(a) Upon receipt of thenotice of claim of lien upon funds provided for in this Article, the obligorshall be under a duty to retain any funds subject to the lien or liens uponfunds under this Article up to the total amount of such liens upon funds as towhich notices of claims of lien upon funds have been received.
(b) If, after thereceipt of the notice of claim of lien upon funds to the obligor, the obligormakes further payments to a contractor or subcontractor against whose interestthe lien or liens upon funds are claimed, the lien upon funds shall continueupon the funds in the hands of the contractor or subcontractor who received thepayment, and in addition the obligor shall be personally liable to the personor persons entitled to liens upon funds up to the amount of such wrongfulpayments, not exceeding the total claims with respect to which the notice ofclaim of lien upon funds was received prior to payment.
(c) If an obligor makesa payment after receipt of notice of claim of lien on funds and incurs personalliability under subsection (b) of this section, the obligor shall be entitledto reimbursement and indemnification from the party receiving such payment.
(d) If the obligor isan owner of the property being improved, the lien claimant shall be entitled toa claim of lien upon real property upon the interest of the obligor in the realproperty to the extent of the owner's personal liability under subsection (b)of this section, which claim of lien on real property shall be enforced only inthe manner set forth in G.S. 44A‑7 through G.S. 44A‑16 and whichclaim of lien on real property shall be entitled to the same priorities andsubject to the same filing requirements and periods of limitation applicable tothe contractor. The claim of lien on real property is perfected as of the timeset forth in G.S. 44A‑10 upon the filing of the claim of lien on realproperty pursuant to G.S. 44A‑12. The claim of lien on real propertyshall be in the form set out in G.S. 44A‑12(c) and shall contain, inaddition, a copy of the notice of claim of lien upon funds given pursuant toG.S. 44A‑19 as an exhibit together with proof of service thereof byaffidavit, and shall state the grounds the lien claimant has to believe thatthe obligor is personally liable for the debt under subsection (b) of thissection.
(e) A notice of claimof lien upon funds under G.S. 44A‑19 may be filed by the obligor with theclerk of superior court in each county where the real property upon which thefiled notice of claim of lien upon funds is located for the purpose ofdischarging the notice of claim of lien upon funds by any of the methodsdescribed in G.S. 44A‑16.
(f) A bond depositedunder this section to discharge a filed notice of claim of lien upon fundsshall be effective to discharge any claim of lien on real property filed by thesame lien claimant pursuant to subsection (d) of this section or G.S. 44A‑23and shall further be effective to discharge any notices of claims of lien uponfunds served by lower tier subcontractors or any claims of lien on realproperty filed by lower tier subcontractors pursuant to subsection (d) of thissection or G.S. 44A‑23 claiming through or against the contractor orhigher tier subcontractors up to the amount of the bond. (1971, c. 880, s. 1; 1985, c.702, s. 2; 2005‑229, s. 1.)
(a) Upon receipt of thenotice of claim of lien upon funds provided for in this Article, the obligorshall be under a duty to retain any funds subject to the lien or liens uponfunds under this Article up to the total amount of such liens upon funds as towhich notices of claims of lien upon funds have been received.
(b) If, after thereceipt of the notice of claim of lien upon funds to the obligor, the obligormakes further payments to a contractor or subcontractor against whose interestthe lien or liens upon funds are claimed, the lien upon funds shall continueupon the funds in the hands of the contractor or subcontractor who received thepayment, and in addition the obligor shall be personally liable to the personor persons entitled to liens upon funds up to the amount of such wrongfulpayments, not exceeding the total claims with respect to which the notice ofclaim of lien upon funds was received prior to payment.
(c) If an obligor makesa payment after receipt of notice of claim of lien on funds and incurs personalliability under subsection (b) of this section, the obligor shall be entitledto reimbursement and indemnification from the party receiving such payment.
(d) If the obligor isan owner of the property being improved, the lien claimant shall be entitled toa claim of lien upon real property upon the interest of the obligor in the realproperty to the extent of the owner's personal liability under subsection (b)of this section, which claim of lien on real property shall be enforced only inthe manner set forth in G.S. 44A‑7 through G.S. 44A‑16 and whichclaim of lien on real property shall be entitled to the same priorities andsubject to the same filing requirements and periods of limitation applicable tothe contractor. The claim of lien on real property is perfected as of the timeset forth in G.S. 44A‑10 upon the filing of the claim of lien on realproperty pursuant to G.S. 44A‑12. The claim of lien on real propertyshall be in the form set out in G.S. 44A‑12(c) and shall contain, inaddition, a copy of the notice of claim of lien upon funds given pursuant toG.S. 44A‑19 as an exhibit together with proof of service thereof byaffidavit, and shall state the grounds the lien claimant has to believe thatthe obligor is personally liable for the debt under subsection (b) of thissection.
(e) A notice of claimof lien upon funds under G.S. 44A‑19 may be filed by the obligor with theclerk of superior court in each county where the real property upon which thefiled notice of claim of lien upon funds is located for the purpose ofdischarging the notice of claim of lien upon funds by any of the methodsdescribed in G.S. 44A‑16.
(f) A bond depositedunder this section to discharge a filed notice of claim of lien upon fundsshall be effective to discharge any claim of lien on real property filed by thesame lien claimant pursuant to subsection (d) of this section or G.S. 44A‑23and shall further be effective to discharge any notices of claims of lien uponfunds served by lower tier subcontractors or any claims of lien on realproperty filed by lower tier subcontractors pursuant to subsection (d) of thissection or G.S. 44A‑23 claiming through or against the contractor orhigher tier subcontractors up to the amount of the bond. (1971, c. 880, s. 1; 1985, c.702, s. 2; 2005‑229, s. 1.)
(a) Upon receipt of thenotice of claim of lien upon funds provided for in this Article, the obligorshall be under a duty to retain any funds subject to the lien or liens uponfunds under this Article up to the total amount of such liens upon funds as towhich notices of claims of lien upon funds have been received.
(b) If, after thereceipt of the notice of claim of lien upon funds to the obligor, the obligormakes further payments to a contractor or subcontractor against whose interestthe lien or liens upon funds are claimed, the lien upon funds shall continueupon the funds in the hands of the contractor or subcontractor who received thepayment, and in addition the obligor shall be personally liable to the personor persons entitled to liens upon funds up to the amount of such wrongfulpayments, not exceeding the total claims with respect to which the notice ofclaim of lien upon funds was received prior to payment.
(c) If an obligor makesa payment after receipt of notice of claim of lien on funds and incurs personalliability under subsection (b) of this section, the obligor shall be entitledto reimbursement and indemnification from the party receiving such payment.
(d) If the obligor isan owner of the property being improved, the lien claimant shall be entitled toa claim of lien upon real property upon the interest of the obligor in the realproperty to the extent of the owner's personal liability under subsection (b)of this section, which claim of lien on real property shall be enforced only inthe manner set forth in G.S. 44A‑7 through G.S. 44A‑16 and whichclaim of lien on real property shall be entitled to the same priorities andsubject to the same filing requirements and periods of limitation applicable tothe contractor. The claim of lien on real property is perfected as of the timeset forth in G.S. 44A‑10 upon the filing of the claim of lien on realproperty pursuant to G.S. 44A‑12. The claim of lien on real propertyshall be in the form set out in G.S. 44A‑12(c) and shall contain, inaddition, a copy of the notice of claim of lien upon funds given pursuant toG.S. 44A‑19 as an exhibit together with proof of service thereof byaffidavit, and shall state the grounds the lien claimant has to believe thatthe obligor is personally liable for the debt under subsection (b) of thissection.
(e) A notice of claimof lien upon funds under G.S. 44A‑19 may be filed by the obligor with theclerk of superior court in each county where the real property upon which thefiled notice of claim of lien upon funds is located for the purpose ofdischarging the notice of claim of lien upon funds by any of the methodsdescribed in G.S. 44A‑16.
(f) A bond depositedunder this section to discharge a filed notice of claim of lien upon fundsshall be effective to discharge any claim of lien on real property filed by thesame lien claimant pursuant to subsection (d) of this section or G.S. 44A‑23and shall further be effective to discharge any notices of claims of lien uponfunds served by lower tier subcontractors or any claims of lien on realproperty filed by lower tier subcontractors pursuant to subsection (d) of thissection or G.S. 44A‑23 claiming through or against the contractor orhigher tier subcontractors up to the amount of the bond. (1971, c. 880, s. 1; 1985, c.702, s. 2; 2005‑229, s. 1.)
