Responding to a Lien Law § 76 Verified Statement Demand

Reviewed September 7, 2026.

A proper Lien Law § 76 demand generally requires a verified response within ten days. Start by checking the claimant’s beneficiary status, claim due date, service and the trust identified. Do not ignore a questionable demand: the statute provides a court procedure to challenge entitlement.

Provide the required trust information

The verified statement must set out the trust entries required by § 75. The five categories are:

• Trust assets receivable, including conditional rights to receive project funds.
• Trust accounts payable and the underlying obligations.
• Trust funds received, including payments made directly for the trustee.
• Payments made for trust purposes, with the required recipient, date, amount, method, contract and purpose information.
• Applicable transfers involving advances and notices of lending.

Section 76 also requires the names and addresses of those who made or consented to the reported payments. The trustee or its officer must subscribe and verify the statement on personal knowledge. Bank statements or a list of checks alone may omit required information.

Reconcile records before verification

Section 75 does not require a separate bank account for every Article 3-A trust if the books clearly allocate deposits and withdrawals among trusts. Separate escrow requirements may nevertheless apply to particular transactions, including qualifying home improvement advances.

Missing statutory records are presumptive evidence of diversion; they are not an automatic criminal conviction. Civil diversion, individual liability and any criminal claim require their own analysis. Preserve source documents, identify discrepancies honestly and obtain advice before making a sworn statement. A § 76 trust statement is different from a § 38 lien itemization.

Kushnick Pallaci PLLC assists clients throughout New York with Article 3-A trust fund litigation. Contact 631-752-7100 or vtp@kushnicklaw.com.

Attorney Advertising. General information, not legal advice.