Release of Lien Bonds
What are Release of Lien Bonds?
When a mechanic’s lien is filed against real property, most states have laws that allow a release of mechanic’s lien bond to be filed with the county recorder’s office in order to release the property from the claim thereby clearing the title. The bond will take the place of the mechanics lien on a property.
The bond amount required varies from state to state, and is generally 125% – 150% of the lien amount.
How to Apply for a Release of Lien Bond
The process for obtaining a release of lien bond requires the following information from the applicant:
- An Application
- Copy of Mechanic’s Lien
- Explanation of the Circumstances
- Financial Statement from Applicant
These bonds are considered to be a financial guarantee, and they are underwritten very conservatively by surety companies. Therefore, the applicant must have a substantial financial wherewithal relative to the required bond amount to show they can easily satisfy any judgment that may result by foreclosure on the lien. Otherwise, collateral may be required as a condition for approval.
When Collateral is Required
For those situations where collateral is required, clients have four options for the type of collateral they can post.
Cash
Cash
Using cash as collateral for an appeal bond carries a couple of advantages, such as some sureties paying interest on the cash deposit.
Marketable Securities
Marketable Securities
This type of collateral includes stocks and bonds held in non-retirement accounts, as well as mutual funds, exchange-traded funds, and money market funds.
Bank Letters of Credit
Bank Letters of Credit
A letter of credit is essentially a promise by a bank to pay a beneficiary, in this case the surety company, a specified amount upon demand.
Real Estate
Real Estate
Real estate is also an option, but there are only two sureties that currently consider taking real estate as collateral for appeal bonds.
To read more about the specific details of each form of collateral, visit our Collateral Options Page
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"Dan and Arturo have been very helpful to me and my clients on more than one occasion. They have been so easy to work with. They can explain to the client about what kind of security is needed, what type of information the client needs to supply and how the process works. They try to get everything in place with a minimum of hassle, and they always follow up. I would not call anyone else for a supersedeas bond."
Julia F. PenderyCowles & Thompson 
"I have known Dan Huckabay for many years. He is one of the most knowledgeable appeal bond brokers in the business. His understanding of the requirements for appeal bonds, knowledge of the surety insurer market and his experience working with individual surety insurers make him an excellent choice when you need to bond an appeal."
David AxelradHorvitz & Levy LLP 
"We refer our clients to CSBA with confidence and without hesitation. Whether the client is a sophisticated entity or an individual involved in litigation for the first time, the CSBA team is ready, willing, and able to pursue all available options to secure a bond and ensure that the bond is in place when needed, all while explaining the options and requirements in an understandable way."
Jason AndersonCarney Badley Spellman 
"Court Surety Bond Agency is my one-stop shop for appellate bonds. There is much more to the appellate bonding process than you might think, and the professionals at CSBA are experts in this area. If you need a supersedeas bond, CSBA will walk you and your client through the process, and help you find the best option for any particular situation. Highly recommended!"
Duane A. DaikerShumaker 
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"Dan and Arturo have been very helpful to me and my clients on more than one occasion. They have been so easy to work with. They can explain to the client about what kind of security is needed, what type of information the client needs to supply and how the process works. They try to get everything in place with a minimum of hassle, and they always follow up. I would not call anyone else for a supersedeas bond."
Julia F. PenderyCowles & Thompson
"I have known Dan Huckabay for many years. He is one of the most knowledgeable appeal bond brokers in the business. His understanding of the requirements for appeal bonds, knowledge of the surety insurer market and his experience working with individual surety insurers make him an excellent choice when you need to bond an appeal."
David AxelradHorvitz & Levy LLP
"We refer our clients to CSBA with confidence and without hesitation. Whether the client is a sophisticated entity or an individual involved in litigation for the first time, the CSBA team is ready, willing, and able to pursue all available options to secure a bond and ensure that the bond is in place when needed, all while explaining the options and requirements in an understandable way."
Jason AndersonCarney Badley Spellman
"Court Surety Bond Agency is my one-stop shop for appellate bonds. There is much more to the appellate bonding process than you might think, and the professionals at CSBA are experts in this area. If you need a supersedeas bond, CSBA will walk you and your client through the process, and help you find the best option for any particular situation. Highly recommended!"
Duane A. DaikerShumaker
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