ยง507-46 - Priority, record of; satisfaction.
ยง507-46ย Priority, record of;
satisfaction.ย The lien shall relate to and take effect from the time of
the visible commencement of operations for the improvement; it shall rank
equally in priority subject to the provisos hereinafter contained with all other
mechanics' and materialmen's liens and shall have priority over all other liens
of any nature, except liens in favor of any branch of the government and
mortgages, liens or judgments recorded or filed prior to the time of the
visible commencement of operation; provided that all liens for wages for labor
performed in the completion of the improvement, but not exceeding $300 for each
claimant, shall have priority as a class over all other mechanics' and
materialmen's liens where claims are filed by:
(1)ย The person who actually performed the labor;
(2)ย The person's legal representative in the event of
death or incapacity; or
(3)ย The director of labor and industrial relations
pursuant to chapter 371;
and provided further that where a mortgage is
recorded prior to the date of completion, and all or a portion of the money
advanced under and secured by the mortgage is thereafter used for the purpose
of paying for the improvement, the mortgagee shall be entitled, to the extent
of the payments, to priority over liens of mechanics and materialmen, but no
such priority shall be allowed unless the mortgage recites that the purpose of
the mortgage is to secure the moneys advanced for the purpose of paying for the
improvement in whole or in part. Payments made in good faith to the general
contractor for such purposes shall be presumed to have been used for the
purpose of paying for the improvement. Whenever the lien or claim of lien
herein provided is satisfied (other than by the limitations expressed in
section 507-43), a written notice thereof shall, at the expense of the lienee,
be filed with the clerk of the circuit court, which shall be noted in the
mechanics' lien record, and if title to the land involved is registered in the
land court and the lien did not attach solely to the interest of the lessee in
one or more leasehold time share interests, it shall also be filed in the
office of the assistant registrar of the court. [L 1888, c 21, ยง4; RL 1925,
ยง2894; am L 1933, c 143, ยง3; RL 1935, ยง4368; RL 1945, ยง8772; am L 1949, c 241,
ยง5; am L 1951, c 95, ยง1; RL 1955, ยง193-44; HRS ยง507-46; gen ch 1985; am L 1998,
c 219, ยง12; am L 2005, c 22, ยง35]
Case Notes
ย Priority of claim where garnishment and mechanic's lien are
involved.ย 9 H. 23.
ย Satisfaction of debt occurs in the order of charges accruing
whether covered by notice of lien or not.ย 10 H. 273.
ย Construction mortgage lien had priority over mechanic's lien
to extent of principal indebtedness devoted to construction costs under
building and loan agreement, but no priority in payment of interest claim.ย 66
H. 32, 657 P.2d 1004.
ย Cited:ย 12 H. 358; 23 H. 744.