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Article: Survive and profit by comprehending mechanic's lien laws.
- Article from:
- Business Credit
- Article date:
- May 1, 1993
- Author:
CopyrightCOPYRIGHT 1993 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Construction credit managers face the difficult and sensitive issue of "preliminary notice" in some legal form in at least 27 states at last count. While what follows is stated in terms of California law, the principles discussed apply to every state.
"Mechanics, materialmen, artisans, and laborers of every class shall have a lien upon the property upon which they have bestowed labor or furnished materials: for the value of such materials, for the value of such labor done and materials furnished; and the Legislature shall provide by law, for speedy and efficient enforcement of such liens."
This is the crux of the mechanic's lien law and is so stated in ...