{"data":{"id":"us-nc/n.c.-gen.-stat.-45-82.3","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 45-82.3","heading":"Notice regarding future advances.","body":"(a)\tA notice regarding future advances may be submitted to a lender by an authorized person, an owner of the property, or a qualified lien holder.\n(b)\tExcept as provided in subsection (c) of this section, an advance made by a lender to a borrower pursuant to an equity line of credit will not be secured by the related equity line security instrument if the advance occurs after the lender receives and has had not less than one complete business day to act on a notice regarding future advances.\n(c)\tNotwithstanding a lender's receipt of a notice regarding future advances, the following shall be secured by the equity line security instrument and shall have the same priority as if they had been owing, accrued, paid, advanced, or incurred at the time the equity line security instrument was registered:\n(1)\tSums owing to the lender under the equity line of credit at the time the lender receives the notice regarding future advances (including accrued interest), all interest that thereafter accrues on the equity line of credit, and all payments made, sums advanced, and expenses incurred by the lender before or after the lender receives the notice regarding future advances (i) for insurance, taxes, and assessments, (ii) to protect the lender's interest under the equity line security instrument, or (iii) to preserve and protect the value or condition of the real property encumbered by the equity line security instrument.\n(2)\tAny advance made by the lender to a borrower pursuant to an equity line of credit that occurs within one complete business day after the lender receives the notice regarding future advances.\n(3)\tAny advance made by the lender to a borrower pursuant to an equity line of credit that occurs more than one complete business day after the lender receives the notice regarding future advances, but only if the advance was initiated or approved before the lender received the notice regarding future advances.\n(d)\tReceipt by a lender of a notice regarding future advances shall be conclusively deemed to be an action by the borrower adversely affecting the lender's security for the equity line of credit. Upon receipt of a notice regarding future advances, the lender may terminate the borrower's right and ability to obtain additional advances under the equity line of credit.\n(e)\tNo particular phrasing is required for a notice regarding future advances. The following form, when properly completed, is sufficient to serve as a notice regarding future advances:\n\"NOTICE REGARDING FUTURE ADVANCES\n(G.S. 45-82.3)\nTo: (name of lender)\nThis is a notice regarding future advances submitted pursuant to G.S. 45-82.3. For purposes of this notice:\n1.\tThe borrower(s) is/are: (identify borrower(s))\n2.\tThe account number of the equity line of credit is: (specify the account number of the equity line of credit, if known by the person submitting the notice)\n3.\tThe street address of the property is: (provide the street address of the property encumbered by the security instrument identified in 4.)\n4.\tThe equity line of credit is secured by the security instrument identified as follows:\nType of Security Instrument: (identify type of security instrument, such as deed of trust or mortgage)\nOriginal Grantor(s): (identify original grantor(s), trustor(s), or mortgagor(s))\nOriginal Secured Party(ies): (identify the original beneficiary(ies), mortgagee(s), or secured party(ies) in the security instrument)\nRecording Data: The security instrument is recorded in Book ____ at Page ____ or as document number ________ in the office of the Register of Deeds for ________ County, North Carolina.\nExcept as provided in G.S. 45-82.3(c), subsequent advances made by you under the equity line of credit will not be secured by the security instrument identified above.\nI certify that I am:\n[ ]\tThe borrower (or one of the borrowers, if there is more than one).\n[ ]\tThe legal representative of a borrower.\n[ ]\tThe attorney for a borrower.\n[ ]\tAn owner of the property encumbered by the security instrument identified above.\n[ ]\tA title insurance company that satisfies the requirements of G.S. 45-81(1).\n[ ]\tAn attorney licensed to practice law in the State of North Carolina that satisfies the requirements of G.S. 45-81(1).\n[ ]\tA bank, savings and loan association, savings bank, or credit union that satisfies the requirements of G.S. 45-81(1).\n[ ]\tA qualified lien holder as defined in G.S. 45-81(9).\nDate:\nSignature of person submitting the request\"\n(f)\tIf the person who gives a lender a notice regarding future advances is (i) a title insurance company described in G.S. 45-81(1); (ii) an attorney, bank, savings and loan association, savings bank, or credit union described in G.S. 45-81(1), (iii) an owner as defined in G.S. 45-81(7), other than an owner who is also a borrower, or (iv) a qualified lien holder described in G.S. 45-81(9), then that person shall give a copy of the notice regarding future advances to the borrower accompanied by a notice that provides substantially as follows:\n\"NOTICE TO BORROWER\nYou have an equity line of credit with (name of lender) secured by a mortgage or deed of trust on real property located at (address of property).\nAs permitted by North Carolina law, we are sending the (enclosed/attached/following/foregoing) Notice Regarding Future Advances to your lender. Subject to certain exceptions, the notice prevents any new credit advances you obtain under your equity line of credit from being secured by the mortgage or deed of trust that currently secures its repayment. Our reason for giving your lender the notice is to limit the amount secured by the mortgage or deed of trust that secures your equity line of credit and to prevent that amount from increasing.\nWhen your lender receives our notice, your lender may elect to terminate your right and ability to obtain additional advances under your equity line of credit. However, termination of your right and ability to obtain additional advances will not release you from liability for the account. You should contact your lender to determine whether you will be able to obtain additional credit advances from your lender.\nIf you have questions about this notice or our action, please contact (name of contact person or department) by calling us at (phone number) or writing to us at (mailing address).\n(Name of insurance company, attorney, bank, savings and loan association, savings bank, credit union, owner, or qualified lien holder)\". (2011-312, s. 24.)","path":["Chapter 45. Mortgages and Deeds of Trust.","Article 9. Instruments to Secure Equity Lines of Credit."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_45/GS_45-82.3.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:02:57Z","sha256":"7c38f1ce92c9c7cd42499f32b14ecc86aa3bd3090eaf82ee3f7c6eac3f9b2d8c","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-45-82.2","next":"us-nc/n.c.-gen.-stat.-45-82.4"},"notice":"GroundRules: Original legal text. Not legal advice."}