Bond a Mechanic’s Lien, also known as Discharging a Lien by Bond / Release of Lien Bond / Bonding Off a Lien.

New York Lien Law § 19(4), a Bond Discharge is a mechanism for temporarily removing a Mechanic's Lien from the title of the property. The property owner or contractor can file a Bond against the Mechanic's Lien. A Bond deposits 110% the value of the Lien with the courts. 

The bond guarantees the Lienor any payment that is still due to them with interest should they win the case in a court of law.

The filing of a mechanic’s lien can help contractors secure their right to payment. However, it can also cause hardship for owners and higher-tier contractors if the lien claim is unjustified. The New York Lien Law provides several mechanisms to discharge a mechanic's lien before or during litigation.

I. Bond to Discharge a Lien

Under New York Lien Law, a lien can be discharged by filing a bond securing up to 110% of the amount claimed. A mechanic’s lien discharge bond is executed by the principal, who requests the bond, and the surety, a financial services company that guarantees payment if the lien claim is proved. 

When a mechanic's lien is discharged by the filing of a bond, the bond stands in place of the real property or fund against which the lien was filed. An owner, who would be a necessary party in a lien foreclosure action, is not a necessary party once the lien has been bonded. Instead, the lienor may name the surety as a defendant, ensuring there is a solvent party to pay the judgment if the lien claim is proved.

When a lien has been bonded, the commencement of an action to foreclose is sufficient to continue the lien, as well as the liens of other lienors properly joined as defendants. It is not necessary or proper to file a notice of pendency once a lien has been bonded, per Lien Law § 17. If a notice of pendency has been filed, the owner is entitled to an order canceling it.

Due to their speed and simplicity, lien discharge bonds are perhaps the most common method of discharging a lien. When a lien is filed, but an action is not promptly commenced to foreclose, a bond-and-wait strategy is often optimal. Lienors often fail to foreclose on mechanic’s liens, as it is simple and cheap to file a notice of lien but complicated and costly to prove the lien claim through a lawsuit. If the lienor fails to foreclose on its lien, the lien and bond become nullities, and the principal who procured the bond can get back any collateral paid to the surety.

If a Mechanic's Lien was filed against you; one option you have is to file a Bond Discharge against the Mechanic's Lien. The Bond temporarily removes a Mechanic's Lien from the title of the property. This gives the owner the ability to continuing financing the project. 

Once a Surety Bond is obtained, Speedy Lien handles the filing of the Bond with the proper jurisdiction and service upon the parties. 

Upon filing of the Bond, the Lien is removed from the property and now "attached" to the Discharge Bond. A Discharge of a Lien by bond or deposit is not an admission of guilt or fault

A Lien Discharge Bond is the most common and effective way of discharging a Lien. 

If a Lien was filed against you, you have the right to file a Bond Discharge a/k/a "Bonding Off" to temporarily remove the Lien Claim. 

See below for steps to file a Bond against a Lien.

Bonding off a Mechanic's Lien is a two step process.

The first step is obtaining the actual surety bond. This is handled through a surety company. The surety company will be able to advise on the cost to receive the actual bond. 

Once the Surety Bond is issued, Speedy Lien handles the filing of the actual Bond with the courts. 

If a Lien was Bonded, the Lienor still has the right to file a Foreclosure Action in the same manner as a Lien that has not been Bonded. 

An owner, who would be a necessary party in a lien foreclosure action, is not a necessary party once the lien has been bonded. Instead, the lienor may name the surety as a defendant, ensuring there is a solvent party to pay the judgment if the lien claim is proved.

Click here to File a Bond Discharge of Mechanic's Lien Now.

Once the Lien is Bonded off, the property title is free and clear of the Mechanic's Lien.

A Discharge of a Lien by bond or deposit is not an admission of guilt or fault and the lienor is not automatically entitled to payment. Additionally, the Lien must be enforced via enforcement for the lienor to recover from the fund.