33-1003. Payment bond in lieu of lien right;
bond purposes and conditions; recording
A. Every owner of land, including any person who has a legal or equitable interest
therein, who enters a contract requiring any person to perform labor or professional
services or to furnish materials, machinery, fixtures or tools in the construction,
alteration or repair of any building, or other structure or improvement on such land, may
avoid the lien provisions of section 33-981 pertaining to agents by requiring the person
with whom he contracts to furnish a payment bond. Upon recordation of the payment bond
together with a copy of such contract in the office of the county recorder, in the county
in which the land is located, no lien shall thereafter be allowed or recorded by the
person claiming a lien against the land on which the labor or professional services are
performed or the materials, machinery, fixtures or tools furnished, as provided in this
article, except by the person who contracts, in writing, directly with the owner.
B. A payment bond furnished pursuant to subsection A of this section shall be in
the amount and form prescribed by title 34, chapter 2, article 2. The contract recorded
with the bond shall contain a legal description of the land on which the work is being or
is to be performed.
C. The bond provided for in this section shall be executed solely by one or more
surety companies holding a certificate of authority to transact surety business in this
state issued by the director of the department of insurance pursuant to title 20, chapter
2, article 1 and shall be accompanied by a power of attorney disclosing the authority of
the person executing the same on behalf of the surety. Notwithstanding any other
statute, the bond shall not be executed by an individual surety or sureties, even if the
requirements of section 7-101 are satisfied.
D. The county recorder of the county in which the bond and contract are recorded
shall index the bond and contract under the index classification in which mechanics' and
materialmen's liens are recorded.
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