Unconditional or conditional lien releases choose carefully or lose your lien rights, a case analysis.(required reading)

Introduction

Credit Managers are routinely faced with the decision of how, when and whether to issue a release of their mechanics' lien, stop notice and bond rights to effectuate payment. In order to receive payment, the owner, general contractor or subcontractor of a public or private work of improvement will, in almost every instance, require that an executed lien release be given before payment is made. A creditor, however, does not want to release its lien before payment has been made. Although the requirements for lien releases vary from state to state, some jurisdictions have enacted statutes that are intended to protect lien-holders from unintentionally ...