(a) A person not in possession of an instrument is entitled to enforce the instrument
if (i) the person was in possession of the instrument and entitled to enforce it when
loss of possession occurred, (ii) the loss of possession was not the result of a transfer
by the person or a lawful seizure, and (iii) the person cannot reasonably obtain possession
of the instrument because the instrument was destroyed, its whereabouts cannot be
determined, or it is in the wrongful possession of an unknown person or a person that
cannot be found or is not amenable to service of process.
(b) A person seeking enforcement of an instrument under subsection (a) of this section
must prove the terms of the instrument and the person's right to enforce the instrument. If that proof is made, G.S. 25-3-308 applies to the case as if the person seeking enforcement had produced the instrument. The court may not enter judgment in favor of the person seeking enforcement unless
it finds that the person required to pay the instrument is adequately protected against
loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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