Mississippi Lien Law Signed, Now in Force

April 14, 2014

Mississippi Governor Phil Bryant signed State Senate Bill 2622 into law last Friday, extending the lien rights that used to only belong to parties with a direct contract with the owner to subcontractors and materials suppliers operating in Mississippi as well.

Prior to the bill's enactment, Mississippi was the only state remaining in the union that did not have a lien law statute that applied to subcontractors. SB 2622 remedied that, however, and put an end to the state construction industry's woes that followed in the wake of the Mississippi Supreme Court's decision last fall to declare the state's stop notice statute unconstitutional, thereby revoking one of the only payment protections previously available to Mississippi subcontractors and materials suppliers.

Advocates were quick to rise to the challenge of enacting a new lien law in response to the court's ruling, however, and rather than simply reinstating the incomplete coverage of the state's former stop notice statute, the construction community came together to enact a full array of lien rights and protections modeled after those in Georgia.

Stay tuned to NACM's Secured Transaction Services (STS) and the Lien Navigator for more news and analysis regarding Mississippi's new lien statute.

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