Mont. Code Ann. » TITLE 71. MORTGAGES, PLEDGES, AND LIENS · CHAPTER 3. LIENS · Part 5. Construction Liens
Montana Code Annotated

Mont. Code Ann. § 71-3-551 (2026)

Substitution Of Bond Allowed -- Filing -- Amount -- Condition

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 71
  3. CHAPTER 3
  4. Part 5
  5. 71-3-551 Substitution of bond allowed -- filing -- amount -- condition

TITLE 71. MORTGAGES, PLEDGES, AND LIENS

CHAPTER 3. LIENS

Part 5. Construction Liens

Substitution Of Bond Allowed -- Filing -- Amount -- Condition

71-3-551. Substitution of bond allowed -- filing -- amount -- condition. (1) (a) Whenever a construction lien has been filed on real property, entities as provided in subsection (1)(b) may, at any time before the lien claimant has commenced an action to foreclose the construction lien or within 30 days of the service of a complaint in an action to foreclose the construction lien, file a bond with the clerk of the district court in the county in which the property is located or, if the property is located in more than one county, with the clerk of the district court of any county in which a part of the property is located.

(b) The following persons may file a bond as provided in subsection (1)(a):

(i) the contracting owner of any interest in the property, whether legal or beneficial;

(ii) the original contractor as defined in 71-3-522; or

(iii) any subcontractor.

(2) The bond must be in an amount 1 1/2 times the amount of the construction lien and must be either in cash or written by a corporate surety company. If written by a corporate surety, the bond must be approved by a judge of the district court with which the bond is filed.

(3) The bond must be conditioned that if the construction lien claimant is finally adjudged to be entitled to recover on the claim on which the construction lien is based, the principal or the principal's sureties shall pay to the claimant the amount of the claimant's judgment, together with any interest, costs, attorney fees, and other sums that the claimant would be entitled to recover on the foreclosure of a construction lien against the principal. However, the total amount paid by the principal or the principal's sureties may not exceed the amount of the bond provided for in subsection (2).

History: En. Sec. 1, Ch. 338, L. 1971; R.C.M. 1947, 45-513; amd. Sec. 14, Ch. 202, L. 1987; Sec. 71-3-516, MCA 1985; redes. 71-3-551 by Code Commissioner, 1987; amd. Sec. 1, Ch. 204, L. 2007; amd. Sec. 1, Ch. 407, L. 2023.

Notes of Decisions
Cited in 8 cases (1 in the last 5 years), 1993–2022 · leading case: James Talcott Constr., Inc. v. P & D Land Enter., 862 P.2d 395 (Mont. 1993).
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James Talcott Constr., Inc. v. P & D Land Enter., 862 P.2d 395 (Mont. 1993). · cites it 22× “The issue is whether the letter of credit constitutes a surety bond within the meaning of § 71-3-551, MCA. Talcott brought this action to foreclose upon a construction lien upon certain condominium units in Flathead County, Montana.”
AA Constr. of Missoula, LLC v. Choice Land Corp., 2011 MT 262, 264 P.3d 709. · cites it 6× “The District Court discharged the lien, however, only when CLR substituted a surety bond.”
Total Indus. Plant Servs., Inc. v. Turner Indus. Grp., LLC., 2013 MT 5, 294 P.3d 363. · cites it 5× “Section 71-3-551, MCA, provides that a “contracting owner of any interest in the property” may file a bond in an amount 1.”
Eisenhart v. Puffer, 2008 MT 58, 178 P.3d 139. · cites it 25× “Section 71-3-551, MCA, provides that such bonds “shall be conditioned that if the lien claimant shall be finally adjudged to be entitled to recover upon the claim upon which his lien is based, the principal or his sureties shall pay to such claimant the amount of his judgment.”
Skyline Consulting v. Mortensen, 2022 MT 192, 518 P.3d 462. · cites it 9× “The Legislature passed the current statute permitting substitute bonds, § 71-3-551, MCA, in 1971. It amended the statute in 1987 and again in 2007.”
Tch Bldrs. & Remod. v. Elements Of Const., 2019 MT 71, 437 P.3d 1035. · cites it 2× “41, or "1 1 / /2 times the amount of the construction lien," pursuant to § 71-3-551(2), MCA. In its complaint, TCH demanded $183,242.”
Petri v. James Talcott Constructio, 2000 MT 355N. · cites it 9× “¶5 On January 18, 1996, Respondent Daniel Averill, one of the owners of the Sunset Point Project, moved for summary judgment on Petri's first complaint and the subject of this appeal, the lien-foreclosure action, contending that Talcott's substitution bond had discharged Petri's…”
Sudan Drillings Inc. v. Anackers, 2014 MT 72, 320 P.3d 977. · cites it 2× “The parties do not dispute that the *274 clerk of court lacked the legal authority to release the lis pendens in this manner.”
Mont. Code Ann. § 71-3-551(1): 2 cases
Eisenhart v. Puffer, 2008 MT 58, 178 P.3d 139. “Section 71-3-551, MCA, provides that such bonds “shall be conditioned that if the lien claimant shall be finally adjudged to be entitled to recover upon the claim upon which his lien is based, the principal or his sureties shall pay to such claimant the amount of his judgment.”
Skyline Consulting v. Mortensen, 2022 MT 192, 518 P.3d 462. “The Legislature passed the current statute permitting substitute bonds, § 71-3-551, MCA, in 1971. It amended the statute in 1987 and again in 2007.”
Mont. Code Ann. § 71-3-551(2): 1 case
Tch Bldrs. & Remod. v. Elements Of Const., 2019 MT 71, 437 P.3d 1035. “41, or "1 1 / /2 times the amount of the construction lien," pursuant to § 71-3-551(2), MCA. In its complaint, TCH demanded $183,242.”
Mont. Code Ann. § 71-3-551(3): 2 cases
Eisenhart v. Puffer, 2008 MT 58, 178 P.3d 139. “Section 71-3-551, MCA, provides that such bonds “shall be conditioned that if the lien claimant shall be finally adjudged to be entitled to recover upon the claim upon which his lien is based, the principal or his sureties shall pay to such claimant the amount of his judgment.”
James Talcott Constr., Inc. v. P & D Land Enter., 862 P.2d 395 (Mont. 1993). “The issue is whether the letter of credit constitutes a surety bond within the meaning of § 71-3-551, MCA. Talcott brought this action to foreclose upon a construction lien upon certain condominium units in Flathead County, Montana.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.