North Carolina General Statutes 22B-5. Waiver of liens or claims as a condition of progress payment invalid
(a) Provisions in lien waivers, releases, construction agreements as defined in N.C. Gen. Stat. § 22B-1(f)(1), or design professional agreements as defined in N.C. Gen. Stat. § 22B-1(f)(5) purporting to require a promisor to submit a waiver or release of liens or claims as a condition of receiving interim or progress payments due from a promisee under a construction agreement or design professional agreement are void and unenforceable unless limited to the specific interim or progress payment actually received by the promisor in exchange for the lien waiver.
(b) This section does not apply to the following:
(1) Lien waivers or releases for final payments.
Terms Used In North Carolina General Statutes 22B-5
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- in writing: may be construed to include printing, engraving, lithographing, and any other mode of representing words and letters: Provided, that in all cases where a written signature is required by law, the same shall be in a proper handwriting, or in a proper mark. See North Carolina General Statutes 12-3
- Lien: A claim against real or personal property in satisfaction of a debt.
(2) Agreements to settle and compromise disputed claims after the claim has been identified by the claimant in writing regardless of whether the promisor has initiated a civil action or arbitration proceeding. (2022-1, s. 3(a).)