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This entry was published on 2014-09-22
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SECTION 31
Discharge of liens on sale of real property
Lien (LIE) CHAPTER 33, ARTICLE 2
§ 31. Discharge of liens on sale of real property. In case an owner of
real property upon which an improvement is being or has been made,
desires to convey or transfer an interest in such real property or any
part thereof, and in case lienors having mechanics' liens against such
real property, or any part thereof, notices of which were filed prior to
the making of the deposit hereinafter in this section mentioned, and
which said liens have not been discharged as in this article provided,
shall, to the extent of at least fifty-five per centum of the aggregate
amount for which such liens have been so filed, by an instrument or
instruments in writing, duly acknowledged, designate and authorize one
or more persons to consent to the execution and delivery of a deed or
deeds conveying said real property or any part thereof, and in case the
consent in writing, duly acknowledged, of such person or persons to the
execution and delivery of such deed or deeds, and which said consent
shall be conditioned for the deposit of a specified sum of money with
the clerk of such county, shall be filed in the office of the clerk of
the county where such real property is situated, together with such
instrument or instruments of designation, then on the deposit of such
specified sum with such county clerk all mechanics' liens, judgments and
attachments, and all claims and liens acquired in any proceeding upon
such judgments or under such attachments against such real property
shall from the time of such deposit cease to be liens or encumbrances
upon such real property, and such real property shall thenceforth be
free and discharged from the same, and the same shall thenceforth be
liens upon such sum so deposited and said county clerk upon such deposit
being made shall forthwith enter upon the lien docket, indexed with the
name of such owner, the facts relating to such deposit. A deposit of
money made as prescribed in this section shall be repaid to such owner
or his assignee upon the discharge or release of all such mechanics'
liens, judgments and attachments. All deposits of money made as provided
in this section shall be considered as paid into court and shall be
subject to the provisions of law relative to the payment of money into
court and the surrender of such money by order of the court. The court
shall in any action brought to foreclose any of such liens or in any
action brought to recover such deposit or any part thereof, direct the
payment of such sum so deposited to the persons whose mechanics' liens,
judgments, or claims secured by attachment shall have been established
upon the trial, and the amount so paid shall be credited upon such
mechanics' liens, judgments and claims. Upon such deposit being made as
hereinbefore provided the lien of all judgments and attachments
affecting such real property, and all claims and liens acquired in any
proceedings upon such judgments or under attachments shall be liens upon
such deposit. All judgments recovered upon the attachments issued upon a
claim which, in whole or in part, is not for materials furnished, labor
performed or moneys advanced for the improvement of such real property,
shall be subordinate as a lien upon such sum so deposited to all
mechanics' liens thereon, and shall also be subordinate to all judgments
recovered upon and attachments issued upon claims for materials
furnished, labor performed or moneys advanced for the improvement of
such real property. In case such consent shall be conditioned also for
the giving to one or more persons or a corporation as trustee or
trustees any other property real or personal then any cash thereafter
from time to time tendered by such trustee or trustees to such county
clerk shall be received and held by such county clerk as though the same
were part of the specified sum of money for the deposit of which such
consent was conditioned, and for the same purposes and subject to the
same provisions as in this section provided therefor.