The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.
N.C. Gen. Stat. § 25-9-402
Secured party not obligated on contract of debtor or in tort
Known as the Uniform Commercial Code
The act spans §§ 25–25 (616 sections).
Applied in 10 court decisions — leading case 148 Ohio App. 3d 440 - Advanced Analytics Laboratories, Inc. v. Kegler, Brown, Hill & Ritter, L.P.A. (2002)
Most recently applied in Magers v. Bonds, Incorporated (July 2002)
1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1.
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.