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CHAPTER 52 LIENS
52-110 Repealed
52-111 Repealed
52-112 Repealed
52-113 Repealed
52-114 Repealed
52-115 Labor on Railroads, Similar Utilities; Liability of
Company; Notice of Claim; Interest
52-116 Railroad and Similar Construction; Lien for Labor or
Material; To What Attaches
52-117 Railroad and Similar Construction; Lien for Labor or
Material; Statement of Claim; Filing; Time Limit; Duration
52-118 Public Building Construction; Bond Required for Benefit
of Laborers, Mechanics and Suppliers; Exception
52-118.01 Public Building Construction; Bond; Claim for Unpaid
Labor or Material; Action; Procedure
52-118.02 Public Building Construction; Bond; Action; Limitation;
Person to Bring Suit; Rental Equipment; Defined
52-119 Repealed
52-120 Repealed
52-121 Repealed
52-122 Repealed
52-123 Failure to Apply Payments Received on Lawful Claims;
Unlawful; Failure to Discharge Lien; Prima Facie Evidence
of Intent to Deprive or Defraud
52-124 Failure to Apply Payments for Lawful Claims; Failure
to Discharge Lien; Penalty
52-125 Act, How Cited
52-126 Sections, Purpose
52-127 Terms, Defined
52-128 Contracting Owner; Presumption of Agency
52-129 Protected Party, Residential Real Estate, Defined
52-130 Real Estate Improvement Contract, Defined
52-131 Construction Lien; Existence; Amount; Priority; Enforcement
52-132 Public Property; Exempt from Lien
52-133 Real Estate Subject to Construction Lien
52-134 Lien for Materials; Conditions; Limitations
52-135 Notice of Lien Liability; Contents; Optional Notice
to Contracting Owner; Notice; When Effective; Applicability
of Section
52-136 Amount of Lien
52-137 Attachment and Enforcement of Lien; Recording Required;
Time Limitation; Attachment; When
52-138 Priority Among Lien Claimants
52-139 Priority of Construction Liens as Against Claims Other
Than Construction Lien Claims
52-140 Duration of Lien; Demand to Institute Judicial Proceedings;
Continuation of Lien During Pendency of Proceeding
52-141 Surety Bond; Notice Recorded; No Lien Attaches to Real
Estate; Bond, Requirements; Copy to Claimant; Action Against
Surety
52-142 Substitution of Collateral; Release of Lien; Procedure
52-143 Obligation of Claimant to Furnish Information to Other
Lien Claimant; Damages; Applicability of Section
52-144 Waiver of Construction Lien Rights; What Constitutes;
Validity; Effect
52-145 Notice of Commencement; By Whom Filed; Contents; Recording;
Duration; Extension
52-146 Termination of Notice of Commencement; Procedure
52-147 Lien Recording; Contents
52-148 Amendment of Recorded Lien
52-149 Assignment of Lien Rights; Recording; Effect
52-150 Notice of Surety Bond; Recording; Contents
52-151 Substitution of Collateral; Certificate; Recording;
Contents
52-152 Demand to Institute Judicial Proceedings; Recording;
Claimant’s Statement; Recording
52-153 Owner’s Statement of Apportionment of Lien; Recording;
Contents
52-154 Discharge of Lien; Partial Release; Procedure
52-155 Proceeding to Enforce Lien
52-156 Recording of Notice of Termination Before Abandonment
or Completion; Owner; Liability
52-157 Remedies for Wrongful Conduct
52-158 Liens Arising Prior to January 1, 1982; Enforcement
52-159 Substitution of Terms; Revisor of Statutes; Duties
52-201 Creation of Lien; Retention of Property Authorized
52-202 Lien; Verified Statement; Filing
52-203 Lien; Effect; Priority; Foreclosure; Limitation; Fee
52-204 Termination Statement; Filing; Procedure
52-301 Lien; Scope
52-302 Verified Statement; Filing
52-303 Foreclosure; Limitation; Joinder of Claims
52-304 Foreclosure; Sale; Proceeds; Excess; Disposition
NEBRASKA STATUTES
CHAPTER 52 LIENS
52-110
Repealed. Laws 1981, LB 512, s. 37.
52-111
Repealed. Laws 1981, LB 512, s. 37.
52-112
Repealed. Laws 1981, LB 512, s. 37.
52-113
Repealed. Laws 1981, LB 512, s. 37.
52-114
Repealed. Laws 1981, LB 512, s. 37.
52-115
Labor on Railroads, Similar Utilities; Liability of Company;
Notice of Claim; Interest
Whenever any laborer upon any railroad, canal, viaduct, bridge,
ditch, or other similar improvement in this state, shall have
just claim or demand for labor performed on any such railroad,
canal, bridge, ditch, viaduct, or other similar improvement
against any person or persons who are, or any company which
is a contractor on such railroad, canal, viaduct or bridge,
or against any person or persons who are subcontractors with
any person or persons or company contracting with any such
railroad, bridge, viaduct, or ditching company for the construction
of any part of any such railroad, bridge, canal, viaduct or
ditch of any such company, every such railroad, canal, bridge
or ditch company shall be liable to pay such laborer the amount
of such claim or demand with ten percent interest thereon;
PROVIDED, such laborer shall have given notice within sixty
days after the last item of labor shall have been performed,
that he or she has such claim or demand. Such notice shall
be given in writing and shall specify the nature and amount
of the claim or demand, and shall be delivered to the president
or vice president, superintendent, agent or the managing director
or chief engineer in charge of that portion of the work, or
any portion of the railroad, canal, viaduct, bridge or ditch
upon which such labor is performed.
52-116 Railroad and Similar Construction; Lien
for Labor or Material; To What Attaches
When material shall have been furnished, or labor performed
in the construction, repair, and equipment of any railroad,
canal, bridge, viaduct or other similar improvement, such
laborer and materialman, contractor, or subcontractor, shall
have a lien therefore, and such lien therefore shall extend
and attach to the erections, excavations, embankments, bridges,
roadbed, and all land upon which the same may be situated,
including the rolling stock thereto appertaining and belonging,
all of which, including the right-of-way, shall constitute
the excavation, erection or improvement provided for and mentioned
in sections 52-115 to 52-117.
52-117
Railroad and Similar Construction; Lien for Labor or Material;
Statement of Claim; Filing; Time Limit; Duration
Every person, whether contractor or subcontractor or materialman,
who wishes to avail himself of the provisions of section 52-116
shall file with the register of deeds of the county in which
the building, erection, excavation or other similar improvement
to be charged with the lien, is situated, a just and true
statement or account of the demand due him after allowing
all credits, setting forth the time when such material was
furnished or labor performed, and when completed, containing
a correct description of the property to be charged with the
lien and verified by affidavit. Such verified statement or
account must be filed by a principal contractor within ninety
days, and by a subcontractor within sixty days from the date
on which the last of the material shall have been furnished,
or the last of the labor is performed; but a failure or omission
to file the same within the periods last aforesaid shall not
defeat the lien, except against purchasers or encumbrancers
in good faith without notice, whose rights accrued after the
sixty or ninety days, as the case may be, and before any claim
for the lien was filed; PROVIDED, when a lien is claimed upon
a railway, the subcontractor shall have sixty days from the
last day of the month in which such labor was done or material
furnished within which to file his claim therefore. Such lien
shall continue for the period of two years, and any person
holding such lien may proceed to obtain a judgment for the
amount of his account thereon by civil action. When any suit
or suits shall be commenced on such accounts within the time
of such lien, the lien shall continue until such suit or suits
are finally determined and satisfied.
52-118 Public Building Construction; Bond Required
for Benefit of Laborers, Mechanics, and Suppliers; Exception
(1) Except as provided in subsection (2) of this section,
it shall be the duty of the State of Nebraska or any department
or agency thereof, the county boards, the contracting board
of all cities, villages, and school districts, all public
boards empowered by law to enter into a contract for the erecting,
furnishing, or repairing of any public building, bridge, highway,
or other public structure or improvement, and any officer
or officers so empowered by law to enter into such contract,
to which the general provisions of the mechanics’ lien
laws do not apply and when the mechanics and laborers have
no lien to secure the payment of their wages and suppliers
who furnish material and who lease equipment for such work
have no lien to secure payment therefore, to take from the
person, persons, firm, or corporation to whom the contract
is awarded a payment bond in a sum not less than the contract
price with a corporate surety company, conditioned for the
payment of all laborers and mechanics for labor that is performed
and for the payment for material and equipment rental which
is actually used or rented in the erecting, furnishing, or
repairing of the public structure or improvement or in performing
the contract.
(2) The labor and material payment bond referred to in subsection
(1) of this section shall not be required for (a) any project
bid or proposed by the State of Nebraska or any department
or agency thereof which has a total cost of fifteen thousand
dollars or less or (b) any project bid or proposed by any
county board, contracting board of any city, village, or school
district, public board, or officer referred to in subsection
(1) of this section which has a total cost of five thousand
dollars or less unless the state, department, agency, board,
or officer includes a bond requirement in the specifications
for the project.
(3) The bond referred to in subsection (1) of this section
shall be to, filed with, approved by, and safely kept by the
State of Nebraska, department or agency thereof, officer or
officers, or board awarding the contract. No contract referred
to in subsection (1) of this section shall be entered into
by the State of Nebraska, department or agency thereof, officer
or officers, or board referred to in subsection (1) of this
section until the bond referred to in subsection (1) of this
section has been so made, filed, and approved.
52-118.01
Public Building Construction; Bond; Claim for Unpaid Labor
or Material; Action; Procedure
Every person who has furnished labor or material in the prosecution
of the work provided for in the contract set out in subsection
(1) of section 52-118, in respect of which a bond is furnished
under such section, and who has not been paid in full therefore
before the expiration of a period of ninety days after the
day on which the last of the labor was done or performed by
him or her or material was furnished or supplied by him or
her for which such claim is made shall have the right to sue
on such bond for the amount or the balance thereof unpaid
at the time of the institution of such suit and to prosecute
the action to final execution and judgment for the sum or
sums justly due him or her. Any person having a direct contractual
relationship with a subcontractor but no contractual relationship,
express or implied, with the contractor furnishing such bond
shall have a right of action upon the bond upon giving written
notice to the contractor within four months from the date
on which such person did or performed the last of the labor
or furnished or supplied the last of the material for which
such claim is made, stating with substantial accuracy the
amount claimed and the name of the party to whom the material
was furnished or supplied or for whom the labor was done or
performed. Such notice shall be served by mailing the same
by registered or certified mail, postage prepaid, in an envelope
addressed to the contractor at any place he or she maintains
an office or conducts his or her business or his or her residence
or in any other manner in which a notice may be served.
52-118.02
Public Building Construction; Bond; Action; Limitation; Person
to Bring Suit; Rental Equipment, Defined
Every suit instituted under section 52-118.01 shall be brought
by any person entitled to the benefit of this action, but
no such suit shall be commenced after the expiration of one
year after the date of final settlement of the principal contract.
The action shall be in the name of the party claiming the
benefits of this action. For the purposes of subsection (1)
of section 52-118, equipment which is rented for a project
covered by such subsection under a lease with an option to
purchase shall be considered to be equipment rented under
a straight lease agreement not to exceed the reasonable rental
value of the equipment during the period such equipment is
actually used on such project and unless and until the option
to purchase is validly exercised under the contract.
52-119
Repealed. Laws 1969, c. 793, s. 1.
52-120
Repealed. Laws 1969, c. 432, s. 3.
52-121
Repealed. Laws 1981, LB 512, s. 37.
52-122
Repealed. Laws 1981, LB 512, s. 37.
52-123 Failure to Apply Payments Received on
Lawful Claims; Unlawful; Failure to Discharge Lien; Prima
Facie Evidence of Intent to Deprive or Defraud
It shall be unlawful for any person, firm, or corporation
who has taken a contract for the erection, improvement, repair,
or removal of any house, mill, manufactory, or building of
any kind for another, and has received payment in whole or
in part upon such contract, to fail to apply the money so
received, or so much thereof as may be necessary for that
purpose, in payment of the lawful claims of such laborers
or materialmen as could otherwise have a right to file a laborers’
or materialmen’s lien against such house or other structure,
with the intent thereby to deprive or defraud the owner or
person so paying the person, firm or corporation receiving
payment, of his funds without discharging the liens, unless
such person, firm, or corporation, taking such contract, shall
have received and delivered to the owner of the property the
written waiver of lien from all persons who otherwise would
have a right to file a lien thereon. In any prosecution under
sections 52-123 and 52-124 of the person, firm, or corporation
so receiving payment, when it shall be shown in evidence that
any lien for labor or materials existed in favor of any laborer
or materialman and that such lien has been filed within the
time and at the place as provided by law for the filing of
such liens and that such person, firm, or corporation charged
has received payment without discharging the lien to the extent
of the funds received by him, the fact of acceptance of such
payment without having discharged the lien within ten days
after receipt of such payment shall be prima facie evidence
of intent to deprive or defraud on the part of the person,
firm, or corporation so receiving payment.
52-124 Failure to Apply Payments for Lawful
Claims; Failure to Discharge Lien; Penalty
Any person, firm, or corporation, the members of any firm,
or the officers of any corporation, violating the provisions
of section 52-123 shall be guilty of a Class II misdemeanor.
52-125
Act, How Cited
Sections 52-125 to 52-159 shall be known and may be cited
as the Nebraska Construction Lien Act.
52-126 Sections, Purpose
Sections 52-125 to 52-159 creates, and provides for the attachment
and enforceability of, a lien against real estate in favor
of a person furnishing services or materials under a real
estate improvement contract. Except as provided in sections
52-125 to 52-159, no nonconsensual lien arises against real
estate by reason of improvements made thereon.
52-127
Terms, Defined
As used in sections 52-125 to 52-159, unless the context otherwise
requires:
(1) Claimant shall mean a person having a right to a lien
under sections 52-125 to 52-159 upon real estate and includes
his or her successor in interest;
(2) Contract price shall mean the amount agreed upon by the
contracting parties for performing services and furnishing
materials covered by the contract, increased or diminished
by the price of change orders or extras, amounts attributable
to altered specifications, or breach of contract, including
but not limited to defects in workmanship or materials. Liquidation
of damages between the owner and a prime contractor does not
diminish the contract price as to other claimants. If no price
is agreed upon by the contracting parties, contract price
shall mean the reasonable value of all services or materials
covered by the contract;
(3) Contracting owner shall mean a person who owns real estate
and who, personally or through an agent, enters into a contract,
express or implied, for the improvement of the real estate;
(4) Construction lien or lien shall mean a lien arising under
sections 52-125 to 52-159, and shall not include a security
interest;
(5) Notice of commencement shall mean the notice specified
in section 52-145, whether recorded by an owner or by a claimant;
(6) Notice of termination shall mean a notice terminating
a notice of commencement;
(7) Prime contract shall mean any real estate improvement
contract made between the contracting owner and a prime contractor;
(8) Prime contractor shall mean any person who makes a real
estate improvement contract with a contracting owner;
(9) Services shall not include financing or activities in
connection with financing;
(10) Construction security interest shall mean a security
interest created by a security agreement that contains a legend
on the first page clearly stating that it is a Construction
Security Agreement and that secures an obligation which the
debtor incurred for the purpose of making an improvement of
the real estate in which the security interest is given if
the instrument recorded to perfect the interest states that
it is a construction security interest;
(11) Good faith shall mean honesty in fact and the observance
of reasonable standards of fair dealing in the conduct or
transaction involved;
(12) Judicial proceeding shall mean action at law or suit
in equity, and any other proceeding in which rights are judicially
determined;
(13) To record shall mean to present to the register of deeds
for the county where the land is situated a document which
he or she accepts and either enters in a daily log or notes
thereon an identifying number, regardless of whether under
applicable law the register of deeds is directed to file the
document or otherwise to maintain a record of it. Recorded
and recording have corresponding meanings;
(14) Record location shall mean the location, whether book
and page, document number, electronic retrieval code, or other
specific place, of a document in the public records accessible
in the same recording office where the document containing
the reference to the location is found; and
(15) Security interest shall mean a consensual interest in
real estate which secures payment or performance of an obligation.
52-128 Contracting Owner; Presumption of Agency
For the purpose of determining whether an owner is a contracting
owner, agency is presumed, in the absence of clear and convincing
evidence to the contrary, between employer and employee, between
spouses, between joint tenants, and among tenants in common.
52-129
Protected Party, Residential Real Estate, Defined
(1) Protected party shall mean:
(a) An individual who contracts to give a real estate security
interest in, or to buy or to have improved, residential real
estate all or a part of which he or she occupies or intends
to occupy as a residence;
(b) A person obligated primarily or secondarily on a contract
to buy or have improved residential real estate or on an obligation
secured by residential real estate if, at the time he or she
becomes obligated, he or she is related to an individual who
occupies or intends to occupy all or a part of the real estate
as a residence; or
(c) With respect to a security agreement, a person who acquires
residential real estate and assumes or takes subject to the
obligation of a prior protected party under the real estate
security agreement.
(2) Residential real estate shall mean, in relation to a protected
party, real estate, improved or to be improved, containing
not more than four dwelling units and no nonresidential uses
for which the protected party is a lessor. A condominium unit
that is otherwise residential real estate remains so even
though the condominium development contains more than four
dwelling units or units used for nonresidential purposes.
52-130 Real Estate Improvement Contract, Defined
(1) Except as provided in subsection (2) of this section,
real estate improvement contract shall mean an agreement to
perform services, including labor, or to furnish materials
for the purpose of producing a change in the physical condition
of land or of a structure including:
(a) Alteration of the surface by excavation, fill, change
in grade, or change in a shore, bank, or flood plain of a
stream, swamp, or body of water;
(b) Construction or installation on, above, or below the surface
of land;
(c) Demolition, repair, remodeling, or removal of a structure
previously constructed or installed;
(d) Seeding, sodding, or other landscaping operation;
(e) Surface or subsurface testing, boring, or analyzing; and
(f) Preparation of plans, surveys, or architectural or engineering
plans or drawings for any change in the physical condition
of land or structures whether or not used incident to producing
a change in physical condition of the real estate.
(2) A contract for the mining or removal of timber, minerals,
gravel, soil, sod, or things growing on land, or other similar
contracts in which the activity is primarily for the purpose
of realizing upon the disposal or removal of the objects removed,
or a contract for the planting, cultivation, or harvesting
of crops or for the preparation of the soil for planting of
crops, is not a real estate improvement contract.
52-131 Construction Lien; Existence; Amount;
Priority; Enforcement
(1) A person who furnishes services or materials pursuant
to a real estate improvement contract has a construction lien,
only to the extent provided in sections 52-125 to 52-159,
to secure the payment of his or her contract price.
(2) A lien arises under sections 52-125 to 52-159 only if
the claimant records a lien within the time specified by section
52-137.
(3) Real estate to which a construction lien attaches is specified
by section 52-133, and limitations on the existence of a lien
for materials are specified by section 52-134.
(4) The amount of a claimant’s lien is specified by
section 52-136. The content of the notice of lien liability
to be given to the owner under section 52-136 is specified
by section 52-135.
(5) The priority of a claimant’s lien as against other
construction-lien claimants is specified in section 52-138,
and priority as against claimants other than construction-lien
claimants is specified in section 52-139.
(6) Foreclosure of a lien under sections 52-125 to 52-159
is governed by section 52-155, and the time within which an
action to foreclose must be brought by section 52-140.
52-132 Public Property; Exempt from Lien
Notwithstanding the provisions on existence of a construction
lien of section 52-131, no lien attaches under sections 52-125
to 52-159 to real estate owned by the state, a county, a municipality,
or other governmental agency or political subdivision.
52-133 Real Estate Subject to Construction
Lien
(1) If at the time a construction lien is recorded there is
a recorded notice of commencement covering the improvement
pursuant to which the lien arises, the lien is on the contracting
owner’s real estate described in the notice of commencement.
(2) Except as provided in subsection (3) of this section,
if at the time a construction lien is recorded there is no
recorded notice of commencement covering the improvement pursuant
to which the lien arises, the lien is on the contracting owner’s
real estate being improved or directly benefited.
(3) If a claimant who recorded a lien while there was no recorded
notice of commencement covering the real estate later records
a notice of commencement, his or her lien is on the contracting
owner’s real estate described in the notice of commencement.
(4) If as a part of an improvement on his or her real estate
or for the purpose of directly benefiting his or her real
estate an owner contracts for improvements on real estate
not owned by him or her, persons who furnish services or materials
in connection with that improvement have a lien against the
contracting owner’s real estate being improved or directly
benefited to the same extent as if the improvement had been
on the contracting owner’s real estate.
(5) If a recorded notice of commencement covers more than
one lot in a platted subdivision of record, a claimant may
apportion his or her lien to the various lots covered by the
notice of commencement in any proportion he or she chooses
and states in his or her recorded lien, including assigning
all his or her lien to a particular lot.
(6) If a recorded lien does not contain an apportionment as
provided in subsection (5) of this section, the owner may
make demand on the claimant to make an apportionment and,
if the claimant does not, within thirty days after the demand,
make an apportionment by recording an amendment of the recorded
lien, the owner may make a good faith apportionment by recording
an owner’s statement of apportionment. Notwithstanding
the fact that the owner did not in fact give the notice to
apportion referred to in this subsection or for any other
reason was not entitled to record a statement of apportionment,
or did not make a good faith apportionment, the apportionment
is conclusive in favor of persons acquiring interests in the
real estate after the statement of apportionment is recorded.
52-134
Lien for Materials; Conditions; Limitations
(1) A lien for furnishing materials arises only if:
(a) They are supplied with the intent, shown by the contract
of sale, the delivery order, delivery to the site by the claimant
or at his or her direction, or by other evidence, that they
be used in the course of construction of, or incorporated
into, the improvement in connection with which the lien arises;
and
(b) They are either:
(i) Incorporated in the improvement or consumed as normal
wastage in construction operations;
(ii) Specially fabricated for incorporation in the improvements
and not readily resalable in the ordinary course of the fabricator’s
business even though not actually incorporated in the improvement;
(iii) Used for the construction or for the operation of machinery
or equipment used in the course of construction and not remaining
in the improvement, subject to diminution by the salvage value
of those materials; or
(iv) Tools, appliances, or machinery used on the particular
improvement, but a lien for supplying tools, appliances, or
machinery used on the improvement is limited as provided by
subsection (3) of this section.
(2) The delivery of materials to the site of the improvement,
whether or not by the claimant, creates a presumption that
they were used in the course of construction or were incorporated
into the improvement.
(3) A lien arising for the supplying of tools, appliances,
or machinery under subdivision (1)(b)(iv) of this section
is limited as follows:
(a) If they are rented, the lien is for the reasonable rental
value for the period of actual use and any reasonable periods
of nonuse taken into account in the rental contract; and
(b) If they are purchased, the lien is for the price but arises
only if they were purchased for use in the course of the particular
improvement and have no substantial value to the purchaser
after the completion of the improvement on which they were
used.
52-135
Notice of Lien Liability; Contents; Optional Notice to Contracting
Owner; Notice, When Effective; Applicability of Section
(1) At any time after a claimant has entered into the contract
under which he or she may claim a lien under sections 52-125
to 52-159, he or she may give a notice of lien liability to
the contracting owner. The notice of lien liability must be
in writing, state that it is a notice of a right to assert
a lien against real estate for services or materials furnished
in connection with improvement of the real estate, and contain:
(a) The name of the claimant and the address to which the
owner or others may send communications to the claimant;
(b) The name and address of the person with whom the claimant
contracted;
(c) The name of the owner against whom a lien is or may be
claimed;
(d) A general description of the services or materials provided
or to be provided;
(e) A description sufficient to identify the real estate against
which the lien is or may be claimed;
(f) A statement that the claimant has recorded a lien and
the date of recording or, if the lien has not been recorded,
a statement that the claimant is entitled to record a lien;
(g) The amount unpaid to the claimant for services or materials,
whether or not due, or if no amount is fixed by the contract,
a good faith estimate of the amount designated as an estimate;
and
(h) The following statement in type no smaller than that used
in providing the information required by subdivisions (1)(a)
to (1)(g) of this subsection:
Warning. If you did not contract with the person giving this
notice, any future payments you make in connection with this
project may subject you to double liability.
(2) A claimant may notify the contracting owner, either in
the notice of lien liability or separately, that the claimant
must be notified of the recording of any termination of the
notice of commencement. The notice to the owner must be in
writing and, if not part of the notice of lien liability,
shall contain the information specified in subdivisions (1)(a)
to (1)(e) of this section. In addition, the notice shall state
that a written notice of the recording of any notice of termination
must be given to the claimant at least three weeks before
the effective date of the notice of termination.
(3) If the contracting owner has held out another person as
contracting owner, either by naming that person in the notice
of commencement or otherwise, a notice directed to and received
by that person is effective against the contracting owner.
(4) If the contracting owner has held out a fictitious or
nonexisting person as contracting owner either by naming that
person in the notice of commencement or otherwise, a notice
to that fictitious or nonexisting person delivered at an address
held out by the contracting owner as the address of the fictitious
or nonexisting person is effective against the contracting
owner.
(5) This section shall apply to a lien claimant only when
the contracting owner is a protected party.
52-136 Amount of Lien
(1) Subject to subsection (3) of this section:
(a) The lien of a prime contractor is for the unpaid part
of his or her contract price; and
(b) Except as against a protected party contracting owner,
the lien of a claimant other than a prime contractor is for
the amount unpaid under the claimant’s contract.
(2) Except as modified by subsections (4) and (5) of this
section, as against a protected party contracting owner the
lien of a claimant other than a prime contractor is for the
lesser of:
(a) The amount unpaid under the claimant’s contract;
or
(b) The amount unpaid under the prime contract through which
the claimant claims at the time the contracting owner receives
the claimant’s notice of lien liability.
(3) The lien of a claimant is reduced by the sum of the liens
of claimants who claim through him or her.
(4) If a protected party contracting owner’s lien liability
under a particular prime contract as provided in subsection
(5) of this section is less than the sum of claims of all
claimants claiming through that particular prime contractor:
(a) Lien claimants whose liens attach at different times have
liens in the order of attachment until the owner’s lien
liability is exhausted; and
(b) Among claimants whose liens attach, or may attach, at
the same time, each claimant’s lien is for his or her
pro rata portion of the amount of the contracting owner’s
lien liability to claimants whose liens attach at that time.
(5) A protected party contracting owner’s lien liability
under a particular prime contract is the prime contract price
less payments properly made thereon. A payment is properly
made on a prime contract to the extent that the payment:
(a) Is made in good faith before the receipt by the contracting
owner of a notice of lien liability; or
(b) If made after receipt by the contracting owner of a notice
of lien liability, is made in good faith and leaves unpaid
a part of the prime contract price sufficient to satisfy the
unpaid claims of all claimants who have given notice of lien
liability and whose claims are not being satisfied by the
payment.
52-137 Attachment and Enforcement of Lien;
Recording Required; Time Limitation; Attachment, When
(1) A claimant’s lien does not attach and may not be
enforced unless, after entering into the contract under which
the lien arises and not later than one hundred twenty days
after his or her final furnishing of services or materials,
he or she has recorded a lien.
(2) If a lien is recorded while a notice of commencement is
effective as to the improvement in connection with which the
lien arises, the lien attaches as of the time the notice is
recorded, even though visible commencement occurred before
the notice is recorded. A notice of commencement is not effective
until recording and, after recording, is effective until its
lapse. A notice of commencement lapses at the earlier of its
expiration as provided in subsection (2) of section 52-145
or the date it is terminated by a notice of termination as
provided in section 52-146.
(3) If a lien is recorded while there is no recorded notice
of commencement covering the improvement in connection with
which the lien arises, the lien attaches at the earlier of
visible commencement of the improvement or the recording of
the lien, but if visible commencement has occurred before
or within thirty days after the lapse of the last notice of
commencement covering the improvement:
(a) The lien attaches at the time the lien is recorded if
the lien is recorded within thirty days after lapse of the
last effective notice of commencement; or
(b) The lien relates back to and attaches thirty-one days
after the termination date if the lien is recorded more than
thirty days after lapse of the last effective notice of commencement.
(4) If new construction is the principal improvement involved
and the materials, excavation, preparation of an existing
structure, or other preparation are readily visible on a reasonable
inspection of the real estate, visible commencement occurs
when:
(a) Materials are delivered to the real estate to which the
lien attaches preparatory to construction;
(b) Excavation on the real estate to which the lien attaches
is begun; or
(c) Preparation of an existing structure to receive the new
construction, or other preparation of the real estate to which
the lien attaches, is begun.
(5) In all cases not covered by subsection (4) of this section
the time visible commencement occurs is to be determined by
the circumstances of the case.
52-138 Priority Among Lien Claimants
(1) All liens attaching at the same time have equal priority
and share the amount received upon foreclosure of the liens
and available for distribution to construction lien claimants
in the same ratio as the ratio of the particular lien bears
to the total of all liens attaching at the same time.
(2) Except as provided by subsection (3) of this section,
liens attaching at different times have priority in the order
of attachment.
(3) A claimant who records a notice of commencement after
he or she has recorded a lien has only equal priority with
claimants who record a lien while the notice of commencement
is effective. Any priority which the claimant gained over
third parties by recording his or her notice of lien is preserved
for the benefit of all claimants having equal priority under
this subsection.
52-139
Priority of Construction Liens as Against Claims Other Than
Construction Lien Claims
(1) Except as provided in this section, a construction lien
has priority over adverse claims against the real estate as
if the construction-lien claimant were a purchaser for value
without knowledge who had recorded at the time his or her
lien attached.
(2) Except as provided in subsection (3) of this section,
a construction lien has priority over subsequent advances
made under a prior recorded security interest if the subsequent
advances are made with knowledge that the lien has attached.
(3) Notwithstanding knowledge that the construction lien has
attached, or the advance exceeds the maximum amount stated
in the recorded security agreement and whether or not the
advance is made pursuant to a commitment, a subsequent advance
made under a security agreement recorded before the construction
lien attached has priority over the lien if:
(a) The subsequent advance is made under a construction security
agreement and is made in payment of the price of the agreed
improvements;
(b) The subsequent advance is made or incurred for the reasonable
protection of the security interest in the real estate, such
as payment for real property taxes, hazard insurance premiums,
or maintenance charges imposed under a condominium declaration
or other covenant; or
(c) The subsequent advance was applied to the payment of any
lien or encumbrance which was prior to the construction lien.
(4) To the extent that a subsequent security interest is given
to secure funds used to pay a debt secured by a security interest
having priority over a construction lien under this section,
the subsequent security interest is also prior to the construction
lien.
(5) Even though notice of commencement has been recorded,
a buyer who is a protected party takes free of all construction
liens that are not of record at the time his or her title
document is recorded.
52-140 Duration of Lien; Demand to Institute
Judicial Proceedings; Continuation of Lien During Pendency
of Proceeding
(1) Except as provided in subsections (2) and (3) of this
section, a lien that has become enforceable as provided in
sections 52-125 to 52-159 continues enforceable for two years
after recording of the lien.
(2) Except as provided in subsection (3) of this section,
if an owner, holder of a security interest, or other person
having an interest in the real estate gives the claimant written
demand to institute a judicial proceeding within thirty days,
the lien lapses unless within thirty days after receipt of
the written demand, the claimant institutes judicial proceedings
or records an affidavit that the total contract price is not
yet due under the contract for which he or she recorded the
lien.
(3) If a judicial proceeding to enforce a lien is instituted
while a lien is effective under subsection (1) or (2) of this
section, the lien continues during the pendency of the proceeding.
52-141
Surety Bond; Notice Recorded; No Lien Attaches to Real Estate;
Bond, Requirements; Copy to Claimant; Action Against Surety
(1) A lien does not attach to the real estate on behalf of
any claimant claiming through a particular prime contractor
if the owner or the prime contractor has procured from a surety
company authorized to do business in this state a bond meeting
the requirements of this section and has recorded a notice
of surety bond.
(2) The bond must obligate the surety company, to the extent
of the penal sum of the bond, to pay all sums due to construction
lien claimants other than the prime contractor for services
and materials supplied pursuant to the contract under which
the lien would otherwise arise.
(3) The penal sum of the bond shall be not less than:
(a) Fifty percent of the contract price, if the prime contract
price is not more than one million dollars;
(b) Forty percent of the contract price, if the prime contract
price is more than one million dollars and not more than five
million dollars;
(c) Two million, five hundred thousand dollars, if the prime
contract price is more than five million dollars.
(4) The person procuring the bond shall furnish on request
a true copy at cost of reproduction to any claimant and is
liable to the requesting claimant for any damages caused by
failure, without justification, to furnish a copy.
(5) A claimant may not recover under the bond provided for
in this section unless he or she:
(a) Institutes suit against the surety within one year after
the completion of his or her performance or within any longer
period of time permitted by the terms of the bond; and
(b) If he or she is a claimant not having a direct contract
relationship with the prime contractor, within ninety days
after completion of his or her performance gives the prime
contractor written notice of the amount due.
(6) A claimant having a claim under the bond may proceed directly
against the surety. A judicial proceeding on the bond may
be maintained separately from and without bringing a judicial
proceeding against the prime contractor and without complying
with the notice and recording procedures of sections 52-125
to 52-159. In any judicial proceeding brought on the bond
the court shall award to the prevailing party reasonable attorney’s
fees and court costs.
(7) The obligation of a surety under this section is not affected
by any change or modification of the contract between the
prime contractor and the contracting owner, but the total
liability of the surety may not exceed the penal sum of the
bond.
52-142 Substitution of Collateral; Release
of Lien; Procedure
(1) Any person having an interest in real estate may release
the real estate from liens which have attached to it by:
(a) Depositing in the office of the clerk of the district
court of the county in which the lien is recorded a sum of
money in cash, certified check, or other bank obligation,
or a surety bond issued by a surety company authorized to
do business in this state, in an amount sufficient to pay
the total of the amounts claimed in the liens being released
plus fifteen percent of such total; and
(b) Recording, as provided in section 52-151, a certificate
of the clerk of the district court showing that the deposit
has been made.
(2) The clerk of the district court has an obligation to accept
the deposit and issue the certificate.
(3) Upon release of the real estate from a lien under this
section, the claimant’s rights are transferred from
the real estate to the deposit or surety bond and the claimant
may establish his or her claim under sections 52-125 to 52-159,
and upon determination of the claim the court shall order
the clerk of the district court to pay the sums due or render
judgment against the surety company on the bond, as the case
may be.
52-143 Obligation of Claimant to Furnish Information to Other
Lien Claimant; Damages; Applicability of Section
(1) A prime contractor, on request, is obligated to furnish
the following information within a reasonable time, not exceeding
ten days, to any person entitled to claim a lien through him
or her:
(a) A description of the real estate being improved sufficient
to identify it;
(b) The name and address of the contracting owner with whom
the prime contractor contracted; and
(c) Whether there is a surety bond and, if so, the name of
the surety.
(2) At the request of any person who may claim a lien through
him or her, any claimant other than a prime contractor must
furnish, within a reasonable time not exceeding five days,
the name of the person who contracted for the furnishing by
the claimant of the materials or services in connection with
which the lien claim may arise.
(3) A person who fails to furnish information as required
by this section is liable to the requesting party for actual
damages or two hundred dollars as liquidated damages.
(4) This section shall apply only when the real estate improvement
contract is with a protected party.
52-144
Waiver of Construction Lien Rights; What Constitutes; Validity;
Effect
(1) A written waiver of construction lien rights signed by
a claimant requires no consideration and is valid and binding,
whether signed before or after the materials or services were
contracted for or furnished. Ambiguities in a written waiver
are construed against the claimant.
(2) A written waiver waives all construction lien rights of
the claimant as to the improvement to which the waiver relates
unless the waiver is specifically limited to a particular
lien right or a particular portion of the services or materials
furnished.
(3) A waiver of lien rights does not affect any contract rights
of the claimant otherwise existing.
(4) Acceptance of a promissory note or other evidence of debt
is not a waiver of lien rights unless the note or other instrument
expressly so declares.
52-145 Notice of Commencement; By Whom Filed;
Contents; Recording; Duration; Extension
(1) A notice of commencement must be signed by the contracting
owner, be denominated notice of commencement, and state:
(a) The real estate being or intended to be improved or directly
benefited, with a description thereof sufficient for identification;
(b) The name and address of the contracting owner, his or
her interest in the real estate, and the name and address
of the fee simple title holder, if other than the contracting
owner; and
(c) That if, after the notice of commencement is recorded,
a lien is recorded as to an improvement covered by the notice
of commencement, the lien has priority from the time the notice
of commencement is recorded.
(2) The notice of commencement may state its duration, but
if a duration is stated of less than six months from the time
of recording, the duration of the notice is six months. If
no duration is stated, the duration of the notice is one year
after the recording.
(3) The notice of commencement may state that it is limited
to a particular improvement project, or portion thereof, on
the real estate. But the limitation is not effective unless
the particular improvement, or portion thereof, to which it
applies is stated with sufficient specificity that a claimant,
by reasonable inquiry, can determine whether his or her contract
is covered by the notice of commencement.
(4) A contracting owner may extend the duration of a notice
of commencement by recording before the lapse thereof a continuation
statement signed by him or her which refers to the record
location and date of recording of the notice of commencement
and states the date to which the notice of commencement’s
duration is extended.
(5) If no notice of commencement applies to an improvement,
any claimant who is entitled to record a lien may record a
notice of commencement denominated notice of commencement,
claimant recording, signed by him or her, stating:
(a) In accordance with subsection (10) of this section, the
real estate being or intended to be improved or directly benefited,
with a description thereof sufficient for identification;
(b) The name and address of the contracting owner against
whom the notice of commencement is effective;
(c) The name and address of the claimant recording the notice
of commencement;
(d) The name and address of the person with whom the claimant
contracted with respect to the improvement;
(e) A brief description of the services or materials provided,
or to be provided, by the claimant for the improvement; and
(f) That if, after the notice of commencement is recorded,
a lien is recorded as to an improvement covered by the notice
of commencement, the lien has priority from the time the notice
of commencement is recorded.
(6) A claimant recording a notice of commencement, not later
than the day it is recorded, must send a copy thereof to the
contracting owner. The claimant is liable to the contracting
owner for any damages caused by failure to comply with this
subsection.
(7) Sections 52-125 to 52-159 applies equally to all notices
of commencement, but as to a notice of commencement recorded
by a claimant:
(a) Notwithstanding any stated duration, the duration is one
year after the recording; and
(b) The limitation under subsection (3) of this section is
not effective.
(8) Unless a notice of commencement is limited to a particular
improvement project, or portion thereof, it covers all improvements
made on the real estate described therein whether or not they
were contemplated at the time of the recording.
(9) Unless a notice of commencement provides otherwise, it
covers improvements made on real estate not owned by the contracting
owner if, under subsection (4) of section 52-133, a lien arises
against the contracting owner’s real estate described
in the notice of commencement as a result of the improvements.
(10) A notice of commencement recorded by a claimant under
subsection (5) of this section may describe all or any part
of the contracting owner’s real estate being improved
or directly benefited.
52-146 Termination of Notice of Commencement;
Procedure
(1) A contracting owner may terminate a notice of commencement
as to all or any identified portion of the real estate subject
to the notice of commencement by:
(a) Recording a notice of termination denominated termination
of notice of commencement and containing:
(i) The information required by subdivisions (1)(a) and (1)(b)
of section 52-145 for a notice of commencement;
(ii) A reference to the recorded notice of commencement by
its record location and a statement of its date of recording;
(iii) A statement of the date as of which the notice of commencement
is terminated which date may not be earlier than thirty days
after the notice of termination is recorded; and
(iv) If the notice of termination is to apply only to a portion
of the real estate subject to the notice of commencement,
a statement of that fact and a description of the portion
of the real estate to which the notice of termination applies;
(b) Sending, at least three weeks before the effective date
of the notice of termination, a copy of the notice of termination,
showing the date it was recorded, to all claimants who have
requested that the owner notify them of the recording of a
notice of termination;
(c) Publishing a notice of the recording of the notice of
termination, which notice must comply with the provisions
of subsection (2) of this section and be published at least
once a week for three consecutive weeks in a newspaper having
general circulation in the county where the recording occurs,
the last publication of which must be at least five days before
the stated termination date; and
(d) Recording an affidavit stating that notice of the recorded
notice of termination has been sent to all claimants who have
requested notice and that publication has been made. The affidavit
must state the newspaper and dates of publication and include
a copy of the published notice.
(2) The published notice of the recording of the notice of
termination must contain the information required for the
notice of termination under subsection (1) of this section,
a statement of the date on which the notice of termination
was recorded, and a statement that all lien claims for which
a notice of lien is not recorded by the termination date may
be defeated by a transfer of the real estate.
(3) A purchaser, judgment creditor, or other person having
a lien against the real estate may rely on the affidavit without
obligation to inquire as to its accuracy, and is not prejudiced
by its inaccuracy.
52-147 Lien Recording; Contents
(1) A claimant may record a lien which shall be signed by
the claimant and state:
(a) The real estate subject to the lien, with a description
thereof sufficient for identification;
(b) The name of the person against whose interest in the real
estate a lien is claimed;
(c) The name and address of the claimant;
(d) The name and address of the person with whom the claimant
contracted;
(e) A general description of the services performed or to
be performed or materials furnished or to be furnished for
the improvement and the contract price thereof;
(f) The amount unpaid, whether or not due, to the claimant
for the services or materials or if no amount is fixed by
the contract a good faith estimate of the amount designated
as an estimate; and
(g) The time the last services or materials were furnished
or if that time has not yet occurred, an estimate of the time.
(2) The name given in the lien in accordance with the requirement
of subdivision (1)(b) of this section may be the name of the
contracting owner or the name of the record holder of the
contracting owner’s interest at the time of recording
the lien.
52-148 Amendment of Recorded Lien
(1) A recorded lien may be amended by an additional recording
at any time during the period allowed for recording the original
lien. An amendment adding real estate or increasing the amount
of lien claimed is effective as to the additional real estate
or increased amount only from the time the amendment is recorded.
(2) A recorded lien may be amended after the period allowed
for recording the original lien for the purpose of:
(a) Reducing the amount of the lien;
(b) Reducing the real estate against which the lien is claimed;
or
(c) Making an apportionment of the lien among lots of a platted
subdivision of record.
(3) An amendment shall state the record location and date
of recording of the notice of lien being amended and shall
state the respects in which it is being amended.
52-149 Assignment of Lien Rights; Recording;
Effect
(1) A claimant having a recorded lien, or his or her assignee,
may record an assignment signed by the claimant which sets
forth the name of the claimant, the name and address of the
assignee, the person against whom the lien is claimed, the
real estate affected with a description thereof sufficient
for identification, and the record location and date of the
recording of the notice of lien.
(2) Even though an assignment has been recorded, an owner
may continue to deal with the original claimant as to the
claim until the owner receives notice of the assignment and
a direction that no arrangements or payments may be made without
the assignee’s consent. If requested by the owner, the
assignee must furnish reasonable proof that an assignment
has been made and unless he or she does so, the owner may
pay the assignor.
(3) Unless a statement of assignment is recorded, the assignee
need not be a party to any judicial proceeding to foreclose
a security interest, lien, or other encumbrance.
(4) The failure to record an assignment does not otherwise
affect its validity.
52-150 Notice of Surety Bond; Recording; Contents
(1) If a prime contractor or owner has secured a surety bond
a notice of surety bond may be recorded.
(2) The notice shall be signed by the contractor or owner
and by the surety company and state:
(a) The real estate being improved with a description thereof
sufficient for identification;
(b) The names and addresses of the owner and the prime contractor;
(c) The name and address of the surety company and the name
and address of a person on whom service of process may be
made;
(d) The total sum of the bond and that the bond meets the
requirements of section 52-141; and
(e) That the bond is for the purpose of relieving the real
estate from construction liens arising under the contract
between the named prime contractor and contracting owner.
52-151 Substitution of Collateral; Certificate;
Recording; Contents
(1) A person who has deposited money or a surety bond with
the clerk of the district court in substitution of collateral
as provided in section 52-142 may record a certificate of
the clerk of the district court showing the deposit.
(2) The certificate, which shall be signed by the clerk of
the district court, shall state the amount deposited, if money,
or, if a surety bond, the amount of the bond and the name
and address of the surety company.
(3) The certificate also shall state, on the basis of information
supplied by the person making the deposit:
(a) The real estate being improved with a description thereof
sufficient for identification;
(b) The name and address of the person in whose behalf the
deposit was made;
(c) If a surety bond is deposited, the name and address of
a person on whom service of process may be made; and
(d) The name of the claimants for whom the deposit is made,
the amount of their claims, and the record location of their
liens.
52-152
Demand to Institute Judicial Proceedings; Recording; Claimant’s
Statement; Recording
(1) A person giving a demand to institute judicial proceedings
to enforce a lien, after giving the demand, may record a copy
of the demand in the office in which the lien was recorded.
The demand must refer by record location to the recorded lien
under which it was given, and state the date demand was given
to institute judicial proceedings and the names of the owner
and the claimant.
(2) A claimant who has received demand to institute judicial
proceedings may record, in the office in which the lien was
recorded, a statement that the total contract price is not
yet due under the contract for which the lien was recorded.
The statement must refer to the recorded lien by its record
location and give the names of the owner and the claimant.
52-153 Owner’s Statement of Apportionment
of Lien; Recording; Contents
An owner who is entitled to apportion a lien among lots of
a platted subdivision of record may record a statement making
the apportionment. The statement must refer to the record
location of the lien being apportioned, state the name of
the owner and the claimant, state the date on which the demand
to apportion was made on the claimant and that he or she has
not apportioned, and make the apportionment.
52-154
Discharge of Lien; Partial Release; Procedure
(1) A lien provided by sections 52-125 to 52-159 may be discharged
of record by:
(a) Recording a signed statement of the record claimant stating
that the lien is released;
(b) Failing to record, within the time prescribed in the provisions
on duration of lien under section 52-140, an affidavit that
the total contract price is not yet due;
(c) Recording the original or certified copy of a final judgment
or decree of a court of competent jurisdiction so providing;
or
(d) Recording, as provided in section 52-151, a certificate
of the clerk of the district court showing the deposit of
substitute collateral.
(2) The lien claimant of record by partial release may reduce
the amount of the lien claimed in the notice of lien or limit
the notice of lien to a portion of the real estate described
in the notice of commencement by recording an amendment to
his or her lien showing the reduction in amount or limited
portion of the real estate against which a lien is claimed.
(3) A statement under subdivision (1)(a) of this section or
a judgment under subdivision (1)(c) of this section must refer
by record location to the notice of lien to which it applies.
52-155 Proceeding to Enforce Lien
(1) Except as otherwise provided in this section, the rules
applicable to a civil action apply to a proceeding to foreclose
liens under sections 52-125 to 52-159.
(2) In a proceeding to foreclose a lien, all claimants having
recorded liens may join as plaintiffs and those who do not
join as plaintiffs may be joined as defendants. Any person
who records a lien or acquires an interest in real estate
after the commencement of the foreclosure proceeding may be
made a defendant before judgment.
(3) The court shall determine the amount due or owing to each
claimant and direct foreclosure of the liens against the real
estate. Foreclosure may be by any method available for foreclosure
of security interests in real estate, or otherwise, as ordered
by the court.
52-156
Recording of Notice of Termination Before Abandonment or Completion;
Owner; Liability
(1) If a contracting owner records a notice of termination
before abandonment or substantial completion of all the improvements
covered by the notice of commencement being terminated, he
or she is personally liable to any lien claimant to the extent
that the claimant is unable to realize on a lien because the
notice of termination was recorded before abandonment or substantial
completion.
(2) A notice of termination is effective even though the owner,
under subsection (1) of this section, may be personally liable
to lien claimants by reason of his or her recording the notice
of termination.
52-157 Remedies for Wrongful Conduct
(1) If a person is wrongfully deprived of benefits to which
he or she is entitled under sections 52-125 to 52-159 by conduct
other than that described in section 52-156:
(a) He or she is entitled to damages; and
(b) The court may make orders restraining the owner or other
person, or ordering them to proceed on appropriate terms and
conditions.
(2) If in bad faith a claimant records a lien, overstates
the amount for which he or she is entitled to a lien, or refuses
to execute a release of a lien, the court may:
(a) Declare his or her lien void; and
(b) Award damages to the owner or any other person injured
thereby.
(3) Damages awarded under this section may include the costs
of correcting the record and reasonable attorney’s fees.
52-158 Liens Arising Prior to January 1, 1982;
Enforcement
Any person performing any labor or furnishing any material,
machinery, or fixtures before January 1, 1982, may enforce
any lien authorized under any statute repealed by Laws 1981,
LB 512, as though such repeal had not occurred.
52-159 Substitution of Terms; Revisor of Statutes;
Duties
Whenever in the statutes of Nebraska, unless the context otherwise
requires, the term mechanic’s lien or words referring
to such term occur they shall be taken to mean and apply to
construction lien as used in sections 52-125 to 52-159. The
Revisor of Statutes shall substitute the appropriate term
or words in the statutes necessitated by this section.
52-201 Creation of Lien; Retention of Property
Authorized
Any person who makes, alters, repairs or in any way enhances
the value of any vehicle, automobile, machinery, farm implement
or tool, or shoes a horse or horses, or mule or mules, at
the request of or with the consent of the owner, or owners
thereof, shall have a lien on such vehicle, automobile, machinery,
farm implement or tool, or horse or horses, mule or mules,
while in his possession, for his reasonable or agreed charges
for the work done or material furnished, and shall have the
right to retain such property until such charges are paid.
52-202
Lien; Verified Statement; Filing
Any person who makes, alters, repairs, or in any way enhances
the value of any vehicle, automobile, machinery, or farm implement
or tool or shoes a horse or horses or mule or mules, at the
request of or with the consent of the owner or owners thereof,
shall have a lien upon such vehicle, automobile, machinery,
farm implement or tool, horse or horses, or mule or mules,
in cases when he or she has parted with the possession thereof,
for his or her reasonable or agreed charges for work done
or material furnished. The person making such repairs, furnishing
such material, or performing such work shall file in the office
of the clerk of the county in which such work was done, material
was furnished, or property is kept, within sixty days after
performing such work or furnishing such material, a verified
statement containing (1) the name and address and the social
security number or federal tax identification number of such
person, (2) the name and address and the social security number
or federal tax identification number, if known, of the person
for whom the work was done or the material was furnished,
(3) a description of the work done or material furnished,
(4) a description of the article so made, repaired, altered,
or enhanced in value or for which material was furnished or
upon which such work was performed, and (5) the amount due
for such work done or material furnished. The failure to include
the social security number or federal tax identification number
shall not render any filing unperfected. At the time the lien
is filed, the lienholder shall send a copy to the person for
whom the work was done or material was furnished.
52-203 Lien; Effect; Priority; Foreclosure;
Limitation; Fee
Such lien shall be in force from and after the date it is
filed as aforesaid, and shall be prior and paramount to all
other liens upon such property except those previously filed
in such office, and shall be treated in all respects as a
secured transaction as provided in article 9, Uniform Commercial
Code, and may be foreclosed as a secured transaction as provided
in article 9, Uniform Commercial Code, except that such foreclosure
proceedings shall be instituted within one year after the
filing of such lien and the lien shall be subject to the rights
of purchasers of the property against which the lien is filed
when the purchasers acquired the property prior to the filing
of the lien without knowledge or notice of the rights of the
persons performing the work or furnishing the material. The
fee for filing, amending, or releasing such lien shall be
the same as set forth in section 9-403, Uniform Commercial
Code.
52-204 Termination Statement; Filing; Procedure
When a lien provided by section 52-202 is satisfied, the lienholder
shall file in the office where the lien is filed a termination
statement to the effect that he or she no longer claims an
interest under the lien, which shall be identified by file
number. A termination statement signed by a person other than
the lienholder of record shall be accompanied by a separate
written statement of assignment signed by the lienholder of
record complying with subsection (2) of section 9-405, Uniform
Commercial Code, including payment of the required fee. If
the affected lienholder fails to file such a termination statement
within thirty days after such lienholder no longer claims
an interest, he or she shall be liable to the person for whom
the work was done or the material was furnished for any losses
caused to such person by such failure and for reasonable attorney’s
fees and court costs. On presentation to the filing officer
of such a termination statement, he or she shall note it in
the index. If the filing officer has received the termination
statement in duplicate, he or she shall return one copy of
the termination statement to the lienholder stamped to show
the time of receipt.
52-301 Lien; Scope
Upon all articles left or given to jewelers, silversmiths,
or watch and clock repairers, for repairs, parts or work thereon,
the jeweler, silversmith, watch or clock repairer, shall have
a lien on such article for the cost of repairs, parts or work
thereon and material put on or in such article.
52-302 Verified Statement; Filing
When one year has elapsed after completion of repairs, work
upon or material put on or in such article, if the indebtedness
remains due, unpaid or owing, such jeweler, silversmith, watch
or clock repairer may file with the county clerk of the county
in which such jeweler, silversmith, watch or clock repairer
resides, a list showing the name, the address if known, the
article and the amount of the bill against the same, duly
signed and sworn to before a person authorized to administer
oaths.
52-303
Foreclosure; Limitation; Joinder of Claims
If within thirty days after the filing of such lien with the
county clerk as required by section 52-302, the owner fails
to pay such charges, the lien shall be treated in all respects
as a secured transaction as provided in article 9, Uniform
Commercial Code, and may be foreclosed in the manner and form
provided for the foreclosure of secured transactions as provided
in article 9, Uniform Commercial Code, except that more than
one article and charge may be filed in the same lien and foreclosed
in the same proceeding, and a publication of a list of several
articles and charges published together shall be deemed sufficient
notice; PROVIDED, such foreclosure shall be instituted within
one year after the filing of the lien.
52-304
Foreclosure; Sale; Proceeds; Excess; Disposition
If the property sold under foreclosure shall bring more than
the charges and costs of foreclosure, the excess shall be
paid to the county treasurer of the county in which the foreclosure
is had, and a statement shall be made to the county treasurer
of the amount of excess due to the owners of the articles
sold, which sum may be procured by the owner by filing a claim
with the county board in the usual manner. |
