A Nevada contractor files a mechanics' lien for $45,000. What is the required bond amount to release this lien under NRS 108?
Correct Answer
B) $67,500
Under NRS 108, the bond amount to release a mechanics' lien must be 150% of the lien amount. $45,000 × 1.5 = $67,500.
Why This Is the Correct Answer
Under Nevada Revised Statutes (NRS) 108, the bond amount required to release a mechanics' lien must be 150% of the original lien amount. This provides additional security beyond the lien value to cover potential interest, costs, and attorney fees. For a $45,000 lien, the calculation is $45,000 × 1.5 = $67,500. This 150% requirement is standard practice in Nevada mechanics' lien law to ensure adequate protection for all parties involved.
Why the Other Options Are Wrong
Option A: $45,000
$112,500 represents 250% of the lien amount, which significantly exceeds the statutory requirement. This excessive bond amount would impose an unreasonable financial burden and is not mandated by NRS 108 for mechanics' lien release purposes.
Option D: $90,000
$90,000 represents 200% of the lien amount, which exceeds the statutory requirement under NRS 108. While this amount would be sufficient to release the lien, it is unnecessarily high and not required by Nevada law, making it an incorrect answer.
Memory Technique
Remember 'Nevada's Lien Release = 1.5 Times' or think 'One and a Half to Set it Free' - the bond must be 150% of the lien amount to release it in Nevada.
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