For amend and vote, the House Judiciary Committee heard HB 1021 on liens by Rep. Torr. This bill permits a person to discharge a mechanic’s lien by filing an indemnification or payment bond with the recorder’s office in an amount equal to at least 150% of the lien. It requires the surety responsible for issuing an indemnification or payment bond to be authorized to do business in Indiana and be rated at least “A-” by at least one nationally recognized investment rating service. The bill also specifies certain requirements concerning the recording of an indemnification or payment bond, provides that the filing of a bond discharges the liability of a person served by a lien claimant not less than 30 days after the filing of a bond, that a contractor or subcontractor may adjudicate the adequacy of a bond in certain instances, and that the liability of a person served by a lien claimant may not be discharged while the adequacy of a bond is being adjudicated. This bill repeals the current statute concerning the filing of a written undertaking to discharge a lien.
This bill was originally heard with much testimony for and against it on January 6, 2020. The bill was amended by consent to clarify attorneys’ fees issues. The amended bill passed 10-0.
Read the bill at: http://iga.in.gov/legislative/2020/bills/house/1021.