2023 Nevada Revised Statutes › Chapter 108 - Statutory Liens › NRS 108.2407 - Lien claimant has lien upon funds in construction disbursement account; disbursement of funds from construction disbursement account; lien claimant may notify construction control of claim of lien; construction control to pay legitimate claim of lien; interpleader; liability of construction control.

1. If a construction disbursement account is established and funded pursuant to subsection 2 of this section or subsection 1 of NRS 108.2403, each lien claimant has a lien upon the funds in the account for an amount equal to the lienable amount owed.
2. Upon the disbursement of any funds from the construction disbursement account for a given pay period:
(a) The lessee shall deposit into the account such additional funds as may be necessary to pay for the completion of the work of improvement, including, without limitation, the costs attributable to additional and changed work, material or equipment;
(b) The construction control described in subsection 1 of NRS 108.2403 shall certify in writing the amount necessary to pay for the completion of the work of improvement; and
(c) If the amount necessary to pay for the completion of the work of improvement exceeds the amount remaining in the construction disbursement account:
(1) The construction control shall give written notice of the deficiency by certified mail, return receipt requested, to the prime contractor and each person who has given the construction control a notice of right to lien; and
(2) The provisions of subsection 3 of NRS 108.2403 shall be deemed to apply.
3. The construction control shall disburse money to lien claimants from the construction disbursement account for the lienable amount owed such lien claimants.
4. A lien claimant may notify the construction control of a claim of lien by:
(a) Recording a notice of lien pursuant to NRS 108.226; or
(b) Personally delivering or mailing by certified mail, return receipt requested, a written notice of a claim of lien to the construction control within 90 days after the completion of the work of improvement.
5. Except as otherwise provided in subsection 6, the construction control shall pay a legitimate claim of lien upon receipt of the written notice described in subsection 4 from the funds available in the construction disbursement account.
6. The construction control may bring an action for interpleader in the district court for the county where the property or some part thereof is located if:
(a) The construction control reasonably believes that all or a portion of a claim of lien is not legitimate; or
(b) The construction disbursement account does not have sufficient funds to pay all claims of liens for which the construction control has received notice.
7. If the construction control brings an action for interpleader pursuant to paragraph (a) of subsection 6, the construction control shall pay to the lien claimant any portion of the claim of lien that the construction control reasonably believes is legitimate.
8. If an action for interpleader is brought pursuant to subsection 6, the construction control shall:
(a) Deposit with the court an amount equal to 1.5 times the amount of the lien claims to the extent that there are funds available in the construction disbursement account;
(b) Provide notice of the action for interpleader by certified mail, return receipt requested, to each person:
(1) Who gives the construction control a notice of right to lien;
(2) Who serves the construction control with a claim of lien;
(3) Who has performed work or furnished materials or equipment for the work of improvement; or
(4) Of whom the construction control is aware may perform work or furnish materials or equipment for the work of improvement; and
(c) Publish a notice of the action for interpleader once each week, for 3 successive weeks, in a newspaper of general circulation in the county in which the work of improvement is located.
9. A construction control who brings an action for interpleader pursuant to subsection 6 is entitled to be reimbursed from the construction disbursement account for the reasonable costs that the construction control incurred in bringing such action.
10. If a construction control for a construction disbursement account established by a lessee does not provide a proper certification as required pursuant to paragraph (b) of subsection 2 or does not comply with any other requirement of this section, the construction control and its bond are liable for any resulting damages to any lien claimants.
(Added to NRS by 2005, 1895)