September 19, 2021

Release of Mechanics Lien Bond

Barragan Insurance Agency has the best rates on Release of Mechanics Lien Surety Bonds. Therefore, our goal is to provide our clients with low cost, affordable, and cheap Release of Mechanics lien bonds.  We provide Release of Mechanics Lien Bonds throughout California and the Sacramento, Chico, Redding, San Francisco, Oakland, San Jose, Long Beach, Fresno, Los Angeles, Santa Ana, Anaheim, and San Diego, California areas.

You can get a free quote within a couple of minutes.  Call us at 916-984-9320 for a free release of mechanics lien bond quote.

The Release of Mechanics Lien Bond application needs to be completed and signed by all owners and their  spouses in order to get  the mechanics lien bond.  We will need copy of the recorded mechanics Lien(s) along with the application.

The release of mechanics lien bonds usually requires full collateral along with the bond premium. Acceptable forms of collateral are a cashier’s check or Irrevocable Letter of Credit (ILOC)  in favor of the bond company. The collateral requirement is based on the bond face amount which is usually  1  1/4 times the lien amount.

The bond premium rate is 2% based of the bond face amount and has a $250.00 minimum premium when cash is posted as collateral.  The bond company can also consider a trust deed on acceptable real estate (acceptability of the collateral real estate is determined by the bond company).  If real estate is posted as collateral then the premium rate is 4% based on the bond amount.

Let us know if  the bond needs to be processed through escrow.    We can make arrangements to put a demand into escrow if cash is available  to pay the collateral and bond premium.    The title company would provide us a copy an amended closing escrow statement reflecting the bond company as a payee for the collateral amount.  If the bond is over $10,000,  a Personal  Financial Statement and / or a Business Financial Statement is needed.

Download:
 
 

 
 

 
 

 
 
    (sample for your bank)

 
 
Should you have any questions, please call us at 916-984-9320.  You may also email a copy of documents to: Info@barraganinsurance.com
 
Barragan Insurance Agency

1132 Suncast  Lane Ste 8

El Dorado Hills, CA 95762

Phone: 916-984-9320

Fax: 916-984-8013