§ 44A‑18. Grant of lienupon funds; subrogation; perfection.
Upon compliance with thisArticle:
(1) A first tiersubcontractor who furnished labor, materials, or rental equipment at the siteof the improvement shall be entitled to a lien upon funds that are owed to thecontractor with whom the first tier subcontractor dealt and that arise out ofthe improvement on which the first tier subcontractor worked or furnishedmaterials.
(2) A second tiersubcontractor who furnished labor, materials, or rental equipment at the siteof the improvement shall be entitled to a lien upon funds that are owed to thefirst tier subcontractor with whom the second tier subcontractor dealt and thatarise out of the improvement on which the second tier subcontractor worked or furnishedmaterials. A second tier subcontractor, to the extent of the second tiersubcontractor's lien provided in this subdivision, shall also be entitled to besubrogated to the lien of the first tier subcontractor with whom the secondtier contractor dealt provided for in subdivision (1) of this section and shallbe entitled to perfect it by notice of claim of lien upon funds to the extentof the claim.
(3) A third tiersubcontractor who furnished labor, materials, or rental equipment at the siteof the improvement shall be entitled to a lien upon funds that are owed to thesecond tier subcontractor with whom the third tier subcontractor dealt and thatarise out of the improvement on which the third tier subcontractor worked orfurnished materials. A third tier subcontractor, to the extent of the thirdtier subcontractor's lien upon funds provided in this subdivision, shall alsobe entitled to be subrogated to the lien upon funds of the second tiersubcontractor with whom the third tier contractor dealt and to the lien uponfunds of the first tier subcontractor with whom the second tier subcontractordealt to the extent that the second tier subcontractor is entitled to besubrogated thereto, and in either case shall be entitled to perfect the same bynotice of claim of lien upon funds to the extent of the claim.
(4) Subcontractors moreremote than the third tier who furnished labor, materials, or rental equipmentat the site of the improvement shall be entitled to a lien upon funds that areowed to the person with whom they dealt and that arise out of the improvementon which they furnished labor, materials, or rental equipment, but such remotetier subcontractor shall not be entitled to subrogation to the rights of otherpersons.
(5) The liens upon fundsgranted under this section shall secure amounts earned by the lien claimant asa result of having furnished labor, materials, or rental equipment at the siteof the improvement under the contract to improve real property, includinginterest at the legal rate provided in G.S. 24‑5, whether or not suchamounts are due and whether or not performance or delivery is complete. In theevent insufficient funds are retained to satisfy all lien claimants,subcontractor lien claimants may recover the interest due under thissubdivision on a pro rata basis, but in no event shall interest due under thissubdivision increase the liability of the obligor under G.S. 44A‑20.
(6) A lien upon fundsgranted under this section is perfected upon the giving of notice of claim oflien upon funds in writing to the obligor as provided in G.S. 44A‑19 andshall be effective upon the obligor's receipt of the notice. The subrogationrights of a first, second, or third tier subcontractor to the claim of lien onreal property of the contractor created by Part 1 of Article 2 of this Chapterare perfected as provided in G.S. 44A‑23. (1971, c. 880, s. 1; 1985, c.702, s. 3; 1995 (Reg. Sess., 1996), c. 607, s. 3; 2005‑229, s. 1.)
§ 44A‑18. Grant of lienupon funds; subrogation; perfection.
Upon compliance with thisArticle:
(1) A first tiersubcontractor who furnished labor, materials, or rental equipment at the siteof the improvement shall be entitled to a lien upon funds that are owed to thecontractor with whom the first tier subcontractor dealt and that arise out ofthe improvement on which the first tier subcontractor worked or furnishedmaterials.
(2) A second tiersubcontractor who furnished labor, materials, or rental equipment at the siteof the improvement shall be entitled to a lien upon funds that are owed to thefirst tier subcontractor with whom the second tier subcontractor dealt and thatarise out of the improvement on which the second tier subcontractor worked or furnishedmaterials. A second tier subcontractor, to the extent of the second tiersubcontractor's lien provided in this subdivision, shall also be entitled to besubrogated to the lien of the first tier subcontractor with whom the secondtier contractor dealt provided for in subdivision (1) of this section and shallbe entitled to perfect it by notice of claim of lien upon funds to the extentof the claim.
(3) A third tiersubcontractor who furnished labor, materials, or rental equipment at the siteof the improvement shall be entitled to a lien upon funds that are owed to thesecond tier subcontractor with whom the third tier subcontractor dealt and thatarise out of the improvement on which the third tier subcontractor worked orfurnished materials. A third tier subcontractor, to the extent of the thirdtier subcontractor's lien upon funds provided in this subdivision, shall alsobe entitled to be subrogated to the lien upon funds of the second tiersubcontractor with whom the third tier contractor dealt and to the lien uponfunds of the first tier subcontractor with whom the second tier subcontractordealt to the extent that the second tier subcontractor is entitled to besubrogated thereto, and in either case shall be entitled to perfect the same bynotice of claim of lien upon funds to the extent of the claim.
(4) Subcontractors moreremote than the third tier who furnished labor, materials, or rental equipmentat the site of the improvement shall be entitled to a lien upon funds that areowed to the person with whom they dealt and that arise out of the improvementon which they furnished labor, materials, or rental equipment, but such remotetier subcontractor shall not be entitled to subrogation to the rights of otherpersons.
(5) The liens upon fundsgranted under this section shall secure amounts earned by the lien claimant asa result of having furnished labor, materials, or rental equipment at the siteof the improvement under the contract to improve real property, includinginterest at the legal rate provided in G.S. 24‑5, whether or not suchamounts are due and whether or not performance or delivery is complete. In theevent insufficient funds are retained to satisfy all lien claimants,subcontractor lien claimants may recover the interest due under thissubdivision on a pro rata basis, but in no event shall interest due under thissubdivision increase the liability of the obligor under G.S. 44A‑20.
(6) A lien upon fundsgranted under this section is perfected upon the giving of notice of claim oflien upon funds in writing to the obligor as provided in G.S. 44A‑19 andshall be effective upon the obligor's receipt of the notice. The subrogationrights of a first, second, or third tier subcontractor to the claim of lien onreal property of the contractor created by Part 1 of Article 2 of this Chapterare perfected as provided in G.S. 44A‑23. (1971, c. 880, s. 1; 1985, c.702, s. 3; 1995 (Reg. Sess., 1996), c. 607, s. 3; 2005‑229, s. 1.)
§ 44A‑18. Grant of lienupon funds; subrogation; perfection.
Upon compliance with thisArticle:
(1) A first tiersubcontractor who furnished labor, materials, or rental equipment at the siteof the improvement shall be entitled to a lien upon funds that are owed to thecontractor with whom the first tier subcontractor dealt and that arise out ofthe improvement on which the first tier subcontractor worked or furnishedmaterials.
(2) A second tiersubcontractor who furnished labor, materials, or rental equipment at the siteof the improvement shall be entitled to a lien upon funds that are owed to thefirst tier subcontractor with whom the second tier subcontractor dealt and thatarise out of the improvement on which the second tier subcontractor worked or furnishedmaterials. A second tier subcontractor, to the extent of the second tiersubcontractor's lien provided in this subdivision, shall also be entitled to besubrogated to the lien of the first tier subcontractor with whom the secondtier contractor dealt provided for in subdivision (1) of this section and shallbe entitled to perfect it by notice of claim of lien upon funds to the extentof the claim.
(3) A third tiersubcontractor who furnished labor, materials, or rental equipment at the siteof the improvement shall be entitled to a lien upon funds that are owed to thesecond tier subcontractor with whom the third tier subcontractor dealt and thatarise out of the improvement on which the third tier subcontractor worked orfurnished materials. A third tier subcontractor, to the extent of the thirdtier subcontractor's lien upon funds provided in this subdivision, shall alsobe entitled to be subrogated to the lien upon funds of the second tiersubcontractor with whom the third tier contractor dealt and to the lien uponfunds of the first tier subcontractor with whom the second tier subcontractordealt to the extent that the second tier subcontractor is entitled to besubrogated thereto, and in either case shall be entitled to perfect the same bynotice of claim of lien upon funds to the extent of the claim.
(4) Subcontractors moreremote than the third tier who furnished labor, materials, or rental equipmentat the site of the improvement shall be entitled to a lien upon funds that areowed to the person with whom they dealt and that arise out of the improvementon which they furnished labor, materials, or rental equipment, but such remotetier subcontractor shall not be entitled to subrogation to the rights of otherpersons.
(5) The liens upon fundsgranted under this section shall secure amounts earned by the lien claimant asa result of having furnished labor, materials, or rental equipment at the siteof the improvement under the contract to improve real property, includinginterest at the legal rate provided in G.S. 24‑5, whether or not suchamounts are due and whether or not performance or delivery is complete. In theevent insufficient funds are retained to satisfy all lien claimants,subcontractor lien claimants may recover the interest due under thissubdivision on a pro rata basis, but in no event shall interest due under thissubdivision increase the liability of the obligor under G.S. 44A‑20.
(6) A lien upon fundsgranted under this section is perfected upon the giving of notice of claim oflien upon funds in writing to the obligor as provided in G.S. 44A‑19 andshall be effective upon the obligor's receipt of the notice. The subrogationrights of a first, second, or third tier subcontractor to the claim of lien onreal property of the contractor created by Part 1 of Article 2 of this Chapterare perfected as provided in G.S. 44A‑23. (1971, c. 880, s. 1; 1985, c.702, s. 3; 1995 (Reg. Sess., 1996), c. 607, s. 3; 2005‑229, s. 1.)
