§ 35-24-13 — Bond to indemnify against liens

North Dakota § 35-24-13

• Jurisdiction: North Dakota
• Title 35: Liens
• Ch. 35-24: Well or Pipeline Construction Lien

Text

1. Whenever any lien or liens are fixed or attempted to be fixed under the provisions of
this chapter, then the owner of the property on which the lien or liens are claimed or
the contractor or subcontractor through whom such lien or liens are claimed, or either

of them, may file a bond with the recorder of the county in which the property is
located as herein provided. Such bond must describe the property on which lien or
liens are claimed, must refer to the lien or liens claimed in a manner sufficient to
identify them, must be in double the amount of the claimed lien or liens referred to, and
must be payable to the party or parties claiming same. Such bond must be executed
by the party filing same as principal and by a corporate surety authorized under the
laws of this state to execute such bonds as surety and must be conditioned
substantially that the principal and surety will pay to the obligees named or their
assigns the amounts of the liens so claimed by them with all costs in the event same
are proven to be liens on such property.
2. Upon the filing of such bond, the person that posted the bond shall send a notice
thereof, together with a copy of the bond, to all obligees named therein, by registered
or certified mail addressed to such obligees at the address set forth in their respective
claims for lien.
3. Such notice, when mailed, must be filed for record by the recorder, and any purchaser
or lender may rely upon the record of such bond and notice in acquiring any interest in
said property and is absolutely protected thereby.
4. Such bond, when filed, takes the place of the property against which any claim for lien
referred to in such bond is asserted. At any time within the period of time provided in
section 35-24-14, any person claiming such lien may sue upon such bond but no
action may be brought upon such bond after the expiration of such period. One action
upon said bond does not exhaust the remedies thereon but each obligee or assignee
of an obligee named therein may maintain a separate suit thereon in any court having
jurisdiction.
5. In case the lienholder recovers in a suit upon the bond, the lienholder is entitled to
recover a reasonable attorney's fee, to be fixed by the court, which must be taxed as
costs in the action.