Tag: Lien Priority
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Lien Priority – What Happens When Everybody Is Trying to Grab a Piece from the Same Pie?
A good way to think about it is to imagine a pile of money designated for a group of creditors. The priority rules determine which creditor gets to take from the pile first. Generally, all secured creditors get a chance at payment prior to any unsecured creditor, but the priority rules between secured creditors can…
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Subcontractor Forced to Give Up Lien Rights Before a Project Starts? It Can Happen
When a construction contract contains language that requires a subcontractor or materials supplier to waive their lien rights when the contract is signed, and before the actual work on the project has even started, this is called a “No Lien Clause.”