2007 Montana Legislature

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HOUSE BILL NO. 657

INTRODUCED BY B. EBINGER, MALCOLM, MCALPIN, PARKER

 

AN ACT REVISING CONSTRUCTION LIEN LAW TO ALLOW THE CONTRACTING OWNER TO FILE A BOND WITHIN 30 DAYS OF AN ACTION BROUGHT TO FORECLOSE UPON A CONSTRUCTION LIEN; AND AMENDING SECTIONS 71-3-551 AND 71-3-553, MCA.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

 

     Section 1.  Section 71-3-551, MCA, is amended to read:

     "71-3-551.  Substitution of bond allowed -- filing -- amount -- condition. (1) Whenever a construction lien has been filed upon real property or any improvements thereon on the real property, the contracting owner of any interest in such the property, whether legal or beneficial, may, at any time before the lien claimant has commenced an action to foreclose such the construction lien, or within 30 days of the service of a complaint in an action to foreclose the construction lien, file a bond with the clerk of the district court in the county in which such the property is situated located or, if such the property is situated located in more than one county, with the clerk of the district court of any county in which a part of such the property is situated located.

     (2)  Such The bond shall must be in an amount 1 1/2 times the amount of the construction lien and shall must be either in cash or written by a corporate surety company. If written by a corporate surety, such the bond shall must be approved by a judge of the district court with which such the bond is filed.

     (3)  The bond shall must be conditioned that if the construction lien claimant shall be is finally adjudged to be entitled to recover upon the claim upon which his the construction lien is based, the principal or his the principal's sureties shall pay to such the claimant the amount of his the claimant's judgment, together with any interest, costs, attorneys' attorney fees, and other sums which such that the claimant would be entitled to recover upon the foreclosure of a construction lien against the principal."

 

     Section 2.  Section 71-3-553, MCA, is amended to read:

     "71-3-553.  Action upon bond -- period of limitation same. (1) When a bond is filed prior to the service of a complaint in an action to foreclose upon a construction lien as provided allowed in 71-3-551, the person filing such the construction lien may bring an action upon the bond.

     (2)  Such The action shall must be commenced within the time allowed for the commencement of an action upon foreclosure of a lien, and the statute of limitations applicable to a lien foreclosure shall apply applies to an action upon such the bond as it would had no a bond not been filed."

- END -

 


Latest Version of HB 657 (HB0657.ENR)
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