HB 1021

Bill Subjects

Abstract

Permits a person to discharge a mechanic's lien by filing an indemnification, payment, or cash bond with the recorder's office in an amount equal to at least 150% of the lien or $7,500, whichever is greater. Requires the surety responsible for issuing an indemnification or payment bond to: (1) be authorized to do business in Indiana; and (2) be rated at least "A-" by at least one nationally recognized investment rating service. Specifies certain requirements concerning the recording of an indemnification or payment bond. Provides that the filing of a bond discharges the property and liability of a person served by a lien claimant not less than 30 days after the filing of a bond. Provides that a contractor or subcontractor may adjudicate the adequacy of a bond in certain instances. Provides that the liability of a person served by a lien claimant may not be discharged while the adequacy of a bond is being adjudicated. Repeals the current statute concerning the filing of a written undertaking to discharge a lien.