Section 34.35.072. Bond.

If the owner of the property sought to be charged with a claim of lien under AS 34.35.050  -  34.35.120, or a prime contractor or subcontractor disputes the correctness or validity of the claim of lien brought under AS 34.35.050 - 34.35.120, the owner or contractor may record either before or after the commencement of an action to enforce the claim of lien, in the office of the recorder in which district the claim of lien was recorded, a bond executed by a person authorized to issue surety bonds in this state under AS 21, a financial institution licensed under AS 06, or a national bank authorized under the federal banking laws, in the penal sum equal to one and one-half times the amount of the claim of lien, which bond shall guarantee the payment of the sum that the lien claimant has claimed, together with the lien claimant's reasonable cost of suit in the action, if the claimant recovers on the claim of lien.  If the owner records a bond under this section, the property described in the bond is freed from the effect of a claim of lien under AS 34.35.050  -  34.35.120 and an action brought to foreclose the claim of lien.  The principal on the bond may be the owner of the property, the prime contractor, or a subcontractor who is affected by the claim of lien.

Notes

History

(Sec. 2 ch 89 SLA 1974; am Sec. 8 ch 175 SLA 1978)