New York Consolidated Laws

N.Y. Lien Law § 20 (2026)

Discharge of lien after notice of lien filed by payment of money into court

✓ current as of May 2026

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§ 20. Discharge of lien after notice of lien filed by payment of money
into court. A lien specified in this article, other than a lien for
performing labor or furnishing materials for a public improvement, may
be discharged after the notice of lien is filed at any time before an
action is commenced to foreclose such lien, by depositing with the
county clerk, in whose office the notice of lien is filed, a sum of
money equal to the amount claimed in such notice, with interest to the
time of such deposit. After such deposit is made and the lien is
discharged the county treasurer or any other officer with whom the money
is deposited shall, within ten days thereafter, send a notice by mail to
the lienor, at the address given in the lien, that such lien has been
discharged by deposit. After action to foreclose the lien is commenced
it may be discharged by a payment into court of such sum of money, as,
in the judgment of the court or a judge or justice thereof, after at
least five days' notice to all the parties to the action, will be
sufficient to pay any judgment which may be recovered in such action.
Upon any such payment, the county clerk shall forthwith enter upon the
lien docket and against the lien for the discharge of which such moneys
were paid, the words "discharged by payment. " A deposit of money made
as prescribed in this section shall be repaid to the party making the
deposit, or his successor, upon the discharge of the liens against the
property pursuant to law. All deposits of money made as provided in this
section shall be considered as paid into court and shall be subject to
the provisions of law relative to the payment of money into court and
the surrender of such money by order of the court. An order for the
surrender of such moneys to the lienor or depositor may be made by any
court of record having jurisdiction of the parties. If no action is
brought in a court of record to enforce such lien, such order may be
made by any judge of a court of record. If application for such order is
made by lienor it shall be on notice to the depositor; if made by the
depositor then on notice to the lienor.

Notes of Decisions

Cited in 9 cases (1 in the last 5 years), 1984–2024 · leading case: In re Benson Park Assocs. LLC, 19 Misc. 3d 1014 (N.Y. Sup. Ct. 2008).

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In re Benson Park Assocs. LLC, 19 Misc. 3d 1014 (N.Y. Sup. Ct. 2008). · cites it 12× “In this proceeding and application pursuant to Lien Law § 20, brought by a petition and order to show cause, petitioner Benson Park Associates LLC moves for an order directing the Department of Finance of the City of New York (DOF) to distribute to it the sum of $278,790.”

KSK Constr. Grp., LLC v. 26 East 64th Street, LLC, 126 A.D.3d 568 (N.Y. App. Div. 2015). “v Handelsman, 40 AD2d 768, 768 [1st Dept 1972]; see also Lien Law § 20). Defendants are entitled to summary judgment dismissing plaintiffs cause of action for foreclosure on the lien on the 61st Street property, vacating that lien, and releasing the funds deposited by 26 East…”

Henry Quentzel Plumbing Supply Co. v. 60 Pineapple Residence Corp., 126 Misc. 2d 751 (N.Y. Sup. Ct. 1984). “) A deposit into the court under Lien Law § 20, which is analogous to a bond, does not have the effect of excusing joining necessary parties defendant.”

NY Prof'l Drywall of OC, Inc. v. Rivergate Dev., LLC, 100 A.D.3d 216 (N.Y. App. Div. 2012). “Defendants contend that plaintiff s filing of a mechanic’s lien and/or the payment by defendants to the County Clerk of a sum sufficient to discharge such lien resulted in a transfer of plaintiffs claims for the alleged nonpayment for work from the property to the funds on…”

Matter of Branic Intl. Realty Corp. v. Div. of Code Enf't of the Dept. of Hous. Preserv. & Dev. of the City of N.Y., 2024 NY Slip Op 01155 (N.Y. App. Div. 2024). “Accordingly, the discharge effected by Lien Law § 20 is not the type of discharge proceeding contemplated by Administrative Code § 26-305(4)(b).”

Pavarini McGovern, LLC v. Waterscape Resort LLC (In re Waterscape Resort LLC), 514 B.R. 384 (Bankr. S.D.N.Y. 2014). “N.Y. Lien Law § 20 (McKinney 2007) provides in relevant part: A lien .”

Great Am. Constr. Corp. v. Nobre, Inc., 2004 NY Slip Op 50564(U) (N.Y. Sup. Kings 2004). “by executing an undertaking with two or more sufficient sureties to the clerk of the county where the premises are situated, in such sums as the court, or a judge or justice thereof, may direct, not less than the amount claimed in the notice of lien, conditioned for the payment…”

In re Carl R. Cacioppo Elec. Contractors, Inc., 259 A.D.2d 698 (N.Y. App. Div. 1999). “Neuman obtained a judgment against, inter alia, the assignee for the return of the funds. The assignee appeals from the judgment on the ground that she may not be held personally liable.”

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.