An Alabama contractor files a mechanics' lien for $15,000 on a residential project. What is the required bond amount to contest this lien?
Correct Answer
B) $22,500
Under Alabama lien law, the bond amount to contest a mechanics' lien must be 150% of the claimed amount: $15,000 × 1.5 = $22,500.
Why This Is the Correct Answer
Alabama lien law requires a bond equal to 150% of the lien amount to contest (discharge) a mechanics' lien. Calculation: $15,000 × 1.50 = $22,500. This 50% premium ensures that if the lien claimant prevails, funds are available to cover the full claim plus potential costs.
Why the Other Options Are Wrong
Option A: $18,750
$18,750 equals 125% of $15,000 ($15,000 × 1.25). This multiplier has no basis in Alabama lien law. It may appear as a distractor between the correct 150% and the face amount.
Option C: $15,000
$15,000 equals 100% of the lien — the face amount only. Posting a bond equal to the lien amount would provide no cushion for court costs or damages, which is why Alabama requires the additional 50% premium.
Option D: $30,000
$30,000 equals 200% of the lien. While some states use a 2× multiplier, Alabama's statute specifies 150%, making this figure too high and therefore incorrect.
Memory Technique
Alabama bond = Lien × 1.5. Remember 'AL = Add a Half': take the lien amount and add half again. $15,000 + $7,500 = $22,500.
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