NC CASE LAW:



In In re Foreclosure of Deed of Trust of John M. Connolly, 63 N.C. App. 547, 306 S.E.2d 123 (N.C.App. 08/16/1983), the court applies the following cases:

“A party seeking to go forward with foreclosure under a power of sale must establish, inter alia, by competent evidence, the existence of a valid debt of which he is the holder. G.S.45-21.16(d), In re Foreclosure of Burgess, 47 N.C. App. 599, 267 S.E.2d 915, appeal dismissed, 301 N.C. 90, S.E.2d (1980). The Uniform Commercial Code, G.S. 25-1-201(20) defines a "holder" to be "a person who is in possession of . . . an instrument . . . issued or indorsed to him or to his order . . . ." See Hotel Corp. v. Taylor and Fletcher v. Foremans, Inc.,301 N.C. 200, 271 S.E.2d 54 (1980). It is the fact of possession which is significant in determining whether a person is a holder, and the absence of possession defeats that status. See Liles v. Myers,38 N.C. App. 525, 248 S.E.2d 385 (1978). See also 1 Anderson, Uniform Commercial Code § 1-201: 105 through 116.”



AND ALSO:



“To the extent that Furst may represent a holding that possession at trial is not necessary to establish that the mortgagee is the holder of the instrument that constitutes the debt which the mortgage secures, Furst is expressly overruled.” In re Foreclosure of Deed of Trust of John M. Connolly, 63 N.C. App. 547, 306 S.E.2d 123 (N.C.App. 08/16/1983).