NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 1149

HOUSE BILL 1103

 

 

AN ACT TO AMEND ARTICLE 15, CHAPTER 28, OF THE NORTH CAROLINA GENERAL STATUTES SO AS TO PROVIDE FOR SATISFACTION OTHER THAN BY PAYMENT OF CERTAIN DEBTS OF A DECEDENT.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Article 15 of Chapter 28 of the North Carolina General Statutes is hereby amended by adding the following Section immediately following Section 28-105 to be designated Section 28-105.1 to read as follows:

"28-105.1.  Satisfaction of Debts Other Than by Payment. Notwithstanding any provision of law to the contrary,

(a)        if a decedent was liable in person at the time of his death for the payment or satisfaction of any debt or the performance, satisfaction or discharge of any liability or obligation, whether joint or several, primary or secondary, direct or contingent, or enforceable in any other manner or form whatsoever, or

(b)        if only the property of a decedent or some part thereof was liable at the time of his death for the payment or satisfaction of any debt or the performance, satisfaction or discharge of any liability or obligation, whether joint or several, primary or secondary, direct or contingent, or enforceable in any other manner or form against the property of the decedent but not against him or his estate as a personal liability, and

(c)        if any person other than the personal representative of the decedent is willing to assume the liability of the decedent and of his estate or to receive or accept property of the decedent subject to such liability in cases where the decedent was not personally liable and the creditor, obligee or other person for whose benefit such liability exists is willing to accept an agreement with that effect and to discharge the personal representative of the decedent and the estate of the decedent from the payment, satisfaction or discharge of such liability, and

(d)        if such creditor, obligee or other person for whose benefit such liability exists and the person assuming the liability or the person receiving or accepting the property of the decedent subject to such liability shall execute, acknowledge and deliver in the form and manner required for deeds conveying real property in North Carolina, an agreement between themselves as to such assumption of liability or the receipt or acceptance of property of the decedent subject to such liability which shall contain a release, as hereinafter defined, discharging the personal representative of the decedent and his estate from the payment, satisfaction, or discharge of the liability, and thereafter the said creditor, obligee or other person for whose benefit such liability exists shall have no remedy for the enforcement thereof except against the person assuming it or against the property subject to it as provided in the said agreement; then upon the filing with the Clerk of Superior Court having jurisdiction over the estate and personal representative of one duplicate original of the said agreement, or of a certified copy thereof if it is a duly recorded instrument, the same shall be accepted in the same manner as a voucher showing payment or discharge of the said liability in the accounts of the personal representative of the decedent.

The word "person" as used in this §28-105.1 shall include one or more natural persons, corporations, partnerships, or entities having the power to own property or to make contracts in regard thereto. The word "release" as used in this §28-105.1 shall include a covenant not to sue in any case in which an unqualified release or discharge of one obligee would discharge another, and if the liability involved is a negotiable instrument or other instrument transferable to a holder in due course, such release shall not be effective unless notice thereof is endorsed on the instrument involved, dated and signed by the creditor or the holder of the indebtedness or person for whose benefit the property is encumbered."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall be in full force and effect on and after its ratification.

In the General Assembly read three times and ratified, this the 17th day of June, 1965.