Section 13 of the New York Lien Law addresses the waiver of lien rights, specifying conditions under which a lienor may relinquish their rights to a lien. It stipulates the process and requirements for such a waiver to be effective and legally binding.
Trust Fund. Pursuant to Section 13 of the New York Lien Law, Mortgagor shall receive the advances secured hereby and shall hold the right to receive the advances as a trust fund to be applied first for the purpose of paying the cost of any improvement on the Property and shall apply the advances first to the payment of the cost of any such improvement on the Property before using any part of the total of the same for any other purpose.
LIEN LAW COVENANT. Mortgagor shall receive the advances secured by this Mortgage and shall hold the right to receive such advances as a trust fund in accordance with the provisions of Section 13 of the New York Lien Law.
Lien Law. In compliance with Section 13 of the New York Lien Law, the Mortgagor will receive the advances secured by this Mortgage and will hold such advances in trust, to be applied first for the purpose of paying the cost of any improvements heretobefore made or now being made on, in and under the premises hereby mortgaged and will apply the same first payment of the cost of improvements before using any part of the total of the same for any other purpose.
Trust Fund; Lien Laws. Borrower will receive the advances made hereunder and secured hereby and will hold the right to receive such advances as a trust fund to be applied first for the purpose of paying the costs of improvements on the Land and will apply the same first to the payment of such costs before using any part of the total of the same for any other purpose and, in the event all or any part of the Land is located in the State of New York, will comply with Section 13 of the New York Lien Law. Borrower will indemnify and hold Lender harmless against any loss or liability, cost or expense, including any judgments, out of pocket attorney’s fees, costs of appeal bonds and printing costs, arising out of or relating to any proceeding instituted by any claimant alleging a violation by Borrower of any applicable lien law, including any section of Article 3-A of the New York Lien Law.
Moreover, all potential lienors are reminded that subdivision (3) of section 13 of the New York Lien Law provides that “nothing in this subdivision shall be considered as imposing upon the lender any obligation to see to the proper application of such disbursements by the borrower,” and Lender does not impose such an obligation on itself.
Section 13 of the New York Lien Law refers to a specific provision within the overall framework of the lien law in New York State. This section deals with the rights and procedures concerning liens typically related to construction projects. It provides legal mechanisms through which contractors, subcontractors, and suppliers can claim a lien against a property to ensure payment for services rendered or materials provided. Liens provide security and leverage for these parties to recover owed amounts.
You should consider using Section 13 of the New York Lien Law when you are a contractor, subcontractor, or material supplier involved in a construction project within New York, and you have not been paid for your services or supplies. Filing a lien under this section can act as an effective tool to enforce your payment rights by placing a claim on the property to encourage the owner to settle outstanding debts. It is important to use this provision in accordance with established deadlines and requirements to ensure its effectiveness.
To write a lien under Section 13 of the New York Lien Law, you need to prepare a lien notice that contains specific information, including:
Once this information is compiled, you must file the lien notice with the county clerk in the county where the property is located. It is advisable to consult with legal counsel to ensure the lien notice adheres to all statutory requirements.
Example of a lien notice:
NOTICE OF MECHANIC'S LIEN TO: John Doe, 123 Main Street, New York, NY PLEASE TAKE NOTICE that Jane Smith, residing at 456 Elm Street, Brooklyn, NY, claims a lien for the amount of ten thousand dollars ($10,000) for plumbing services and supplies provided on the property known as 789 Broadway, New York, NY. Dated: [Date of Notice]
Contracts related to construction projects, particularly those involving general contractors, subcontractors, and suppliers, typically contain provisions related to Section 13 of the New York Lien Law. These contracts often address payment terms, timelines, and the possibility of lien filings. Including lien law provisions in contracts can help clarify the rights and responsibilities of all parties involved and provide a basis for legal recourse in the event of non-payment.
These provisions are particularly common in:
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
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