N.C. Gen. Stat. § 26-9 Effect of Failure of Creditor to Take Action

• Library: North Carolina Statutes
• Edition: 2023
• Currency: Current through Session Law 2023-151
• Year: 2023
• Citation: N.C. Gen. Stat. § 26-9

(a) If the holder or owner of the obligation refuses or fails,within 30 days from the service or receipt of such notice, to take appropriateaction pursuant thereto, the following persons shall be discharged on any suchnote, bond, bill or other obligation to the extent that they are prejudicedthereby:

(1) The surety, indorser or guarantor giving such notice, and

(2) All co-sureties, co-indorsers or co-guarantors joiningtherein or adopting such notice as provided by G.S. 26-7, and

(3) All the co-sureties, co-indorsers, or co-guarantors whosenames or addresses such holder or owner of the obligation failed to disclose ondemand as required by subsection (c) of G.S. 26-7.

(b) The fact that an instrument contains a provision waivingany defense of any surety, indorser or guarantor by reason of the extension ofthe time for payment does not prevent the operation of this section. Any suchnotice to the holder or owner of the obligation as is authorized by G.S. 26-7may be given at or subsequent to the time such obligation is due or at orsubsequent to the termination of a period of extension.