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Most local codes require that when extending or adding circuits, the circuit must be brought up to national code standards. This would necessitate that if you have a 2 wire circuit and are adding to it, that you rewire the entire circuit to 3 wires.

However, in actual practice, it is common to see 3 wire nmb connected to 2 wire nmb without full re-wiring. It is important to note that when this happens, the ground wire in the 3 wire cable serves no purpose. You end up with what looks like a 3 wire grounding configuration at a receptacle or other outlet when in actuality you have no equipment ground. This allows a hazard to exist that no longer conforms to current code, and if someone were to be injured you may be held liable.

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