S.L. 1963-1085

NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

CHAPTER 1085

SENATE BILL 397

AN ACT TO AMEND PART 3 OF ARTICLE 3 OF CHAPTER 108 OF THE GENERAL STATUTES TO CREATE A LIEN ON REAL PROPERTY OF RECIPIENTS OF AID TO THE PERMANENTLY AND TOTALLY DISABLED.

The General Assembly of North Carolina do enact:

Section 1. Part 3 of Article 3 of Chapter 108 of the General Statutes is hereby amended by adding three new Sections immediately following G.S. 108-73.12, to be numbered G.S. 108-73.12.1, G.S. 108-73.12.2, G.S. 108-73.12.3, and to read as follows:

"G.S. 108-73.12.1. Lien on Real Property. There is hereby created a general lien, enforceable as hereinafter provided, upon the real property of any person who is receiving or who has received aid to the permanently and totally disabled, to the extent of the total amount of such assistance paid to such recipient from and after October 1, 1963. Before any application for aid to the permanently and totally disabled is approved under the provisions of this Article, the applicant shall agree that all such assistance paid to him shall constitute a claim against him and against his estate, enforceable according to law by any county paying all or part of such assistance. Such agreement may be contained in the application signed by the applicant. Immediately after the approval of an aid to the permanently and totally disabled grant, a statement showing the name of the recipient and the date of approval of the application shall be filed in the office of the Clerk of the Superior Court in the county of residence of the recipient and in each county in which such recipient then owns or later acquires real property. The statement shall be filed in the regular lien docket, showing the name of the county filing said statement as claimant, or lienor, and the name of the recipient as owner, or lienee, and same shall be indexed in the name of the lienee in the defendants', or reverse alphabetical, side of the cross-index to civil judgments; in said index the county shall appear as plaintiff, or lienor; no cross-index in the name of the county, or lienor, shall be required. From the time of filing, such statement shall be and constitute due notice of a lien against the real property then owned or thereafter acquired by the recipient and lying in such county to the extent of the total amount of aid to the permanently and totally disabled paid to such recipient from and after October 1, 1963. The lien thus established shall take priority over all other liens subsequently acquired and shall continue from the date of filing until satisfied: Provided, that no action to enforce such lien may be brought more than ten (10) years from the last day for which assistance is paid nor more than three (3) years after the death of any recipient and the failure to bring such action within said time shall be a complete bar against any recovery and shall extinguish the lien: Provided further, that no execution in enforcement of the lien shall be levied upon any real property, so long as such property is occupied as a homesite by the surviving spouse or by any minor dependent child of such recipient, or as a homesite by the recipient, or a dependent adult child of such recipient who is incapable of self-support because of total mental or physical disability: Provided, further, that the board of county commissioners and the county board of public welfare of the county in which the recipient resides, acting jointly and after investigation, shall have the authority to subordinate any lien created by this Section to a mortgage or lien created against the property of such recipient for the necessary repairs or improvements on said property, whether title to said property is held by the recipient alone or by the entirety with his or her spouse.

"The State Board of Public Welfare shall furnish to the county director of public welfare forms to be used which shall contain such information as is required to carry out the provisions of this Section and such other information as may be prescribed by the said Board.

"Each county department of public welfare shall notify all persons shown of record to be recipients of aid to the permanently and totally disabled as of the date of notice that all aid to the permanently and totally disabled grants paid from and after October 1, 1963, shall constitute a lien against the real property and a claim against the estate of each recipient. The notice may be given by letter mailed to the last known address of each recipient, but failure to give such notice shall not affect the validity of the lien.

"Upon receipt of a statement signed by the director of public welfare, setting forth the total amount of aid to the permanently and totally disabled paid to a recipient from and after October 1, 1963, the Clerk of the Superior Court may, after reasonable notice to the county attorney within the same calendar month in which said statement was executed, accept payment of the total sum set forth in said statement, tendered by said recipient or in his behalf, and cancel the lien of record. The Clerk of the Superior Court shall, within the same calendar month, give the director of public welfare notice of the receipt of such payment and of the cancellation of the lien, and shall hold or disburse the funds so received as provided by law.

"G.S. 108-73.12.2. Action to be Taken Upon Termination of Assistance. The county department of public welfare shall, within six (6) months after the termination of an aid to the permanently and totally disabled grant by reason of death or otherwise, examine the case record of such recipient, the tax records of the county, and, in case of termination because of death, the records relating to executors, administrators, collectors, or other personal representatives. If it appears from this examination or from any other information which has come to the attention of the department, (i) that such recipient does not own, or has not owned since the date of the filing of the aid to the permanently and totally disabled lien against such recipient's realty, any real property, and (ii) that such recipient does not own nor his estate consist of any personal property in excess of one hundred dollars ($100.00), and (iii) in the case of termination because of death, that no executor, administrator, collector or other personal representative has been appointed, an entry shall be made in the case record reflecting the results of this examination. If it appears from this examination, from a subsequent examination, or from any other information which may come to the attention of the department, (i) that such recipient does own, or has owned since the date of the filing of the aid to the permanently and totally disabled lien against such recipient's realty, any real property, or (ii) that such recipient does own or his estate consists of personal property of a value in excess of one hundred dollars ($100.00), or (iii) in case of termination by death, that an executor, administrator, collector, or other personal representative has been appointed, then the department shall furnish to the county attorney all available information concerning the property of the recipient, the name of the spouse of the recipient, the township in which the recipient resides or resided, the race of the recipient, the total amount of aid to the permanently and totally disabled received by the recipient from and after October 1, 1963, by or through the State and the several counties thereof, and the reason for termination of the aid to the permanently and totally disabled grant. Upon receipt of this information, the county attorney shall take such steps as he may determine to be necessary to enforce the claim or lien herein provided. If it be made to appear to the Clerk of the Superior Court that the personal property of the estate of a deceased recipient of aid to the permanently and totally disabled does not exceed one hundred dollars ($100.00) in value, a personal representative of such deceased recipient shall not be a necessary party to an action to enforce the aid to the permanently and totally disabled lien against such recipient's realty. Any funds remaining after satisfaction of such lien shall be paid into the office of the Clerk of the Superior Court.

"The claim against the estate of a recipient herein provided for shall have equal priority in order of payment with the sixth class under § 28-105 of the General Statutes: Provided, that no such claim shall be satisfied out of any real property in which the recipient had any legal or equitable interest so long as such property is occupied as a homesite by the recipient, the surviving spouse, any minor dependent child of such recipient, or by a dependent adult child of such recipient who is incapable of self-support because of total mental or physical disability.

"G.S. 108-73.12.3. Funds Recovered. The United States and the State of North Carolina shall be entitled to share in any sum collected under the provisions of this Article, and their proportionate parts of such sum shall be determined in accordance with the matching formulas in use during the period for which assistance was paid to the recipient. The county enforcing the claim as herein provided and any other county within the State which has paid aid to the permanently and totally disabled to such recipient shall share proratably in any sum collected. All sums collected shall be deposited in the county aid to the permanently and totally disabled fund and a report of such deposit made to the State Board of Public Welfare. All sums to which the United States or the State of North Carolina may become entitled under the provisions of this Article shall be promptly paid or credited. All such sums to which the State may become entitled shall be deposited in the State Aid to the Permanently and Totally Disabled Fund and shall become a part of that fund.

"All necessary costs incurred in the collection of any claim shall be borne proratably by the United States, the State, and the county in proportion to the share of the sum collected to which each may be entitled: Provided, that neither the United States nor the State shall in any instance be chargeable for cost in excess of the sum received by it from the claim. Necessary costs of collection of any claim shall include all costs of services in the filing, processing, investigation, and collection of such claim."

Sec. 2. All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3. This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 21st day of June, 1963.