sha256":"0a9dee65671033515c792cc24bf4e9e8678d9d9e3194f923eb0316244fc0a8ea","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-25-9-619","next":"us-nc/n.c.-gen.-stat.-25-9-621"},"notice":"GroundRules: Original legal text. Not legal advice."}