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TITLE 34 PROPERTY
CHAPTER 34.35 LIENS
Sec. 34.35.030 Lien Claim Against Different Properties
Sec. 34.35.035 Several Judgment for Each Claimant
Sec. 34.35.040 Order of Priority and Payment [Repealed]
Sec. 34.35.045 Lienor’s Action on Contract
ARTICLE
02 MECHANICS AND MATERIALMEN
Sec. 34.35.050 Lien for Labor or Materials Furnished
Sec. 34.35.055 Land Subject to Lien
Sec. 34.35.060 Priorities
Sec. 34.35.062 Construction Financing
Sec. 34.35.064 Notice of Right to Lien
Sec. 34.35.065 Notice of Nonresponsibility
Sec. 34.35.067 Recording Notice of Right to Lien
Sec. 34.35.068 Time Periods for Claiming Liens
Sec. 34.35.069 Acknowledgment of Right to Lien [Repealed]
Sec. 34.35.070 Claim of Lien
Sec. 34.35.071 Notice of Completion
Sec. 34.35.072 Bond
Sec. 34.35.074 Civil Suits
Sec. 34.35.075 Record and Index of Claim
Sec. 34.35.080 Duration of Lien
Sec. 34.35.085 Lien for Improving Lot or Street
Sec. 34.35.090 Payment to Contractor
Sec. 34.35.095 Amount of Lien
Sec. 34.35.100 Action Against Contractor on Lien
Sec. 34.35.105 Materials Not Subject to Process
Sec. 34.35.110 Actions to Enforce Liens
Sec. 34.35.112 Payment of Claimant’s Liens
Sec. 34.35.114 Obligation of Claimant and Lender to Provide
Information
Sec. 34.35.115 Persons Considered Agent of Owner
Sec. 34.35.117 Waiver of Lien Rights
Sec. 34.35.118 Claimant Liability [Repealed]
Sec. 34.35.119 Waiver of Liens on Unsold Common Interest
Community Units
Sec. 34.35.120 Definitions
ALASKA
STATUTES
TITLE 34 PROPERTY
CHAPTER 34.35 LIENS
Sec.
34.35.030 Lien Claim Against Different Properties
If
a lien claim is filed for the same labor against two separate
kinds of property owned or claimed by different persons,
the court shall determine the liability of each kind of
property and designate which shall be sold first to discharge
the amount of the lien claim.
Sec.
34.35.035 Several Judgment for Each Claimant
In
an action to enforce a lien judgment shall be given in favor
of each person having a lien for the amount due the person,
and the court shall order property subject to the lien to
be sold by the peace officer in the same manner that property
is sold on execution, or in any manner that the court considers
proper. The proceeds of the sale shall be apportioned to
the payment of each judgment pro rata, if the amount is
insufficient to pay them in full.
Sec.
34.35.040 Order of Priority and Payment [Repealed, sec.
19 ch 175 SLA 1978.
For current law see AS 34.35.112].
Repealed
or Renumbered
Sec. 34.35.045 Lienor’s Action on Contract
Except as otherwise expressly provided, nothing
in AS 34.35.005 - 34.35.425 may be construed to prevent
a lienor under a contract from maintaining an action as
if the lienor has no lien for the security of the debt and
the bringing of this action does not prejudice rights under
AS 34.35.005 - 34.35.425.
Article
02 MECHANICS AND MATERIALMEN
Sec. 34.35.050 Lien for Labor or Materials Furnished
A
person has a lien, only to the extent provided under this
chapter, to secure the payment of the contract price if
the person
(1) performs labor upon real property at the request of
the owner or the agent of the owner for the construction,
alteration, or repair of a building or improvement;
(2) is a trustee of an employee benefit trust for the benefit
of individuals performing labor on the building or improvement
and has a direct contract with the owner or the agent of
the owner for direct payments into the trust;
(3) furnishes materials that are delivered to real property
under a contract with the owner or the agent of the owner
that are incorporated in the construction, alteration, or
repair of a building or improvement;
(4) furnishes equipment that is delivered to and used upon
real property under a contract with the owner or the agent
of the owner for the construction, alteration, or repair
of a building or improvement;
(5) performs services under a contract with the owner or
the agent of the owner in connection with the preparation
of plans, surveys, or architectural or engineering plans
or drawings for the construction, alteration, or repair
of a building or improvement, whether or not actually implemented
on that property; or
(6) is a general contractor.
Sec. 34.35.055 Land Subject to Lien
(a) The land upon which a building or other improvement
described in AS 34.35.050 is constructed, together with
a convenient space about the building or other improvement
or so much as is required for the convenient use and occupation
of it (to be determined by the judgment of the court at
the time of the foreclosure of the lien), and the mine on
which the work is performed or for which the material is
furnished is also subject to the lien created by AS 34.35.050
- 34.35.120 if, at the time the work is started or the materials
for the building or other improvements are first furnished,
the land belongs to the person who causes the building or
other improvement to be constructed, altered, or repaired.
(b) If the person owns less than a fee simple estate in
the land, then only the interest of the person in it is
subject to the lien.
(c) If the interest is a leasehold interest, and the holder
forfeits the rights of the holder to it, the purchaser of
the building or improvement and leasehold term, or so much
of it as remains unexpired at a sale under AS 34.35.050
- 34.35.120 is considered to be the assignee of the leasehold
term, and may pay the lessor all arrears of rent or other
money and costs due under the lease.
(d) If the lessor regains possession of the land and property,
or obtains judgment for the possession of it before the
commencement of the construction, alteration, or repair
of the building or other improvement, the purchaser may
only remove the building or other improvement within 30
days after the purchase, and the owner of the land shall
receive the rent due payable out of the proceeds of the
sale, according to the terms of the lease, down to the time
of the removal.
Sec.
34.35.060 Priorities
(a)
Except as provided in (c) of this section, an encumbrance
which is properly recorded shall be preferred to a lien
created under AS 34.35.050 - 34.35.120 unless the claim
of lien under AS 34.35.070 or notice of right to lien under
AS 34.35.064 has been recorded before the encumbrance. The
preference granted for a prior mortgage or deed of trust
under this section applies without regard to when the sums
are disbursed or whether the disbursements are required
under the terms of a loan agreement.
(b) [Repealed, sec. 19 ch 175 SLA 1978].
(c) A lien created by AS 34.35.050 - 34.35.120 in favor
of an individual actually performing labor upon a building
or other improvement in its original construction or of
a trustee of an employee benefit trust for those individuals
is preferred to a prior encumbrance upon the land on which
the building or other improvement is constructed.
(d) In enforcing the lien, the building or other improvement
may be sold separately from the land. When sold separately,
the purchaser may remove the building or other improvement
within a reasonable time after the sale, not to exceed 30
days, upon the payment to the owner of the land of a reasonable
rent for its use from the date of its purchase to the time
of removal. If removal is prevented by legal proceedings,
the 30 days does not begin to run until the final determination
of the proceedings in the court of first resort, or in the
appellate court if appeal is taken.
Sec.
34.35.062 Construction Financing
(a)
A claimant to whom payment for the labor, material, service,
or equipment furnished for a project is past due may give
the lender a stop-lending notice. The claimant shall at
the same time give a copy of the notice to the owner and
to each prime contractor with whom or through whom the claimant
or the claimant’s debtor has contracted. A stop-lending
notice must
(1) instruct the lender to stop disbursing, advancing, or
otherwise providing construction financing for the project;
(2) be verified by the claimant;
(3) state the claimant’s name, address, and telephone
number;
(4) describe the labor, material, service, or equipment
furnished by the claimant and state the name of the person
to whom furnished;
(5) describe the real property improved by the labor, material,
service, or equipment and state the name of the person the
claimant believes to be the owner of the real property;
(6) state the amount due and unpaid to the claimant for
the labor, material, service, or equipment.
(b) A stop-lending notice is binding upon a lender from
the time the lender has received it and had a reasonable
opportunity to act upon it until it expires or is revoked.
A notice expires on the 91st day after it is received by
the lender unless the claimant has commenced an action on
the claim that is the subject of the notice before that
day and the lender has received written notification of
the action. A stop-lending notice may be revoked at any
time in writing signed by the claimant. Expiration or revocation
of a notice extinguishes the liability of the lender to
the claimant under (c) of this section.
(c) A lender who disburses, advances, or otherwise provides
construction financing for a project after it is the subject
of a stop-lending notice is liable to the claimant in an
amount equal to the lowest of the following amounts:
(1) the amount of construction financing disbursed, advanced,
or otherwise provided by the lender after receipt of the
claimant’s stop-lending notice; if there are two or
more stop-lending notices when the disbursement occurs,
the lender’s liability to each claimant is based on
the claimant’s ranking under AS 34.35.112 ;
(2) the amount owed to the claimant, including interest,
costs, and attorney’s fees, for labor, material, service,
or equipment furnished for the project by the claimant as
established by a written agreement signed on or after the
date of the stop-lending notice by the claimant, the owner
and the prime contractor with whom or through whom the claimant
or the claimant’s debtor has contracted or by a final
judgment in an action in which the owner, the claimant,
and the claimant’s debtor are named and, if necessary,
served parties;
(3) 150 percent of the amount stated in the stop-lending
notice.
(d) Within 10 days after receiving the written agreement
or a certified copy of the judgment under (c)(2) of this
section establishing the amount owed to a claimant from
whom it has a binding stop-lending notice, a lender shall
send to the claimant a verified statement showing, by date
and amount, all construction financing provided by the lender
for the project. Except as provided in (e) of this section,
the lender shall include with the statement payment in the
amount of the lender’s liability to the claimant under
(c) of this section.
(e) If there are two or more claimants to whom a lender
is or may be liable under (c) of this section and the lender
is uncertain as to the amount of its liability or possible
liability to each, the lender may bring an action to require
the claimants to interplead their claims.
(f) A draw against construction financing may be made only
after certification of job progress is delivered to the
lender by the owner. The form of the certification may be
prescribed by the lender and must include
(1) a statement of the progress of the project, including
the percentage of completion of the project;
(2) the name, address, and telephone number of each prime
contractor who has furnished labor, material, service, or
equipment for the project;
(3) the amount owed by the owner to each listed prime contractor;
and
(4) the portion of the draw that the owner will pay to each
listed prime contractor.
(g) The owner shall use each draw as indicated in the certificates
given by the owner to the lender under (f) of this section.
The lender may not be required to verify the information
in a certificate and is not liable for an error in a certificate.
(h) An owner who intentionally fails to apply construction
financing proceeds as indicated by the certificate required
under (f) of this section is guilty of a class A misdemeanor.
The penalty provided under this subsection does not replace
any other penalty that may be provided for by law for the
same conduct.
(i) Within 10 days after being requested, a lender shall
provide a person who has given the lender a stop-lending
notice with a copy of
(1) each certificate received by the lender under (f) of
this section; and
(2) a verified certificate stating the amount of construction
financing proceeds committed by the lender for the project
that have not been disbursed by the lender.
(j) The lender may not provide construction financing proceeds
for payment of indebtedness of the owner that is not incurred
for the project.
Sec. 34.35.064 Notice of Right to Lien
(a) Before furnishing labor, material, service,
or equipment for a project, a person may give a notice of
right to lien to the owner or owner’s agent. If the
notice is given in accordance with this section, the owner
has the burden of proof to show that the owner did not know
of or consent to the furnishing of the labor, material,
service, or equipment by the claimant in an action to foreclose
the claimant’s lien on the property under AS 34.35.050
- 34.35.120. Otherwise the claimant has the burden of proof
to show that the owner knew of and consented to the furnishing
of the labor, material, service, or equipment. The notice
of right to lien must be in writing, state that it is a
notice of a right to assert a lien against real property
for labor, materials, services, or equipment furnished in
connection with a project, and contain
(1) a legal description sufficient for identification of
the real property;
(2) the name of the owner;
(3) the name and address of the claimant;
(4) the name and address of the person with whom the claimant
contracted;
(5) a general description of the labor, materials, services,
or equipment provided or to be provided;
(6) a statement that the claimant may be entitled to record
a claim of lien; and
(7) the following statement in type no smaller than that
used in providing the information required by (1) - (6)
of this subsection:
WARNING: Unless provision is made for payment of sums that
may be due to the undersigned, your above property may be
subject to foreclosure to satisfy those sums even though
you may pay a prime contractor or other person for the labor,
material, service, or equipment furnished by the undersigned.
(b) Upon request from an owner, lender, or prime contractor,
a claimant who has given a notice of right to lien under
this section shall disclose to the requester within five
days the most recent accounting of the amount due and unpaid
to that claimant under the terms of the contract and a description
of labor, materials, services, or equipment that the claimant
reasonably anticipates furnishing.
Sec.
34.35.065 Notice of Nonresponsibility
(a)
A building or improvement mentioned in AS 34.35.050 constructed
with the knowledge of the owner of the land or the person
having or claiming an interest in the land is considered
to be constructed at the instance of the owner or person
having or claiming the interest.
(b) The interest owned or claimed is subject to a lien recorded
under AS 34.35.050 - 34.35.120, unless
(1) the owner or person having or claiming an interest in
the land gives notice within three days after the owner
or other person obtains knowledge of the construction, alteration,
or repair that the owner or other person will not be responsible
for it, by posting a notice to that effect in writing in
some conspicuous place upon the land or upon the building
or other improvement located on the land;
(2) the notice is signed by the owner or person having or
claiming an interest in the land in the presence of two
attesting witnesses or acknowledged by the owner or other
person before a notary public;
(3) the posting of notice is attested to by a witness; and
(4) an attested or notarized copy of the notice is recorded
with the recorder of the recording district in which the
land, building, or other improvement is located within three
days after the posting of the notice.
Sec.
34.35.067 Recording Notice of Right to Lien
A
notice of right to lien may be recorded by a claimant at
any time after the claimant enters into a contract for or
first furnishes labor, material, service, or equipment in
connection with a project. The notice shall be recorded
in the same manner as specified for the recording of a claim
of lien under AS 34.35.070.
Sec.
34.35.068 Time Periods for Claiming Liens
(a)
If a notice of completion is not recorded by the owner as
provided in AS 34.35.071, a claim of lien shall be recorded
not later than 90 days after the claimant
(1) completes the construction contract; or
(2) ceases to furnish labor, material, services, or equipment
for the construction, alteration, or repair of the owner’s
property.
(b) If a notice of completion is recorded by the owner as
provided in AS 34.35.071,
(1) the following shall record a claim of lien or a notice
of right to lien not later than 15 days after the notice
of completion is recorded:
(A) a claimant who has received advance notification of
the date that the notice of completion is recorded as provided
in AS 34.35.071(a)(2);
(B) a claimant who has not given a notice of right to lien
as permitted in AS 34.35.064 ;
(2) the following shall record a claim of lien not later
than the time specified in (a) of this section:
(A) a claimant who records a notice of right to lien before
or within the period specified in (1) of this subsection;
(B) a claimant who has given a notice of right to lien but
who has not received advance notice of the date that the
notice of completion is recorded by the owner as provided
in AS 34.35.071 (a)(2).
(c) A claim of lien is enforceable only if recorded by a
claimant within the time specified in (a) or (b) of this
section.
Sec. 34.35.069 Acknowledgment of Right to
Lien [Repealed, sec. 18 ch 102 SLA 1986].
Repealed or Renumbered
Sec.
34.35.070 Claim of Lien
(a)
A claimant may record a claim of lien after entering into
a contract for a project. A claim of lien may not be recorded
later than the time specified under AS 34.35.068.
(b) [Repealed, sec. 9 ch 61 SLA 1979].
(c) The lien shall be verified by the oath of the claimant
or another person having knowledge of the facts and state
(1) the real property subject to the lien, with a legal
description sufficient for identification;
(2) the name of the owner;
(3) the name and address of the claimant;
(4) the name and address of the person with whom the claimant
contracted;
(5) a general description of the labor, materials, services,
or equipment furnished for the construction, alteration,
or repair, and the contract price of the labor, materials,
services, or equipment;
(6) the amount due to the claimant for the labor, materials,
services, or equipment; and
(7) the date the last labor, materials, services, or equipment
were furnished.
(d) [Repealed, sec. 19 ch 175 SLA 1978].
(e) [Repealed, sec. 19 ch 175 SLA 1978].
(f) A violation of the provisions of this section places
the violator in the position of guarantor regarding another
person who suffers damages that are proximately caused by
the violation.
Sec. 34.35.071 Notice of Completion
(a) The owner of real property that may be subject
to a lien under AS 34.35.050 - 34.35.120 may announce the
date of completion of the project by
(1) recording a notice of completion after completion of
the project in the office of the recorder of the district
in which the real property is situated; and
(2) giving notice at least five days before the recording
of the notice of completion to all claimants who have given
a notice of right to lien or a stop-lending notice to the
owner and the lender prior to 10 days before recording a
notice of completion; the notice must include a copy of
the notice of completion and a statement advising claimants
that a notice of completion will be recorded not earlier
than five days after the date of the notice.
(b) The notice of completion shall be signed and verified
by the owner, and must state
(1) the date of completion of the building or other improvement;
(2) the name and address of the owner;
(3) the nature of the interest or estate of the owner;
(4) the legal description of the property sufficient for
identification; and
(5) the name of the general contractor.
(c) [Repealed, sec. 9 ch 61 SLA 1979].
(d) A notice of completion is not effective if recorded
before completion.
(e) Labor, materials, services, or equipment furnished after
a notice of completion is recorded to satisfy warranty obligations
or to remedy defective or unsatisfactory construction, alterations,
or repairs for which no additional consideration is owed
to the person furnishing the additional labor, materials,
services, or equipment does not result in lien liability
under AS 34.35.050 - 34.35.120.
(f) After recording a common interest community declaration
under AS 34.08, an owner may record a notice of completion
under this section as to each unit after completion of the
original construction of each unit of the common interest
community.
Sec. 34.35.072 Bond
If the owner of the property sought to be charged
with a claim of lien under AS 34.35.050 - 34.35.120, or
a prime contractor or subcontractor disputes the correctness
or validity of the claim of lien brought under AS 34.35.050
- 34.35.120, the owner or contractor may record either before
or after the commencement of an action to enforce the claim
of lien, in the office of the recorder in which district
the claim of lien was recorded, a bond executed by a person
authorized to issue surety bonds in this state under AS
21, a financial institution licensed under AS 06, or a national
bank authorized under the federal banking laws, in the penal
sum equal to one and one-half times the amount of the claim
of lien, which bond shall guarantee the payment of the sum
that the lien claimant has claimed, together with the lien
claimant’s reasonable cost of suit in the action,
if the claimant recovers on the claim of lien. If the owner
records a bond under this section, the property described
in the bond is freed from the effect of a claim of lien
under AS 34.35.050 - 34.35.120 and an action brought to
foreclose the claim of lien. The principal on the bond may
be the owner of the property, the prime contractor, or a
subcontractor who is affected by the claim of lien.
Sec.
34.35.074 Civil Suits
(a)
A person injured by a violation of AS 34.35.050 - 34.35.120
may bring a civil action
(1) except as provided in AS 34.35.062 (c), for actual and
consequential damages that are proximately caused by the
violation plus costs, including reasonable attorney fees;
(2) to enjoin the violation, and if the person prevails,
the person shall be awarded costs, including reasonable
attorney fees.
(b) A claimant who gives a stop-lending notice or has a
claim of lien recorded under AS 34.35.075 and who fails
to promptly revoke the stop-lending notice or remove the
claim of lien from the record upon receiving payment in
full on the claim or discovering that the stop-lending notice
or claim of lien is in error, unjust, premature, or excessive
is liable for actual and consequential damages caused by
giving the stop-lending notice or improperly recorded claim
of lien plus costs, including reasonable attorney fees.
Sec.
34.35.075 Record and Index of Claim
The
recorder shall record the claim in a book kept for that
purpose. The records shall be indexed as deeds and other
conveyances are required by law to be indexed. The recorder
is entitled to the same fees allowed by law for recording
deeds and other instruments.
Sec.
34.35.080 Duration of Lien
(a)
A lien provided for in AS 34.35.050 - 34.35.120 does not
bind real property for more than six months after the claim
of lien is recorded, unless an action is commenced in the
proper court to enforce the lien within
(1) that time; or
(2) six months after recording of an extension notice in
the same recording office within the original six-month
period showing the recording date and the book and page
or instrument number of the initial claim of lien, and the
balance owing.
(b) [Repealed, sec. 18 ch 102 SLA 1986].
(c) A lien whose duration is extended by commencement of
an action under (a) of this section is void as against a
person who, after the commencement of the action and without
knowledge or actual notice of its pendency, acquires an
interest in the subject property in good faith for valuable
consideration, unless a notice of the pendency of the action
has been duly filed for record before the time the person’s
conveyance is duly filed for record. Notice of the pendency
of the action must conform to the requirements of AS 09.45.940.
Sec.
34.35.085 Lien for Improving Lot or Street
A
person who, at the request of the owner of a lot in the
state, grades, fills in, or improves the lot or the street
in front of or adjoining the lot has a lien upon the lot
for work done and materials furnished. The provisions of
AS 34.35.050 - 34.35.120 for securing and enforcing the
mechanic’s lien apply to the lien provided by this
section.
Sec.
34.35.090 Payment to Contractor
A
payment by the owner of a building or structure to a prime
contractor or subcontractor, made before 90 days from the
completion of the building, is not valid to defeat or discharge
a lien created by AS 34.35.050 - 34.35.120 in favor of other
claimants, unless the payment is distributed among the other
claimants. If a payment is distributed in part only, then
the payment is valid only to the extent it is distributed.
Sec.
34.35.095 Amount of Lien
(a)
Except as provided in (c) of this section, a claimant may
recover upon a lien recorded by the claimant only the amount
due to the claimant according to the terms of the contract,
after deducting all claims of other persons claiming through
the claimant for work done and materials furnished.
(b) [Repealed, sec. 9 ch 61 SLA 1979].
(c) An individual may recover upon a lien recorded by the
individual only the amount due according to the terms of
the employment.
Sec.
34.35.100 Action Against Contractor on Lien
(a)
Where a lien is recorded under AS 34.35.050 - 34.35.120
for work done or materials furnished to a prime contractor,
the prime contractor shall defend an action at the expense
of the prime contractor, and during the pendency of the
action the owner may withhold from the prime contractor
the amount of money for which the lien is recorded.
(b) If judgment is given against the owner or the property
of the owner upon the liens, the owner may deduct from the
amount due or to become due by the owner to the prime contractor
the amount of the judgment and costs.
(c) If the amount of the judgment and costs exceeds the
amount due by the owner to the prime contractor, or if the
owner settles with that contractor in full, the owner may
recover back from the prime contractor an amount paid by
the owner in excess of the contract price, and for which
the prime contractor was originally liable.
Sec. 34.35.105 Materials Not Subject to Process
When a mechanic, artisan, machinist, builder, lumber
merchant, contractor, laborer, or other person furnishes
or procures materials for use in the construction, alteration,
or repair of a building or other improvement, the materials
are not subject to attachment, execution, or other legal
process to enforce a debt due by the purchaser of the materials
except a debt due for the purchase money thereof, so long
as the materials have been or are about to be applied in
good faith to the construction, alteration, or repair of
the building or other improvement.
Sec. 34.35.110 Actions to Enforce Liens
(a) An action to enforce a lien created by AS 34.35.050
- 34.35.120 shall be brought in the superior court. The
pleadings, process, practice, and procedure are the same
as in other cases. Each claimant is entitled to execution
for the balance due after distribution. The clerk of the
superior court, upon demand, shall issue the execution after
the return of the officer making the execution showing the
balance due.
(b) In an action under AS 34.35.050 - 34.35.120 the court
shall, upon entering judgment for the plaintiff, allow as
a part of the costs all money paid for the filing and recording
of the lien and a reasonable amount as attorney fees. An
action to enforce a lien created by AS 34.35.050 - 34.35.120
has preference upon the calendar of civil actions of the
court and shall be tried without unnecessary delay.
(c) In an action to enforce a lien created by AS 34.35.050
- 34.35.120 all persons personally liable and all lienholders
whose claims have been filed for record under AS 34.35.070
shall be made parties; all other persons interested in the
matter in controversy or in the property sought to be charged
with the lien may be made parties. However, those persons
who are not made parties are not bound by the proceedings.
The proceedings upon the foreclosure of a lien created by
AS 34.35.050 - 34.35.120 shall, as nearly as possible, conform
to the proceedings of a foreclosure of a mortgage lien upon
real property.
Sec.
34.35.112 Payment of Claimant’s Liens
(a)
If more than one lien created under AS 34.35.050 - 34.35.120
is claimed against property, the court in its judgment shall
declare the rank of each lien or class of liens in the following
order:
(1) all persons other than prime contractors or subcontractors
with lien rights under AS 34.35.050 (1);
(2) the trustees of employment benefit trusts for persons
described in (1) of this subsection;
(3) all materialmen and subcontractors;
(4) persons described in AS 34.35.050 (5) and prime contractors,
other than the general contractor;
(5) the general contractor.
(b) For purposes of AS 34.35.050 - 34.35.120, if the proceeds
of the foreclosure sale of the property are insufficient
to pay the lien claims of all persons who have recorded
claims of lien, the
(1) liens of all individuals with lien rights under AS 34.35.050
(1) shall first be paid in full, or pro rata if the proceeds
are insufficient to pay them in full;
(2) liens of trustees of employment benefit trusts for persons
described in (1) of this subsection shall be paid in full
or pro rata if the proceeds are insufficient to pay them
in full;
(3) liens of materialmen and subcontractors shall be paid
in full or pro rata if the proceeds are insufficient to
pay them in full;
(4) liens of persons described in AS 34.35.050 (5) and prime
contractors other than the general contractor, shall be
paid in full or pro rata if the remainder is insufficient
to pay them in full; and
(5) lien of the general contractor shall be paid out of
the balance.
(c) For purposes of AS 34.35.050 - 34.35.120, if the proceeds
of the foreclosure sale of the property are sufficient to
pay the lien claims of all persons who have recorded claims
of lien, the balance shall be paid to the person who owned
the property before the foreclosure sale.
Sec. 34.35.114 Obligation of Claimant and
Lender to Provide Information
(a) A prime contractor, on request, shall provide
the following information within five days to any person
entitled to claim a lien through the prime contractor:
(1) a description of the real property being improved sufficient
to identify the property;
(2) the name and address of the owner with whom the prime
contractor contracted;
(3) the name and address of the lender providing construction
financing; and
(4) whether there is a payment bond and, if so, the name
of the surety.
(b) At the request of any person who may claim a lien through
a claimant other than a prime contractor, the claimant shall
provide, within five days, the name of the person who contracted
for the furnishing by the claimant of the labor, materials,
services, or equipment from which a lien claim may arise.
(c) A person who receives a stop-lending notice or notice
of right to lien identifying a project for which the person
is not the lender shall notify the claimant in writing within
10 days after receipt of the notice that the person is not
the lender.
(d) A claimant shall, within 10 days after receipt of a
request, provide an owner or lender to whom the claimant
has given a stop-lending notice or notice of right to lien
a written statement of the amount due to the claimant and
unpaid.
(e) [Repealed, sec. 18 ch 102 SLA 1986].
Sec. 34.35.115 Persons Considered Agent of
Owner
Every contractor, subcontractor, architect, builder,
or other person having charge of the construction, alteration,
or repair, in whole or in part, of a building or other improvement
as provided in AS 34.35.050 and 34.35.085, is considered
to be the agent of the owner for the purposes of AS 34.35.050
- 34.35.120.
Sec. 34.35.117 Waiver of Lien Rights
(a) Except as provided under (b) of this section,
a written waiver of lien or stop-lending notice of rights
created under AS 34.35.050 - 34.35.120 signed by a claimant
requires no consideration and is valid and binding. A waiver
permitted under this section may not relate to labor, materials,
services, or equipment furnished after the date the waiver
is signed by the claimant.
(b) An individual described in AS 34.35.120 (10) may not
waive right to claim a lien under AS 34.35.050 - 34.35.120.
A waiver that purports to waive the lien rights of that
individual or class of individuals is void.
Sec.
34.35.118 Claimant Liability [Repealed, sec. 18 ch 102 SLA
1986].
Repealed
or Renumbered
Sec.
34.35.119 Waiver of Liens on Unsold Common Interest Community
Units
(a)
A lien created under AS 34.35.050 - 34.35.120 arising out
of original construction that becomes subject to AS 34.07
or AS 34.08 before the first sale of a unit within a common
interest community after commencement of construction shall
be subject to the provisions of this section.
(b) Subject to (c) of this section, a claimant who claims
a lien against an entire common interest community shall
release that portion of the lien claim that relates to a
particular unit within a common interest community selected
by the owner of the unsold common interest community units
after the claimant receives a partial payment of the lien
claim that is equal to 115 percent of the amount determined
(1) if the common interest community has been established
under AS 34.07 by
(A) dividing the surface area of the common areas and facilities
attendant to the common interest community unit by the surface
area of all common areas and facilities of the common interest
community building; and
(B) multiplying the result obtained in (A) of this paragraph
by the total amount of the claimant’s lien claim;
(2) by the allocated interest in the common expenses if
the common interest community has been established under
AS 34.08.
(c) A lien claimant is not required to waive a portion of
the lien claim under this section unless the amount of indebtedness
secured by a prior encumbrance against the common interest
community building held by a construction lender is also
reduced by an amount calculated in the same manner as provided
in (b) of this section.
Sec.
34.35.120 Definitions
In AS 34.35.050 - 34.35.120
(1)
“building or other improvement,” includes a
wharf, bridge, ditch, flume, tunnel, fence, well, land clearing,
machinery, aqueduct to create hydraulic power, or for mining
or other purposes, and all other structures and superstructures;
(2) “completion” means the cessation of the
performance of labor or services or the furnishing of material
or equipment on the building or other improvement to be
constructed, altered, or repaired and includes, but is not
limited to, the following:
(A) the occupation or use by the owner or an agent of the
owner of the building or other improvement constructed,
altered, or repaired accompanied by cessation of the furnishing
of labor, services, material, or equipment on the building
or improvement;
(B) the acceptance by the owner or an agent of the owner
of the construction, alteration, or repair after labor,
service, material, or equipment is furnished; or
(C) the issuance of a certificate of occupancy for a building
by a municipality empowered to issue that certificate accompanied
by cessation of the furnishing of labor, services, material,
or equipment on the building or improvement;
(3) “construction, alteration, or repair”, includes
partial construction, and all repairs done in and upon a
building or other improvement;
(4) “construction financing” means money loaned
or other credit extended to an owner secured by an encumbrance
on real property to finance a project on that real property;
(5) “contract price” means the amount agreed
upon by the contracting parties for furnishing services,
labor, materials, or equipment covered by the contract,
increased or diminished by the price of change orders, extras,
or amounts attributable to altered specifications; if no
price is agreed upon by the contracting parties, “contract
price” means the reasonable value of all services,
labor, materials, or equipment covered by the contract;
(6) “draws” means periodic disbursements of
construction financing by a lender;
(7) “encumbrance” means a mortgage, deed of
trust, or lien arising other than under AS 34.35.050 - 34.35.120;
(8) “general contractor” means a person who
is a prime contractor and who has the responsibility for
supervising all other contractors furnishing labor, materials,
services, or equipment in connection with the construction,
alteration, or repair of a building or other improvement;
(9) “give notice” means to mail a notice required
under AS 34.35.050 - 34.35.120 by first-class mail and by
using a form of mail requiring a signed receipt, or to deliver
the notice and obtain a receipt signed by the person to
whom it is directed or an agent of that person; a notice
is effective when given or delivered to
(A) a lender at the address designated in the encumbrance
securing that lender;
(B) an owner at the last known address of the owner;
(C) a prime contractor at the last known address of the
prime contractor;
(D) a potential lien claimant at the address specified in
a stop-lending notice or notice of right to lien or claim
of lien;
(10) “individual” means a natural person who
actually performs labor upon a building or other improvement
as an employee of the owner or any contractor furnishing
labor, materials, services, or equipment for the construction,
alteration, or repair of a building or other improvement;
(11) “lender” means any person providing construction
financing;
(12) “materialman” means a person who furnishes
materials used in the construction, alteration, or repair
of the owner’s real property;
(13) “owner” means a person who owns real property
or a possessory interest in real property and who enters
into a contract, express or implied, for a project on that
property;
(14) “potential lien claimant” or “claimant”
means any person entitled to assert lien rights under AS
34.35.050 - 34.35.120;
(15) “prime contractor” means a person who enters
into a contract directly with an owner to furnish labor,
materials, services, or equipment for the construction,
alteration, or repair of a building or other improvement
on the owner’s real property;
(16) “project” means construction, alteration,
or repair of an improvement on real property or work done
to enhance the real property itself;
(17) “subcontractor” means a person who enters
into a contract with a prime contractor to furnish labor,
services, or equipment for the construction,
alteration, or repair of a building or other improvement
on the owner’s real property and |
