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Home>Levelset Community>Legal Help>Hi,Olivia, I purchased a lien release bond and provided collateral as required by the surety. The lien release was filed, recorded by the register of deeds, released and the original bond document, stamped with the recording information was returned to me, which I returned to the surety. The deadline for perfection of the lien has long ago passed but my insurance broker says the surety wants assurance that they have no further liability. I provided everything I could to document the status--the pertinent dates (last date of work, date of lien filing, date of bond filing, deadline for perfection of the lien, documentation that I was a subcontractor and the claimant was a sub-sub contractor and a copy of the T.C.A. statute defining all of these details), but still have not received the return of collateral. What else could I do to satisfy the requested assurance? Thanks. Leonard Kroll 2/26/18

Hi,Olivia, I purchased a lien release bond and provided collateral as required by the surety. The lien release was filed, recorded by the register of deeds, released and the original bond document, stamped with the recording information was returned to me, which I returned to the surety. The deadline for perfection of the lien has long ago passed but my insurance broker says the surety wants assurance that they have no further liability. I provided everything I could to document the status--the pertinent dates (last date of work, date of lien filing, date of bond filing, deadline for perfection of the lien, documentation that I was a subcontractor and the claimant was a sub-sub contractor and a copy of the T.C.A. statute defining all of these details), but still have not received the return of collateral. What else could I do to satisfy the requested assurance? Thanks. Leonard Kroll 2/26/18

TennesseeBond ClaimsConstruction Contract

Hi,Olivia, I purchased a lien release bond and provided collateral as required by the surety. The lien release was filed, recorded by the register of deeds, released and the original bond document, stamped with the recording information was returned to me, which I returned to the surety. The deadline for perfection of the lien has long ago passed but my insurance broker says the surety wants assurance that they have no further liability. I provided everything I could to document the status--the pertinent dates (last date of work, date of lien filing, date of bond filing, deadline for perfection of the lien, documentation that I was a subcontractor and the claimant was a sub-sub contractor and a copy of the T.C.A. statute defining all of these details), but still have not received the return of collateral. What else could I do to satisfy the requested assurance? Thanks. Leonard Kroll 2/26/18

1 reply

Feb 27, 2018
This sounds like a tough situation. As simple as it sounds, asking a broker or the surety what type of assurance they're looking for might be the best move to provide clarity when a surety withholds collateral. Also, the bond agreement will likely contain the conditions for the release of collateral - so it might be a good idea to look to the bond agreement or the bond itself for any required procedure within the agreement. Absent any feedback or further information contained in the bond/bond agreement, conceivably, an opinion letter from an attorney which outlines the situation and states that an action against the bond may no longer be brought could potentially fulfill the surety's request.
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