For AI agents: read the machine-readable documentation index at /llms.txt or the single-file full reference at /llms-full.txt.
Form a Business

Secured party not obligated on contract of debtor or in tort.

G.S. 25-9-402
in effect
Sign in to generate a plain English summaryAsk Belisarius Agent
§ 25-9-402.  Secured party not obligated on contract of debtor or in tort. 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. (1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1.)
Source: North Carolina General Assembly (ncleg.gov)URL: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_25/GS_25-9-402.htmlFetched: 10/19/2026

Starting a business in North Carolina? North Carolina LLC guide: costs and requirements