Register of Deeds; Mortgages and Deeds of Trust-Cancellation

October 3, 1979 Subject:

Requested By:

W. W. Speight Pitt County Attorney

Question:

Is the beneficiary of a deed of trust who is also the payee or holder of the note entitled to have the deed of trust cancelled of record?

Conclusion:

Yes.

G.S. § 45-37(2) provides that a deed of trust may be cancelled of record if the deed of trust and note or other instrument secured thereby are exhibited to the Register of Deeds, with the endorsement of payment and satisfaction by

(a): The obligee
(b): The mortagee
(c): The trustee
(d): An assignee of the obligee, mortgagee, or trustee, or
(e): Any chartered banking institution.

As pointed out in a previous opinion, the beneficiary of a deed of trust, as such, is not one of the persons authorized by the statute to obtain cancellation. 48 N.C.A.G. 50 (1978). There was no indication in the question upon which that opinion was based that the beneficiary was an obligee, a bank or assignee thereof. Id, at p. 51.

The question presented here clearly states that the beneficiary of the deed of trust is also the payee or holder of the underlying indebtedness. In this case, the beneficiary is an obligee. See, BLACK’S LAW DICT. 1226 (Rev. 4th Ed. 1968). Therefore, the beneficiary, in his capacity as obligee may make the required endorsements and obtain cancellation of record of the deed of trust.

Rufus L. Edmisten Attorney General

Lucien Capone, III Associate Attorney General