(a) Where the obligor is a contractor or subcontractor and the funds in the hands of the obligor and the obligor’s personal liability, if any, under N.C. Gen. Stat. § 44A-20 are less than the amount of valid liens upon funds that have been received by the obligor under this Article, the parties entitled to liens upon funds shall share the funds on a pro rata basis.

(b) Where the obligor is an owner and the funds in the hands of the obligor and the obligor’s personal liability, if any, under N.C. Gen. Stat. § 44A-20 are less than the sum of the amount of valid claims of liens upon funds that have been received by the obligor under this Article and the amount of the valid claims of liens on real property upon the owner’s property filed by the subcontractors with the clerk of superior court under N.C. Gen. Stat. § 44A-23, the parties entitled to liens upon funds and the parties entitled to subrogation claims of liens on real property upon the owner’s property shall share the funds on a pro rata basis. (1971, c. 880, s. 1; 1998-217, s. 4(d); 2005-229, s. 1.)