2023 New York Laws › LIE - Lien › Article 2 - Mechanics' Liens › 19 - Discharge of Lien for Private Improvement.

§  19.  Discharge of lien for private improvement. A lien other than a
lien for labor performed or materials furnished for a public improvement
specified in this article, may be discharged as follows:
(1) By the certificate of the lienor, duly acknowledged or proved  and
filed  in the office where the notice of lien is filed, stating that the
lien is satisfied or released as to the whole or a portion of  the  real
property  affected  thereby  and  may be discharged in whole or in part,
specifying the part. Upon filing such certificate, the county  clerk  in
the  office  where the same is filed, shall note the fact of such filing
in the "lien docket" in the column headed "Proceedings had" opposite the
docket of such lien.
(2) By failure to begin an action to foreclose such lien or to  secure
an  order  continuing  it,  within  one year from the time of filing the
notice of lien, unless an action be begun  within  the  same  period  to
foreclose  a  mortgage or another mechanic's lien upon the same property
or any part thereof and a notice of pendency of  such  action  is  filed
according to law, but a lien, the duration of which has been extended by
the  filing of a notice of the pendency of an action as herein provided,
shall nevertheless terminate as  a  lien  after  such  notice  has  been
cancelled or has ceased to be effective as constructive notice.
(3)  By order of the court vacating or cancelling such lien of record,
for neglect of the lienor to prosecute the  same,  granted  pursuant  to
section fifty-nine of this chapter.
(4)  Either before or after the beginning of an action by the owner or
contractor executing a bond or undertaking in an  amount  equal  to  one
hundred  ten  percent  of  such  lien conditioned for the payment of any
judgment which may be rendered against the property for the  enforcement
of the lien:
a.  The  execution  of any such bond or undertaking by any fidelity or
surety company  authorized  by  the  laws  of  this  state  to  transact
business,  shall be sufficient; and where a certificate of qualification
has been issued by the superintendent of financial  services  under  the
provisions  of  section one thousand one hundred eleven of the insurance
law, and has not been revoked, no justification or notice thereof  shall
be  necessary. Any such company may execute any such bond or undertaking
as surety by the hand of its  officers,  or  attorney,  duly  authorized
thereto  by  resolution  of  its board of directors, a certified copy of
which resolution, under the seal of said company, shall  be  filed  with
each  bond  or  undertaking. Any such bond or undertaking shall be filed
with the clerk of the county in which the notice of lien is filed, and a
copy shall  be  served  upon  the  adverse  party.  The  undertaking  is
effective  when  so  served and filed. If a certificate of qualification
issued pursuant to subsections (b), (c) and (d) of section one  thousand
one  hundred  eleven  of  the  insurance  law  is  not  filed  with  the
undertaking, a party may except, to the sufficiency of a surety and by a
written notice of exception served upon the  adverse  party  within  ten
days  after receipt, a copy of the undertaking. Exceptions deemed by the
court to have been taken unnecessarily, or for vexation or  delay,  may,
upon notice, be set aside, with costs. Where no exception to sureties is
taken  within  ten  days  or  where  exceptions taken are set aside, the
undertaking shall be allowed.
b. In the case of bonds  or  undertakings  not  executed  pursuant  to
paragraph  a  of this subdivision, the owner or contractor shall execute
an undertaking with two or more sufficient sureties, who shall  be  free
holders, to the clerk of the county where the premises are situated. The
sureties  must  together justify in at least double the sum named in the
undertaking. A copy of the undertaking, with notice  that  the  sureties
will  justify  before  the  court, or a judge or justice thereof, at the

time and place therein mentioned, must be served upon the lienor or  his
attorney, not less than five days before such time. Upon the approval of
the undertaking by the court, judge or justice an order shall be made by
such court, judge or justice discharging such lien.
c.  If  the  lienor  cannot  be found, or does not appear by attorney,
service under this subsection may be made by  leaving  a  copy  of  such
undertaking  and  notice  at  the  lienor's  place of residence, or if a
corporation at its principal place  of  business  within  the  state  as
stated  in  the  notice  of  lien,  with  a  person  of suitable age and
discretion therein, or if the  house  of  his  abode  or  its  place  of
business  is not stated in said notice of lien and is not known, then in
such manner as the court may direct. The premises, if any, described  in
the  notice of lien as the lienor's residence or place of business shall
be deemed to be his said residence or its  place  of  business  for  the
purposes  of  said  service  at  the  time  thereof,  unless it is shown
affirmatively that the person servicing  the  papers  or  directing  the
service  had  knowledge  to  the  contrary.  Notwithstanding  the  other
provisions of this subdivision relating to service  of  notice,  in  any
case  where  the mailing address of the lienor is outside the state such
service may be made by registered  or  certified  mail,  return  receipt
requested, to such lienor at the mailing address contained in the notice
of lien.
d. Except as otherwise provided in this subdivision, the provisions of
article  twenty-five  of  the  civil  practice  law and rules regulating
undertakings is applicable to  a  bond  or  undertaking  given  for  the
discharge of a lien on account of private improvements.
(5)  Upon  filing  in  the office of the clerk of the county where the
property is situated, a transcript of a judgment of a court of competent
jurisdiction, together with due proof of service of due notice of  entry
thereof,  showing  a  final  determination of the action in favor of the
owner of the property against which the lien was claimed.
(6) Where it appears from the face of the  notice  of  lien  that  the
claimant  has  no  valid lien by reason of the character of the labor or
materials furnished and for which a lien is claimed, or  where  for  any
other  reason  the  notice  of  lien  is invalid by reason of failure to
comply with the provisions of section nine of this article, or where  it
appears  from  the public records that such notice has not been filed in
accordance with the provisions of section ten of this article, the owner
or any other party in interest, may apply to the supreme court  of  this
state,  or  to any justice thereof, or to the county judge of the county
in which the notice of lien is filed, for an order summarily discharging
of record the alleged lien. A copy of the papers upon which  application
will  be  made  together  with  a  notice setting forth the court or the
justice thereof or the judge to whom the application will be made  at  a
time and place therein mentioned must be served upon the lienor not less
than  five  days  before such time. If the lienor can not be found, such
service may be made as the court,  justice  or  judge  may  direct.  The
application  must  be made upon a verified petition accompanied by other
written proof showing a proper case therefor, and upon the  approval  of
the  application  by the court, justice or judge, an order shall be made
discharging the alleged lien of record.