71-3-552. Lien discharged upon filing of bond. Upon the filing of a bond as provided in 71-3-551, the lien against the real property shall forthwith be discharged and released in full and the bond shall be substituted for such lien.
Montana Code Annotated
Mont. Code Ann. § 71-3-552 (2026)
Lien Discharged Upon Filing Of Bond
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TITLE 71. MORTGAGES, PLEDGES, AND LIENS
CHAPTER 3. LIENS
Part 5. Construction Liens
Lien Discharged Upon Filing Of Bond
History: En. Sec. 2, Ch. 338, L. 1971; R.C.M. 1947, 45-514; Sec. 71-3-517, MCA 1985; redes. 71-3-552 by Code Commissioner, 1987.
Notes of Decisions
Cited in 3
cases, 1993–2013 · leading case: Total Indus. Plant Servs., Inc. v. Turner Indus. Grp., LLC., 2013 MT 5, 294 P.3d 363.
Total Indus. Plant Servs., Inc. v. Turner Indus. Grp., LLC., 2013 MT 5, 294 P.3d 363. “” In granting TIPS’s motion for partial summary *203 judgment on the retainage, the District Court found that because Turner had filed a substitution bond in lieu of TIPS’s lien, the lien was discharged by operation of § 71-3-552, MCA. Section 71-3-552, MCA, provides that…”
James Talcott Constr., Inc. v. P & D Land Enter., 862 P.2d 395 (Mont. 1993). “” We conclude that the discharge of the lien through the substitution of the letter of credit is a proper basis for appeal to this Court under Rule 1(b)(2), M.R.App.P.”
Petri v. James Talcott Constructio, 2000 MT 355N. “See § 71-3-552, MCA. ¶17 The deficiency of Petri's second lien, at least in this regard, is not that it was filed after Talcott's substitution bond, but rather that Petri's second lien covers claims already (1) guaranteed and released by that bond.”
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