A Maryland mechanics lien release bond is a method of "bonding off" a lien placed by contractor where a complaint has been filed by a lien claimant. As the statute presupposes the existence of open litigation, a motions procedure is contemplated. Pursuant to MD Rules, Rule 12-304, "(4) Bond by Plaintiff. In an interlocutory order entered under subsection (2) of this section, the court may require the plaintiff to file a bond in an amount that the court determines to be sufficient for damages, including reasonable attorney's fees."
Per Rule 12-307, after a complaint to establish a mechanics' lien has been filed, the owner of the parcel of real property or any other person interested in the same may move the court to have the lien discharged after having been established by court order. Unless a Maryland lien release bond amount has previously been fixed pursuant to Rule 12-304, the court must determine the amount of surety bond. The bond must be sufficient to "protect the plaintiff." Upon the filing of the bond the court must enter an order releasing the property.
*The State of Maryland requires statutorily specific language be included in the bond to release a mechanic's lien.
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