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Tuesday, November 4, 2014

NJSA 2A:44A-31 Filing of Surety Bond, Deposit, NJSA 2A:44A-32 Release, Discharge from Claim


2A:44A-31. Filing of surety bond, deposit , 2A:44A-32. Release, discharge from claim
2A:44A-31. Filing of surety bond, deposit
31. When a lien claim is filed against any improvement and land under this act, the owner, contractor or subcontractor may execute and file with the proper county clerk a bond in favor of the lien claimant, with a surety company, duly authorized to transact business in this State, as surety thereon, in an amount equal to 110% of the amount claimed by the lien claimant and a payment in the amount of $25, conditioned upon the payment of any judgment and costs that may be recovered by the lien claimant under this claim. As an alternative, the owner, contractor or subcontractor may deposit with the clerk of the Superior Court of New Jersey, funds constituting an amount equal to 110% of the amount claimed by the lien claimant and a payment in the amount of $25, conditioned upon the payment of any judgment and costs that may be recovered by the lien claimant under this claim.

Any surety bond filed with the county clerk under this section shall be discharged, and any deposit with the clerk of the Superior Court shall be returned to the depositor, without court order, upon presentment by the owner, contractor or subcontractor of any of the following:

(a) a duly acknowledged certificate as provided in paragraph (2) of subsection a. of section 33 of this act;

(b) an order of discharge as provided in paragraph (3) of subsection a. of section 33 of this act;

(c) a judgment of dismissal or other final judgment against the lien claimant; or

(d) a true copy of a Stipulation of Dismissal, with prejudice, executed by the lien claimant or its representative in any action to foreclose the lien claim which is subject to the surety bond or deposit.

L.1993,c.318,s.31.

2A:44A-32. Release, discharge from claim
32. When the bond, deposit or any combination thereof, authorized by section 31 of this act, is properly filed or deposited, the improvements and land described in the lien claim shall thereupon be released and discharged from the claim and no execution shall issue against the improvements and land. The words "released by bond" or "released by deposit of funds," as applicable, and a reference to the time and place of filing of the bond or deposit shall be entered by the county clerk upon the record of the lien claim.

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