A North Dakota mechanic’s lien release bond is a valuable tool for property owners that find themselves impeded by a mechanic’s lien. Also known as a construction lien bond, this remedy is available to a property owner or any party with a “substantial interest” in the property. The process for “bonding off a lien” requires the owner to prepare an application to the district court for the county in which the mechanic’s lien was filed. The applicant must prepare an affidavit describing in sufficient detail the applicant’s ownership interest and clearly stating that said owner/applicant has a defense against collection on the lien or part thereof, that there exists a controversy between the applicant and lienholder as to the validity and/or amount of the lien, and an affirmative statement the the applicant wishes to discharge the lien. The lien discharge bond protocol is not available to contractors therefore the owner or party with sufficient interest must make the filing.
With the affidavit and application filing the applicant must provide a North Dakota mechanic’s lien release bond. The surety bond must be manuscripted to include the venue, identify the parties, name the appropriate beneficiary, lien recording detail, and a that the surety guarantees payment in full of the lien claim and legal costs up to the penal sum of the surety bond should the applicant not prevail in a civil action on collection. The state statute (NDCC 35-21-02) requires the surety bond to be equal to no less than the amount of the lien and executed by two sureties (unless one is a licensed corporate surety company. A copy of the bond and application must be served on the lienholder personally or by registered mail. The lienholder is afforded a seven day period to object to the sufficiency of the sureties. If an objection is filed, then a hearing is docketed. If the lienholder raises no objection then the clerk of district court files an order discharging the lien and enters the same into the North Dakota electronic property index, clearing the lien from the property.
North Dakota surety bond leader, Surety One, Inc. is THE most agile and service-oriented underwriter of surety bonds in the nation. Our experience in manuscripting bond forms, same day underwriting, immediate bond execution and delivery are unmatched. No other surety brokerage has the underwriting authorities that we do. Visit our contact page at https://suretyone.com, call (800) 373-2804, or email Underwriting@SuretyOne.com for application materials and assistance with your North Dakota Mechanic’s lien release bond or any other surety need.
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