Hi Experts, We are the primary/general contractor on a commercial solar project. We filed a pre-lien with the property owner but did not send the notice to the finance company (they took a loan to cover the cost of the agreement). Our understanding had always been that on solar projects it was not necessary to send notice to the bank that financed the project. We are now in a situation where we may potentially have to file a lien and are unsure whether our lien rights are secure. Also, worth note it's only the final payment, ~95% has been paid. Brandon
§ 8006. “Construction lender” means either of the following: (a) A mortgagee or beneficiary under a deed of trust lending funds with which the cost of all or part of a work of improvement is to be paid, or the assignee or successor in interest of the mortgagee or beneficiary. (b) An escrow holder or other person holding funds provided by an owner, lender, or another person as a fund for with which the cost of all or part of a work of improvement is to be paid.This definition does not cover every type of financing. The financing MUST be secured by a "deed of trust" or mortgage on the property, or if the financing is secured by some amount held in escrow. Therefore, if the financing was just a financing secured by UCC liens, a personal guarantee, etc, then you would not be required to deliver notice to the company providing the financing. If the financing is a "construction lender" who has some type of security rights in the land itself (i.e. deed of trust or mortgage), then you would need to deliver notice to that financing company... It can be really tricky to figure out who the lender is, actually, and whether the lender is a "lender" or not. We write about this in our Guide on California's Preliminary Notice: How to Find the Lender. But, you can really help yourself within the notice you send to the property owner. Notices can make "information requests" within it, whereby you request from the owner that they clear up information like this. This can have the effect of protecting you from not knowing / not sending the notice to the lender. Hope this helps. Good luck.