Alaska Release of Mechanic’s Lien Bond
AmeriPro Surety Bonds | 844-589-9732
Release of Lien Bond – Alaska
A mechanic’s lien occurs when there is some dispute as to the payment for work which is alleged to have been performed on a property, but has either not been paid at all or not paid in full.
The lien prevents the sale of the property until the lien is satisfied.
The option exists to lawfully “bond off your mechanic’s lien”. What this does is to simply transfer the lien from the property to a surety bond.
Doing so, accomplishes two things: The first is that it allows the property owner to sale or refinance a property, without the encumbrance of a lien which would prevent this altogether. The second is that the individual or persons who placed the lien do not lose their claim or lien; it is now back by a surety bond, which actually further guarantees payment if required.
Amount of an Alaska Release of Mechanic’s Lien Bond
According to Section 34.35.310 of Alaska’s statutes which deals with the “bonding off” of mechanic’s liens, the amount of the surety bond required is in double the amount of your lien notice.
Once your surety bond is properly filed, the Clerk will provide you with a certificate showing that the lien on the property has been released and transferred to the surety bond.
Qualifying and the Premium
The first thing to know about an Alaska mechanic’s lien bond is that it is backed by 100% cash collateral.
In addition to the cash collateral, the premium — which is the cost for the issuance of your bond — is $500, or 1% of the amount of the lien, whichever amount is greater.
Obtaining your surety bond involves:
- Providing a copy of the Alaska mechanic’s lien notice. This is absolutely crucial; without it, no surety bond can be issued. It also needs to be the first thing provided to us;
- Completing an application. There is no credit check for this bond since you are backing it with 100% cash collateral. You will also fill out a tax document which we’ll provide to you;
- After approval of your application and your surety bond by our underwriter, you’ll wire the funds as required, along with the first year premium;
- Upon receipt, the bond is issued to you. If you want the bond mailed overnight, there is an an additional fee.
Upon receipt of your bond and Power of Attorney form in the mail, you’ll sign your bond and then file it with the Clerk.
Annual Renewal of the Surety Bond Premium
The premium associated with your surety bond is not a onetime payment. The premium will renew annually on the anniversary of your bond’s issuance for as long as the bond is active (not exonerated).
Even that is not the case for you, it’s a good idea to prepare to pay your mechanic’s lien bond premium twice—when it is first issued, and once again the first year thereafter.
After the Filing of Your Bond
If the lien claimant proves that they are owed the money as alleged, the proceeds from your surety bond will be released to them. If the opposite occurs, then after payment of all premiums, the funds are re-released back to the Principal (you).
AmeriPro Surety Bonds is a surety bonds-only agency which provides surety bonds throughout Alaska. These include license and permit, court, probate and other surety bonds.
Our agency also provides surety bonds in all 50 states.
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