Oklahoma Mechanic's Lien Release Bond

An Oklahoma mechanics lien release bond is a quick, helpful remedy to removing or "bonding off" a lien on real property. At any time discharge of a lien may be effectuated by depositing with the county clerk in whose office the lien claim has been filed either a surety bond equal to one hundred twenty-five percent (125%) of the lien claim amount. The party filing the lien release bond must prepare and deliver a notice to the county clerk and pay a fee in accordance with Section 32 of Title 28 of the Oklahoma Statutes. The notice may be "abbreviated" if the same refers to and encloses a copy of the lien claim and a copy of the of the bond with the clerk's filing stamp clearly apparent thereon. The notice must be delivered to the lienholder by registered or certified mail.

Pursuant to 42 OK Stat § 42-147.1 (2014), "if a bond is deposited, the lien claimant shall have ten (10) days after the notice is mailed within which to file a written objection with the county clerk. If a written objection is not timely filed the county clerk shall immediately show the lien released of record. If an objection is timely made, the county clerk shall set a hearing within ten (10) days thereafter and notify by ordinary mail both the lien claimant and the party making the deposit of the date and time thereof. The only grounds for objection shall be that:

• the surety is not authorized to transact business in this state;
• the bond is not properly signed;
• the penal amount is less than one hundred twenty-five percent (125%) of the claim;
• the power of attorney of the surety's attorney-in-fact does not authorize the execution;
• there is no power of attorney attached if the bond is executed by anyone other than the surety's president and attested by its secretary; or
• a cease and desist order has been issued against the surety either by the Insurance Commissioner or a court of competent jurisdiction.

Within two (2) business days following the hearing the county clerk shall either sustain or overrule the objections and notify the parties of the county clerk's ruling by ordinary mail. If the objections are sustained, the ruling of the county clerk shall be conclusive for lien release purposes unless appealed within ten (10) days to the district court. If the objections are overruled, the county clerk shall immediately show the lien released of record.

The Oklahoma mechanic's lien discharge bond must, "name the lien claimant as obligee and the party seeking the release as principal; be executed by both the principal and the surety; have a proper power of attorney attached if executed by an attorney-in-fact; be executed by a corporate surety authorized to transact business in this state; and be conditioned that the principal and surety will pay the full amount of the claim as established in any appropriate court proceeding, plus any court costs and attorney fees awarded the lien claimant."

Oklahoma surety bond leader, Surety One, Inc. is THE most responsive underwriter of lien release bonds in the U.S. Our expertise in drafting surety bonds acceptable to the county clerks, same day underwriting, immediate bond execution and delivery are unparalleled. We underwrite mechanic's lien discharge bonds in all fifty states, Puerto Rico and U.S. Virgin Islands. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat for application materials and assistance with your Oklahoma mechanic's lien release bond or any other surety need.

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Obligee's Bond Form