NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 959

HOUSE BILL 561

 

 

AN ACT TO PROVIDE FOR A LIEN TO BENEFIT STATE MENTAL HOSPITALS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Article 7 of Chapter 143 of the General Statutes is amended by adding a new Section following G.S. 143-126 to be designated "G.S. 143-126.1" to read as follows:

"(a)       There is hereby created a general lien, enforceable as hereinafter provided, on both the real and personal property of any person who is receiving or who has received care and maintenance in any of the State institutions listed in G.S. 143-117, to the extent of the total amount of the unpaid balance shown on the certified statement of account for charges from and after July 1, 1967.

"(b)      Such general lien for the unpaid balance for care and maintenance at the aforementioned hospitals shall apply alike to the property, both real and personal, of the patient whether held by the patient or a trustee or guardian of the patient.

"(c)       At a time deemed suitable in the discretion of the Board of Mental Health or its duly authorized agents, there may be filed a statement containing the following:

(1)        The name of the patient;

(2)        The inclusive dates of hospitalization and a statement that hospitalization is continuing if such is applicable;

(3)        The name of the hospital or hospitals providing care; and

(4)        The amount of the unpaid balance as evidenced by a certified statement of account.

"Such statement may be filed in the office of the Clerk of Superior Court in the county of residence of the patient and in each county or counties in which the patient owns an interest. The statement shall be filed and indexed by the Clerk.

"(d)      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 patient and lying in such county to the extent of the total amount of the unpaid balance for the patient's support and maintenance as evidenced by the certified statement of account for charges from and after July 1, 1967. Payments made by a fiduciary, including those made by a Clerk of Superior Court, in full or partial satisfaction of such lien, shall constitute a valid expenditure as provided in G.S. 143-119.

"(e)       The lien thus established shall take priority over all other liens subsequently acquired and shall continue from the date of filing until satisfied. No action to enforce such lien may be brought more than three years from the last date of filing of such lien nor more than three years after the death of any patient. The failure to bring such action or the failure of the Board or its agents to file said statement shall not be a complete bar against recovery but shall only extinguish the lien and priority thereby established.

"(f)       Upon receipt of the full unpaid balance of the State institution or Board of Mental Health or upon agreement of compromise of such unpaid balance, the Board of Mental Health or its duly authorized agents shall notify the Clerks of Superior Court who have recorded a lien and shall indicate that such unpaid balance has been paid and the Clerks shall cancel the lien of record."

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 27th day of June, 1967.