North Carolina repossession laws state that if someone is behind on payments or has failed to maintain any required insurance, the lien holder of the property has the right to repossess the property. However, they do not have the right to breach the peace during recovery.
The repossession law in North Carolina can be summarized as follows: A secured creditor may take possession of equipment or property that is in the hand of an individual who is contractually obligated to render payment to the secured party. If that individual falls behind on those payments, the repossession process may be initiated. The law allows the secured party to take possession of the collateral, and if the secured party finds the equipment unusable, they can dispose of the collateral on the debtor's premises.
The secured party may take possession by way of a court process, but the law allows the party to take possession of the property as long as it does not commit any breach of peace. Also, the parties can agree to assemble the collateral and make it available to the secured party at a place that is designated by the secured party but is a reasonably convenient place for both parties.