17 N.C. Admin Code 07B .4413 - Conditional Sales Contract

(a)  A conditional sales contract is an agreement that requires the following:

(1)           The transfer of title under a security agreement or deferred payment plan, upon completion of the required payments; or

(2)           The transfer of title upon completion of required payments and payment of an option price that does not exceed the greater of one hundred dollars ($100.00) or one percent of the total required payments.

(b)  An agreement that meets the requirements of Paragraph (a) of this Rule does not constitute a lease or rental, as defined in G.S. 105-164.3, and is considered a conditional sales contract. Any applicable sales and use tax for a conditional sales contract is due upon delivery of the item, as the term item is defined in G.S. 105-164.3, to the purchaser.