NC General Statutes

N.C. Gen. Stat. § 44A-3 (2026)

When lien arises and terminates

✓ current as of July 2026
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Liens conferred under this Article arise only when the lienor acquires possession of the property and terminate and become unenforceable when the lienor voluntarily relinquishes the possession of the property upon which a lien might be claimed, or when an owner, his agent, a legal possessor or any other person having a security or other interest in the property tenders prior to sale the amount secured by the lien plus reasonable storage, boarding and other expenses incurred by the lienor.  The reacquisition of possession of property voluntarily relinquished shall not reinstate the lien.  Liens conferred under this Article do not terminate when the lienor involuntarily relinquishes the possession of the property. (1967, c. 1029, s. 1; 1991, c. 344, s. 3, c. 731, s. 2.)

 

Notes of Decisions
Cited in 11 cases, 1975–2003 · leading case: Griffin v. Holmes, 843 F. Supp. 81 (E.D.N.C. 1993).
Griffin v. Holmes, 843 F. Supp. 81 (E.D.N.C. 1993). · cites it 3× “A separate statute, N.C.G.S. § 44A-3, declares that a lienor has an enforceable lien only as long as he has possession of the property subject to the lien.”
Peace River Elec. Coop., Inc. v. Ward Transformer Co., 449 S.E.2d 202 (N.C. Ct. App. 1994). · cites it 2× “See N.C. Gen. Stat. § 44A-3 (1989 & Cum. Supp.”
Adder v. Holman & Moody, Inc., 219 S.E.2d 190 (N.C. 1975). · cites it 2× “Plaintiff's automobile was not wrongfully taken into possession nor was it wrongfully held since defendant's lien under G.”
Paccar Fin. Corp. v. Harnett Transfer, Inc., 275 S.E.2d 243 (N.C. Ct. App. 1981). · cites it 2× “G.S. 44A-3 (1976). 2 Neither, in equity, should payment one minute later.”
Caesar v. Kiser, 387 F. Supp. 645 (M.D.N.C. 1975). · cites it 2× “North Carolina General Statutes § 44A-3 provides: When lien arises and terminates.”
North Carolina Farm Bureau Mut. Ins. v. Weaver, 517 S.E.2d 381 (N.C. Ct. App. 1999). · cites it 2× “1(a) (1995) addresses steps to be taken by a lienor where possession of a vehicle was not voluntarily released: When a lienor involuntarily relinquishes possession of the property and the property upon which the lien is claimed is a motor vehicle or vessel, the lienor may…”
In Re Aerospace Tech., Inc., 199 B.R. 331 (Bankr. M.D.N.C. 1996). · cites it 2× “Pursuant to N.C.Gen.Stat. § 44A-3, such lien arises when the lien- or acquires possession of the property and terminates and becomes unenforceable when the lienor voluntarily relinquishes the possession of the property or when an owner, his agent, a legal possessor or any other…”
Old Salem Foreign Car Serv., Inc. v. Webb, 582 S.E.2d 673 (N.C. Ct. App. 2003). · cites it 2× “See N.C. Gen. Stat. § 44A-3 (2001) (stating that “[l]iens conferred under this Article do not terminate when the lienor involuntarily relinquishes the possession of the property.”
Case v. Miller, 315 S.E.2d 737 (N.C. Ct. App. 1984). “G.S. 44A-3. Here, possession of the vehicles was surrendered in obedience to a court order directing their sale; and obedience to court orders does not work a forfeiture of one’s rights.”
Triad Int'l Maint. Corp. v. Guernsey Air Leasing, Ltd., 178 F. Supp. 2d 547 (M.D.N.C. 2001). · cites it 14× “More particularly, pursuant to N.C. Gen. Stat. § 44A-3, mechanic’s liens only arise “when the lienor acquires possession of the property” in which the interest is claimed.”
Adder v. Holman & Moody, Inc., 214 S.E.2d 227 (N.C. Ct. App. 1975). · cites it 2× “See G.S. 44A-3. Possession is necessary to the existence of the lien.”
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