Understanding New York Lien Law § 19(4): Bonding Off a Mechanic’s Lien
New York Lien Law § 19(4) provides property owners and contractors with a legal mechanism to bond off a mechanic’s lien. This process involves filing a surety bond with the court to discharge the lien from the property, transferring the lienholder’s claim to the bond itself.
Under § 19(4), the bond must be for at least 110% of the lien amount to cover potential interest and legal fees. Once the bond is filed and approved by the court, the lien is removed from the property’s title, allowing the owner to sell, refinance, or continue construction without the encumbrance of the lien.
The significance of New York Lien Law § 19(4) lies in its ability to protect both property owners and lienholders. For property owners, it offers a way to clear the title and avoid foreclosure. For lienholders, it ensures that their claim remains secured by the bond, providing a clear path for them to recover the debt if their claim is upheld.
Navigating the process of bonding off a lien under § 19(4) can be complex, but with the right guidance and understanding of the law, it can be a powerful tool in managing lien disputes.
Jennifer Spinning, Principal
New York Bond Filing Agent
212-500-1229 / Info@NewYorkBondFiling.com
www.NewYorkBondFiling.com
50 East 42nd Street – 26th FL
New York, NY 10017
https://www.linkedin.com/company/new-york-bond-filing-agent
