North Carolina Lien Forms
General Notice of Lien Upon Funds
A subcontractor or supplier may deliver a Notice of Lien Upon Funds to any party “up the contract chain” once payment is owed to them. Delivery of this notice “freezes” the funds in the hands of the party holding said funds. If they distribute the funds in spite of the notice, the distributing party may be personally liable to the notifying party. If the wrongful payment is made by the property owner, this allows the sub or supplier to file a lien against the property.
Further, while this notice is not required, it is required prior to the filing of a lien by a sub or supplier. And while there is no time requirement for when the notice should be filed, it is only effective against funds being held. As such, time is of the essence.