House committee substitute to the 1st edition makes the following changes.

Amends proposed GS 64-61 by amending the purpose of the Article by specifying that the State is to use its governmental police power in order to guard agricultural land from the potential of adversarial foreign government control.

Amends proposed GS 64-62 as follows. Amends the definition of adversarial foreign government by excluding from the term: (1) an entity that has received a determination from the Committee on 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 concluded all action pursuant to Section 721 of the Defense Production Act of 1950 or (b) an entity that has a national security agreement with CFIUS and maintains the validity of such national security agreement. Amends the definition of agricultural lands so that it applies to real property (was, land) in the state used for agricultural production purposes. Amends the definition of interest to: (1) include any estate, remainder, or reversion, or any portion thereof, or an option where one party has a right to cause the transfer of legal or equitable title to real property situated within a 75-mile radius of a military installation and (2) excludes a noteholder under an obligation secured by a deed of trust.

Amends proposed GS 64-63 (prohibiting the acquisition of agricultural land and real property around military installations by adversarial foreign governments) as follows. Makes conforming changes to refer to real property instead of land. No longer voids any land transfer that violates the statute and instead makes any interest in agricultural land or real property situated within a 75-mile radius of a military installation purchased, acquired, leased, or held in violation of this statute subject to divestiture under newly added GS 64-64. Allows the noteholder to deem a violation by an adversarial foreign government to be a default of a loan, mortgage, or deed of trust, and gives the lender the automatic right to trigger a default. Adds that no title to real property is to be invalidated or subject to divestiture because of a violation of this statute by any former owner or the individual or entity holding or owning a former interest in the property. Specifies that the Article does not create or authorize a private right of action to enforce the Article.

Enacts new GS 64-64 allowing the Attorney General to investigate alleged violations of GS 64-63 and allows issuing subpoenas for the appearance of witnesses, production of relevant records, and giving relevant testimony. Requires enforcing GS 64-63 by commencing a receivership proceeding seeking appointment of a general receiver. Requires the proceeds of the sale to be paid as follows: (1) the costs of the receivership and sale; (2) to secured parties, in their order of priority, except for liens that under the terms of the sale are to remain on the property; and (3) no proceeds can be distributed from the receivership sale to the adversarial foreign government. Requires excess proceeds to be remitted to the Civil Penalty and Forfeiture Fund. Limits the amount a secured party can bid to the amount owed plus any costs incurred by the secured party as of the date of the sale. Sets out notice requirements and requirements for entering an order for the sale of the property. Makes conforming changes to GS 1-507.24.

Amends the effective date to clarify that the act applies to an interest in real property acquired on or after December 1, 2025.