NRS 108.2415
Form of surety bond posted to release lien

  • form of surety bond posted to release all prospective and existing lien rights
  • recording of surety bond
  • service
  • effect of failure of service
  • effect of recording and service of surety bond.

1.

To obtain the release of a lien for which notice of lien has been recorded against the property, the principal and a surety must execute a surety bond in an amount equal to 1.5 times the lienable amount in the notice of lien, which must be in the following form:
[Text not available]
(Assessor’s Parcel Numbers)
[Text not available]
(Title of court and cause, if action has been commenced)
[Text not available]
WHEREAS, ........................ (name of principal), located at ........................................ (address of principal), desires to give a bond for releasing the following described property owned by ......................................... (name of owners) from that certain notice of lien in the sum of $................ recorded ..... (month) ..... (day) ....., (year), in the office of the recorder in ................................ (name of county where the property is located):
[Text not available]
(Legal Description)
[Text not available]
NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves to the lien claimant named in the notice of lien, ................................, (name of lien claimant) under the conditions prescribed by NRS 108.2413 to 108.2425, inclusive, in the sum of $................ (1 1/2 x lienable amount), from which sum they will pay the lien claimant that amount as a court of competent jurisdiction may adjudge to have been secured by the lien, including the total amount awarded pursuant to NRS 108.237, but the liability of the surety may not exceed the penal sum of the surety bond.
IN TESTIMONY WHEREOF, the principal and surety have executed this bond at ................................, Nevada, on the ....... day of the month of ....... of the year .......
[Text not available]
......……….....................
(Signature of Principal)
[Text not available]
(Surety Corporation)
By........………....................
(Its Attorney in Fact)
[Text not available]
State of Nevada }
} ss.
County of................................................ }
[Text not available]
On ..... (month) ..... (day) ....., (year), before me, the undersigned, a notary public of this County and State, personally appeared ................................. who acknowledged that he or she executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared ................................ known (or satisfactorily proved) to me to be the attorney in fact of the surety that executed the foregoing instrument, known to me to be the person who executed that instrument on behalf of the surety therein named, and he or she acknowledged to me that the surety executed the foregoing instrument.
[Text not available]
...............................................................
(Notary Public in and for
the County and State)
[Text not available]

2.

To obtain the release of all prospective and existing lien rights of lien claimants related to a work of improvement, the principal and a surety must execute and cause to be recorded a surety bond in an amount equal to 1.5 times the amount of the prime contract, which must be in the following form:
[Text not available]
(Assessor’s Parcel Numbers)
[Text not available]
(Title of court and cause, if action has been commenced)
[Text not available]
WHEREAS, ........................ (name of principal), located at ........................................ (address of principal), desires to give a bond for releasing the following described property owned by ......................................... (name of owners) from all prospective and existing lien rights and notices of liens arising from materials, equipment or work provided or to be provided under the prime contract described as follows:
[Text not available]
(Parties to the Prime Contract)
(Amount of the Prime Contract)
(Date of the Prime Contract)
(Summary of Terms of the Prime Contract)
[Text not available]
WHEREAS, the property that is the subject of the surety bond is described as follows:
[Text not available]
(Legal Description)
[Text not available]
NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves in the sum of $................ (1 1/2 x amount of prime contract) to all prospective and existing lien claimants who have provided or hereafter provide materials, equipment or work under the prime contract, from which sum the principal and surety will pay the lien claimants the lienable amount that a court of competent jurisdiction may determine is owed to each lien claimant, and such additional amounts as may be awarded pursuant to NRS 108.237, but the liability of the surety may not exceed the penal sum of the surety bond.
IN TESTIMONY WHEREOF, the principal and surety have executed this bond at ................................, Nevada, on the ....... day of the month of ....... of the year .......
[Text not available]
......……….....................
(Signature of Principal)
[Text not available]
(Surety Corporation)
By........………....................
(Its Attorney in Fact)
[Text not available]
State of Nevada }
}ss.
County of............................................ }
[Text not available]
On ..... (month) ..... (day), ..... (year), before me, the undersigned, a notary public of this County and State, personally appeared ................................. who acknowledged that he or she executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared ................................ known (or satisfactorily proved) to me to be the attorney in fact of the surety that executed the foregoing instrument, known to me to be the person who executed that instrument on behalf of the surety therein named, and he or she acknowledged to me that the surety executed the foregoing instrument.
[Text not available]
...............................................................
(Notary Public in and for
the County and State)
[Text not available]

3.

The principal must record the surety bond in the office of the county recorder in the county in which the property upon which the improvement is located, either before or after the commencement of an action to enforce the lien. A certified copy of the recorded surety bond shall be deemed an original for purposes of this section.

4.

Upon the recording of the surety bond, the principal must serve a file-stamped copy of the recorded surety bond in the following manner:

(a)

If a lien claimant has appeared in an action that is pending to enforce the notice of lien, service must be made by certified or registered mail, return receipt requested, upon the lien claimant at the address set forth in the lien and the lien claimant’s counsel of record at his or her place of business;

(b)

If a notice of lien is recorded at the time the surety bond is recorded and no action is pending to enforce the notice of lien, personal service must be made upon each lien claimant pursuant to the Nevada Rules of Civil Procedure; or

(c)

If no notice of lien is recorded at the time the surety bond is recorded, service must be made by personal service or certified mail, return receipt requested, upon each lien claimant and prospective lien claimant that has provided or thereafter provides the owner or lessee with a notice of a right to lien. Such service must be within 10 days after the recording of the surety bond, or the service of notice of the right to lien upon the owner by a lien claimant, whichever is later.

5.

Failure to serve the surety bond as provided in subsection 4 does not affect the validity of the surety bond, but the statute of limitations on any action on the surety bond, including a motion excepting to the sufficiency of the surety pursuant to NRS 108.2425, is tolled until notice is given.

6.

Subject to the provisions of NRS 108.2425, the recording and service of the surety bond pursuant to:

(a)

Subsection 1 releases the property described in the surety bond from the lien and the surety bond shall be deemed to replace the property as security for the lien.

(b)

Subsection 2 releases the property described in the surety bond from any liens and prospective liens for work, materials or equipment related to the prime contract and the surety bond shall be deemed to replace the property as security for the lien.

Source: Section 108.2415 — Form of surety bond posted to release lien; form of surety bond posted to release all prospective and existing lien rights; recording of surety bond; service; effect of failure of service; effect of recording and service of surety bond., https://www.­leg.­state.­nv.­us/NRS/NRS-108.­html#NRS108Sec2415.

108.221
Definitions. 108.222
Lien on property, improvements and construction disbursement account 108.225
Priority of liens. 108.226
Perfection of lien: Time for recording notice of lien 108.227
Service of copy of notice of lien. 108.228
Notice of completion: Recording 108.229
Recording and service of amended notice of lien 108.231
Notice of lien against two or more separate buildings or mining claims: Designation of amount due on each 108.232
Notice of lien to be recorded 108.233
Duration of lien. 108.234
Recording of notice of nonresponsibility by disinterested owner 108.235
Amount recoverable by prime contractor 108.236
Court must declare rank of lien claimants or class of lien claimants 108.237
Award of lienable amount, cost of preparing and recording notice of lien, costs of proceedings and representation and other amounts to prevailing lien claimant 108.238
Right to maintain civil action or submit controversy to arbitration not impaired. 108.239
Action to enforce notice of lien: Complaint 108.243
Assignment of lien. 108.244
Limitation on filing complaint for foreclosure of notice of lien. 108.245
Notice of right to lien: Form 108.2212
“Contract” defined. 108.2214
“Lien claimant” defined. 108.2216
“Prime contract” defined. 108.2218
“Surety bond” defined. 108.2275
Frivolous or excessive notice of lien: Motion 108.2403
Lessee to record notice of posted security and either establish construction disbursement account or record surety bond before beginning work of improvement 108.2407
Lien claimant has lien upon funds in construction disbursement account 108.2413
Release of lien rights or notice of lien by posting surety bond. 108.2415
Form of surety bond posted to release lien 108.2421
Action against principal and surety on surety bond and debtor: Action before or after surety bond is recorded 108.2423
Enforcement of liability of principal and surety. 108.2425
Exception to sufficiency of surety or surety bond 108.2433
Discharge of notice of lien: Marginal entries 108.2437
Discharge of notice of lien: Recording by lien claimant 108.2457
Term of contract that attempts to waive or impair lien rights of contractor, subcontractor or supplier void 108.22104
“Agent of the owner” defined. 108.22108
“Building” defined. 108.22112
“Commencement of construction” defined. 108.22116
“Completion of the work of improvement” defined. 108.22118
“Construction control” defined. 108.22124
“Equipment” defined. 108.22128
“Improvement” defined. 108.22132
“Lien” defined. 108.22136
“Lienable amount” defined. 108.22144
“Material” defined. 108.22146
“Notice of lien” defined. 108.22148
“Owner” defined. 108.22156
“Prevailing lien claimant” defined. 108.22164
“Prime contractor” defined. 108.22168
“Principal” defined. 108.22172
“Property” defined. 108.22176
“Surety” defined. 108.22184
“Work” defined. 108.22188
“Work of improvement” defined.
Last Updated

Jun. 24, 2021

§ 108.2415’s source at nv​.us