§ 40A-68. Acquisition of property subject to lien. - North Carolina Statutes

§40A‑68.  Acquisition of property subject to lien.

Notwithstanding the provisionsof an agreement, if any, relating to a lien encumbering the property:

(1)        If there is apartial taking, the lienholder may share in the amount of compensation awardedonly to the extent determined by the commissioners or by the jury or by thejudge to be necessary to prevent an impairment of his security, and the lienshall continue upon the part of the property not taken as security for theunpaid portion of the indebtedness until it is paid; and

(2)        Neither thecondemnor nor owner is liable to the lienholder for any penalty for prepaymentof the debt secured by the lien, and the amount awarded by the judgment to thelienholder shall not include any penalty therefor. (1981, c.  919, s. 1.)