NACM's Secured Transaction Services (STS) brings best-in-class Notice, Lien and Bond Claim service options to today's credit professional. Our UCC Filing Services provides assistance in the preparation, filing and maintenance of financing statements.
Tennessee’s New P3 Law Commences in October
May 27, 2016
Like several other states without up-to-date Public-Private Partnership (P3)” statutes in place before 2016, Tennessee has passed legislation that authorizes private entities to develop, redevelop and operate transportation facilities within the state through.
First introduced into Tennessee’s legislature in January and signed into law in recent weeks, the Public-Private Transportation Act of 2016, takes effect on Oct. 1. Among many requirements within the law, any P3 agreement needs, prior to any project going forward, to provide for the delivery of performance and payment bonds or other forms of security in the forms and amounts that are “satisfactory to the responsible public entity,” according to state documents.
Also, “guaranteed cost and completion guarantees related to the development, redevelopment, and operation of the qualified transportation facility and payment of damages for failure to meet the completion guarantee,” will be required prior to development, redevelopment or operation of the qualifying transportation facility, the law states.
With state budgets narrowing and infrastructure needs increasing nearly every year this decade, legislators throughout the country are turning to pacts with private entities to address transportation projects it otherwise might lack the resources to complete.
NY Transit Legislation Opens Door for P3s in the Big Apple
May 11, 2016
Part of a sprawling budget bill—which includes everything from tax benefits for electric car purchasers to construction projects to groundwater protection—signed into law last month may pave the way for more public-private partnership (P3) projects in New York City.
Tucked into the budget bill are new authorizations allowing the New York City Transit Authority to enter into joint agreements. The American Subcontractors’ Association (ASA) believes this will allow for public-private partnerships on city transit projects.
“The arrangement can be used for the planning acquisition, design, construction, reconstruction, rehabilitation, establishment, improvement, renovation, extension, repair, operation, maintenance, development or financing of transportation facilities,” ASA said on its website.
P3s continue to grow in use in areas where they previously were not specifically allowed by law. Nearly 40 U.S. states have passed legislation, more than half of which occurred in the last two to three years, offering protections to suppliers and subcontractors involved in P3 projects.
What is My 'REAL' Lien Deadline Date? (Part 2 of 3: Unpaid Balance Liens)
April 22, 2016
In about 50% of U.S. states, the deadline date to file a mechanic’s lien is not only based on a date defined in the statute, it’s also based on the receivable balance remaining to be paid on the general contract. States where the dollar value of a mechanic’s lien is limited to unpaid funds owed on the general contract are commonly referred to as “unpaid balance” lien states. The others are commonly referred to as “full price” lien states. The difference is as follows:
- Full price states: The property owner may have paid the general contract in full and a material supplier has a valid lien that they wish to enforce. In a full price lien state, the owner faces double jeopardy and may have to pay twice for the materials.
- Unpaid balance states: Once the owner pays the general contract in full, the owner is not subject to liens being filed, even though the material supplier has the right to do so from a “time frame” perspective.
Unpaid balance lien states are somewhat less problematic for trades that supply product early in the construction cycle (e.g., excavation, piling, concrete and structural steel). Conversely, unpaid balance lien states are more problematic for trades that supply product late (e.g., flooring, paint and casement).
To add to the confusion, some states base the full price vs. unpaid balance provision on property ownership (full price for commercial projects, unpaid balance for residential). Some states are considered unpaid balance, unless you send a “trapping” notice. In addition, some states add the unpaid balance provision to the funds owed by the general contractor to the subcontractor.
Knowing the statutory provisions from state to state is critical, as creditors may be forced to file the lien sooner than later. You’ll need to explain this to your customer who may be unaware of unpaid balance provisions. Creditors can also use that to their advantage during collection calls.
This is the second in a three-part eNews series. The next part will be available in advance in the Newsmakers section of the Lien Navigator at www.nacmsts.com. The website also includes information on NACM’s Mechanic’s Lien and Bond Services (MLBS), which offers free next action date tracking. Part of MLBS’ responsibility is to understand what customers are supplying on a project and help them determine deadline dates based on what was supplied and when. The goal is to keep your job accounts secured so you get paid!