Bill Summary for H 707 (2017-2018)

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Summary date: 

Apr 26 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
House Bill 707 (Public) Filed Monday, April 10, 2017
AN ACT TO MAKE VARIOUS CHANGES TO THE STATUTES GOVERNING LIEN AGENTS FOR THE PURPOSE OF PROVIDING FOR THE CANCELLATION AND RENEWAL OF A NOTICE TO LIEN AGENT.
Intro. by Jordan, Stevens, B. Turner.

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Bill summary

House committee substitute makes the following changes to the 1st edition.

Changes the act's long title.

Modifies and adds to the proposed additions to GS 44A-11.2 and now provides as follows.

Establishes that when a potential lien claimant has filed a Notice to Lien Agent for any improvement to real property comprising of one- or two- family dwellings subject to GS 44A-11.1, and has received final payment satisfactory to resolve the Notice to Lien Agent previously filed, the potential lien claimant is required to cancel the Notice to Lien Agent within a reasonable time ( previously, 15 days) of receipt of final payment by using the website approved by the designated lien agent. Additionally permits a potential lien claimant to cancel a Notice to Lien Agent by using the website approved by the designated lien agent for any reason at any time (previously, did not specify by approved website). Deletes provisions detailing information that must be included in the cancellation. Provides that a Notice to Lien Agent cancelled pursuant to this provision has the effect of cancelling and discharging the Notice to Lien Agent and the corresponding protections provided under the statute. Adds that cancelling a Notice to Lien Agent pursuant to this provision does not cancel a claim of lien on real property filed or affecting priority of lien rights pursuant to the statute. 

Establishes that a Notice to Lien Agent that is not otherwise cancelled or renewed pursuant to the statute expires and is discharged five years from the date of filing. Provides that a Notice to Lien Agent can be renewed prior to its cancellation or automatic expiration for one five-year period by using the website approved by the designated lien agent. Renewal extends the date of expiration by five years, with the renewal maintaining and relating back to the original filing date of the Notice to Lien Agent (previously, not provided for). Clarifies that if the Notice to Lien Agent is cancelled or automatically expires and a later Notice to Lien Agent is filed by the potential lien claimant for improvements to the same real property, the later notice only has the protections provided from the date of the filing of the later notice and the later notice does not relate back to or renew the cancelled filing. 

Makes organizational changes.

Makes technical changes to proposed subdivision (9) in GS 58-26-45(b).

Changes the effective date of the act to October 1, 2018 (was, January 1, 2018).