Section 19. Discharge of lien for private improvement  


Latest version.
  • A lien other than a
      lien for labor performed or materials furnished for a public improvement
      specified in this article, may be discharged as follows:
        (1) By the certificate of the lienor, duly acknowledged or proved  and
      filed  in the office where the notice of lien is filed, stating that the
      lien is satisfied or released as to the whole or a portion of  the  real
      property  affected  thereby  and  may be discharged in whole or in part,
      specifying the part. Upon filing such certificate, the county  clerk  in
      the  office  where the same is filed, shall note the fact of such filing
      in the "lien docket" in the column headed "Proceedings had" opposite the
      docket of such lien.
        (2) By failure to begin an action to foreclose such lien or to  secure
      an  order  continuing  it,  within  one year from the time of filing the
      notice of lien, unless an action be begun  within  the  same  period  to
      foreclose  a  mortgage or another mechanic's lien upon the same property
      or any part thereof and a notice of pendency of  such  action  is  filed
      according to law, but a lien, the duration of which has been extended by
      the  filing of a notice of the pendency of an action as herein provided,
      shall nevertheless terminate as  a  lien  after  such  notice  has  been
      cancelled or has ceased to be effective as constructive notice.
        (3)  By order of the court vacating or cancelling such lien of record,
      for neglect of the lienor to prosecute the  same,  granted  pursuant  to
      section fifty-nine of this chapter.
        (4)  Either before or after the beginning of an action by the owner or
      contractor executing a bond or undertaking in an  amount  equal  to  one
      hundred  ten  percent  of  such  lien conditioned for the payment of any
      judgment which may be rendered against the property for the  enforcement
      of the lien:
        a.  The  execution  of any such bond or undertaking by any fidelity or
      surety company  authorized  by  the  laws  of  this  state  to  transact
      business,  shall be sufficient; and where a certificate of qualification
      has been issued by the superintendent of insurance under the  provisions
      of section one thousand one hundred eleven of the insurance law, and has
      not been revoked, no justification or notice thereof shall be necessary.
      Any  such  company may execute any such bond or undertaking as surety by
      the hand of its  officers,  or  attorney,  duly  authorized  thereto  by
      resolution  of  its  board  of  directors,  a  certified  copy  of which
      resolution, under the seal of said company, shall  be  filed  with  each
      bond  or  undertaking.  Any such bond or undertaking shall be filed with
      the clerk of the county in which the notice of lien is filed, and a copy
      shall be served upon the adverse party.  The  undertaking  is  effective
      when  so  served  and  filed.  If  a certificate of qualification issued
      pursuant to subsections (b), (c) and (d) of  section  one  thousand  one
      hundred eleven of the insurance law is not filed with the undertaking, a
      party may except, to the sufficiency of a surety and by a written notice
      of  exception  served  upon  the  adverse  party  within  ten days after
      receipt, a copy of the undertaking. Exceptions deemed by  the  court  to
      have  been  taken  unnecessarily,  or  for  vexation or delay, may, upon
      notice, be set aside, with costs. Where  no  exception  to  sureties  is
      taken  within  ten  days  or  where  exceptions taken are set aside, the
      undertaking shall be allowed.
        b. In the case of bonds  or  undertakings  not  executed  pursuant  to
      paragraph  a  of this subdivision, the owner or contractor shall execute
      an undertaking with two or more sufficient sureties, who shall  be  free
      holders, to the clerk of the county where the premises are situated. The
      sureties  must  together justify in at least double the sum named in the
      undertaking. A copy of the undertaking, with notice  that  the  sureties
      will  justify  before  the  court, or a judge or justice thereof, at the
    
      time and place therein mentioned, must be served upon the lienor or  his
      attorney, not less than five days before such time. Upon the approval of
      the undertaking by the court, judge or justice an order shall be made by
      such court, judge or justice discharging such lien.
        c.  If  the  lienor  cannot  be found, or does not appear by attorney,
      service under this subsection may be made by  leaving  a  copy  of  such
      undertaking  and  notice  at  the  lienor's  place of residence, or if a
      corporation at its principal place  of  business  within  the  state  as
      stated  in  the  notice  of  lien,  with  a  person  of suitable age and
      discretion therein, or if the  house  of  his  abode  or  its  place  of
      business  is not stated in said notice of lien and is not known, then in
      such manner as the court may direct. The premises, if any, described  in
      the  notice of lien as the lienor's residence or place of business shall
      be deemed to be his said residence or its  place  of  business  for  the
      purposes  of  said  service  at  the  time  thereof,  unless it is shown
      affirmatively that the person servicing  the  papers  or  directing  the
      service  had  knowledge  to  the  contrary.  Notwithstanding  the  other
      provisions of this subdivision relating to service  of  notice,  in  any
      case  where  the mailing address of the lienor is outside the state such
      service may be made by registered  or  certified  mail,  return  receipt
      requested, to such lienor at the mailing address contained in the notice
      of lien.
        d. Except as otherwise provided in this subdivision, the provisions of
      article  twenty-five  of  the  civil  practice  law and rules regulating
      undertakings is applicable to  a  bond  or  undertaking  given  for  the
      discharge of a lien on account of private improvements.
        (5)  Upon  filing  in  the office of the clerk of the county where the
      property is situated, a transcript of a judgment of a court of competent
      jurisdiction, together with due proof of service of due notice of  entry
      thereof,  showing  a  final  determination of the action in favor of the
      owner of the property against which the lien was claimed.
        (6) Where it appears from the face of the  notice  of  lien  that  the
      claimant  has  no  valid lien by reason of the character of the labor or
      materials furnished and for which a lien is claimed, or  where  for  any
      other  reason  the  notice  of  lien  is invalid by reason of failure to
      comply with the provisions of section nine of this article, or where  it
      appears  from  the public records that such notice has not been filed in
      accordance with the provisions of section ten of this article, the owner
      or any other party in interest, may apply to the supreme court  of  this
      state,  or  to any justice thereof, or to the county judge of the county
      in which the notice of lien is filed, for an order summarily discharging
      of record the alleged lien. A copy of the papers upon which  application
      will  be  made  together  with  a  notice setting forth the court or the
      justice thereof or the judge to whom the application will be made  at  a
      time and place therein mentioned must be served upon the lienor not less
      than  five  days  before such time. If the lienor can not be found, such
      service may be made as the court,  justice  or  judge  may  direct.  The
      application  must  be made upon a verified petition accompanied by other
      written proof showing a proper case therefor, and upon the  approval  of
      the  application  by the court, justice or judge, an order shall be made
      discharging the alleged lien of record.