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.
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Additional PA Change to Affect Suppliers and Subs Plans Now
December 31, 2014
Construction material suppliers and subcontractors in Pennsylvania must be mindful of a second set of significant changes to mechanic’s lien requirements passed in 2014, ones that make the state a “Notice to Order” one, even though they don’t go into effect for two years. Granted, plenty of debate exists regarding whether Pennsylvania’s newest changes will be a net-positive or negative.
The switch to a Notice to Owner state will create a central, Internet-based directory for Notices of Commencement, Notices of Furnishing, Notices of Completion and Notices of Nonpayment, according to an analysis released in late December by frequent NACM contributor Jim Fullerton, Esq., principal at Fullerton & Knowles, PC. The change goes into effect in full on December 31, 2016, and could prove to be a bit of a double-edged sword in his estimation:Read more...
STS, ASA, Industry Awaits Response of Protest Against Texas Municipality's Bond Waiver Plan
October 24, 2014
Officials from the City of Kilgore, TX have gone quiet since opposition came in from the construction industry to their plan to waive bond requirements on a baseball complex. Chris Ring, of NACM’s Secured Transaction Services, said the plan to reduce costs by skirting obligations of a surety bond on such projects is about accountability and providing some kind of path toward payment when a problem arises.
“In Texas, once the general contract price exceeds $ 25,000, the general contractor is required to post a payment bond as non-payment relief for subcontractors and material suppliers. However, public agencies and general contractors can ask that the requirement for the payment bond be waived,” Ring said. “When the waiver is granted, downstream subcontractors and suppliers have no relief in the event of non-payment. Just because a payment bond should be in place for a public project, doesn’t mean that it will be placed. It’s critical that material supplier and subcontractors ask for and obtain copies of payment bonds, to assure they exist.”Read more...
Stop Payment Notice Rights Weakened by Cal Court of Appeals?
October 24, 2014
Also in California, criticism is mounting regarding a state Court of Appeals decision that could decrease contractors Stop Payment Notice rights on public projects. The American Subcontractors Association (ASA) noted in a September letter to the California Supreme Court that the decision in Golden State Boring & Pipe Jacking, Inc. v. Safeco Insurance Company, et al infers that a contractor would be required to serve a Stop Payment Notice when completing its portion of the work and again by completion or acceptance of the project by a public entity. ASA noted "a Stop Payment Notice is only effective if the public entity is still holding funds dedicated to the project."