Notice of Claim of Lien Upon Funds - North Carolina

NOTICE OF CLAIM OF LIEN UPON FUNDS

NORTH CAROLINA — ATTORNEY-REVIEW DRAFT

Do not send this notice until counsel selects the correct statutory form and obligor. A construction lender, owner, contractor, or subcontractor is not automatically a recipient merely because that person is connected to the project.

1. Route and Contract-Chain Record

Counsel-approved form: ☐ First-, second-, or third-tier form ☐ More-remote-than-third-tier form

2. Property and Contract Record

3. First-, Second-, or Third-Tier Statutory Draft

Delete this section if the claimant is more remote than the third tier.

NOTICE OF CLAIM OF LIEN UPON FUNDS BY FIRST, SECOND, OR THIRD TIER SUBCONTRACTOR

To:

1. Owner of property involved:

Name and address: [____________________________________________________________]

2. Contractor:

Name and address: [____________________________________________________________]

3. First-tier subcontractor against or through whom subrogation is claimed, if any:

Name and address: [____________________________________________________________]

4. Second-tier subcontractor against or through whom subrogation is claimed, if any:

Name and address: [____________________________________________________________]

General description of real property on which labor was performed or material furnished:

[____________________________________________________________]

[____________________________________________________________]

General description of the undersigned lien claimant's contract, including the names of the parties:

[____________________________________________________________]

[____________________________________________________________]

Amount of lien upon funds claimed pursuant to the above-described contract:

$[________________]

The undersigned lien claimant gives this notice of claim of lien upon funds pursuant to North Carolina law and claims all rights of subrogation to which the claimant is entitled under Part 2 of Article 2 of Chapter 44A of the General Statutes of North Carolina.

Dated: [__/__/____]

Lien Claimant: ______________________________________

Address: [____________________________________________________________]

Signer name and capacity: [________________]

4. More-Remote-Than-Third-Tier Statutory Draft

Delete this section unless counsel confirms the claimant is more remote than the third tier.

NOTICE OF CLAIM OF LIEN UPON FUNDS BY SUBCONTRACTOR MORE REMOTE THAN THE THIRD TIER

To the person holding funds against which the lien upon funds is claimed:

Name and address: [____________________________________________________________]

General description of real property on which labor was performed or material furnished:

[____________________________________________________________]

[____________________________________________________________]

General description of the undersigned lien claimant's contract, including the names of the parties:

[____________________________________________________________]

[____________________________________________________________]

Amount of lien upon funds claimed pursuant to the above-described contract:

$[________________]

The undersigned lien claimant gives this notice of claim of lien upon funds pursuant to North Carolina law and claims all rights to which the claimant is entitled under Part 2 of Article 2 of Chapter 44A of the General Statutes of North Carolina.

Dated: [__/__/____]

Lien Claimant: ______________________________________

Address: [____________________________________________________________]

Signer name and capacity: [________________]

5. Service and Filing Control

Section 44A-19(d) directs service on the obligor by personal delivery or a method authorized by Rule 4 of the North Carolina Rules of Civil Procedure. Counsel must select and document the particular authorized method.

Section 44A-19(e) generally says the notice is not filed, indexed, docketed, or recorded to affect real-property title. Its listed filing exceptions require separate counsel review. Do not send this notice to the clerk merely to create a public record.

☐ Current Rule 4 method and completion requirements were verified.

☐ Service evidence is retained.

☐ Any statutory filing exception was identified and separately documented.

6. Obligor and Follow-Up Record

Section 44A-20(a) ties the retention duty to the obligor's receipt of the notice and to funds subject to the lien, up to the total noticed lien amount.

This notice does not create a private five-day cure period, interest-bearing escrow, construction-lender freeze, claimant-selected bond, indemnity, liability cap, forum clause, arbitration ban, jury waiver, or consent to injunctive relief.

Final Counsel Checklist

☐ Claimant tier, contract chain, obligor, subrogation parties, property, and amount were verified.

☐ The correct current § 44A-19 form was selected and the unused form was deleted.

☐ Every required name, address, property description, contract description, and amount is complete.

☐ The notice is directed and served according to current law rather than generic certified-mail language.

☐ Filing was avoided unless a current statutory exception applies.

☐ Related funds-lien, real-property-lien, public-work, bond, discharge, payment, and enforcement routes were separately analyzed.

☐ No notary block, private default, cure period, lender demand, fee clause, indemnity, cap, force majeure, waiver, or contract boilerplate remains.