Section 1.
Amends GS 6-21.2 (pertaining to attorneys’ fees in debt instruments), as follows. Adds defined terms creditor, debt instrument, debtor, and person. Specifies that GS 6-21.2 only applies to debt instruments governed by the law of the State.
Changes enforcement trigger for collection of attorneys’ fees under a debt instrument to after a debtor’s default (currently, a holder can collect attorneys’ fees using an attorney after maturity) so long as the creditor uses an attorney and complies with GS 6-21.2. Specifies that when the debt instrument does not specify an amount or percentage, a court must award the maximum rate unless the amount in controversy computed in accordance with GS 7A-243 is greater than or equal to the amount described in GS 7A-45.4(a)(9)c ($1 million) and in those instances, the court must award reasonable attorneys' fees, not to exceed the maximum rate. Extends time for payment of outstanding debts in response to notice of collection from five days to fourteen days.
Makes organizational changes and clarifying changes. Modernizes language. 
Section 2.
Modernizes outdated language, makes conforming changes, and makes clarifying changes to GS 45-21.31 (pertaining to dispositions of proceeds of sale of real property). Requires that the surplus remaining, after the proceeds of the sale under power of sale have been applied, be paid to the clerk of the superior court in cases where the person that made the sale (was, the mortgagee, trustee, or vendor) is in doubt as to who is entitled to the surplus. Makes conforming changes. 
Effective October 1, 2025, and applies to debt instruments executed on or after that date.

Statutes affected:
Filed: 6-21.2, 45-21.31