Utah Mechanic's Lien Release Bond

Bond Penalty: 150%, 175% or 200% of claim pursuant to statute

An Utah mechanic's lien release bond under 38-1a-804 Utah Code is an immediate and effective remedy to lien liability against a parcel of real property. Pursuant to Section (1), the lien discharge bond mechanism is available to any, "owner of any interest in a project property that is subject to a recorded preconstruction or construction lien, or any original contractor or subcontractor affected by the lien, who disputes the correctness or validity of the lien". The surety bond amount (penalty) required by law is tiered based on the amount of the claim. Utah lien release bond formulas:

  • 150% of the amount claimed by the claimant under the preconstruction or construction lien or as determined under Subsection (7), if the lien claim is for $25,000 or more.
  • 175% of the amount claimed by the claimant under the preconstruction or constructionlien or as determined under Subsection (7), if the lien claim is for at least $15,000 but less than $25,000.
  • 200% of the amount claimed by the claimant under the preconstruction or construction lien or as determined under Subsection (7), if the lien claim is for less than $15,000.

Upon filing of the notice of release of lien and substitution of alternate security under the real property described in the notice is released from the preconstruction lien or construction lien. The party filing the notice must serve a copy of the notice, together with any attachments within 30 days upon the claimant. If however a suit is pending to foreclose on the preconstruction or construction lien at the time that the bond and notice is served on the claimant then the claimant must add the alternate security as a party to the lien foreclosure suit within ninety days after the receipt of the notice. Failure to serve the claimant extends the claimant's right to collect by two years!

The Utah mechanics lien release bond as attached to a notice of release of lien is discharged and the surety released from its obligation if one or more of five actions are not taken by the claimant. The causes for exoneration are found in Section (5) of the lien release bond statute.

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

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What We Need From You

Additional Attachments

  • Copy of lien.