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February 28, 2003
Contractors need to know nonpayment lien rights
Recent ruling says 8-month window to foreclose liens can be extended in some cases.
By J. TODD HENRY
Oles Morrison Rinker & Baker
Henry
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Many times a contractor or supplier files a lien on a project with no intent to foreclose, but merely to provide security for a promised payment. What happens, however, when that payment is not made, and the eight-month period for foreclosing the lien has expired?
Many would answer by saying that the contractor no longer has those lien rights. However, after the recent court of appeals decision in Geo Exchange Systems v. Cam, the only proper answer to that question is "it depends."
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