Tennessee Release of Mechanic’s Lien Bond | AmeriPro Surety Bonds |
Please note: Before our agency will accept and review your lien documents or provide you with an application for a mechanic’s lien bond, there is a nonrefundable $75.00 application fee. If you follow through and obtain the surety bond, that amount is deducted from your first annual premium.
Mechanic’s Lien – Tennessee
A release of mechanic’s lien bond is a simple concept: The surety bond, ordered by a court, merely transfers a mechanic’s lien from the underlying property (where it was originally placed) to a surety bond. Doing so allows the property to be sold or refinanced, while ensuring that the fact of a mechanic’s lien is legally acknowledged and recorded.
Doing so allows any underlying litigation to take place, and guarantees that should a judgment be rendered in favor of the lien holder, it will in fact be paid.
The individual with the mechanic’s lien, therefore, is the purchaser of this surety bond.
Tennessee Release of Mechanic’s Lien Bond: Amount Required
Chapter 66 of the Tennessee Code Annotated goes into detail regarding the surety bond requirement for a mechanic’s lien.
The Tennessee release of mechanic’s lien bond is for the amount of the lien being claimed.
Typically, the court where any hearings on this matter will be held will give an order stating the amount of surety bond required.
For our purposes, copies of any court order will be quite helpful in securing your bond.
The Tennessee release of mechanic’s lien bond is always backed by full collateral.
Collateral acceptable to AmeriPro Surety Bonds takes place in only one of two ways; we do not accept forms.
Acceptable collateral is:
- Full cash collateral;
- An irrevocable letter of credit.
Collateral will either be returned to the principal (the purchaser of the mechanic’s lien bond) or used to satisfy a judgment in favor of the lien holder.
Separate but related to your mechanic’s lien bond is the premium. The premium represents the cost of the surety bond’s issuance.
There are two main things to keep in mind with respect to a mechanic’s lien premium:
- The premium amount for a Tennessee mechanic’s lien surety bond is $770 annually or 1% of the bond amount, whichever amount is greater;
- The premium renews annually for long as the mechanic’s lien case is being adjudicated in court.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, and fiduciary surety bonds throughout Tennessee.
Our agency also provides surety bonds nationwide.
Please call AmeriPro Surety Bonds today at:
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