You need to consult a NC construction attorney. Depending upon the specific law in your jurisdiction, you probably need to make a demand on the contractor to indemnify you and remove the lien. Practically speaking, if the contractor has no money to remove the lien, you're going to have to fund the fight yourself. A competent construction specialist will be able to tell you if the lien is valid and whether all required procedural steps have been followed for the material supplier to have a valid lien. You should also closely read the fund control agreement that you had with the credit union to determine whether it was their responsibility to obtain all releases and waivers prior to funding payments. if the credit union dropped the ball, make a demand on them to get the lien released as well.
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