Virgin Islands Mechanic's Lien Release Bond
A Virgin Islands mechanics lien release bond is a legal method of discharging a lien placed by a party that performs work or furnishes labor, materials or provides services as a general contractor. Virgin Islands Code (Title 28, Chap. 12, §260) affords lien rights to a property owner, any party with ownership interest or a contractor that disagrees with labor or material supplier's claim.
Pursuant to VI Code, an owner or any original contractor or subcontractor that disputes the validity of any claim of lien may record in the office of the recorder in which the notice of lien was filed notice of a mechanic's lien release bond executed by a surety company authorized to issue surety bonds in the Virgin Islands. the VI lien discharge bond must be issued in a penal sum equal to on less than one hundred fifty percent (1½ times) the amount of the claim. The bond shall be conditioned for the payment of any sum which the lien claimant may recover on the claim together with costs of suit. Upon the recording of a lien release bond the real property described in the instrument is immediately released from the lien and from any action brought to foreclose on such lien. The principal of the surety bond may be the owner of the property, an owner of any interest therein, an original contractor, subcontractor, or subsubcontractor affected by the lien claim. The bond principal must mail a copy of the lien release bond by registered or certified mail to the lien claimant.
*The Territory of the Virgin Islands requires specific statutory language be included in the surety bond to release a mechanic's lien. We manuscript these surety obligations on a bespoke basis.
Virgin Islands surety bond leader, Surety One, Inc. is THE most agile underwriter of mechanic's lien discharge bonds. Our expertise in drafting surety bonds acceptable to the district courts, same day bond execution and delivery are unparalleled. We underwrite mechanic's lien release 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 Virgin Islands mechanic's lien releas bond or any other surety need.
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