Bonding Multiple Mechanic’s Liens on One New York Property

Reviewed September 7, 2026.

Several liens against the same property require a plan that addresses each lien, its claimant and the security supporting its discharge. One bond sized only to the largest lien will not automatically discharge every other lien.

Individual discharge bonds

Lien Law § 19(4) provides a procedure for discharging a particular private-improvement lien through an undertaking of 110% of its amount. Separate bonds identifying the individual liens are common. Any proposed combined arrangement must satisfy the applicable statutory requirements and clearly provide the required protection for each lien; do not assume a generic bond covers all claims.

Filing, service and any required justification or court procedure must be completed. Check the clerk’s records for each lien’s discharge and give the lender or title company the supporting documents it requires.

The different Section 37 procedure

Lien Law § 37 authorizes a court-approved bond tied to a described construction contract. The court fixes an amount no less than the unpaid amount of that contract. Approval, filing and an order are part of the procedure. Its protection depends on the contract, covered claims and statutory requirements; the phrase “all liens” does not mean every contract and every existing lien on a parcel automatically disappears.

Existing recorded liens and claimants’ rights need specific review before choosing § 37. Later claimants must also follow its notice and enforcement rules where applicable.

Compare the actual costs

A bond’s face amount is security, not necessarily the nonrefundable price of obtaining it. The surety may charge a premium, require collateral and demand indemnity. Compare those obligations with a statutory deposit, a negotiated release or litigation, and account for the project’s closing and financing needs.

Kushnick Pallaci PLLC assists clients throughout New York with surety and lien bond litigation. Contact 631-752-7100 or vtp@kushnicklaw.com.

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