A contractor files a mechanics lien in Alabama for $45,000 on January 15th. If the property owner wants to bond around the lien, what is the minimum bond amount required?
Correct Answer
D) $67,500
Alabama lien law requires a bond of 150% of the lien amount. $45,000 × 1.5 = $67,500.
Why This Is the Correct Answer
$67,500 is correct because Alabama lien law requires a bond of 150% of the claimed lien amount. $45,000 × 1.50 = $67,500. This bond replaces the lien on title, allowing the property to be sold or refinanced while the lien dispute is resolved.
Why the Other Options Are Wrong
Option A: $90,000
$90,000 represents 200% of the lien amount. While this is a common bond multiplier in some states, Alabama uses 150%, not 200%.
Option B: $54,000
$54,000 represents 120% of the lien amount ($45,000 × 1.20). This percentage does not match Alabama's statutory requirement of 150%.
Option C: $45,000
$45,000 equals 100% of the lien amount — the face value of the lien with no premium. Alabama law requires the bond to exceed the lien amount to ensure adequate security.
Memory Technique
Alabama lien bond = lien × 1.5. Think 'one and a half' — Alabama gives you half again on top. $45,000 + $22,500 (half of $45k) = $67,500.
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