A property owner disputes a $15,000 mechanics' lien filed by a contractor. The owner posts a bond to release the lien. What is the minimum bond amount required?
Correct Answer
C) $22,500
Under A.R.S. 33-1003, the bond amount must be 150% of the lien amount. $15,000 × 1.5 = $22,500.
Why This Is the Correct Answer
Under A.R.S. § 33-1003, a property owner who wishes to release a mechanics' lien by substituting a bond must post a bond equal to 150% of the lien amount. 150% of $15,000 = $22,500. This extra cushion protects the lien claimant against the risk that the bonding company may not fully pay or that costs and interest accrue during litigation.
Why the Other Options Are Wrong
Option A: $15,000
$15,000 is the face value of the lien itself — posting a bond equal only to the lien amount provides no buffer for interest, attorney fees, or collection costs, and does not satisfy Arizona's statutory 150% requirement.
Option B: $30,000
$30,000 would represent 200% of the lien amount. While that amount would more than satisfy the requirement, it exceeds the statutory minimum and is therefore not the correct answer to what is the minimum required.
Option D: $18,000
$18,000 equals 120% of the lien amount. Arizona law specifically mandates 150%, not 120%, so this amount falls short of the statutory minimum and would not validly release the lien.
Memory Technique
Think of the bond as 'one-and-a-half times the lien.' A lien is like a weight — you need 50% more to lift it off. $15,000 lien × 1.5 = $22,500 bond.
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