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A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A creditor or a legal judgment could establish a lien. A lien serves to guarantee an underlying obligation, such as the repayment of a loan.
A mechanics lien uses the property itself as security for the payment, but a contractors lien rights can also be affected by certain types of bonds. Because liens cant be filed on publicly owned property, payment bonds are used to protect contractor and supplier payment rights on government construction projects.
Hawaiis Mechanics and Materialmans Lien statute provides for such remedy. Any person claiming a mechanics or materialmans lien is required to apply to the circuit court where the property is situated. Such person must submit an Application For a Lien together with a written Notice of Lien.
The cost for these bonds is between 2-3% of the value of the lien inclusive of court costs. So if a mechanics lien is filed for $500,000.
The process of bonding off a mechanics lien starts after a claimant has filed a mechanics lien. After the claim is made, a general contractor or a property owner can contact a surety bond company to purchase a surety bond that replaces the value of the lien that was filed against the property.
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In Utah, an action to enforce a mechanics lien (both pre-construction or construction) must be initiated within 180 days of the date on which the Notice of Lien was filed.
After demand and refusal of the amount due or upon neglect to pay same upon demand, the lien may be enforced by action filed in the circuit court of the circuit in which the property is situated.
The unpaid lien will stay on your credit report for 10 years after it is filed. After paying it off, it may stay on your credit history for up to seven years.
New York Lien Law 20 provides that an owner may discharge a mechanics lien by the payment of money into court. Before a lien foreclosure action is commenced, the discharge is effectuated by depositing with the county clerk a payment equal to the amount claimed in the lien, with interest to the time of the deposit.
According to the Daily Herald, the only people who can place a lien on your home are those who have done work or otherwise contributed to the value of your home. For example, contractors and suppliers could place a lien if you do not pay them. Other creditors, though, usually cannot put a lien on your property.

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