A New York mechanic's lien release bond is a mechanism for removing a mechanic's lien from a parcel of real property. Contemplated under New York's Lien Law Section 19(4), a "discharge bond" properly executed and filed with the county clerk with whom the lien is recorded. Upon recording, the mechanic's lien "attaches" to the bond and therefore removed from the property. State statue requires that the surety bond be written in an amount equal to 110% of the lien amount, and issued by a surety company licensed to conduct business in the State of New York. Either the property owner or general contractor/contract manager can seek bonding, although many contractor-managed projects are secured by payment bonds which guard against mechanic's liens (see more about payment bonds at "learn"). Bear in mind that posting of a New York mechanic's lien release bond does NOT extinguish certain obligations that were created by the original controversy and the resultant lien. You may learn more about the New York Appellate Court's position on lien bonding by reviewing Holt Construction Corporation v. Grand Palais, LLC.
The surety bond application process is simple. A bond can be reviewed, quoted and issued within hours. Generally surety will require a complete application, copy of the lien and premium payment. Mechanic's lien bonds generally also require the support of collateral security with few exceptions. Premium and collateral terms are based on the amount of the bond rather than the amount of the claim.
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Surety bond application review and quoting are free of charge. There is no obligation to purchase.