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Liens | |
Mechanics' Liens | |
Section 5 | Relation back and priority of liens. |
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38-1-5. Relation back and priority of liens. (1) As used in this section: (a) "First preliminary notice filing" means the filing of a preliminary notice that is: (i) the earliest preliminary notice filed on a private project, as defined in Section 38-1-27; (ii) filed on or after August 1, 2011; (iii) not filed on a project that, according to the law in effect before August 1, 2011, commenced before August 1, 2011; (iv) not canceled under Subsection 38-1-32(6); and (v) not withdrawn under Subsection 38-1-32(8). (b) "Project property" means the real property on which an improvement is being constructed or made. (2) A construction service lien relates back to, and takes effect as of, the time of the first preliminary notice filing. (3) (a) Subject to Subsection (3)(b), a construction service lien has priority over: (i) any lien, mortgage, or other encumbrance that attaches after the first preliminary notice filing; and (ii) any lien, mortgage, or other encumbrance of which the lien holder had no notice and which was unrecorded at the time of the first preliminary notice filing. (b) A recorded mortgage or trust deed of a construction lender has priority over each construction service lien of a claimant who files a preliminary notice in accordance with Section 38-1-32 before the mortgage or trust deed is recorded if the claimant: (i) accepts payment in full for construction service that the claimant furnishes to the project before the mortgage or trust deed is recorded; and (ii) withdraws the claimant's preliminary notice by filing a notice of withdrawal under Subsection 38-1-32(8).
Amended by Chapter 299, 2011 General Session, (Coordination Clause) |
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