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Maryland Code, Commercial Law § 16-206

Current as of January 01, 2025 | Updated by Findlaw Staff

(a)(1) If the owner of property subject to a lien disputes any part of the charge for which the lien is claimed, he may institute appropriate judicial proceedings.

(2) Institution of the proceedings stays execution under the lien until a final judicial determination of the dispute.

(b)(1) If the owner of property subject to a lien disputes any part of the charge for which the lien is claimed, he immediately may repossess his property by filing a corporate bond for double the amount of the charge claimed.

(2) The bond shall be filed with and is subject to the approval of the clerk of the court of the county where the services or materials for which the lien is claimed were provided.

(3) The bond shall be conditioned on:

(i) Full payment of the final judgment of the claim, together with interest;

(ii) All costs incident to the bringing of suit; and

(iii) All cost and expenses which result from the enforcement of the lien and are incurred before the lienor was notified that the bond was filed.

(4) Filing of the bond stays execution under the lien until final judicial determination of the dispute.

(5) If service of process by a lienor on the owner is returned non est after filing of a bond, service may be made by publication as in the case of a suit against a nonresident.

(6) If suit is not instituted by the lienor within six months after the bond is filed, the bond is discharged.

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Cite this article: FindLaw.com - Maryland Code, Commercial Law § 16-206 - last updated January 01, 2025 | https://codes.findlaw.com/md/commercial-law/md-code-coml-sect-16-206/

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