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Does the company that provides the PO financing have lien rights if the subcontractor fails to repay the money?

New YorkCash Flow

Just wondering. What protects the company that offers the funding ? If they don't have lien rights, what protects them?

1 reply

Jan 13, 2023

Unless you have a security interest filed against the property in the form as a mortgage securing your financing, there is nothing protecting you. The only remedy you would have is against the defaulting borrower.

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