Substitution of bond allowed.

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(1) Whenever a mechanic's lien has been filed in accordance with this article, the owner, whether legal or beneficial, of any interest in the property subject to the lien may, at any time, file with the clerk of the district court of the county wherein the property is situated a corporate surety bond or any other undertaking which has been approved by a judge of said district court.

  1. Such bond or undertaking plus costs allowed to date shall be in an amount equal toone and one-half times the amount of the lien plus costs allowed to date and shall be approved by a judge of the district court with which such bond or undertaking is filed.

  2. The bond or undertaking shall be conditioned that, if the lien claimant shall be finallyadjudged to be entitled to recover upon the claim upon which his lien is based, the principal or his sureties shall pay to such claimant the amount of his judgment, together with any interest, costs, and other sums which such claimant would be entitled to recover upon the foreclosure of the lien.

Source: L. 75: Entire section added, p. 1425, § 5, effective October 1.


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