§ 16.10 Posting a Bond or Cash Deposit to Remove the Lien
Library | Construction Law in Oregon (OSBar) (2019 Ed.) |
§ 16.10-1 In General
A perfected construction lien may be removed from the land or an improvement by the owner's or other interested person's posting a valid bond or cash deposit at any time after the claim of lien is filed. ORS 87.076(1), (3).
If a bond is posted, the bond must be filed with the recorder of the county where the claim of lien is filed and must be
executed by a corporation authorized to issue surety bonds in the State of Oregon to the effect that the principal or principals on the bond shall pay the amount of the claim and all costs and attorney fees that are awarded against the improvement or land on account of the lien.
ORS 87.076(1).
In lieu of a bond, the owner of the improvement or property or other interested party may make a cash deposit with the treasurer of the county where the claim of lien is filed. ORS 87.076(2)(a).
The bond or cash deposit must be in an amount not less than 150 percent of the amount of the lien claimed, or $1,000, whichever is greater. ORS 87.076(1), (2)(a).
PRACTICE TIP: The terms of any bond should be reviewed to see whether it contains the required statutory language of ORS 87.076, or is merely a bond to pay a personal monetary judgment awarded against the owner.
NOTE: A cash depositor no longer needs a court order to receive investment income from a cash deposit. See ORS 87.076(2)(b), as amended by Or Laws 2009, ch 513, § 1. Rather, the county treasurer must pay the investment income to the depositor when the treasurer otherwise distributes the money from the deposit. However, the depositor bears the risk of a loss resulting from an investment of the money deposited. ORS 87.076(2)(b).
Simply filing the bond or making a cash deposit does not release the lien from the property. The person who files the bond or makes a cash deposit must give notice of the filing or deposit to the lien claimant "not later than 20 days after the filing or deposit." ORS 87.078(1). Otherwise, filing the bond or making the cash deposit has no effect. ORS 87.078(2). An affidavit of compliance with ORS 87.076 must also be filed with the county's recording officer. ORS 87.081. See Form 16-5 for a form of affidavit.
When an appropriate bond or cash deposit has been filed or posted and the required notice has been given, the property is free of the lien and the lien attaches to the bond or deposit. ORS 87.083(1); A-C Constr., Inc. v. Bakke Corp., 153 Or App 41, 51, 956 P2d 219, rev den, 327 Or 553 (1998) ("the lien transferred...
To continue reading
Request your trial- Books and Journals
- Chapter 16 Construction Liens
- § 16.1 Introduction
- § 16.2 For Whom Is a Lien Created
- § 16.3 Lienable Items
- § 16.4 Amount of the Lien
- § 16.5 Interests Subject to Lien
- § 16.6 Notice
- § 16.7 Filing a Claim of Lien—perfection
- § 16.8 Special Circumstances
- § 16.9 Foreclosure of Lien
- § 16.10 Posting a Bond or Cash Deposit to Remove the Lien
- § 16.11 Bankruptcy
- Form 16-1 Claim of Construction Lien for an Improvement
- Form 16-2 Amendment to Construction Contract (ors 87.021)
- Form 16-3 Combined Notice of Filing Claim of Construction Lien and Intent to Foreclose
- Form 16-4 Notice of Pendency of an Action (lis Pendens)
- Form 16-5 Affidavit of Filing Lien-release Bond
- Form 16-6 Complaint: Foreclosure of Construction Lien, Quantum Meruit, Claim on Account
- Form 16-7 Complaint: Foreclosure of Construction Lien—bond Posted, Breach of Contract
- Form 16-8 Petition to Determine Adequacy of Bond Pursuant to Ors 87.086
- Form 16-9 Demand That Lien Be Released (ors 87.076)
- Form 16-10 Section 546(b)(2) Notice
- Appendix 16a Oregon Lien and Bond Summary
- Appendix 16b Checklist for Oregon Construction Lien
- Appendix 16c Lien Evaluation Checklist
- Appendix 16d Abbreviations
Subscribers can access the reported version of this case.
You can sign up for a trial and make the most of our service including these benefits.
Why Sign-up to vLex?
-
Over 100 Countries
Search over 120 million documents from over 100 countries including primary and secondary collections of legislation, case law, regulations, practical law, news, forms and contracts, books, journals, and more.
-
Thousands of Data Sources
Updated daily, vLex brings together legal information from over 750 publishing partners, providing access to over 2,500 legal and news sources from the world’s leading publishers.
-
Find What You Need, Quickly
Advanced A.I. technology developed exclusively by vLex editorially enriches legal information to make it accessible, with instant translation into 14 languages for enhanced discoverability and comparative research.
-
Over 2 million registered users
Founded over 20 years ago, vLex provides a first-class and comprehensive service for lawyers, law firms, government departments, and law schools around the world.
Subscribers are able to see a list of all the cited cases and legislation of a document.
You can sign up for a trial and make the most of our service including these benefits.
Why Sign-up to vLex?
-
Over 100 Countries
Search over 120 million documents from over 100 countries including primary and secondary collections of legislation, case law, regulations, practical law, news, forms and contracts, books, journals, and more.
-
Thousands of Data Sources
Updated daily, vLex brings together legal information from over 750 publishing partners, providing access to over 2,500 legal and news sources from the world’s leading publishers.
-
Find What You Need, Quickly
Advanced A.I. technology developed exclusively by vLex editorially enriches legal information to make it accessible, with instant translation into 14 languages for enhanced discoverability and comparative research.
-
Over 2 million registered users
Founded over 20 years ago, vLex provides a first-class and comprehensive service for lawyers, law firms, government departments, and law schools around the world.
Subscribers are able to see a list of all the documents that have cited the case.
You can sign up for a trial and make the most of our service including these benefits.
Why Sign-up to vLex?
-
Over 100 Countries
Search over 120 million documents from over 100 countries including primary and secondary collections of legislation, case law, regulations, practical law, news, forms and contracts, books, journals, and more.
-
Thousands of Data Sources
Updated daily, vLex brings together legal information from over 750 publishing partners, providing access to over 2,500 legal and news sources from the world’s leading publishers.
-
Find What You Need, Quickly
Advanced A.I. technology developed exclusively by vLex editorially enriches legal information to make it accessible, with instant translation into 14 languages for enhanced discoverability and comparative research.
-
Over 2 million registered users
Founded over 20 years ago, vLex provides a first-class and comprehensive service for lawyers, law firms, government departments, and law schools around the world.
Subscribers are able to see the revised versions of legislation with amendments.
You can sign up for a trial and make the most of our service including these benefits.
Why Sign-up to vLex?
-
Over 100 Countries
Search over 120 million documents from over 100 countries including primary and secondary collections of legislation, case law, regulations, practical law, news, forms and contracts, books, journals, and more.
-
Thousands of Data Sources
Updated daily, vLex brings together legal information from over 750 publishing partners, providing access to over 2,500 legal and news sources from the world’s leading publishers.
-
Find What You Need, Quickly
Advanced A.I. technology developed exclusively by vLex editorially enriches legal information to make it accessible, with instant translation into 14 languages for enhanced discoverability and comparative research.
-
Over 2 million registered users
Founded over 20 years ago, vLex provides a first-class and comprehensive service for lawyers, law firms, government departments, and law schools around the world.
Subscribers are able to see any amendments made to the case.
You can sign up for a trial and make the most of our service including these benefits.
Why Sign-up to vLex?
-
Over 100 Countries
Search over 120 million documents from over 100 countries including primary and secondary collections of legislation, case law, regulations, practical law, news, forms and contracts, books, journals, and more.
-
Thousands of Data Sources
Updated daily, vLex brings together legal information from over 750 publishing partners, providing access to over 2,500 legal and news sources from the world’s leading publishers.
-
Find What You Need, Quickly
Advanced A.I. technology developed exclusively by vLex editorially enriches legal information to make it accessible, with instant translation into 14 languages for enhanced discoverability and comparative research.
-
Over 2 million registered users
Founded over 20 years ago, vLex provides a first-class and comprehensive service for lawyers, law firms, government departments, and law schools around the world.
Subscribers are able to see a visualisation of a case and its relationships to other cases. An alternative to lists of cases, the Precedent Map makes it easier to establish which ones may be of most relevance to your research and prioritise further reading. You also get a useful overview of how the case was received.

Why Sign-up to vLex?
-
Over 100 Countries
Search over 120 million documents from over 100 countries including primary and secondary collections of legislation, case law, regulations, practical law, news, forms and contracts, books, journals, and more.
-
Thousands of Data Sources
Updated daily, vLex brings together legal information from over 750 publishing partners, providing access to over 2,500 legal and news sources from the world’s leading publishers.
-
Find What You Need, Quickly
Advanced A.I. technology developed exclusively by vLex editorially enriches legal information to make it accessible, with instant translation into 14 languages for enhanced discoverability and comparative research.
-
Over 2 million registered users
Founded over 20 years ago, vLex provides a first-class and comprehensive service for lawyers, law firms, government departments, and law schools around the world.
Subscribers are able to see the list of results connected to your document through the topics and citations Vincent found.
You can sign up for a trial and make the most of our service including these benefits.
Why Sign-up to vLex?
-
Over 100 Countries
Search over 120 million documents from over 100 countries including primary and secondary collections of legislation, case law, regulations, practical law, news, forms and contracts, books, journals, and more.
-
Thousands of Data Sources
Updated daily, vLex brings together legal information from over 750 publishing partners, providing access to over 2,500 legal and news sources from the world’s leading publishers.
-
Find What You Need, Quickly
Advanced A.I. technology developed exclusively by vLex editorially enriches legal information to make it accessible, with instant translation into 14 languages for enhanced discoverability and comparative research.
-
Over 2 million registered users
Founded over 20 years ago, vLex provides a first-class and comprehensive service for lawyers, law firms, government departments, and law schools around the world.