NC Farmland and Military Protection Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2026-54
HOUSE BILL 133

*H133-v-6*
AN ACT TO PROHIBIT T HE ACQUISITION OF AG RICULTURAL LANDS OR LANDS
ADJACENT TO MILITARY INSTALLATIONS BY CE RTAIN ADVERSARIAL
ENTITIES; TO PROVIDE FOR THE DIVESTMENT OF THOSE LANDS; AND TO
PROVIDE FOR DOCUMENT ATION AND REGISTRATI ON OF LAND OWNERSHIP
BY CERTAIN ADVERSARIAL ENTITIES.

The General Assembly of North Carolina enacts:

SECTION 1. Chapter 64 of the General Statutes is amended by adding a new Article
to read:
"Article 4.
"Prohibit Adversarial Foreign Party Acquisition of Certain Lands.
"§ 64-60. Title.
This act shall be known and be cited as the North Carolina Farmland and Military Protection
Act.
"§ 64-61. Purpose.
The General Assembly fin ds that it is in the public interest for the State to exercise its
governmental police power to guard it s agricultural land and military installations from the
potential of adversarial foreign government control in order to ensure that the State's farmers are
able to produce a safe, abundant, and affordable supply of food and fiber and to protect our
national security for the benefit of the people of this State and the United States.
"§ 64-62. Definitions.
As used in this Article, the following definitions apply:
(1) Adversarial foreign government. – A state -controlled enterprise or the
government of a country or group listed in International Traffic in Arms
Regulation 22 C.F.R. § 126.1(d).
(2) Agricultural land. – Any land situated in this State that is used for agricultural
production purposes as defined in G.S. 106-581.1(1) through (4). The term
does not include land situated in this State that is leased for agricultural
research and development purposes or other activities for the purpose of
producing inputs or products for farmers or other end users, provided that the
acreage leased by the lessee does not exceed 250 acres in the aggregate.
(3) De minimis direct interest. – Any ownership of land resulting from:
a. Ownership of registered equities in a publicly traded company owning
the land and if the o wnership interest in the company is either of the
following:
1. Less than ten percent (10%) of any class of registered equities.
Ownership of registered equities is determined by processes
established under federal law.
2. A noncontrolling interest in an entity controlled by a company
that is both registered with the United States Securities and
Exchange Commission as an investment adviser under the

Page 2 Session Law 2026-54 House Bill 133
Investment Advisers Act of 1940, as amended, and is not a
foreign entity.
b. Any passive ownership interest of a prohibited foreign party in an
entity, provided that the prohibited foreign party does not possess, by
virtue of that ownership interest or otherwise, the power to direct or
cause the direction of the management or poli cies of the entity with
respect to the interest in real property.
(4) Foreign government. – Any government other than : (i) the federal
government, (ii) the government of a state , (iii) a political subdivision of a
state, or (iv) federally or state recognized tribal governments.
(5) Interest. – Any estate, remainder, or reversion, or any portion of the estate,
remainder, or reversion, or an option pursuant to which one party has a right
to cause the transfer of legal or equitable title to land described in
G.S. 64-63(a), including , without limitation, a lease of land described in
G.S. 64-63(a): (i) for a term of one year or longer or (ii) renewable by option
for terms which, if the options were all exercised, would total one year.
(6) Military installation. – Fort Bragg, Pope Army Airfield, Marine Corps Base
Camp Lejeune, New River Marine Corps Air Station, Cherry Point Marine
Corps Air Station, Military Ocean Terminal at Sunny Point, the United States
Coast Guard Air Station at Elizabeth City, Naval Support Activity Northwest,
Air Route Surveillance Radar (ARSR -4) at Fort Fisher, North Carolina
National Guard facilities , and Seymour Johnson Air Force Base, in its own
right and as the responsible entity for the Dare County Bombing Range, and
any military traini ng facility located within the State that is subject to the
installations' oversight and control. Military installation does not include
churches, schools, offices, or residential facilities outside the defined
boundaries of the above named facilities, and does not include temporary
military operations areas. The North Carolina Real Estate Commission, in
coordination with the Department of Military and Veterans Affairs, will
develop, publish, and maintain a map with the bases and lines drawn for the
applicable mileage from the military boundaries for public use.
(7) Party. – Any corporation, company, association, firm, partnership, society,
joint-stock company, trust, estate, or any other legal entity.
(8) Prohibited foreign party. – Any of the following:
a. An adversarial foreign government or a foreign government formed
within an adversarial foreign government.
b. An entity or trust, other than a government, that is created or organized
under the laws of a foreign government within a n adversarial foreign
government.
c. An entity or trust , other than a government , that meets all of the
following criteria:
1. Is created or organized under the laws of any state , or any
foreign government.
2. A significant interest or substantial control is directly or
indirectly held or is capable of being exercised by one or more
of the following:
I. A foreign government referred to in sub-subdivision a.
of this subdivision.
II. A party referred to in sub -subdivision b. of this
subdivision.

House Bill 133 Session Law 2026-54 Page 3
III. A combination of the pa rties or governments referred
to in this sub-sub-subdivision.
d. An agent, trustee, or other fiduciary of an entity enumerated in this
subdivision.
e. This definition does not apply to an entity that meets any of the
following criteria:
1. The entity has received a determination from the Committee of
Foreign Investment in the United States (CFIUS) that there are
no unresolved national security concerns with respect to the
entity in connection to a matter submitted to CFIUS and which
CFIUS co ncluded all action pursuant to section 721 of the
Defense Production Act of 1950, as amended.
2. The entity has a national security agreement with CFIUS and
maintains the validity of such national security agreement.
3. A United States domiciled subsidiary of an entity that meets
the criteria of sub -sub-subdivision 1. or 2. of this
sub-subdivision.
(9) Significant interest or substantial control. – One of the following:
a. An interest of thirty-three percent (33%) or more held by one or more
of the following:
1. A single government referred to in sub-subdivision a. of
subdivision (8) of this section.
2. A party referred to in sub-subdivision b. of subdivision (8) of
this section.
3. A party referred to in sub-subdivision c. of subdivision (8) of
this section.
b. An interest of thirty -three percent (33%) or more held whenever the
parties or governments referred to in subdivision (8) of this section are
acting in concert with respect to the interest even though no single
party or government holds an interest of thirty-three percent (33%) or
more.
c. An interest of fifty percent (50%) or more, in the aggregate, held by
parties or governments referred to in subdivision ( 8) of this section
even though the parties or governments may not be acting in concert.
"§ 64-63. Prohibited foreign party acquisition of certain lands prohibited.
(a) Notwithstanding any provision of law to the contrary, no prohibited foreign party
shall purchase, acquire, lease, or hold any direct interest in the following:
(1) Agricultural land.
(2) Property situated within a 50-mile radius of a military installation.
(b) A prohibited foreign party shall not acquire by grant, purchase, devise, descent, or
otherwise any interest, other than a de minimis direct interest, in land described in subsection (a)
of this section in this State regardless of how the prohibited foreign party intends to use the land.
A party may not knowingly hold land as an agent, trustee, or other fiduciary for a prohibited
foreign party in violation of this section. A prohibited foreign party that acquires land in violation
of this section remains in violation as long as the prohibited foreign party holds an interest in the
land.
(c) A prohibited foreign party that has acquired a ny direct interest in land described in
subsection (a) of this section in this State prior to the effective date of this section, or prior to the
country of residence being added to 22 C.F.R . § 126.1(d), may continue to own or hold th at
interest, but may not acquire by grant, purchase, devise, descent, or otherwise, any additional
interest in land described in subsection (a) of this section in this State and must register with the

Page 4 Session Law 2026-54 House Bill 133
Secretary of State. The Secretary of State shall maintain a report, updated monthly, of those
prohibited foreign parties that have registered, and the report shall be a public record and be
accessible on the Secretary of State's website. The Secretary of State shall establish a registration
form for the purposes of this subsection and the form shall include at least the following:
(1) The name of the owner of the land or the owner of the interest in the land.
(2) The address of the land and the parcel identification number.
(3) The number of acres of the land.
(4) The mailing address of the owner of the land.
(5) The country or state of incorporation of the owner of the property or the owner
of the interest in the property.
(d) The Secretary of State will provide the registry to the Attorney General 's office one
year from the effective date of this act and every six months thereafter, and the Attorney General
shall enforce the payment of the civil fine as provided by this subsection. A prohibited foreign
party that fails to timely file a registration with the Secretary of State is subject to a civil penalty
of not less than one thousand dollars ( $1,000) for each day that the registration is late , the clear
proceeds of which shall be remitted to the Civil Penalty and Forfeiture Fund, in accordance with
G.S. 115C-457.2. The unpaid balance of any penalties assessed under this subsection shall
constitute a lien against the land if a Notice of Foreign Ownership Violation Lien has been
recorded by the Attorney General in the office of the register of deeds in the county where the
property is located , and the lien shall have priority from the date and time of recordation and
shall be enforced by the Attorney General.
(e) A prohibited foreign party that acquires land described in subsection (a) of this section
on or after the effective date of this section , by devise or descent, through the enforcement of
security interests, or through the collection of debts, other than a de minimis direct interest, shall
sell, transfer, or otherwise divest itself of the land within one year after acquiring the land.
(f) At a time no later than the time of closing , a buyer of any direct interest in land
described in subsection (a) of this section shall provide an affidavit signed under penalty of
perjury attesting that the buyer is (i) not a prohibited foreign party and (ii) in compliance with
the requirements of this section. The affidavit is not required to be notarized and shall be attached
as an exhibit to the deed or other document that conveys an ownership interest in the land. No
affidavit is required to be attached to a deed of trust, mortgage, assignment of rents, security
interest, or other lien securing payment or performance of an obligation under this section by (i)
a federally or state chartered bank, savings institution, or credi t union, (ii) a licensed mortgage
lender or servicer, ( iii) a governmental or quasi -governmental lending agency, or ( iv) an entity
subject to federal anti -money laundering and suspicious activity reporting requirements under
the Bank Secrecy Act. The failure to obtain or maintain the affidavit shall not affect the title or
insurability of the title for the land . The North Carolina Real Estate Commission shall establish
the form for the affidavit required under this subsection.
(g) Upon receipt of i nformation that leads the Attorney General to believe that a
prohibited foreign party has not divested itself of the land described in subsection (a) of this
section as required under subsection (e) of this section , the Attorney General shall enforce a
violation of this section by commencing a receivership proceeding in the county where the
property is situated under Article 38A of Chapter 1 of the General Statutes seeking the
appointment of a general receiver pursuant to G.S. 1-507.24(e1). Any interest in real property
acquired or held in violation of this section shall be subject to divestiture pursuant to G.S. 64-64.
(h) A violation of this section by a prohibited foreign party may, at the discretion of the
noteholder, be deemed a default under a loan, mortgage, or deed of trust and shall provide the
lender the automatic right to trigger default on the loan, mortgage, or deed of trust.
(i) The responsibility for determining whether any entity is subject to this Article,
pursuant to either civil or criminal law, rests solely with the Prohibited Foreign Party and the
State of North Carolina and no other individual or entity.

House Bill 133 Session Law 2026-54 Page 5
(j) Title to land described in subsection (a) of this section is not invalid or subject to
divestiture due to a violation of this section by any former owner or any other person holding or
owning a former interest in the land described in subsection (a) of this section.
(k) Except as provided in subsection (l) of this section, no individual, real estate broker,
or any other entity, other than a prohibited foreign party, shall bear any civil or criminal liability
for any of the following:
(1) Failing to determine or make inquiry of whether any entity is a prohibited
foreign party.
(2) Failing to obtain , maintain, or otherwise comply with the affidavit
requirements provided by subsection (f) of this section.
(l) A party who knowingly sells an interest in land described in subsection (a) of this
section in violation of this section or who has actual knowledge that the transaction will result in
a violation of subsection (a) of this section but aids and abets a p arty in knowingly selling an
interest in land described in subsection (a) of this section shall be guilty of a Class 2
misdemeanor.
(m) This Article does not create or authorize a private right of action to enforce the
provisions of this Article.
"§ 64-64. Divestiture procedure.
(a) Upon receipt of information that leads the Attorney General to believe that a violation
of G.S. 64-63 may have occurred, the Attorney General shall investigate the alleged violation
and may issue subpoenas requiring any of the following:
(1) Appearances of witnesses.
(2) Production of relevant records.
(3) Giving of relevant testimony.
(b) The Attorney General shall enforce a violation of G.S. 64-63 by commencing a
receivership proceeding under Article 38A of Chapter 1 of the General Statutes seeking the
appointment of a general receiver pursuant to G.S. 1-507.24(e1). The following apply to a
receivership proceeding initiated pursuant to this section:
(1) Proceeds of the sale shall be paid as follows:
a. The costs of the receivership and sale.
b. To secured parties, in their order of priority, except for liens which
under the terms of the sale are to remain on the property.
c. No proceeds shall be distributed from the receivership sale to the
prohibited foreign party. Any excess proceeds are forfeited and shall
be remitted to the Civil Penalty and Forfeiture Fund in accordance with
G.S. 115C-457.2.
(2) At the receivership sale, any secured party shall be able to place a bid in an
amount that is not more than the amount owed plus any costs incurred to the
secured party as of the date of the sale, as established in the court order for the
sale of the property.
(3) Upon commencement of an action under this section, the Attorney General
shall file a notice of lis pendens as soon as practicable with the register of
deeds of the county or counties in which the real property is situated. Upon
the entry of an order for the sale of the pro perty under this section, the
Attorney General shall record a copy of the order as soon as practicable in the
office of the register of deeds of the county or counties where the real property
is situated.
(4) The receiver shall honor and give priority to a ny default that has been
triggered on a loan, mortgage, or deed of trust prior to the commencement of
a receivership under this section."

Page 6 Session Law 2026-54 House Bill 133
SECTION 2. Article 2 of Chapter 161 of the General Statutes is amended by adding
a new section to read:
"§ 161-14.04. Affidavit of parties to a deed or conveyance.
When recording a deed or other document that conveys an ownership interest in land
described by G.S. 64-63(a), the register of deeds shall record the affidavit as an exhibit to the
deed or other document that conveys an ownership interest in land as required by G.S. 64-63(f)
according to the requirements of G.S. 161-22. Notwithstanding G.S. 161-10, the affidavit shall
not be considered an additional instrument. Attachment of the affidavit required by G.S. 64-63(f)
is the presenter's responsibility and not a recording requirement to be enforced by the register of
deeds. The register of deeds shall not be liable for failure of the document to include the affidavit.
Failure to attach the affidavit does no t impair constructive notice, lien priority, validity, or
insurability."
SECTION 3. G.S. 1-507.24 is amended by adding a new subsection to read:
"(e1) Receiver for Sale of Real Property Owned by Prohibited Foreign Party. – A general
receiver may be appoin ted for the purpose of conducting a sale of real property in accordance
with G.S. 64-64 upon a finding by the court that an interest in the real property is held by a
prohibited foreign party in violation of G.S. 64-63(a)."
SECTION 4. The North Carolina Real Estate Commission, in coordination with the
Department of Military and Veterans Affairs, will develop and publish the map described in
G.S. 64-62(6) by April 1, 2027, and shall maintain the map by publishing an updated version
annually each April 1 thereafter.
SECTION 5. If any section or provision of this act is declared unconstitutional or
invalid by the courts, it does not affect the validity of this act as a whole or any part other than
the part so declared to be unconstitutional or invalid.
SECTION 6. Sections 1, 2, and 3 of this act become effective on April 1, 2027, and
Section 1 of this act applies to offenses committed on or after that date. The remainder of this act
is effective when it becomes law.
In the General Assembly read three times and ratified this the 1st day of July, 2026.

s/ Rachel Hunt
President of the Senate

s/ Destin Hall
Speaker of the House of Representatives

s/ Josh Stein
Governor

Approved 9:51 a.m. this 7th day of July, 2026