S-789                 _______________________________________________

                                                   SENATE BILL NO. 5339

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senators Talmadge, Newhouse, Halsan and Nelson

Read first time 1/23/87 and referred to Committee on  Judiciary.

AN ACT Relating to mechanics' liens; and amending RCW 60.04.115.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 4, chapter 314, Laws of 1986 and RCW 60.04.115 are each amended to read as follows:

          Any owner of real property subject to a recorded claim of lien under RCW 60.04.060, or the contractor or subcontractor who disputes the correctness or validity of the claim of lien may record, either before or after the commencement of an action to enforce the claim of lien, in the office of the county recorder or auditor in the county where the claim of lien was recorded, a bond issued by an insurance company authorized to issue surety bonds in the state, that is ((acceptable to the lien claimant)) contained in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the federal register authorized to issue bonds on United States government projects in an underwriting limitation equal to or greater than five hundred thousand dollars, and contains a description of the claim of lien and real property involved, and in an amount equal to the greater of five thousand dollars or two and one-half times the amount of the claim of lien if it is twenty thousand dollars or less, and in an amount equal to ((the greater of thirty thousand dollars or)) two times the amount of claim of lien if it is in excess of twenty thousand dollars.  If the claim of lien affects more than one parcel of real property and is segregated to each parcel, the bond may be segregated the same as in the claim of lien.  A separate bond shall be required for each claim of lien.  The condition of the bond shall be to guarantee the payment of the judgment entered in any action to recover the amount claimed in a claim of lien, or on the claim asserted in the claim of lien.  The effect of recording a bond shall be to release the real property described in the claim of lien from the lien and any action brought to recover the amount claimed.  Unless otherwise prohibited by law, if no action is filed to recover on a claim of lien within the time specified in RCW 60.04.100 the surety shall be discharged from liability under the bond.  If such an action is timely filed, then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment, whichever is less, the surety shall be discharged from liability under the bond.