§ 44A-21. Pro rata payments. - North Carolina Statutes

§ 44A‑21.  Pro ratapayments.

(a)        Where the obligoris a contractor or subcontractor and the funds in the hands of the obligor andthe obligor's personal liability, if any, under G.S. 44A‑20 are less thanthe amount of valid liens upon funds that have been received by the obligorunder this Article, the parties entitled to liens upon funds shall share thefunds on a pro rata basis.

(b)        Where the obligoris an owner and the funds in the hands of the obligor and the obligor'spersonal liability, if any, under G.S. 44A‑20 are less than the sum ofthe amount of valid claims of liens upon funds that have been received by theobligor under this Article and the amount of the valid claims of liens on realproperty upon the owner's property filed by the subcontractors with the clerkof superior court under G.S. 44A‑23, the parties entitled to liens uponfunds and the parties entitled to subrogation claims of liens on real propertyupon the owner's property shall share the funds on a pro rata basis. (1971, c. 880, s. 1; 1998‑217,s. 4(d); 2005‑229, s. 1.)