{"data":{"id":"us-nc/n.c.-gen.-stat.-53-426","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 53-426","heading":"Waiver of equity of redemption.","body":"(a)\tNotwithstanding any other provision of law, except to the extent otherwise set forth in the transaction documents relating to a securitization, all of the following apply:\n(1)\tAny property, assets, or rights purported to be transferred, in whole or in part, in a securitization or in connection with a securitization are considered no longer the property, assets, or rights of the transferor, to the extent purported to be transferred.\n(2)\tA transferor in the securitization, its creditors, and, in any insolvency proceeding with respect to the transferor or the transferor's property, a bankruptcy trustee, receiver, debtor, debtor in possession, or similar person, to the extent the transfer is governed by State law, has no rights, legal or equitable, to reacquire, reclaim, recover, repudiate, disaffirm, redeem, or recharacterize as property of the transferor any property, assets, or rights purported to be transferred to the special purpose entity, in whole or in part, by the transferor.\n(3)\tIn the event of a bankruptcy, receivership, or other insolvency proceeding with respect to the transferor or the transferor's property, to the extent the transfer of property, assets, and rights are governed by State law, the property, assets, and rights are not considered part of the transferor's property, assets, rights, or estate.\n(b)\tNothing in this Article:\n(1)\tRequires any securitization to be treated as a sale for federal or state tax purposes;\n(2)\tPrecludes the treatment of any securitization as debt for federal or state tax purposes; or\n(3)\tChanges any applicable laws relating to the perfection and priority of security or ownership interests of persons other than the transferor, any hypothetical lien creditor of the transferor, or, in the event of a bankruptcy, receivership, or other insolvency proceeding with respect to the transferor or its property, a bankruptcy trustee, receiver, debtor, debtor in possession, or other similar person. (2002-88, s. 1; 2002-159, s. 33.)","path":["Chapter 53. Regulation of Financial Services.","Article 25. Asset-Backed Securities Facilitation."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_53/GS_53-426.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:05:12Z","sha256":"e362d077b69193953d77299ef2fcf89b3e785dd659d7e9a502b70a342e75f58a","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-53-425","next":"us-nc/n.c.-gen.-stat.-53a-1-through-53a-19"},"notice":"GroundRules: Original legal text. Not legal advice."}