What three components make up the amount of a lien transfer deposit or bond?
Correct Answer
C) The amount demanded, 3 years of interest and a fee and cost allowance
Section 713.24(1) sets the amount at the sum demanded in the claim of lien, plus interest on it at the legal rate for 3 years, plus $5,000 or 25 percent of the amount demanded, whichever is greater, to apply to attorney fees and court costs taxed in a proceeding to enforce the lien.
Why This Is the Correct Answer
Section 713.24(1) sets the amount at the sum demanded in the claim of lien, plus interest on it at the legal rate for 3 years, plus $5,000 or 25 percent of the amount demanded, whichever is greater, to apply to attorney fees and court costs taxed in a proceeding to enforce the lien.
Why the Other Options Are Wrong
Option A: The amount demanded, 1 year of interest, and a fee and cost allowance
Interest is for 3 years, not 1.
Option B: The contract price, 3 years of interest, and a fee and cost allowance
The base is the amount demanded, not the contract price.
Option D: The amount demanded and a fee allowance, with no interest component
The amount includes 3 years of interest.
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