71-3-551. Substitution of bond allowed -- filing -- amount -- condition. (1) Whenever a construction lien has been filed upon real property or any improvements thereon, the contracting owner of any interest in such property, whether legal or beneficial, may, at any time before the lien claimant has commenced an action to foreclose such lien, file a bond with the clerk of the district court in the county in which such property is situated or, if such property is situated in more than one county, with the clerk of the district court of any county in which a part of such property is situated.
     (2) Such bond shall be in an amount 1 1/2 times the amount of the lien and shall be either in cash or written by a corporate surety company. If written by a corporate surety, such bond shall be approved by a judge of the district court with which such bond is filed.
     (3) The bond shall be conditioned that if the lien claimant shall be finally adjudged to be entitled to recover upon the claim upon which his lien is based, the principal or his sureties shall pay to such claimant the amount of his judgment, together with any interest, costs, attorneys' fees, and other sums which such claimant would be entitled to recover upon the foreclosure of a lien against the principal.

     History: En. Sec. 1, Ch. 338, L. 1971; R.C.M. 1947, 45-513; amd. Sec. 14, Ch. 202, L. 1987; Sec. 71-3-516, MCA 1985; redes. 71-3-551 by Code Commissioner, 1987.