(Reprinted with amendments adopted on May 28, 2003)

 

Senate Bill No. 206–Committee on Judiciary

 

February 25, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Makes various changes to provisions relating to mechanics’ and materialmen’s liens. (BDR 9‑755)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to liens; prohibiting the waiver or modification of rights relating to mechanics’ and materialmen’s liens except under certain circumstances; prohibiting certain provisions in a contract for a work of improvement; making various changes to the provisions relating to mechanics’ and materialmen’s liens; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 108 of NRS is hereby amended by adding

1-2  thereto the provisions set forth as sections 2 to 26, inclusive, of this

1-3  act.

1-4  Sec. 2.  “Agent of the owner” means every architect, builder,

1-5  contractor, engineer, geologist, land surveyor, lessee, miner,

1-6  subcontractor or other person having charge or control of the

1-7  property, improvement or work of improvement of the owner, or

1-8  any part thereof.

1-9  Sec. 3.  “Building” means a primary building or other

1-10  superstructure, together with all garages, outbuildings and other

1-11  structures appurtenant thereto.

1-12      Sec. 4.  “Commencement of construction” means the date on

1-13  which:

1-14      1.  Work performed; or

2-1  2.  Materials or equipment furnished in connection with a

2-2  work of improvement,

2-3  is visible from a reasonable inspection of the site.

2-4  Sec. 5.  “Completion of the work of improvement” means:

2-5  1.  The occupation or use by the owner, an agent of the owner

2-6  or a representative of the owner of the work of improvement,

2-7  accompanied by the cessation of all work on the work of

2-8  improvement;

2-9  2.  The acceptance by the owner, an agent of the owner or a

2-10  representative of the owner of the work of improvement,

2-11  accompanied by the cessation of all work on the work of

2-12  improvement; or

2-13      3.  The cessation of all work on a work of improvement for 30

2-14  consecutive days, provided a notice of completion is timely

2-15  recorded and served and the work is not resumed under the same

2-16  contract.

2-17      Sec. 6.  “Contract” means a written or oral agreement,

2-18  including all attachments and amendments thereto, for the

2-19  provision of work, materials or equipment for a work of

2-20  improvement.

2-21      Sec. 7.  (Deleted by amendment.)

2-22      Sec. 8.  “Equipment” means tools, machinery and vehicles,

2-23  furnished or rented, which are used or to be used in the

2-24  construction, alteration or repair of a work of improvement at the

2-25  request of the owner or an agent of the owner.

2-26      Sec. 9.  “Improvement” means the development,

2-27  enhancement or addition to property, by the provision of work,

2-28  materials or equipment. The term includes, without limitation:

2-29      1.  A building, railway, tramway, toll road, canal, water ditch,

2-30  flume, aqueduct, reservoir, bridge, fence, street, sidewalk, fixtures

2-31  or other structure or superstructure;

2-32      2.  A mine or a shaft, tunnel, adit or other excavation,

2-33  designed or used to prospect, drain or work a mine;

2-34      3.  A system for irrigation, plants, sod or other landscaping;

2-35      4.  The demolition or removal of existing improvements, trees

2-36  or other vegetation;

2-37      5.  The drilling of test holes;

2-38      6.  Grading, grubbing, filling or excavating;

2-39      7.  Constructing or installing sewers or other public utilities;

2-40  and

2-41      8.  Constructing a vault, cellar or room under sidewalks or

2-42  making improvements to the sidewalks in front of or adjoining the

2-43  property.

2-44      Sec. 10.  “Lien” means the statutory rights and security

2-45  interest in property or any improvements thereon provided to a

3-1  lien claimant by NRS 108.221 to 108.246, inclusive, and sections 2

3-2  to 26, inclusive, of this act.

3-3  Sec. 11.  “Lienable amount” means the principal amount of a

3-4  lien to which a lien claimant is entitled pursuant to subsection 1 of

3-5  NRS 108.222.

3-6  Sec. 12.  “Lien claimant” means any person who provides

3-7  work, material or equipment with a value of $500 or more to be

3-8  used in or for the construction, alteration or repair of any

3-9  improvement, property or work of improvement. The term

3-10  includes, without limitation, every artisan, builder, contractor,

3-11  laborer, lessor or renter of equipment, materialman, miner,

3-12  subcontractor or other person who provides work, material or

3-13  equipment, and any person who performs services as an architect,

3-14  engineer, land surveyor or geologist, in relation to the

3-15  improvement, property or work of improvement.

3-16      Sec. 13.  “Material” means appliances, equipment,

3-17  machinery and substances affixed, used, consumed or

3-18  incorporated in the improvement of property or the construction,

3-19  alteration or repair of any improvement, property or work of

3-20  improvement.

3-21      Sec. 14.  1.  “Owner” includes:

3-22      (a) The record owner or owners of the property or an

3-23  improvement to the property as evidenced by a conveyance or

3-24  other instrument which transfers that interest to him and is

3-25  recorded in the office of the county recorder in which the

3-26  improvement or the property is located;

3-27      (b) The reputed owner or owners of the property or an

3-28  improvement to the property;

3-29      (c) The owner or owners of the property or an improvement to

3-30  the property, as shown on the records of the county assessor for

3-31  the county where the property or improvement is located;

3-32      (d) The person or persons whose name appears as owner of

3-33  the property or an improvement to the property on the building

3-34  permit; or

3-35      (e) A person who claims an interest in or possesses less than a

3-36  fee simple estate in the property.

3-37      2.  The term does not include:

3-38      (a) A mortgagee;

3-39      (b) A trustee or beneficiary of a deed of trust; or

3-40      (c) The owner or holder of a lien encumbering the property or

3-41  an improvement to the property.

3-42      Sec. 15.  “Notice of lien” means a notice recorded pursuant

3-43  to NRS 108.226 to perfect a lien.

4-1  Sec. 16.  “Prevailing lien claimant” means a lien claimant to

4-2  whom an amount is found due by a trier of fact on a notice of lien

4-3  or a claim against a surety bond.

4-4  Sec. 17.  “Prime contract” means a contract between a prime

4-5  contractor and the owner of property about which the contract

4-6  relates.

4-7  Sec. 18.  “Prime contractor” means:

4-8  1.  A person who contracts with an owner of property to

4-9  provide work, materials or equipment to be used for the

4-10  improvement of the property or in the construction, alteration or

4-11  repair of a work of improvement; or

4-12      2.  A person who is an owner of the property, is licensed as a

4-13  general contractor and provides work, materials or equipment to

4-14  be used for the improvement of the property or in the construction,

4-15  alteration or repair of a work of improvement.

4-16      Sec. 19.  “Principal,” as pertaining to a surety bond, means

4-17  the debtor of the lien claimant or a party in interest in the property

4-18  subject to the lien whose name and signature appear as principal

4-19  on a surety bond.

4-20      Sec. 20.  “Property” means the land, real property or mining

4-21  claim of an owner for which a work of improvement was provided,

4-22  including all buildings, improvements and fixtures thereon, and a

4-23  convenient space on, around and about the same, or so much as

4-24  may be required for the convenient use and occupation thereof.

4-25      Sec. 21.  “Surety” means a corporation authorized to transact

4-26  surety business in this state pursuant to NRS 679A.030 that:

4-27      1.  Is included in the United States Department of the

4-28  Treasury’s Listing of Approved Sureties; and

4-29      2.  Issues a surety bond pursuant to NRS 108.2413 to

4-30  108.2425, inclusive, that does not exceed the underwriting

4-31  limitations established for that surety by the United States

4-32  Department of the Treasury.

4-33      Sec. 22.  “Surety bond” means a bond issued by a surety for

4-34  the release of a lien pursuant to NRS 108.2413 to 108.2425,

4-35  inclusive.

4-36      Sec. 23.  “Work” means the planning, design, geotechnical

4-37  and environmental investigations, surveying, labor and services

4-38  provided by a lien claimant for the construction, alteration or

4-39  repair of any improvement, property or work of improvement

4-40  whether the work is completed or partially completed.

4-41      Sec. 24.  “Work of improvement” means the entire structure

4-42  or scheme of improvement as a whole, including, without

4-43  limitation, all work, materials and equipment to be used in or for

4-44  the construction, alteration or repair of the property or any

5-1  improvement thereon, whether under multiple prime contracts or

5-2  a single prime contract except as follows:

5-3  1.  If a scheme of improvement consists of the construction of

5-4  two or more separate buildings and each building is constructed

5-5  upon a separate legal parcel of land and pursuant to a separate

5-6  prime contract for only that building, then each building shall be

5-7  deemed a separate work of improvement; and

5-8  2.  If the improvement of the site is provided for in a prime

5-9  contract that is separate from all prime contracts for the

5-10  construction of one or more buildings on the property, and if the

5-11  improvement of the site was contemplated by the contracts to be a

5-12  separate work of improvement to be completed before the

5-13  commencement of construction of the buildings, the improvement

5-14  of the site shall be deemed a separate work of improvement from

5-15  the construction of the buildings and the commencement of

5-16  construction of the improvement of the site does not constitute the

5-17  commencement of construction of the buildings. As used in this

5-18  subsection, “improvement of the site” means the development or

5-19  enhancement of the property, preparatory to the commencement

5-20  of construction of a building, and includes:

5-21      (a) The demolition or removal of improvements, trees or other

5-22  vegetation;

5-23      (b) The drilling of test holes;

5-24      (c) Grading, grubbing, filling or excavating;

5-25      (d) Constructing or installing sewers or other public utilities;

5-26  or

5-27      (e) Constructing a vault, cellar or room under sidewalks or

5-28  making improvements to the sidewalks in front of or adjoining the

5-29  property.

5-30      Sec. 25.  1.  Except as otherwise provided in NRS 108.221 to

5-31  108.246, inclusive, and sections 2 to 26, inclusive, of this act, a

5-32  person may not waive or modify a right, obligation or liability set

5-33  forth in the provisions of NRS 108.221 to 108.246, inclusive, and

5-34  sections 2 to 26, inclusive, of this act.

5-35      2.  A condition, stipulation or provision in a contract or other

5-36  agreement for the improvement of property or for the

5-37  construction, alteration or repair of a work of improvement in this

5-38  state that attempts to do any of the following is void:

5-39      (a) Require a lien claimant to waive rights provided by law to

5-40  lien claimants or to limit the rights provided to lien claimants,

5-41  other than as expressly provided in NRS 108.221 to 108.246,

5-42  inclusive, and sections 2 to 26, inclusive, of this act;

5-43      (b) Relieve a person of an obligation or liability imposed by the

5-44  provisions of NRS 108.221 to 108.246, inclusive, and sections 2 to

5-45  26, inclusive, of this act;

6-1  (c) Make the contract or other agreement subject to the laws of

6-2  a state other than this state;

6-3  (d) Require any litigation, arbitration or other process for

6-4  dispute resolution on disputes arising out of the contract or other

6-5  agreement to occur in a state other than this state; or

6-6  (e) Require a contractor or subcontractor to waive a claim the

6-7  contractor or subcontractor may otherwise possess for delay

6-8  damages or an extension of time for delays incurred, for any delay

6-9  which was unreasonable under the circumstances, not within the

6-10  contemplation of the parties at the time the contract was entered

6-11  into, and for which the contractor or subcontractor is not

6-12  responsible.

6-13      Sec. 26.  1.  Any term of a contract that attempts to waive or

6-14  impair the lien rights of a contractor, subcontractor or supplier is

6-15  void. An owner, contractor or subcontractor by any term of a

6-16  contract, or otherwise, may not obtain the waiver of, or impair the

6-17  lien rights of, a contractor, subcontractor or supplier, except as

6-18  provided in this section. Any written consent given by a lien

6-19  claimant that waives or limits his lien rights is unenforceable

6-20  unless the lien claimant:

6-21      (a) Executes and delivers a waiver and release that is signed by

6-22  the lien claimant or his authorized agent in the form set forth in

6-23  this section; and

6-24      (b) In the case of a conditional waiver and release, receives

6-25  payment of the amount identified in the conditional waiver and

6-26  release.

6-27      2.  An oral or written statement purporting to waive, release or

6-28  otherwise adversely affect the rights of a lien claimant is not

6-29  enforceable and does not create any estoppel or impairment of a

6-30  lien unless:

6-31      (a) There is a written waiver and release in the form set forth

6-32  in this section;

6-33      (b) The lien claimant received payment for the lien claim and

6-34  then only to the extent of the payment; or

6-35      (c) Payment has been made to the lien claimant and another

6-36  joint payee by way of a two-party joint check which, upon

6-37  endorsement by the lien claimant and the joint check clearing the

6-38  bank upon which it is drawn, shall be deemed to be payment to the

6-39  lien claimant of:

6-40          (1) The amount of the joint check;

6-41          (2) The amount the owner intended to pay the lien claimant

6-42  out of the joint check; or

6-43          (3) The balance owed to the lien claimant for the work and

6-44  materials covered by the joint check, whichever is less.

7-1  3.  This section does not affect the enforceability of either an

7-2  accord and satisfaction regarding a bona fide dispute or any

7-3  agreement made in settlement of an action pending in any court or

7-4  arbitration, provided the accord and satisfaction or settlement

7-5  make specific reference to the lien rights waived or impaired and

7-6  is in a writing signed by the lien claimant.

7-7  4.  The waiver and release given by any lien claimant is

7-8  unenforceable unless it is in the following forms in the following

7-9  circumstances:

7-10      (a) Where the lien claimant is required to execute a waiver and

7-11  release in exchange for or to induce the payment of a progress

7-12  billing and the lien claimant is not in fact paid in exchange for the

7-13  waiver and release or a single payee check or joint payee check is

7-14  given in exchange for the waiver and release, the waiver and

7-15  release must be in the following form:

 

7-16  CONDITIONAL WAIVER AND RELEASE

7-17  UPON PROGRESS PAYMENT

 

7-18  Property Name:................................................

7-19  Property Location:...........................................

7-20  Undersigned’s Customer:...............................

7-21  Invoice/Payment Application Number:.........

7-22  Payment Amount:............................................

7-23  Payment Period:...............................................

7-24      Upon receipt by the undersigned of a check in the above

7-25  referenced Payment Amount payable to the undersigned, and

7-26  when the check has been properly endorsed and has been paid by

7-27  the bank on which it is drawn, this document becomes effective to

7-28  release and the undersigned shall be deemed to waive any notice

7-29  of lien, any private bond right, any claim for payment and any

7-30  rights under any similar ordinance, rule or statute related to

7-31  payment rights that the undersigned has on the above described

7-32  Property to the following extent:

7-33      This release covers a progress payment for the work, materials

7-34  or equipment furnished by the undersigned to the Property or to

7-35  the Undersigned’s Customer which are the subject of the Invoice

7-36  or Payment Application, but only to the extent of the Payment

7-37  Amount or such portion of the Payment Amount as the

7-38  undersigned is actually paid, and does not cover any retention

7-39  withheld, any items, modifications or changes pending approval,

7-40  disputed items and claims, or items furnished or invoiced after the

7-41  Payment Period. Before any recipient of this document relies on it,

7-42  he should verify evidence of payment to the undersigned. The

7-43  undersigned warrants that he either has already paid or will use

8-1  the money he receives from this progress payment promptly to pay

8-2  in full all his laborers, subcontractors, materialmen and suppliers

8-3  for all work, materials or equipment that are the subject of this

8-4  waiver and release.

 

8-5  Dated:..................

8-6                                                                               ...........................

8-7                                                       (Company Name)

 

8-8                                                    By:.....................

 

8-9                                                    Its:.....................

 

8-10      (b) Where the lien claimant has been paid in full or a part of

8-11  the amount provided for in the progress billing, the waiver and

8-12  release of the amount paid must be in the following form:

 

8-13  UNCONDITIONAL WAIVER AND RELEASE

8-14  UPON PROGRESS PAYMENT

 

8-15  Property Name:................................................

8-16  Property Location:...........................................

8-17  Undersigned’s Customer:...............................

8-18  Invoice/Payment Application Number:.........

8-19  Payment Amount:............................................

8-20  Payment Period:...............................................

 

8-21      The undersigned has been paid and has received a progress

8-22  payment in the above referenced Payment Amount for all work,

8-23  materials and equipment the undersigned furnished to his

8-24  Customer for the above described Property and does hereby waive

8-25  and release any notice of lien, any private bond right, any claim

8-26  for payment and any rights under any similar ordinance, rule or

8-27  statute related to payment rights that the undersigned has on the

8-28  above described Property to the following extent:

8-29      This release covers a progress payment for the work, materials

8-30  and equipment furnished by the undersigned to the Property or to

8-31  the Undersigned’s Customer which are the subject of the Invoice

8-32  or Payment Application, but only to the extent of the Payment

8-33  Amount or such portion of the Payment Amount as the

8-34  undersigned is actually paid, and does not cover any retention

8-35  withheld, any items, modifications or changes pending approval,

8-36  disputed items and claims, or items furnished or invoiced after the

8-37  Payment Period. The undersigned warrants that he either has

8-38  already paid or will use the money he receives from this progress

9-1  payment promptly to pay in full all his laborers, subcontractors,

9-2  materialmen and suppliers for all work, materials or equipment

9-3  that are the subject of this waiver and release.

 

9-4  Dated:..................

9-5                                                                               ...........................

9-6                                                       (Company Name)

9-7                                                    By:.....................

 

9-8                                                    Its:.....................

 

9-9  (Each unconditional waiver and release must contain the

9-10  following language, in type at least as large as the largest type

9-11  otherwise on the document:)

 

9-12  Notice: This document waives rights unconditionally and states

9-13  that you have been paid for giving up those rights. This document

9-14  is enforceable against you if you sign it to the extent of the

9-15  Payment Amount or the amount received. If you have not been

9-16  paid, use a conditional release form.

9-17      (c) Where the lien claimant is required to execute a waiver and

9-18  release in exchange for or to induce payment of a final billing

9-19  and the lien claimant is not paid in exchange for the waiver and

9-20  release or a single payee check or joint payee check is given in

9-21  exchange for the waiver and release, the waiver and release must

9-22  be in the following form:

 

9-23  CONDITIONAL WAIVER AND RELEASE

9-24  UPON FINAL PAYMENT

 

9-25  Property Name:................................................

9-26  Property Location:...........................................

9-27  Undersigned’s Customer:...............................

9-28  Invoice/Payment Application Number:.........

9-29  Payment Amount:............................................

9-30  Payment Period:...............................................

9-31  Amount of Disputed Claims:..........................

 

9-32      Upon receipt by the undersigned of a check in the above

9-33  referenced Payment Amount payable to the undersigned, and

9-34  when the check has been properly endorsed and has been paid by

9-35  the bank on which it is drawn, this document becomes effective to

9-36  release and the undersigned shall be deemed to waive any notice

9-37  of lien, any private bond right, any claim for payment and any

9-38  rights under any similar ordinance, rule or statute related to

10-1  payment rights that the undersigned has on the above described

10-2  Property to the following extent:

10-3      This release covers the final payment to the undersigned for all

10-4  work, materials or equipment furnished by the undersigned to the

10-5  Property or to the Undersigned’s Customer and does not cover

10-6  payment for Disputed Claims, if any. Before any recipient of this

10-7  document relies on it, he should verify evidence of payment to the

10-8  undersigned. The undersigned warrants that he either has already

10-9  paid or will use the money he receives from the final payment

10-10  promptly to pay in full all his laborers, subcontractors,

10-11  materialmen and suppliers for all work, materials or equipment

10-12  that are the subject of this waiver and release.

 

10-13  Dated:................

10-14                                                                              ...........................

10-15                                                      (Company Name)

 

10-16                                                  By:.....................

 

10-17                                                  Its:.....................

 

10-18     (d) Where the lien claimant has been paid the final billing, the

10-19  waiver and release must be in the following form:

 

10-20  UNCONDITIONAL WAIVER AND RELEASE

10-21  UPON FINAL PAYMENT

 

10-22  Property Name:...............................................

10-23  Property Location:..........................................

10-24  Undersigned’s Customer:..............................

10-25  Invoice/Payment Application Number:........

10-26  Payment Amount:...........................................

10-27  Amount of Disputed Claims:.........................

 

10-28     The undersigned has been paid in full for all work, materials

10-29  and equipment furnished to his Customer for the above described

10-30  Property and does hereby waive and release any notice of lien, any

10-31  private bond right, any claim for payment and any rights under

10-32  any similar ordinance, rule or statute related to payment rights

10-33  that the undersigned has on the above described Property, except

10-34  for the payment of Disputed Claims, if any, noted above. The

10-35  undersigned warrants that he either has already paid or will use

10-36  the money he receives from this final payment promptly to pay in

10-37  full all his laborers, subcontractors, materialmen and suppliers for

11-1  all work, materials and equipment that are the subject of this

11-2  waiver and release.

 

11-3  Dated:.................

 

11-4                                                                               ...........................

11-5                                                       (Company Name)

11-6                                                   By:.....................

 

11-7                                                   Its:.....................

 

11-8  (Each unconditional waiver and release must contain the

11-9  following language, in type at least as large as the largest type

11-10  otherwise on the document:)

 

11-11  Notice: This document waives rights unconditionally and states

11-12  that you have been paid for giving up those rights. This document

11-13  is enforceable against you if you sign it, even if you have not been

11-14  paid. If you have not been paid, use a conditional release form.

11-15     (e) Notwithstanding any language in any waiver and release

11-16  form set forth in this section, if the payment given in exchange for

11-17  any waiver and release of lien is made by check, draft or other

11-18  such negotiable instrument, and the same fails to clear the bank

11-19  on which it is drawn for any reason, then the waiver and release

11-20  shall be deemed null, void and of no legal effect whatsoever and

11-21  all liens, lien rights, bond rights, contract rights or any other right

11-22  to recover payment afforded to the lien claimant in law or equity

11-23  will not be affected by the lien claimant’s execution of the waiver

11-24  and release.

11-25     Sec. 27.  NRS 108.221 is hereby amended to read as follows:

11-26     108.221  As used in NRS 108.221 to 108.246, inclusive, and

11-27  sections 2 to 26, inclusive, of this act, unless the context otherwise

11-28  requires, [“work of improvement” or “improvement” means the

11-29  entire structure or scheme of improvement as a whole.] the words

11-30  and terms defined in sections 2 to 24, inclusive, of this act have the

11-31  meanings ascribed to them in those sections.

11-32     Sec. 28.  NRS 108.222 is hereby amended to read as follows:

11-33     108.222  1.  Except as otherwise provided in subsection 2, a

11-34  [person who performs labor upon or furnishes material of the value

11-35  of $500 or more, to be used in the construction, alteration or repair

11-36  of any building, or other superstructure, railway, tramway, toll road,

11-37  canal, water ditch, flume, aqueduct or reservoir, bridge, fence or any

11-38  other structure,] lien claimant has a lien upon the [premises and any

11-39  building, structure and improvement thereon] property and any

12-1  improvements for which the work, materials and equipment were

12-2  furnished for:

12-3      (a) If the parties [entered into a contract,] agreed upon a

12-4  specific price or method for determining a specific price for some

12-5  or all of the work, material and equipment furnished by or

12-6  through the lien claimant, the unpaid balance of the price agreed

12-7  upon for[; or

12-8      (b) In absence of a contract,] such work, material or equipment,

12-9  as the case may be, whether performed or furnished at the

12-10  instance of the owner or his agent; and

12-11     (b) If the parties did not agree upon a specific price or method

12-12  for determining a specific price for some or all of the work,

12-13  material and equipment furnished by or through the lien claimant,

12-14  an amount equal to the fair market value of [, the labor performed or

12-15  material furnished or rented,] such work, material or equipment, as

12-16  the case may be, [by each respectively,] including a reasonable

12-17  allowance for overhead and a profit, whether performed or furnished

12-18  at the instance of the owner [of the building or other improvement,]

12-19  or at the instance of his agent.

12-20     2.  If a [license is required for the work, only a contractor

12-21  licensed pursuant to chapter 624 of NRS, an employee of such a

12-22  contractor or a person who furnishes material to be used in the

12-23  project may have a lien as described in subsection 1.

12-24     3.  All miners, laborers and others who perform labor to the

12-25  amount of $500 or more in or upon any mine, or upon any shaft,

12-26  tunnel, adit or other excavation, designed or used to prospect, drain

12-27  or work the mine, and all persons who furnish any timber or other

12-28  material, of the value of $500 or more, to be used in or about a

12-29  mine, whether performed or furnished at the instance of the owner

12-30  of the mine or his agent, have, and may each respectively claim and

12-31  hold, a lien upon that mine for:

12-32     (a) If the parties entered into a contract, the unpaid balance of

12-33  the price agreed upon for; or

12-34     (b) In absence of a contract, an amount equal to the fair market

12-35  value of,

12-36  the labor so performed or material furnished, including a reasonable

12-37  allowance for overhead and a profit.

12-38     4.  Every contractor, subcontractor, engineer, land surveyor,

12-39  geologist, architect, builder or other person having charge or control

12-40  of any mining claim, or any part thereof, or of the construction,

12-41  alteration or repair, either in whole or in part, of any building or

12-42  other improvement, as these terms are used in subsection 1, shall be

12-43  held to be the agent of the owner, for the purposes of NRS 108.221

12-44  to 108.246, inclusive.] contractor or a professional is required to

12-45  be licensed pursuant the provisions of NRS to perform his work,

13-1  the contractor or professional will only have a lien pursuant to

13-2  subsection 1 if he is licensed to perform the work.

13-3      Sec. 29.  NRS 108.225 is hereby amended to read as follows:

13-4      108.225  1.  The liens provided for in NRS 108.221 to

13-5  108.246, inclusive, and sections 2 to 26, inclusive, of this act are

13-6  preferred to:

13-7      (a) Any lien, mortgage or other encumbrance which may have

13-8  attached to the property after the [time when the building,

13-9  improvement or structure was commenced, work done, or materials

13-10  were commenced to be furnished.] commencement of construction

13-11  of a work of improvement.

13-12     (b) Any lien, mortgage or other encumbrance of which the

13-13  [lienholder] lien claimant had no notice and which was unrecorded

13-14  against the property at the [time the building, improvement or

13-15  structure was commenced, work done, or the materials were

13-16  commenced to be furnished.

13-17  For the purposes of this subsection, “work done” does not include

13-18  any work commenced before on-site construction has started.

13-19     2.  Except as otherwise provided in subsection 3, every]

13-20  commencement of construction of a work of improvement.

13-21     2.  Every mortgage or encumbrance imposed upon, or

13-22  conveyance made of, property affected by the liens provided for in

13-23  NRS 108.221 to 108.246, inclusive, [between the time when the

13-24  building, improvement, structure or work thereon was commenced,

13-25  or the materials thereof were commenced to be furnished, and the

13-26  expiration of the time fixed in NRS 108.221 to 108.246, inclusive,

13-27  in which liens therefor may be recorded, whatever the terms of

13-28  payment may be,] and sections 2 to 26, inclusive, of this act after

13-29  the commencement of construction of a work of improvement are

13-30  subordinate and subject to the liens [in full authorized] provided for

13-31  in NRS 108.221 to 108.246, inclusive, and sections 2 to 26,

13-32  inclusive, of this act regardless of the date of recording the notices

13-33  of liens.

13-34     [3.  If any improvement at the site is provided for in a contract

13-35  that is separate from any contract for the construction of a building

13-36  or other structure, the improvement at the site shall be deemed a

13-37  separate work of improvement and the commencement thereof does

13-38  not constitute the commencement of the construction of the building

13-39  or other structure. As used in this subsection, “improvement at the

13-40  site” means:

13-41     (a) The demolition or removal of improvements, trees or other

13-42  vegetation from;

13-43     (b) The drilling of test holes in;

13-44     (c) Grading, filling or otherwise improving; or

14-1      (d) Constructing or installing sewers or other public utilities

14-2  on,

14-3  any lot or tract of land or the street, highway or sidewalk in front of

14-4  or adjoining any lot or tract of land. The term includes the

14-5  construction of any vaults, cellars or rooms under the sidewalks or

14-6  making improvements to the sidewalks in front of or adjoining any

14-7  tract of land.]

14-8      Sec. 30.  NRS 108.226 is hereby amended to read as follows:

14-9      108.226  1.  [Every person claiming the benefit of NRS

14-10  108.221 to 108.246, inclusive,] To perfect his lien, a lien claimant

14-11  must record his notice of lien in the office of the county recorder of

14-12  the county where the property or some part thereof is located in

14-13  the form provided in subsection 5:

14-14     (a) Within 90 days after the date on which the latest of the

14-15  following occurs:

14-16         (1) The completion of the work of improvement;

14-17     [(b) Within 90 days after the]

14-18         (2) The last delivery of material or furnishing of equipment

14-19  by the lien claimant[; or

14-20     (c) Within 90 days after the] for the work of improvement; or

14-21         (3) The last performance of [labor] work by the lien

14-22  claimant[,

14-23  whichever is later.

14-24     2.  The time within which to perfect the lien by recording the

14-25  notice of lien is shortened if a] for the work of improvement; or

14-26     (b) Within 40 days after the recording of a valid notice of

14-27  completion, if the notice of completion is recorded [in a timely] and

14-28  served in the manner required pursuant to NRS 108.228 . [, in

14-29  which event the notice of lien must be recorded within 40 days after

14-30  the recording of the notice of completion.

14-31     3.  Any one of the following acts or events is equivalent to

14-32  “completion of the work of improvement” for all purposes of NRS

14-33  108.221 to 108.246, inclusive:

14-34     (a) The occupation or use of a building, improvement or

14-35  structure by the owner, his agent or his representative and

14-36  accompanied by cessation of labor thereon.

14-37     (b) The acceptance by the owner, his agent or his representative

14-38  of the building, improvement or structure.

14-39     (c) The cessation from labor for 30 days upon any building,

14-40  improvement or structure, or the alteration, addition to or repair

14-41  thereof.

14-42     (d) The recording of the notice of completion provided in

14-43  NRS 108.228.

15-1      4.  For the purposes of this section, if a work of improvement

15-2  consists of the construction of more than one separate building and

15-3  each building is constructed pursuant to:

15-4      (a) A separate contract, each building shall be deemed a separate

15-5  work of improvement. The time within which to perfect the lien by

15-6  recording the notice of lien pursuant to subsection 1 commences to

15-7  run upon the completion of each separate building; or

15-8      (b) A single contract, the time within which to perfect the lien

15-9  by recording the notice of lien pursuant to subsection 1 commences

15-10  to run upon the completion of all the buildings constructed pursuant

15-11  to that contract.

15-12  As used in this subsection, “separate building” means one structure

15-13  of a work of improvement and any garages or other outbuildings

15-14  appurtenant thereto.

15-15     5.] 2. The notice of [mechanic’s lien must be recorded in the

15-16  office of the county recorder of the county where the property or

15-17  some part thereof is situated and] lien must contain:

15-18     (a) A statement of [his demand] the lienable amount after

15-19  deducting all just credits and offsets.

15-20     (b) The name of the owner [or reputed owner] if known.

15-21     (c) The name of the person by whom he was employed or to

15-22  whom he furnished the material.

15-23     (d) A brief statement of the terms[, time given and conditions]

15-24  of payment of his contract.

15-25     (e) A description of the property to be charged with the notice of

15-26  lien sufficient for identification.

15-27     [6.  The claim]

15-28     3.  The notice of lien must be verified by the oath of the lien

15-29  claimant or some other person. The [claim] notice of lien need not

15-30  be acknowledged to be recorded.

15-31     [7.] 4. It is unlawful for a person knowingly to make a false

15-32  statement in or relating to the recording of a notice of lien pursuant

15-33  to the provisions of this section. A person who violates this

15-34  subsection is guilty of a gross misdemeanor and shall be punished

15-35  by a fine of not less than $5,000 nor more than $10,000.

15-36     5.  A notice of lien must be substantially in the following

15-37  form:

 

15-38  Assessor’s Parcel Numbers

 

15-39  NOTICE OF LIEN

 

15-40  The undersigned claims a lien upon the property described in this

15-41  notice for work, materials or equipment furnished for the

15-42  improvement of the property:

16-1  1.  The amount of the original contract is: $

16-2  2.  The total amount of all changes and additions, if any, is: $  

16-3  3.  The total amount of all payments received to date is: $   

16-4  4.  The amount of the lien, after deducting all just credits and

16-5  offsets, is: $.......................................................

16-6  5.  The name of the owner, if known, of the property is:   

16-7  6.  The name of the person by whom the lien claimant was

16-8  employed or to whom the lien claimant furnished work, materials

16-9  or equipment is: ..............................................

16-10  7.  A brief statement of the terms of payment of the lien

16-11  claimant’s contract is: ...................................

16-12  ...........................................................................

16-13  8.  A description of the property to be charged with the lien is:  

 

16-14                                                                              ........................................

16-15                      (Print Name of Lien Claimant)

 

16-16                                   By:....................................

16-17                               (Authorized Signature)

 

16-18  State of ................... )

16-19                                       ) ss.

16-20  County of ............... )

 

16-21  .......................  (print name), being first duly sworn on

16-22  oath according to law, deposes and says:

16-23     I have read the foregoing Notice of Lien, know the contents

16-24  thereof and state that the same is true of my own personal

16-25  knowledge, except those matters stated upon information and

16-26  belief, and, as to those matters, I believe them to be true.

 

16-27                                                                              .................................................

16-28       (Authorized Signature of Lien Claimant)

16-29  Subscribed and sworn to before me

16-30  this .  day of the month of ....  of the year ....

 

16-31  ........................................................

16-32                 Notary Public in and for

16-33                the County and State

16-34     6.  If a work of improvement involves the construction,

16-35  alteration or repair of multifamily or single-family residences, a

16-36  lien claimant, except laborers, must serve a 15-day notice of intent

16-37  to lien incorporating substantially the same information required

16-38  in a notice of lien upon both the owner and the prime contractor

16-39  before recording a notice of lien. Service of the notice of intent to

17-1  lien must be by personal delivery or certified mail and will extend

17-2  the time for recording the notice of lien described in subsection 1

17-3  by 15 days. A notice of lien for materials or equipment furnished

17-4  or for work or services performed, except labor, for a work of

17-5  improvement involving the construction, alteration or repair of

17-6  multifamily or single-family residences may not be perfected or

17-7  enforced pursuant to NRS 108.221 to 108.246, inclusive, and

17-8  sections 2 to 26, inclusive, of this act, unless the 15-day notice of

17-9  intent to lien has been given.

17-10     Sec. 31.  NRS 108.227 is hereby amended to read as follows:

17-11     108.227  1.  In addition to the requirements of NRS 108.226, a

17-12  copy of the [claim] notice of lien must be served upon the [record]

17-13  owner of the property within 30 days after recording the notice of

17-14  lien, in one of the following ways:

17-15     (a) By personally delivering a copy of the notice of lien to the

17-16  [record owner personally;

17-17     (b) If he is absent from his place of residence, or from his usual

17-18  place of business, by leaving a copy with some person of suitable

17-19  age and discretion at either place and mailing a copy addressed to

17-20  the record owner at his place of residence or place of business; or

17-21     (c) If his] owner or resident agent of the owner;

17-22     (b) By mailing a copy of the notice of lien by certified mail

17-23  return receipt requested to the owner at his place of residence or

17-24  his usual place of business or to the resident agent of the owner at

17-25  the address of the resident agent; or

17-26     (c) If the place of residence or business of the owner and the

17-27  address of the resident agent of the owner, if applicable, cannot be

17-28  [ascertained, or a person of suitable age or discretion cannot be

17-29  found there,] determined, by:

17-30         (1) Fixing a copy of the notice of lien in a conspicuous place

17-31  on the property;

17-32         (2) Delivering a copy of the notice of lien to a person there

17-33  residing, if such a person can be found; and

17-34         (3) Mailing a copy of the notice of lien addressed to the

17-35  [record] owner at [the] :

17-36             (I) The place where the property is [situated.

17-37     2.  Failure] located;

17-38             (II) The address of the owner as identified in the deed;

17-39             (III) The address identified in the records of the office

17-40  of the county assessor; or

17-41             (IV) The address identified in the records of the county

17-42  recorder of the county in which the property is located.

17-43     2.  If there is more than one owner, failure to serve a copy of

17-44  the [claim] notice of lien upon a particular [record] owner does not

18-1  invalidate a [claim based on a valid service] notice of lien if

18-2  properly served upon another [record] owner.

18-3      3.  [As used in this section, “record owner” means any person

18-4  who holds an interest in real property or any improvement thereon

18-5  evidenced by a conveyance or other instrument which transfers that

18-6  interest to him and is recorded in the office of the county recorder of

18-7  the county in which the real property is located, but does not

18-8  include:

18-9      (a) A mortgagee;

18-10     (b) A trustee under, or a beneficiary of, a deed of trust; or

18-11     (c) The owner or holder of a lien encumbering real property or

18-12  any improvement thereon.] Each subcontractor who participates in

18-13  the construction, improvement, alteration or repair of a work of

18-14  improvement shall deliver a copy of each notice of lien required by

18-15  NRS 108.226 to the prime contractor. The failure of a

18-16  subcontractor to deliver the notice to the prime contractor is a

18-17  ground for disciplinary proceedings pursuant to chapter 624 of

18-18  NRS.

18-19     Sec. 32.  NRS 108.2275 is hereby amended to read as follows:

18-20     108.2275  1.  The debtor of the lien claimant or a party in

18-21  interest in the [premises] property subject to the notice of lien who

18-22  believes the notice of lien is frivolous and was made without

18-23  reasonable cause, or that the amount of the lien is excessive, may

18-24  apply by motion to the district court for the county where the

18-25  property or some part thereof is [situated] located for an order

18-26  directing the lien claimant to appear before the court to show cause

18-27  why the relief requested should not be granted.

18-28     2.  The motion must [set] :

18-29     (a) Set forth in detail the legal and factual grounds upon which

18-30  relief is requested ; and [must be]

18-31     (b) Be supported by [the affidavit of] :

18-32         (1) A notarized affidavit signed by the applicant [or his

18-33  attorney] setting forth a concise statement of the facts upon which

18-34  the motion is based[.] ; and

18-35         (2) Documentary evidence in support of the affidavit, if

18-36  any.

18-37     3.  If the court issues an order for a hearing, the applicant shall

18-38  serve notice of the application and order of the court on the lien

18-39  claimant within 3 days after the court issues the order. The court

18-40  shall conduct the hearing within not less than [10] 15 days or more

18-41  than [20] 30 days after the court issues the order[.

18-42     2.] for a hearing.

18-43     4. The order for a hearing must include a statement that if the

18-44  lien claimant fails to appear at the time and place noted, the notice

18-45  of lien will be released with prejudice and the lien claimant will be

19-1  ordered to pay the reasonable costs [requested by] the applicant[,

19-2  including reasonable attorney’s fees.

19-3      3.] incurs in bringing the motion, including reasonable

19-4  attorney’s fees.

19-5      5. If, at the time the application is filed, an action to foreclose

19-6  the notice of lien has not been filed, the clerk of the court shall

19-7  assign a number to the application and obtain from the applicant a

19-8  filing fee of $85. If an action has been filed to foreclose the notice

19-9  of lien before the application was filed pursuant to this section, the

19-10  application must be made a part of the action to foreclose the notice

19-11  of lien.

19-12     [4.] 6. If, after a hearing on the matter, the court determines

19-13  that:

19-14     (a) The notice of lien is frivolous and was made without

19-15  reasonable cause, the court [may] shall make an order releasing the

19-16  lien and awarding costs and reasonable attorney’s fees to the

19-17  applicant[.] for bringing the motion.

19-18     (b) The amount of the notice of lien is excessive, the court may

19-19  make an order reducing the notice of lien to an amount deemed

19-20  appropriate by the court and awarding costs and reasonable

19-21  attorney’s fees to the applicant[.] for bringing the motion.

19-22     (c) The notice of lien is not frivolous and was made with

19-23  reasonable cause [and] or that the amount of the notice of lien is not

19-24  excessive, the court [may] shall make an order awarding costs and

19-25  reasonable attorney’s fees to the lien claimant[.

19-26     5.] for defending the motion.

19-27     7. Proceedings conducted pursuant to this section do not affect

19-28  any other rights and remedies otherwise available to the parties.

19-29     [6.] 8. An appeal may be taken [by either party] from an order

19-30  made pursuant to subsection [4.] 6.

19-31     [7.] 9. If an order releasing or reducing a notice of lien is

19-32  entered by the court, and the order is not stayed, the [lien claimant

19-33  shall, within 2] applicant may, within 5 days after the order is

19-34  entered, record a certified copy of the order in the office of the

19-35  county recorder of the county where the property or some part

19-36  thereof is [situated.] located. The recording of a certified copy of the

19-37  order releasing or reducing a notice of lien is notice to any

19-38  interested party that the notice of lien has been released or reduced.

19-39     Sec. 33.  NRS 108.228 is hereby amended to read as follows:

19-40     108.228  1.  The owner may record a notice of completion

19-41  after[:

19-42     (a) The] the completion of [any] the work of improvement . [; or

19-43     (b) There has been a cessation from labor thereon for a period of

19-44  30 days.]

20-1      2.  The notice of completion must be recorded in the office of

20-2  the county recorder of the county where the property is [situated]

20-3  located and must set forth:

20-4      (a) The date [when the work of improvement was completed, or

20-5  the date on which cessation from labor occurred first and the period

20-6  of its duration.] of completion of the work of improvement.

20-7      (b) The owner’s name or owners’ names, as the case may be, the

20-8  address of the owner or addresses of the owners, as the case may be,

20-9  and the nature of the title, if any, of the person signing the notice.

20-10     (c) A description of the property sufficient for identification.

20-11     (d) The name of the prime contractor[,] or names of the prime

20-12  contractors, if any.

20-13     3.  The notice must be verified by the owner or by some other

20-14  person on his behalf. The notice need not be acknowledged to be

20-15  recorded.

20-16     4.  Upon recording the notice pursuant to this section, the owner

20-17  shall, within 10 days after the notice is recorded, deliver a copy of

20-18  the notice by certified mail, to:

20-19     (a) [Any general] Each prime contractor with whom the owner

20-20  contracted for all or part of the work of improvement.

20-21     (b) [Any person] Each potential lien claimant who, before the

20-22  notice was recorded pursuant to this section, either submitted a

20-23  request to the owner to receive the notice[.] or delivered a

20-24  preliminary notice of right to lien pursuant to NRS 108.245.

20-25     5.  The failure of the owner to deliver a copy of the notice of

20-26  completion in the time and manner provided in this section

20-27  renders the notice of completion ineffective with respect to each

20-28  prime contractor and lien claimant to whom a copy was required

20-29  to be delivered pursuant to subsection 4.

20-30     Sec. 34.  NRS 108.229 is hereby amended to read as follows:

20-31     108.229  1.  At any time before or during the trial of any

20-32  action to foreclose a lien, a lien claimant may record an amended

20-33  notice of lien to correct or clarify his notice of lien. The lien

20-34  claimant shall serve the owner of the property with an amended

20-35  notice of lien in the same manner as required for serving a notice

20-36  of lien pursuant to NRS 108.227 and within 30 days after

20-37  recording the amended notice of lien. A variance between a notice

20-38  of lien and an amended notice of lien does not defeat the lien and

20-39  shall not be deemed material unless the variance:

20-40     (a) Results from fraud or is made intentionally; or

20-41     (b) Misleads an adverse party to his prejudice, but then only

20-42  with respect to the adverse party who was prejudiced.

20-43     2.  Upon the trial of any action or suit to foreclose [such lien

20-44  no] a lien, a variance between the lien and the proof [shall] does not

21-1  defeat the lien [or] and shall not be deemed material unless the

21-2  [same results] variance:

21-3      (a) Results from fraud or is made intentionally[, or has misled]

21-4  ; or

21-5      (b) Misleads the adverse party to his prejudice, but [in] then

21-6  only with respect to the adverse party who was prejudiced.

21-7  In all cases of immaterial variance the [claim] notice of lien may be

21-8  amended, by amendment duly recorded, to conform to the proof.

21-9      [2.  No]

21-10     3.  An error or mistake in the name of the owner [or reputed

21-11  owner] contained in any [claim] notice of lien [shall be held to] does

21-12  not defeat the lien, unless a correction of the notice of lien in [this] a

21-13  particular instance would prejudice the rights of an innocent bona

21-14  fide purchaser or encumbrancer for value[.

21-15     3.] , but then only with respect to the bona fide purchaser or

21-16  encumbrancer for value who was prejudiced.

21-17     4. Upon the trial, [however,] if it [shall appear] appears that an

21-18  error or mistake has been made in the name of the owner [or reputed

21-19  owner,] or that the wrong person has been named as owner [or

21-20  reputed owner] in any [such claim] notice of lien, the court shall

21-21  order an amended [claim] notice of lien to be recorded with the

21-22  county recorder where the original [claim] notice of lien was

21-23  recorded[,] and shall issue to the person who is so made to appear

21-24  to be the original [or reputed] owner a notice directing [such] the

21-25  person or persons to be and appear before the court within the same

21-26  time as is provided by Nevada Rules of Civil Procedure for the

21-27  appearance in other actions after the service of summons, which

21-28  notice [shall] must be served in all respects as a summons is

21-29  required to be served, and to show cause why:

21-30     (a) He should not be substituted[,] as the correct owner in the

21-31  [claim] notice of lien and in the suit, in lieu of the person so made

21-32  defendant and alleged to be owner [or reputed owner] by mistake.

21-33     (b) He should not be bound by the judgment or decree of the

21-34  court. Such proceedings [shall] must be had therein as though

21-35  the party so cited to appear had been an original party defendant in

21-36  the action or suit, and originally named in the [claim] notice of lien

21-37  as owner , [or reputed owner,] and the rights of all parties [shall]

21-38  must thereupon be fully adjudicated.

21-39     [4.] 5. A notice of lien which contains therein the description

21-40  of the [real] property supplied by and set forth in the notice of

21-41  completion recorded pursuant to NRS 108.228 [shall,] must, for all

21-42  purposes, be sufficient as a description of the actual [real] property

21-43  upon which the work [or labor] was performed or materials or

21-44  equipment were supplied , [;] and amendment of the notice of lien

21-45  [claim] or amendment of the pleading filed by the lien claimant in a

22-1  foreclosure action, or both, may be made to state the correct

22-2  description, and [such] the corrected description [shall relate]

22-3  relates back to the time of recording [such] the notice of lien ,

22-4  [claim,] unless a correction of the notice of lien in [this] a particular

22-5  instance would prejudice the rights of an innocent bona fide

22-6  purchaser or encumbrancer for value[.] , but then only with respect

22-7  to the bona fide purchaser or encumbrancer for value who was

22-8  prejudiced.

22-9      Sec. 35.  NRS 108.231 is hereby amended to read as follows:

22-10     108.231  1.  In every case in which [one claim] a notice of

22-11  lien is recorded against two or more separate buildings[,] or mining

22-12  claims [or other improvements owned by the same person, the

22-13  person recording such claim must at the same time designate] that

22-14  are owned by the same person and that are located on separate

22-15  legal parcels that existed at the commencement of construction,

22-16  the lien claimant must, at the time of recording the notice of lien,

22-17  designate the lienable amount due to him on each [of such

22-18  buildings, mining claims or other improvements; otherwise the lien

22-19  of such claim is postponed to other liens.] building or mining

22-20  claim.

22-21     2.  The lien of [such claimant does not extend beyond] a lien

22-22  claimant only applies to the lienable amount designated[,] in the

22-23  notice of lien, plus all amounts that may be awarded by the court

22-24  pursuant to NRS 108.237, as against other creditors having liens by

22-25  judgment or otherwise, upon [either of such buildings or other

22-26  improvements, or upon the land upon which the same are

22-27  constructed.] the buildings or mining claims. However, the

22-28  lienable amount chargeable to the interest of the owner in each

22-29  building must be the total amount of the lien claimant’s notice of

22-30  lien, without regard to the proportionate amount designated to

22-31  each separate building in the lien claimant’s notice of lien, plus all

22-32  amounts that may be awarded by the court pursuant to NRS

22-33  108.237, but upon the trial thereof, the court may, where it deems

22-34  it equitable to do so, distribute the lien equitably as among the

22-35  several buildings involved.

22-36     3.  If a lien claimant fails to designate in his notice of lien the

22-37  amount due to him on each separate building as provided in

22-38  subsection 1, the lien claimant’s notice of lien must be postponed

22-39  to the notices of lien of other lien claimants and other

22-40  encumbrancers for value who have designated the amount due on

22-41  each building or mining claim but must not be inferior to any

22-42  rights or interests of the owner. For purposes of this subsection, a

22-43  lien claimant’s lien must not be postponed to other liens or

22-44  encumbrances if the lien claimant’s designation among the

23-1  parcels was estimated by the lien claimant in good faith or was

23-2  based upon a pro rata division of the total lienable amount.

23-3      Sec. 36.  NRS 108.232 is hereby amended to read as follows:

23-4      108.232  The county recorder of the county in which property

23-5  that is subject to a lien is located must record the [claim] notice of

23-6  lien in a book kept by him for that purpose, which record must be

23-7  indexed as deeds and other conveyances are required by law to be

23-8  indexed, and for which he may receive the same fees as are allowed

23-9  by law for recording deeds and other instruments.

23-10     Sec. 37.  NRS 108.233 is hereby amended to read as follows:

23-11     108.233  1.  [No] A lien provided for in NRS 108.221 to

23-12  108.246, inclusive, [binds any building, mining claim, improvement

23-13  or structure] and sections 2 to 26, inclusive, of this act must not

23-14  bind the property subject to the lien for a [longer] period longer

23-15  than 6 months after [such lien has been] the date on which the

23-16  notice of lien was recorded, unless:

23-17     (a) Proceedings are commenced in a proper court within that

23-18  time to enforce the same; or

23-19     (b) The time to commence the action is extended by a written

23-20  instrument signed by the [lienor] lien claimant and by a person or

23-21  persons in interest in the property subject to the lien, in which event,

23-22  and as to only that person or those persons in interest signing the

23-23  agreement, the time is extended , [;] but no extension [shall be] is

23-24  valid unless in writing and recorded in the county recorder’s office

23-25  in which the notice of lien is recorded and unless the extension

23-26  agreement is recorded within [such] the 6-month period . [; and

23-27  such] The extension agreement, to be recorded, must be

23-28  acknowledged as required by law for the acknowledgment of deeds.

23-29  An action may be commenced within [such] the extended time only

23-30  [as to] against the persons signing the extension agreement and only

23-31  as to their interests in the property are affected, and upon the lapse

23-32  of the time specified in the extension agreement, an action may not

23-33  thereafter be commenced, nor may a second extension be given.

23-34     2.  For all purposes, a [mechanic’s lien of record] notice of lien

23-35  shall be deemed to have expired as a lien against the property after

23-36  the lapse of the 6-month period provided in subsection 1, and [such

23-37  recording shall] the recording of a notice of lien does not provide

23-38  actual or constructive notice after the lapse of [such] the 6-month

23-39  period and as a lien on the [real] property referred to in the

23-40  [recorded] notice of lien, unless, [prior to] before the lapse of [such]

23-41  the 6-month period [the] an extension agreement has been recorded,

23-42  in which event, the lien [shall] will only continue as a lien on the

23-43  interests of those persons signing the extension for the period

23-44  specified in the extension . [and for no longer period.] An extension

24-1  must not be given for a period in excess of 1 year beyond the date

24-2  on which the notice of lien is recorded.

24-3      3.  If there are other [claims] notices of lien outstanding against

24-4  the property, [no extension shall] an extension must not be given

24-5  upon [the] a notice of lien which will tend to delay or postpone the

24-6  collection of other [claims] liens evidenced by a notice of lien or

24-7  encumbrances against the property . [; and no extension shall be

24-8  given for a period in excess of 1 year beyond the recording of the

24-9  lien.]

24-10     Sec. 38.  NRS 108.234 is hereby amended to read as follows:

24-11     108.234  [Every building or other improvement mentioned in

24-12  NRS 108.222,]

24-13     1.  Except as otherwise provided in subsection 2, every

24-14  improvement constructed , altered or repaired upon [any lands with

24-15  the knowledge of the owner or the person having or claiming any

24-16  interest therein,] property shall be [held] deemed to have been

24-17  constructed , altered or repaired at the instance of [the owner or

24-18  person] each owner having or claiming any interest therein, and the

24-19  interest owned or claimed [is] must be subject to [any] each notice

24-20  of lien recorded in accordance with the provisions of NRS 108.221

24-21  to 108.246, inclusive, [unless the owner or person having or

24-22  claiming an interest therein shall,] and sections 2 to 26, inclusive, of

24-23  this act.

24-24     2.  The interest of a disinterested owner in any improvement

24-25  and the property upon which an improvement is constructed,

24-26  altered or repaired is not subject to a notice of lien if the

24-27  disinterested owner, within 3 days after he [has obtained] first

24-28  obtains knowledge of the construction, alteration or repair, or the

24-29  intended construction, alteration or repair, [give] gives notice that he

24-30  will not be responsible for the improvement by recording a notice in

24-31  writing to that effect with the county recorder of the county where

24-32  the [land or building is situated] property is located and, in the

24-33  instance of[:

24-34     1.] a disinterested owner who is:

24-35     (a) A lessor, the notice of [lien] nonresponsibility shall be

24-36  deemed timely recorded if the notice is recorded within 3 days

24-37  immediately following the [execution] effective date of the lease [by

24-38  all parties as to that construction, alteration or repair, or intended

24-39  construction, alteration or repair, known to the lessor at] or by the

24-40  time of the execution of the lease by all parties[.

24-41     2.] , whichever occurs first; or

24-42     (b) An optionor, the notice of [lien] nonresponsibility shall be

24-43  deemed timely recorded if the notice is recorded within 3 days

24-44  immediately following the [execution of the agreement permitting

24-45  entry upon the real property by all parties as to that construction,

25-1  alteration, repair, or intended construction, alteration, repair or other

25-2  work known to the optionor at the time of the execution of the

25-3  agreement by all parties.] date on which the option is exercised in

25-4  writing.

25-5      3.  Each notice of nonresponsibility recorded pursuant to this

25-6  section must identify:

25-7      (a) The name and address of the disinterested owner;

25-8      (b) The location of the improvement and the property upon

25-9  which the improvement is or will be constructed, altered or

25-10  repaired;

25-11     (c) The nature and extent of the disinterested owner’s interest

25-12  in the improvement and the property upon which the improvement

25-13  is or will be constructed, altered or repaired; and

25-14     (d) The date on which the disinterested owner first learned of

25-15  the construction, alteration or repair of the improvement that is

25-16  the subject of the notice of nonresponsibility.

25-17     4.  Any lessee who causes a work of improvement to be

25-18  constructed, altered or repaired upon property that is leased shall

25-19  provide a payment and completion bond from a surety licensed to

25-20  do business in this state in an amount equal to not less than 1.5

25-21  times the total amount of the construction contract. The surety

25-22  bond must be recorded in accordance with NRS 108.2415 to

25-23  108.2425, inclusive, before commencement of the construction,

25-24  alteration or repair of the work of improvement and must be

25-25  payable upon default by the lessee of any undisputed amount

25-26  pursuant to the construction contract that is due and payable to

25-27  the prime contractor for more than 30 days. If a lessee fails to

25-28  record a surety bond as required pursuant to this section, the

25-29  prime contractor may invalidate the construction contract and

25-30  may recover damages including, without limitation, consequential

25-31  damages, reasonable attorney’s fees and costs.

25-32     5.  As used in this section, “disinterested owner” means an

25-33  owner who did not personally or through his agent or

25-34  representative, directly or indirectly, request, require, authorize,

25-35  consent to or cause a work of improvement, or any portion

25-36  thereof, to be constructed, altered or repaired upon the property of

25-37  the owner. The term must not be interpreted to invalidate a notice

25-38  of nonresponsibility recorded pursuant to this section or to deny

25-39  the rights granted pursuant to this section upon the recording of a

25-40  notice of nonresponsibility because:

25-41     (a) The disinterested owner is a lessor or an optionor under a

25-42  lease that requests, requires, authorizes or consents to his lessee

25-43  causing the work of improvement to be constructed, altered or

25-44  repaired upon the property;

26-1      (b) The lessee personally or through his agent or

26-2  representative enters into a contract and causes the work of

26-3  improvement to be constructed, altered or repaired upon the

26-4  property; and

26-5      (c) The lessor or optionor notifies the lessee in writing that

26-6  pursuant to subsection 4, the lessee must record a surety bond

26-7  before causing a work of improvement to be constructed, altered

26-8  or repaired upon the property.

26-9      Sec. 39.  NRS 108.235 is hereby amended to read as follows:

26-10     108.235  1.  [The contractor shall be entitled to recover, upon

26-11  a lien recorded by him, only such] A prime contractor:

26-12     (a) Upon a notice of lien, may recover the lienable amount as

26-13  may be due to him [according to the terms of his contract, after

26-14  deducting all claims of other parties] , plus all amounts that may be

26-15  awarded to him by the court pursuant to NRS 108.237; and

26-16     (b) Upon receipt of the amount described in paragraph (a),

26-17  shall pay all liens for the work [done and material furnished,] ,

26-18  equipment or materials which were furnished to him as provided

26-19  in NRS 108.221 to 108.246, inclusive[.] , and sections 2 to 26,

26-20  inclusive, of this act.

26-21     2.  In all cases where a prime contractor has been paid for the

26-22  work, materials or equipment which are the subject of a notice of

26-23  lien [is] recorded under NRS 108.221 to 108.246, inclusive, [for

26-24  work done or materials furnished to any contractor, he] and sections

26-25  2 to 26, inclusive, of this act, the prime contractor shall defend the

26-26  owner in any action brought thereupon at his own expense. [During

26-27  the pendency of the action,]

26-28     3.  Except as otherwise provided in this subsection, if a lien

26-29  claimant records a notice of lien for the work, equipment or

26-30  materials furnished to the prime contractor, the owner may

26-31  withhold from the prime contractor the amount of money for which

26-32  [such] the lien claimant’s notice of lien is [filed.] recorded. If the

26-33  lien claimant’s notice of lien resulted from the owner’s failure to

26-34  pay the prime contractor for the lien claimant’s work, materials or

26-35  equipment, the owner shall not withhold the amount set forth in

26-36  the notice of lien from the prime contractor if the prime contractor

26-37  tenders a release of the lien claimant’s lien to the owner. In case of

26-38  judgment against the owner or his property [upon] which is the

26-39  subject of the lien, the owner [shall be entitled to] may deduct, from

26-40  any amount due or to become due by him to the prime contractor,

26-41  the amount [of the judgment and costs. If the amount of the

26-42  judgment and costs exceeds the amount due by him to the

26-43  contractor, or if the owner has settled with the contractor, the owner

26-44  shall be entitled to] paid by the owner to the lien claimant for

26-45  which the prime contractor was liable and recover back from the

27-1  prime contractor any amount so paid by the owner in excess of the

27-2  [contract price, and for which the contractor was originally the party

27-3  liable.] amount the court has found that the owner owes to the

27-4  prime contractor.

27-5      Sec. 40.  NRS 108.236 is hereby amended to read as follows:

27-6      108.236  1.  In every case in which different liens are asserted

27-7  against any property, the court, in the judgment, must declare the

27-8  rank of each lien[,] claimant or class of [liens, which must be] lien

27-9  claimants in the following order:

27-10     (a) First: All labor whether performed at the instance or

27-11  direction of the owner, the subcontractor or the [original] prime

27-12  contractor.

27-13     (b) Second: Material suppliers[.

27-14     Third: The subcontractors, architects, land surveyors, geologists

27-15  and engineers, if such architects, land surveyors, geologists and

27-16  engineers] and lessors of equipment.

27-17     (c) Third: All other lien claimants who have performed their

27-18  [services,] work, in whole or in part, under contract with the

27-19  [general contractor.

27-20     Fourth: The original contractors, architects, land surveyors,

27-21  geologists and engineers, if such architects, land surveyors,

27-22  geologists and engineers have not performed their services, in whole

27-23  or in part, under contract with the general contractor, and all persons

27-24  other than original contractors, subcontractors, architects, land

27-25  surveyors, geologists and engineers.] prime contractor or any

27-26  subcontractor.

27-27     (d) Fourth: All other lien claimants.

27-28     2.  The proceeds of the sale of the property must be applied to

27-29  each lien[,] claimant or class of [liens,] lien claimants in the order

27-30  of its rank.

27-31     Sec. 41.  NRS 108.237 is hereby amended to read as follows:

27-32     108.237  1.  [Any number of persons claiming liens may join

27-33  in the same action. When separate actions are commenced the court

27-34  may consolidate them.] The court shall award to a prevailing lien

27-35  claimant, whether on its lien or on a surety bond, the lienable

27-36  amount found due to the lien claimant by the court and the cost of

27-37  preparing and filing the lien claim, including, without limitation,

27-38  attorney’s fees, if any, and interest. The court shall also award to

27-39  the prevailing lien claimant, whether on its lien or on a surety

27-40  bond, the costs of the proceedings, including, without limitation,

27-41  reasonable attorney’s fees, the costs for representation of the lien

27-42  claimant in the proceedings, and any other amounts as the court

27-43  may find to be justly due and owing to the lien claimant.

27-44     2.  The court [may also allow] shall calculate interest for

27-45  purposes of subsection 1 based upon:

28-1      (a) The rate of interest agreed upon in the lien claimant’s

28-2  contract; or

28-3      (b) If a rate of interest is not provided in the lien claimant’s

28-4  contract, interest at a rate equal to the prime rate at the largest bank

28-5  in Nevada, as ascertained by the Commissioner of Financial

28-6  Institutions, on January 1 or July 1, as the case may be, immediately

28-7  preceding the date of judgment, plus 2 percent, on the amount of the

28-8  lien found payable. [The interest is payable from the date that the

28-9  payment is found to have been due, and the court may allow, as part

28-10  of the costs, the money paid for recording the lien.] The rate of

28-11  interest must be adjusted accordingly on each January 1 and July 1

28-12  thereafter until the amount of the lien is paid.

28-13     [3.  The court shall also allow to the prevailing party reasonable

28-14  attorney’s fees for the preparation of the lien and for representation

28-15  of the lien claimant in the action.]

28-16  Interest is payable from the date on which the payment is found to

28-17  have been due, as determined by the court.

28-18     3.  If the lien claim is not upheld, the court may award costs

28-19  and reasonable attorney’s fees to the owner or other person

28-20  defending against the lien claim if the court finds that the notice

28-21  of lien was pursued by the lien claimant without a reasonable

28-22  basis in law or fact.

28-23     Sec. 42.  NRS 108.238 is hereby amended to read as follows:

28-24     108.238  [Nothing contained in] The provisions of NRS

28-25  108.221 to 108.246, inclusive, [shall] and sections 2 to 26,

28-26  inclusive, of this act must not be construed to impair or affect the

28-27  right of [any person] a lien claimant to whom any debt may be due

28-28  for work [done or material] , materials or equipment furnished to

28-29  maintain a [personal] civil action to recover [such] that debt against

28-30  the person liable therefor[.] or to submit any controversy arising

28-31  under a contract to arbitration to recover that amount.

28-32     Sec. 43.  NRS 108.239 is hereby amended to read as follows:

28-33     108.239  1.  [Liens] A notice of lien may be enforced by an

28-34  action in any court of competent jurisdiction, on setting out in the

28-35  complaint the particulars of the demand, with a description of the

28-36  [premises] property to be charged with the lien.

28-37     2.  At the time of filing the complaint and issuing the summons,

28-38  the [plaintiff] lien claimant shall:

28-39     (a) File a notice of pendency of the action in the manner

28-40  provided in NRS 14.010; and

28-41     (b) Cause a notice of foreclosure to be published at least once a

28-42  week for 3 successive weeks, in one newspaper published in the

28-43  county, and if there is no newspaper published in the county, then in

28-44  such mode as the court may determine, notifying all persons holding

28-45  or claiming [liens] a notice of lien pursuant to the provisions of

29-1  NRS 108.221 to 108.246, inclusive, and sections 2 to 26, inclusive,

29-2  of this act on the [premises] property to file with the clerk and serve

29-3  on the [plaintiff] lien claimant and also on the defendant, if the

29-4  defendant is within the State or is represented by counsel, written

29-5  statements of the facts constituting their liens, together with the

29-6  dates and amounts thereof. [The statements must be filed]

29-7      3.  All persons holding or claiming a notice of lien may join a

29-8  lien claimant’s action by filing a statement of facts within 10 days

29-9  after the last publication of the notice[. The plaintiff] of

29-10  foreclosure. Any number of persons claiming liens may join in the

29-11  same action if they timely file a statement of facts in the lien

29-12  claimant’s action. The lien claimant and other parties adversely

29-13  interested must be allowed [5] 20 days to answer the statements.

29-14     [3.] 4. If it appears from the records of the county recorder that

29-15  there are other notices of lien [claims] recorded against the same

29-16  [premises] property at the time of the commencement of the action,

29-17  the [plaintiff] lien claimant shall, in addition to and after the initial

29-18  publication of the notice of foreclosure as provided in paragraph (b)

29-19  of subsection 2, mail to those other lien claimants, by registered or

29-20  certified mail, or deliver in person a copy of the notice of

29-21  foreclosure as published.

29-22     [4.] 5. At the time of any change in the venue of the action, the

29-23  [plaintiff] lien claimant shall file a notice of pendency of the action,

29-24  in the manner provided in NRS 14.010, and include in the notice the

29-25  court and county to which the action is changed.

29-26     [5.] 6. When separate actions are commenced by lien

29-27  claimants to foreclose on their respective notices of lien, the court

29-28  may consolidate all the actions. The consolidation does not affect

29-29  or change the priority of lien claims.

29-30     7.  The court shall enter judgment according to the right of the

29-31  parties, and shall, by decree, proceed to hear and determine

29-32  the claims in a summary way, or may, if it be the district court, refer

29-33  the claims to a special master to ascertain and report upon the liens

29-34  and the amount justly due thereon. No consequential damages may

29-35  be recovered in an action pursuant to this section. All liens not so

29-36  exhibited shall be deemed to be waived in favor of those which are

29-37  so exhibited.

29-38     [6.] 8. Upon petition by a lien claimant for a preferential trial

29-39  setting:

29-40     (a) The court shall give preference in setting a date for the

29-41  trial of an action brought pursuant to this section; and

29-42     (b) If a lien action is designated as complex by the court, the

29-43  court may take into account the rights and claims of all lien

29-44  claimants in setting a date for the preferential trial.

30-1      9.  If the lienable amount of a lien claimant’s lien is the

30-2  subject of binding arbitration:

30-3      (a) The court may, at the request of a party to the arbitration,

30-4  stay the lien claimant’s action to foreclose the lien pending the

30-5  outcome of the binding arbitration. If the foreclosure on the lien

30-6  involves the rights of other lien claimants or persons whose claims

30-7  are not the subject of the binding arbitration, the court may stay

30-8  the lien claimant’s foreclosure proceeding only upon terms which

30-9  are just and which afford the lien claimant a fair opportunity to

30-10  protect his lien rights and priorities with respect to other lien

30-11  claimants and persons.

30-12     (b) Upon the granting of an award by the arbitrator, any party

30-13  to the arbitration may seek an order from the court in the action to

30-14  foreclose on the lien confirming or adopting the award and

30-15  determining the lienable amount of the lien claimant’s lien in

30-16  accordance with the order, if any. Upon determining the lienable

30-17  amount, the court shall enter a judgment or decree for the lienable

30-18  amount, plus all amounts that may be awarded by the court to the

30-19  lien claimant pursuant to NRS 108.237, and the court may include

30-20  as part of the lien all costs and attorney’s fees awarded to the lien

30-21  claimant by the arbitrator and all costs and attorney’s fees

30-22  incurred by the lien claimant pertaining to any application or

30-23  motion to confirm, adopt, modify or correct the award of the

30-24  arbitrator. A judgment or decree entered by the court pursuant to

30-25  this subsection may be enforced against the property as provided

30-26  in subsections 10, 11 and 12.

30-27     10.  On ascertaining the whole amount of the liens with which

30-28  the [premises are] property is justly chargeable, as provided in NRS

30-29  108.221 to 108.246, inclusive, and sections 2 to 26, inclusive, of

30-30  this act, the court shall cause the [premises] property to be sold in

30-31  satisfaction of [the] all liens and the costs[, including costs of suit,]

30-32  of sale, including all amounts awarded to all lien claimants

30-33  pursuant to NRS 108.237, and any party in whose favor judgment

30-34  may be rendered may cause the [premises] property to be sold

30-35  within the time and in the manner provided for sales on execution,

30-36  issued out of any district court, for the sale of real property.

30-37     [7.] 11. If the proceeds of sale, after [the] payment of the costs

30-38  [,] of sale, are not sufficient to satisfy [the whole amount of the] all

30-39  liens to be included in the decree of sale, including all amounts

30-40  awarded to all lien claimants pursuant to NRS 108.237, the

30-41  proceeds must be apportioned according to the right of the [several

30-42  parties.] various lien claimants. If the proceeds of the sale amount

30-43  to more than the sum of [the] all liens and the cost of sale, the

30-44  remainder must be paid over to the owner of the property.

31-1      [8.] 12. Each party whose claim is not satisfied in the manner

31-2  provided in this section is entitled to personal judgment for the

31-3  residue against the party legally liable for it if that person has been

31-4  personally summoned or has appeared in the action.

31-5      Sec. 44.  NRS 108.2413 is hereby amended to read as follows:

31-6      108.2413  A [mechanic’s lien of record upon real property] lien

31-7  claimant’s lien rights or notice of lien may be released upon the

31-8  posting of a surety bond in the manner provided in NRS 108.2415 to

31-9  108.2425, inclusive.

31-10     Sec. 45.  NRS 108.2415 is hereby amended to read as follows:

31-11     108.2415  [The debtor of the lien claimant or a party in interest

31-12  in the premises subject to the lien must obtain a surety bond

31-13  executed by the debtor of the lien claimant or a party in interest in

31-14  the premises subject to the lien, as principal, and executed by a

31-15  corporation authorized to transact surety business in this state, as

31-16  surety, in substantially]

31-17     1.  To obtain the release of a notice of lien, a principal and a

31-18  surety must execute a surety bond which must be in the following

31-19  form:

 

31-20  (Assessor’s Parcel Numbers)

 

31-21  (Title of court and cause, if action has been commenced)

 

31-22  WHEREAS, ................................ (name of [owner, contractor, or

31-23  other person disputing lien)] principal), located at

31-24  ........................................................ (address of principal), desires to

31-25  give a bond for releasing the following described [real] property

31-26  owned by ......................................... (name of owners) from that

31-27  certain [claim of mechanic’s] notice of lien in the sum of

31-28  $................ recorded ..... (month) ..... (day) ..... (year) in the office of

31-29  the recorder in ................................ (name of county where the [real]

31-30  property is [situated):] located):

 

31-31  (Legal Description)

 

31-32  NOW, THEREFORE, the undersigned principal and surety do

31-33  hereby obligate themselves to the lien claimant named in the

31-34  [mechanic’s] notice of lien, ................................, (name of lien

31-35  claimant) under the conditions prescribed by NRS 108.2413 to

31-36  108.2425, inclusive, in the sum of $................ (1 1/2 x [claim),]

31-37  lienable amount), from which sum they will pay the lien claimant

31-38  [such] that amount as a court of competent jurisdiction may adjudge

31-39  to have been secured by his lien, [with interest, costs and attorney’s

32-1  fees.] including the total amount awarded pursuant to

32-2  NRS 108.237.

32-3  IN TESTIMONY WHEREOF, the principal and surety have

32-4  executed this bond at ................................, Nevada, on the ....... day

32-5  of the month of ....... of the year .......

 

32-6  ......……….....................

32-7  (Signature of Principal)

 

32-8  (Surety Corporation)

32-9  By........………....................

32-10  (Its Attorney in Fact)

 

 

32-11  State of Nevada         }

32-12                                     }ss.

32-13  County of.................. }

 

32-14     On ..... (month) ..... (day) ..... (year) before me, the undersigned,

32-15  a notary public of this county and state, personally appeared

32-16  ................................. who acknowledged that he executed the

32-17  foregoing instrument as principal for the purposes therein mentioned

32-18  and also personally appeared ................................ known (or

32-19  satisfactorily proved) to me to be the attorney in fact of the

32-20  [corporation] surety that executed the foregoing instrument, known

32-21  to me to be the person who executed that instrument on behalf of the

32-22  [corporation] surety therein named, and he acknowledged to me that

32-23  [that corporation] the surety executed the foregoing instrument.

 

32-24                                                            ............................................  

32-25  (Notary Public in and for

32-26  the County and State)

32-27     2.  The principal must record the surety bond in the office of

32-28  the county recorder in which the notice of lien was recorded,

32-29  either before or after the commencement of an action to enforce

32-30  the lien. A certified copy of the recorded surety bond shall be

32-31  deemed an original for purposes of this section.

32-32     3.  Upon the recording of the surety bond, the principal must

32-33  serve a file-stamped copy of the recorded surety bond in the

32-34  following manner:

32-35     (a) If an action is pending to enforce the notice of lien, service

32-36  must be made by certified or registered mail, return receipt

32-37  requested, upon the lien claimant at the address set forth in the

32-38  lien and the lien claimant’s counsel of record at his place of

32-39  business; or

33-1      (b) If no action is pending to enforce the notice of lien,

33-2  personal service must be made upon the lien claimant pursuant to

33-3  Rule 4 of the Nevada Rules of Civil Procedure.

33-4      4.  Failure to serve the surety bond as provided in subsection 3

33-5  does not affect the validity of the surety bond, but the statute of

33-6  limitations on any action on the surety bond, including a motion

33-7  excepting to the sufficiency of the surety pursuant to NRS

33-8  108.2425, is tolled until notice is given.

33-9      5.  Subject to the provisions of NRS 108.2425, the recording

33-10  and service of the surety bond pursuant to this section releases the

33-11  property described in the surety bond from the lien and the surety

33-12  bond shall be deemed to replace the property as security for the

33-13  lien.

33-14     Sec. 46.  NRS 108.2421 is hereby amended to read as follows:

33-15     108.2421  1.  The lien claimant is entitled to [bring] :

33-16     (a) Bring an action against [the lien claimant’s debtor and to

33-17  join therein] ; or

33-18     (b) If an action has been commenced, join in the pending

33-19  action against,

33-20  the principal and surety on the surety bond[. A judgment for the

33-21  claimant on the bond may not be made against the property. The

33-22  rights of the lien claimant include and the court may award to him in

33-23  that action:

33-24     (a) The amount found due to the lien claimant by the court;

33-25     (b) The cost of preparing and filing the lien claim, including

33-26  attorney’s fees, if any;

33-27     (c) The costs of the proceedings;

33-28     (d) Attorney’s fees for representation of the lien claimant in the

33-29  proceedings; and

33-30     (e) Interest at a rate established pursuant to NRS 99.040 from

33-31  the date found by the court that the sum was due.

33-32     2.  Proceedings pursuant to subsection 1 are entitled to priority

33-33  of hearing second only to criminal hearings. The plaintiff] and the

33-34  lien claimant’s debtor.

33-35     2.  At any time after the filing of a joint case conference

33-36  report pursuant to Rule 16.1 of the Nevada Rules of Civil

33-37  Procedure or, if the case is designated by the court as complex

33-38  litigation, after the approval of the initial case management order

33-39  by the court, each lien claimant in the action may serve upon the

33-40  adverse party a “demand for [30-day setting,” in the proper form,]

33-41  preferential trial setting” and file the demand with the clerk of the

33-42  court. Upon filing, the clerk of the court shall, before the Friday

33-43  after the demand is filed, vacate a case or cases in a department of

33-44  the court and set the lien claimant’s case for hearing, on a day or

33-45  days certain, to be heard within [30] 60 days after the filing of the

34-1  “demand for [30-day] preferential trial setting.” Only one such

34-2  preferential trial setting need be given by the court, unless the

34-3  hearing date is vacated without stipulation of counsel for the

34-4  [plaintiff] lien claimant in writing. If the hearing date is vacated

34-5  without that stipulation, upon service and filing, a new preferential

34-6  trial setting must be given.

34-7      3.  A lien claimant shall, at the time of making his demand for

34-8  a preferential trial setting, and each other party to the preferential

34-9  trial shall, within 20 days after the lien claimant’s service of the

34-10  demand, serve upon all parties to the preferential trial the

34-11  following documents and information:

34-12     (a) A copy of all documents that the party intends to rely upon

34-13  at the time of the trial;

34-14     (b) A list of witnesses whom the party intends to call at the

34-15  time of the trial, which must include for each witness:

34-16         (1) The name of the witness;

34-17         (2) The company for whom the witness works and title of

34-18  the witness; and

34-19         (3) A brief summary of the expected testimony of the

34-20  witness;

34-21     (c) Any supplemental discovery responses as required by the

34-22  Nevada Rules of Civil Procedure;

34-23     (d) The identity of each person whom the party expects to call

34-24  as an expert witness at the trial, together with a statement of the

34-25  substance of the facts and opinions to which the expert witness is

34-26  expected to testify and a summary of the grounds for each

34-27  opinion;

34-28     (e) Any expert reports not previously disclosed; and

34-29     (f) A detailed summary of all claims, offsets and defenses that

34-30  the party intends to rely upon at the trial.

34-31     4.  Within 20 days after receipt of an opposing party’s

34-32  identification of an expert witness, a party who desires to call a

34-33  rebuttal expert witness at the trial must identify each person whom

34-34  the party expects to call as a rebuttal expert witness, and must

34-35  provide a statement of the substance of the facts and opinions to

34-36  which the rebuttal expert witness is expected to testify and a

34-37  summary of the grounds for each opinion.

34-38     5.  A prevailing lien claimant on a claim against a surety bond

34-39  must be awarded the lienable amount plus the total amount that

34-40  may be awarded by the court pursuant to NRS 108.237. Such a

34-41  judgment is immediately enforceable and may be appealed

34-42  regardless of whether any other claims asserted or consolidated

34-43  actions or suits have been resolved by a final judgment.

 

 

35-1      Sec. 47.  NRS 108.2423 is hereby amended to read as follows:

35-2      108.2423  1.  By entering into a surety bond given pursuant to

35-3  NRS 108.2415, the principal and surety [submits himself] submit

35-4  themselves to the jurisdiction of the court in which [the bond is filed

35-5  in the proceeding or release of the lien,] an action or suit is pending

35-6  on a notice of lien on the property described in the surety bond,

35-7  and the principal and surety irrevocably [appoints] appoint the

35-8  clerk of that court as [its] their agent upon whom any papers

35-9  affecting [its] the liability on the surety bond may be served. [Its]

35-10  The liability of the principal may be established by the court in the

35-11  pending action. The liability of the surety may be enforced on

35-12  motion without necessity of an independent action. The motion and

35-13  such notice of motion as the court prescribes may be served on the

35-14  clerk of the court, who shall forthwith mail copies to the principal

35-15  and surety if [his address is] their addresses are known.

35-16     2.  The motion described in subsection 1 must not be instituted

35-17  until [the lapse of] 30 days [following] after:

35-18     (a) If a notice of appeal from the judgment is not filed, the

35-19  giving of notice of entry of judgment in the action against the lien

35-20  claimant’s debtor [, if no notice of appeal from the judgment is filed,

35-21  nor may the motion be instituted until the lapse of 30 days

35-22  following] or the giving of notice of entry of judgment in an action

35-23  against the principal or the lien claimant’s debtor, as the case may

35-24  be; or

35-25     (b) If an appeal has been taken from the judgment, the filing

35-26  of the remittitur from the Supreme Court . [, if an appeal has been

35-27  taken from the judgment.]

35-28     Sec. 48.  NRS 108.2425 is hereby amended to read as follows:

35-29     108.2425  1.  The lien claimant may, within [2] 15 days after

35-30  the service of a copy of the [petition and a copy of the bond attached

35-31  thereto,] surety bond pursuant to subsection 3 of NRS 108.2415,

35-32  file a motion with the clerk of the court in [the action a notice] a

35-33  pending action, or if no action has been commenced, file a petition

35-34  with the court, excepting to the sufficiency of the surety [on] or the

35-35  surety bond, and shall, at the same time and together with that

35-36  [notice,] motion or petition, file an affidavit setting forth the

35-37  grounds and basis of the exceptions to the surety[,] or the surety

35-38  bond, and shall serve a copy of the [notice] motion or petition and a

35-39  copy of the affidavit upon the [attorney or the petitioner on the same

35-40  date as] principal at the address set forth in the surety bond within

35-41  5 business days after the date of filing. A hearing must be had upon

35-42  the justification of the surety [at the same time as that set for the

35-43  hearing on the petition for the order to release the lien.

35-44     2.  If the lien claimant fails to file and serve the notice and

35-45  affidavit within 2 days after the service of the petition for release of

36-1  the lien, he shall be deemed to have waived all objection to the

36-2  justification and sufficiency of the surety.] or the surety bond not

36-3  less than 10 days and not more than 20 days after the filing of the

36-4  motion or petition. If the court determines that the surety or surety

36-5  bond is insufficient, the lien claimant’s lien will remain against

36-6  the property or the court may allow the substitution of a sufficient

36-7  surety and surety bond.

36-8      2.  If, at any time after the recording of a surety bond

36-9  pursuant to NRS 108.2415, the surety becomes unauthorized to

36-10  transact surety business in this state pursuant to NRS 679A.030 or

36-11  is dropped from the United States Department of the Treasury’s

36-12  Listing of Approved Sureties or there exists any other good cause,

36-13  a lien claimant or other person having an interest in the surety

36-14  bond may apply to the district court in a pending action, or

36-15  commence an action if none is pending, for an order to require

36-16  additional security or to change, substitute or add securities, or to

36-17  enforce or change any other matter affecting the security provided

36-18  by the surety bond.

36-19     3.  If a court finds that the amount of a surety bond recorded

36-20  pursuant to NRS 108.2415 is insufficient to pay the total amount

36-21  that may be awarded by the court pursuant to NRS 108.237, the

36-22  court shall increase the amount of the surety bond to 1.5 times the

36-23  total amount that may be awarded. Any surety that records or

36-24  consents to the recording of a surety bond pursuant to NRS

36-25  108.2415 will:

36-26     (a) Remain fully liable on the surety bond regardless of the

36-27  payment or nonpayment of any surety bond premium; and

36-28     (b) Be liable for any increase in the amount of the surety bond

36-29  as ordered by the court pursuant to this subsection.

36-30     Sec. 49.  NRS 108.243 is hereby amended to read as follows:

36-31     108.243  1.  Any notice of lien may be assigned in the same

36-32  manner as any other chose in action after it has been perfected by

36-33  recording.

36-34     2.  [No] An assignment of a lien [prior to recording shall]

36-35  before recording will not be effective until written notice of the

36-36  assignment has been given to the owner by the assignee. [Any such

36-37  notice shall] The notice will be sufficient if delivered in person or

36-38  mailed by certified mail to the [person named as owner in the

36-39  building permit.] owner. After such notice the assignee may perfect

36-40  the lien in his own name.

36-41     3.  [Two] One or more lien claimants of [the same] any class

36-42  may assign their notices of lien [claims] by written assignment,

36-43  signed by each assignor, to any other person or lien claimant of [the

36-44  same] any class, and the assignee may commence and prosecute the

37-1  action upon all of the notices of lien [claims] in his own name[.] or

37-2  in the name of the original lien claimant.

37-3      4.  In the event that a claim for which a lien may be filed is

37-4  assigned before it is perfected, such assignment [shall] does not

37-5  discharge or defeat the right to perfect [such] the lien, if [such

37-6  claim] the lien is reassigned to the lien claimant, and thereafter

37-7  [such lien claim] the lien is timely perfected.

37-8      Sec. 50.  NRS 108.2433 is hereby amended to read as follows:

37-9      108.2433  1.  Except as otherwise provided in subsection 2, a

37-10  notice of lien [of record upon real] upon the property provided for

37-11  in NRS 108.221 to 108.246, inclusive, and sections 2 to 26,

37-12  inclusive, of this act may be discharged by an entry on the margin

37-13  of the record thereof, signed by the [lienor] lien claimant or his

37-14  personal representative or assignee in the presence of the recorder or

37-15  his deputy, acknowledging the satisfaction of or value received for

37-16  the notice of lien and the debt secured thereby. The recorder or his

37-17  deputy shall subscribe the entry as witness. The entry has the same

37-18  effect as a discharge or release of the notice of lien acknowledged

37-19  and recorded as provided by law. The recorder shall properly index

37-20  each marginal discharge.

37-21     2.  If the notice of lien has been recorded by a microfilm or

37-22  other photographic process, a marginal release may not be used and

37-23  an acknowledged discharge or release of the notice of lien must be

37-24  recorded.

37-25     3.  If the recorder or his deputy is presented with a certificate

37-26  executed by the [lienor] lien claimant or his personal representative

37-27  or assignee, specifying that the notice of lien has been paid or

37-28  otherwise satisfied or discharged, the recorder or his deputy shall

37-29  discharge the notice of lien upon the record.

37-30     Sec. 51.  NRS 108.2437 is hereby amended to read as follows:

37-31     108.2437  1.  As soon as practicable, but not later than 10 days

37-32  after a notice of lien [of record upon real] upon the property

37-33  pursuant to NRS 108.221 to 108.246, inclusive, and sections 2 to

37-34  26, inclusive, of this act is fully satisfied or discharged, the [lienor]

37-35  lien claimant shall cause to be recorded a discharge or release of the

37-36  notice of lien in substantially the following form:

 

37-37  Assessor’s Parcel Numbers

 

37-38  DISCHARGE OR RELEASE OF NOTICE OF LIEN

 

37-39  NOTICE IS HEREBY GIVEN THAT:

37-40         The undersigned did, on the ....... day of the month of ....... of

37-41  the year ......., record in Book ............, as Document No. ............, in

37-42  the office of the county recorder of ............. County, Nevada, its

38-1  Notice of Lien, or has otherwise given notice of his intention to hold

38-2  [and claim] a lien upon the following described property[,] or

38-3  improvements, owned or purportedly owned by ..............., [situated]

38-4  located in the County of ............, State of Nevada, to wit:

 

38-5  (Legal Description or Address of the Property[)] or Improvements)

 

38-6          NOW, THEREFORE, for valuable consideration the

38-7  undersigned does release, satisfy and discharge [the claim or] his

38-8  notice of lien on the property or improvements described above by

38-9  reason of [such] this Notice of Lien . [, or by reason of the work and

38-10  labor on, or materials furnished for, that property.]

38-11                                                                              ...................................................

38-12        (Signature of [Lienor)] Lien Claimant)

 

38-13     2.  If the [lienor] lien claimant fails to comply with the

38-14  provisions of subsection 1, he is liable in a civil action to the owner

38-15  of the [real] property, his heirs or assigns for any actual damages

38-16  caused by his failure to comply with those provisions or $100,

38-17  whichever is greater, and for a reasonable attorney’s fee and the

38-18  costs of bringing the action.

38-19     Sec. 52.  NRS 108.244 is hereby amended to read as follows:

38-20     108.244  A lien claimant or assignee of a lien claimant or

38-21  claimants may not file a complaint for foreclosure of his

38-22  [mechanic’s] notice of lien or the assigned [mechanic’s] notice of

38-23  lien or [mechanics’ liens] notices of lien until 30 days have expired

38-24  immediately following the filing of his [mechanic’s] notice of lien

38-25  or following the filing of the assigned [mechanic’s] notice of lien or

38-26  the last of the assigned [mechanics’ liens.] notices of lien. This

38-27  provision [shall] does not apply to [nor] or prohibit the filing of any

38-28  statement of fact constituting a lien or statements of fact

38-29  constituting a lien [in an already filed] :

38-30     1.  In an action already filed for foreclosure of [mechanic’s

38-31  lien and] a notice of lien; or

38-32     2.  In order to comply with the provisions of NRS 108.239.

38-33     Sec. 53.  NRS 108.245 is hereby amended to read as follows:

38-34     108.245  1.  Except as otherwise provided in subsection 5,

38-35  every [person, firm, partnership, corporation or other legal entity,]

38-36  lien claimant, other than one who performs only labor, who claims

38-37  the benefit of NRS 108.221 to 108.246, inclusive, and sections 2 to

38-38  26, inclusive, of this act shall, [within 31 days] at any time after the

38-39  first delivery of material or performance of work or services under

38-40  his contract, deliver in person or by certified mail to the owner [or

38-41  reputed owner of the property or to the person whose name appears

38-42  as owner on the building permit, if any, for the improvement] of the

39-1  property a preliminary notice of right to lien in substantially the

39-2  following form:

 

39-3  Notice [to Owner of Materials Supplied

39-4  or Work or Services Performed] of Right to Lien

39-5  To: ......................

39-6      (Owner’s name and address)

39-7      The undersigned notifies you that he has supplied materials or

39-8  equipment or performed work or services as follows:

 

39-9  ...............................................................................

39-10  (General description of materials, equipment, work or services

39-11  [and anticipated total value)] )

39-12  for improvement of [real] property identified as (property

39-13  description or street address) under contract with (general contractor

39-14  or subcontractor). This is not a notice that the undersigned has not

39-15  been or does not expect to be paid, but a notice required by law that

39-16  the undersigned may, at a future date, [claim] record a notice of lien

39-17  as provided by law against the property if the undersigned is not

39-18  paid.

 

39-19                                                                              .........................................

39-20                                               (Claimant)

 

39-21  A subcontractor or [materialman under a subcontract] equipment or

39-22  material supplier who gives such a notice must also deliver in

39-23  person or send by certified mail a copy of the notice to the [general]

39-24  prime contractor for information only. The failure by a

39-25  subcontractor to deliver [such notices] the notice to the [general]

39-26  prime contractor is a ground for disciplinary proceedings against the

39-27  subcontractor under chapter 624 of NRS[.] but does not invalidate

39-28  the notice to the owner.

39-29     2.  Such a notice does not constitute a lien or give actual or

39-30  constructive notice of a lien for any purpose.

39-31     3.  No lien for materials or equipment furnished or for work or

39-32  services performed, except labor, may be perfected or enforced

39-33  pursuant to NRS 108.221 to 108.246, inclusive, and sections 2 to

39-34  26, inclusive, of this act unless the notice has been given.

39-35     4.  The notice need not be verified, sworn to or acknowledged.

39-36     5.  A [general] prime contractor or other person who contracts

39-37  directly with an owner or sells materials directly to an owner is not

39-38  required to give notice pursuant to this section.

39-39     6.  [As used in this section, “owner” does not include any

39-40  person, firm or corporation whose only interest in the real property

39-41  is under a mortgage, deed of trust or other security arrangement.] A

40-1  lien claimant who is required by this section to give a notice of

40-2  right to lien to an owner and who gives such a notice has a right to

40-3  lien for materials or equipment furnished or for work or services

40-4  performed in the 31 days before the date the notice of right to lien

40-5  is given and for the materials or equipment furnished or for work

40-6  or services performed anytime thereafter until the completion of

40-7  the work of improvement.

40-8      Sec. 54.  NRS 108.246 is hereby amended to read as follows:

40-9      108.246  1.  Each [general] prime contractor shall, before

40-10  execution of a contract for construction, inform the [record] owner

40-11  with whom he intends to contract of the provisions of NRS 108.245

40-12  in substantially the following form:

 

40-13  To:.....................................

40-14         (Owner’s name and address)

40-15     [Section 108.245 of Nevada Revised Statutes,] The provisions of

40-16  NRS 108.245, a part of the mechanics’ and materialmen’s lien law

40-17  of the State of Nevada, [requires,] require, for your information and

40-18  protection from hidden liens, that each person or other legal entity

40-19  [which] who supplies materials to or performs work [or services] on

40-20  a construction project, other than one who performs only labor,

40-21  [shall] deliver to the owner a notice of the materials and equipment

40-22  supplied or the work [or services] performed. You may receive

40-23  [such] these notices in connection with the construction project

40-24  which you propose to undertake.

40-25     2.  Each [general] prime contractor shall deliver a copy of the

40-26  information required by subsection 1 to each subcontractor who

40-27  participates in the construction project.

40-28     3.  The failure of a [general contractor so] prime contractor to

40-29  inform pursuant to this section owners and subcontractors with

40-30  whom he contracts is a ground for disciplinary proceedings under

40-31  chapter 624 of NRS.

40-32     [4.  Each subcontractor who participates in the construction

40-33  project shall deliver a copy of each notice required by NRS 108.226

40-34  to the general contractor. The failure of the subcontractor to deliver

40-35  such notice to the general contractor is a ground for disciplinary

40-36  proceedings under chapter 624 of NRS.]

40-37     Sec. 55.  NRS 116.4111 is hereby amended to read as follows:

40-38     116.4111  1.  In the case of a sale of a unit where delivery of a

40-39  public offering statement is required pursuant to subsection 3 of

40-40  NRS 116.4102, a seller:

40-41     (a) Before conveying a unit, shall record or furnish to the

40-42  purchaser releases of all liens, except liens on real estate that a

40-43  declarant has the right to withdraw from the common-interest

41-1  community, that the purchaser does not expressly agree to take

41-2  subject to or assume and that encumber:

41-3          (1) In a condominium, that unit and its interest in the

41-4  common elements; and

41-5          (2) In a cooperative or planned community, that unit and any

41-6  limited common elements assigned thereto; or

41-7      (b) Shall provide a surety bond against the lien as provided for

41-8  liens on real estate in NRS 108.2413 to [108.2419,] 108.2425,

41-9  inclusive.

41-10     2.  Before conveying real estate to the association, the declarant

41-11  shall have that real estate released from:

41-12     (a) All liens the foreclosure of which would deprive units’

41-13  owners of any right of access to or easement of support of their

41-14  units; and

41-15     (b) All other liens on that real estate unless the public offering

41-16  statement describes certain real estate that may be conveyed subject

41-17  to liens in specified amounts.

41-18     Sec. 56.  NRS 624.3016 is hereby amended to read as follows:

41-19     624.3016  The following acts or omissions, among others,

41-20  constitute cause for disciplinary action under NRS 624.300:

41-21     1.  Any fraudulent or deceitful act committed in the capacity of

41-22  a contractor.

41-23     2.  A conviction of a violation of NRS 624.730 or a felony or a

41-24  crime involving moral turpitude.

41-25     3.  Knowingly making a false statement in or relating to the

41-26  recording of a notice of lien pursuant to the provisions of

41-27  NRS 108.226.

41-28     4.  Failure to give a notice required by NRS 108.227, 108.245

41-29  or 108.246.

41-30     5.  Failure to comply with NRS 597.713, 597.716 or 597.719 or

41-31  any regulations of the Board governing contracts for the

41-32  construction of residential pools and spas.

41-33     6.  Failure to comply with NRS 624.600.

41-34     7.  Misrepresentation or the omission of a material fact, or the

41-35  commission of any other fraudulent or deceitful act, to obtain a

41-36  license.

41-37     8.  Failure to pay an assessment required pursuant to

41-38  NRS 624.470.

41-39     Sec. 57.  NRS 624.620 is hereby amended to read as follows:

41-40     624.620  1.  Except as otherwise provided in this section, any

41-41  money remaining unpaid for the construction of a work of

41-42  improvement is payable to the contractor within 30 days after:

41-43     (a) Occupancy or use of the work of improvement by the owner

41-44  or by a person acting with the authority of the owner; or

42-1      (b) The availability of a work of improvement for its intended

42-2  use. The contractor must have given a written notice of availability

42-3  to the owner on or before the day on which he claims that the work

42-4  of improvement became available for use or occupancy.

42-5      2.  If the owner has complied with subsection 3, the owner may:

42-6      (a) Withhold payment for the amount of:

42-7          (1) Any work or labor that has not been performed or

42-8  materials or equipment that has not been furnished for which

42-9  payment is sought;

42-10         (2) The costs and expenses reasonably necessary to correct or

42-11  repair any work that is not materially in compliance with the

42-12  contract to the extent that such costs and expenses exceed 50 percent

42-13  of the amount of retention being withheld pursuant to the terms of

42-14  the contract; and

42-15         (3) Money the owner has paid or is required to pay pursuant

42-16  to an official notice from a state agency, or employee benefit trust

42-17  fund, for which the owner is liable for the contractor or his

42-18  subcontractors in accordance with chapter 608, 612, 616A to 616D,

42-19  inclusive, or 617 of NRS.

42-20     (b) Require, as a condition precedent to the payment of any

42-21  unpaid amount under the construction contract, that lien releases be

42-22  furnished by the contractor’s subcontractors, suppliers or

42-23  employees. For purposes of this paragraph:

42-24         (1) If the amount due is paid with a check or is not paid

42-25  concurrently with the owner’s receipt of the lien releases, the lien

42-26  releases must be conditioned upon the check clearing the bank upon

42-27  which it is drawn and the receipt of payment and shall be deemed to

42-28  become unconditional upon the receipt of payment; and

42-29         (2) The lien releases must be limited to the amount of the

42-30  payment received.

42-31     3.  If, pursuant to paragraph (a) of subsection 2, an owner

42-32  intends to withhold any amount from a payment to be made to a

42-33  contractor, the owner must, on or before the date the payment is due,

42-34  give written notice to the contractor of any amount that will be

42-35  withheld. The written notice must:

42-36     (a) Identify the amount that will be withheld from the

42-37  contractor;

42-38     (b) Give a reasonably detailed explanation of the reason the

42-39  owner will withhold that amount, including, without limitation, a

42-40  specific reference to the provision or section of the contract, and any

42-41  documents relating thereto, and the applicable building code, law or

42-42  regulation with which the contractor has failed to comply; and

42-43     (c) Be signed by an authorized agent of the owner.

42-44     4.  A contractor who receives a notice pursuant to subsection 3

42-45  may provide written notice to the owner of the correction of a

43-1  condition described in the notice received pursuant to subsection 3.

43-2  The notice of correction must be sufficient to identify the scope and

43-3  manner of the correction of the condition and be signed by an

43-4  authorized representative of the contractor. If an owner receives a

43-5  written notice from the contractor of the correction of a condition

43-6  described in an owner’s notice of withholding pursuant to

43-7  subsection 3, the owner must, within 10 days after receipt of such

43-8  notice:

43-9      (a) Pay the amount withheld by the owner for that condition; or

43-10     (b) Object to the scope and manner of the correction of the

43-11  condition in a written statement that sets forth the reason for

43-12  the objection and complies with subsection 3. If the owner objects to

43-13  the scope and manner of the correction of a condition, he shall

43-14  nevertheless pay to the contractor, along with payment made

43-15  pursuant to the contractor’s next payment request, the amount

43-16  withheld for the correction of conditions to which the owner no

43-17  longer objects.

43-18     5.  The partial occupancy or availability of a building requires

43-19  payment in direct proportion to the value of the part of the building

43-20  which is partially occupied or partially available. For projects which

43-21  involve more than one building, each building must be considered

43-22  separately in determining the amount of money which is payable to

43-23  the contractor.

43-24     6.  Unless otherwise provided in the construction contract, any

43-25  money which is payable to a contractor pursuant to this section

43-26  accrues interest at a rate equal to the lowest daily prime rate at the

43-27  largest bank in this state, as determined by the Commissioner of

43-28  Financial Institutions on January 1 or July 1, as the case may be,

43-29  immediately preceding:

43-30     (a) The time the contract was signed; or

43-31     (b) If the contract was oral, the time the terms of the contract

43-32  were agreed to by the parties,

43-33  plus 2 percent.

43-34     7.  This section does not apply to:

43-35     (a) Any residential building; or

43-36     (b) Public works.

43-37     8.  As used in this section, unless the context otherwise

43-38  requires, “work of improvement” has the meaning ascribed to it in

43-39  [NRS 108.221.] section 24 of this act.

43-40     Sec. 58.  NRS 108.223, 108.2231, 108.224, 108.2417 and

43-41  108.2419 are hereby repealed.

43-42     Sec. 59.  Sections 25 and 26 of this act apply only to

43-43  agreements entered into on or after October 1, 2003.

 

44-1  LEADLINES OF REPEALED SECTIONS

 

44-2      108.223  Lien on lot or tract of land for improvements made

44-3   at request of owner.

44-4      108.2231  Lien on real property, building, structure or

44-5   improvement thereon for services rendered at request of owner.

44-6      108.224  Land subject to lien.

44-7      108.2417  Release of lien on real property by posting surety

44-8   bond: Petition for release; service of copy of petition.

44-9      108.2419  Release of lien on real property by posting surety

44-10   bond: Hearing on petition; contents and effect of order

44-11   releasing lien.

 

44-12  H