I think there is a pretty big loop hole...
Chapel Hill does not have the display law, Cary does. The state courts have already ruled that local government cannot preempt open carry, so the display law is unconstitutional under NC constitution and court rulings. It probably is the reason nobody is being cited for 'display'. People open carry in Cary and Chapel Hill. Yes some people seem intimidated by the ordinance, we just don't have a problem here with arrests on open carry. I have in about every corner of the state, I have stopped on the highway with my commercial truck open carrying IN Cary, and being passed by police cars, they didn't even slow down. If you call the cops here with MWAG most times the dispatcher will tell you it is perfectly legal. Hell they won't even answer shots fired calls outside the city.
From:
http://www.amlegal.com/nxt/gateway.dll/North%20Carolina/cary_nc/codeofordinancestownofcarynorthcarolina?f=templates$fn=default.htm$3.0$vid=amlegal:cary_nc
Sec. 22-51. Prohibition of the carrying and display of handguns, firearms and other weapons at certain public locations.
(a) Concealed handguns.
(1) Possession prohibited. No person shall carry a concealed handgun in town-owned buildings, on the appurtenant premises of those buildings, or in town recreational facilities as defined by G.S. 14-415.23, which are all town playgrounds, athletic fields and athletic facilities. A list of recreational facilities shall be set out in a Schedule of Recreational Facilities at which Concealed Handguns are Prohibited which shall be updated as necessary and retained permanently in the office of the Director, Parks, Recreation and Cultural Resources. Notwithstanding the foregoing, nothing in this section shall prohibit a concealed handgun permittee from securing the handgun within an enclosed compartment of a locked motor vehicle.
(2) Posting required. The director of public works or designee is hereby authorized and instructed to post conspicuous signage at appropriate locations on or within each recreational facility and each building and the grounds and parking areas of such buildings owned, leased as lessee, operated, occupied, managed or controlled by the town, as well as any other appurtenant premises to such buildings, indicating that carrying a concealed handgun on the properties and locations described in this section is prohibited therein and thereon unless specifically permitted or authorized by state law or the provisions of the town's code of ordinances. The director of public works or designee shall exercise discretion in determining the number and appropriate location of signs to be placed.
(b) Other firearms and weapons. No person shall display any firearm or other deadly weapon as defined in G.S. 14-269(a), or any knife having a blade of three inches or longer, BB gun, air gun, paintball gun, airsoft gun, bow and arrow or any type of lethal weapon, while on any public street, alley, sidewalk or other public property within the town, including town greenways, unless specifically permitted or authorized by law. No person shall carry or have possession of a knife having a blade of three inches or longer, a BB gun, air gun, paintball gun, airsoft gun, bow and arrow or any type of lethal weapon in any park, including town greenways. This subsection (b) is not applicable to concealed handguns, which are governed by subsection (a) above.
(c) Exceptions. The possession or display of a firearm or other weapon is exempt from the provisions of this section 22-51 in the following situations:
(2) If the possession or display of the firearm, or other weapon, was the result of an individual(s) exercising his or her legitimate right to self defense or the defense of others as allowed by law.
It sure seem to me (IANAL) that they have just allowed you to carry anywhere in Cary that is not otherwise prohibited by State or Federal law.