In the past, I’ve discussed the Discharge of Mechanics Lien bonds in the state of New York and the various counties of New York. Today, I’m going to talk about the filing process which falls outside of what a bonding agency handles, which is necessary and pursuant to the statute in New York. We will focus on New York County and Queens County for this example.
As of August 2022, in Queens County, the filing of the Discharge Mechanic’s Lien by bond is required to be done electronically, but this could be subject to change. The filing should comply with the statute and all of its requirements.
In New York County, the bond filing must include the original bond. Separately, there needs to be either an affirmation or affidavit in support of the discharge and lien by bond. If it’s an affirmation executed by an attorney, certain things need to be included. The affirmation should clearly lay out who is filing the bond, and why. If it’s a general contractor, lessee, tenant, or property owner, that should be spelled out. If a subcontractor, the lien must be referenced in the exact amount. The property address must be referenced along with the block and lot, the amount of the bond, and the surety licensed to do business in the state of New York.
Additionally, you must reference Section 19(4) of the New York Lien Law, which provides for a discharge of lien for a private improvement through the execution of a bond by any surety authorized by the bylaws of the State of New York to transact business.
Section 19 further provides that such bond be conditioned upon the payment of any judgment which may be rendered against the property for the enforcement of the lien. The applicant or petitioner must respectfully request that the Clerk of the Court discharge the lien according to New York Lien Law 19(4) upon the filing of an undertaking with the New York County Clerk, which shall cancel and discharge the lien of record and enter an appropriate entry for the discharge thereof upon the lien docket and all indices.
Now, this affirmation/ affidavit is in addition to the bond, but I discuss and mention it because every bond filed for a Discharge of Mechanics Lien in New York County requires one along with a full copy of the lien, not a partial copy, to be included in the affirmation. A copy of the bond must also be included in addition to the original, and finally an affidavit of service. This whole package needs to be served on the lienor via certified mail, an original proof of the service via certified mail must be included in this package.
And if it’s an affirmation signed by an attorney, language should be included similar to an attorney duly admitted in the Courts of the State of New York affirms the following to be valid under penalties of perjury according to CPLR Rule 2106.
So, the filing process for a Discharge of Mechanics Lien in the state of New York is not straightforward, but what you can do is use an expert. Contact us to pick our brains. We do not handle the filing, but we can point you in the right direction to a company that can.
Neil Pedersen
PEDERSEN & SONS SURETY BOND AGENCY, INC.
15 Maiden Lane Suite #800
New York, NY, 10038
212-227-7277
800-720-7277
neil@courtbondnow.com
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