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SB 60 North Carolina Senate · 2025-2026 Session

GSC Attorneys' Fees in Debt Instruments.

SB 60 clarifies how creditors can enforce attorney fee clauses in debt contracts like loans, credit agreements, and conditional sales. It sets a 15% maximum cap on attorney fees (calculated on the outstanding principal and interest), whether the contract specifies a percentage or states "reasonable fees." Creditors must provide debtors a 5-day notice to pay the underlying debt before enforcing fees, and debt buyers must submit proof of ownership and the original debt contract to courts. The bill applies to most debt instruments but excludes residential rental agreements. These changes aim to standardize fee enforcement while giving debtors a clear path to avoid extra costs.
Bill status died 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 5, 2025 Last action Feb 11, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Filed → Edition 1 · 4 edits
MODERATE
This bill update adds a new definition of 'Debtor' to clarify that guarantors and accommodation parties are included when creditors seek to collect debts. The document also includes administrative changes like updated filing dates and bill version numbers.
Scope change
The bill's scope was expanded to explicitly include guarantors and accommodation parties within the definition of 'Debtor', broadening who can be held accountable under debt enforcement provisions.
DEFINITION

Added new language to Section 43(3) defining 'Debtor' to include guarantors and accommodation parties, clarifying that these parties are subject to debt collection obligations.

TECHNICAL

Corrected a typo in line 43 where 'ow' was changed to 'owed' for grammatical accuracy.

Added Senate referral information showing the bill was referred to Rules and Operations of the Senate on February 6, 2025.

Updated bill version identifier from DRS35033-MU-5 to S60-v-1 and adjusted filing date information.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
5
Key actions
0
Committee
2
Feb 11, 2025
Committee
Re-ref to Judiciary. If fav, re-ref to Rules and Operations of the Senate
upper
Feb 6, 2025
Committee
Ref To Com On Rules and Operations of the Senate
upper
Feb 5, 2025
Introduced
Filed
upper
0 primary · 1 co-sponsor

Sponsors

No sponsor information available.