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New York Lien Law Section 15 - Assignments Of Contracts And Orders To Be Filed.

Legal Research Home > New York Lawyer > Lien > New York Lien Law Section 15 - Assignments Of Contracts And Orders To Be Filed.

    § 15.  Assignments  of  contracts  and  orders  to  be  filed.  1. No
  assignment of one or more contracts for the performance of labor or  the
  furnishing  of  materials for the improvement of real property or of the
  money or any part thereof due or to become due therefor,  nor  an  order
  drawn  by  a  contractor  upon  the  owner of such real property for the
  payment of such money, nor an order drawn  by  a  subcontractor  upon  a
  contractor  or  subcontractor for such payment, nor an order drawn by an
  owner upon the maker of a building loan, nor an assignment of moneys due
  or to grow due under a building loan contract, shall operate  to  reduce
  the  lien of a subcontractor, laborer or materialman, except as provided
  in sections thirteen and twenty-six of this chapter; nor shall any  such
  assignment  or  order  be  valid  for  any  purpose, unless a "Notice of
  Assignment" meeting the requirements of subdivision two of this  section
  or  the  contract  (other  than a building loan contract) or a statement
  containing the substance thereof and such assignment or a copy  of  each
  or a copy of such order, be filed within ten days after the date of such
  assignment  or  such  order,  in  the office of the county clerk of each
  county wherein real property improved or to be  improved  to  which  the
  assignment  or  order  relates  is situated and such assignment or order
  shall have effect and be enforceable from the time of such  filing,  and
  no such assignment or order shall have any validity until the same shall
  have  been so filed, and every such assignment or order, not filed shall
  be absolutely void as against a subsequent assignee in  good  faith  and
  for  valuable  consideration,  whose  assignment  or order is first duly
  filed. Such clerk shall enter the facts relating to such  assignment  or
  order  in  the "lien docket" or in another book provided by him for such
  purpose. Each such assignment shall  be  indexed  by  the  name  of  the
  assignor and each such order shall be indexed by the name of the drawer.
    2.  A "Notice of Assignment" filed pursuant to subdivision one of this
  section shall be used only in the  case  of  money  advanced  or  to  be
  advanced  to a contractor or subcontractor upon the assignment of one or
  more contracts for  the  performance  of  labor  or  the  furnishing  of
  materials  for  the improvement of real property, or of the money or any
  part thereof due or to  become  due  therefor.  The  said  notice  shall
  contain  (a)  the  names and addresses of the assignor and assignee, (b)
  the date of the assignment, and the date the assignment will  terminate,
  which  termination  date shall not be more than two years after the date
  of the assignment, (c) the maximum balance of advances outstanding to be
  secured by the assignment, (d) a statement of each  county  wherein  the
  real  property  involved in the contracts is or may be situated, and (e)
  either a specific description  of  the  substance  of  the  contract  or
  contracts  assigned,  including  an  identification of the real property
  involved in each such contract,  or  a  statement  that  the  assignment
  covers  all  or a specified class of the assignor's accounts or contract
  rights. If the contract or contracts assigned are described specifically
  the real property identification shall be sufficient if it includes  the
  name  of  the record owner and the location of the real estate by street
  and number and town or city or, if the real estate is in the city of New
  York, by county, except that if the real estate is in the  city  of  New
  York  or  counties  of  Nassau  or  Onondaga,  where the block system of
  recording or registering and indexing conveyances is in use, the  notice
  must also specify the block in which the real estate is situated.
    3.  A  "Notice  of  Assignment"  may be continued in effect beyond the
  stated termination date  by  filing  within  sixty  days  prior  to  the
  termination  date  a  subsequent "Notice of Assignment" entitled "Second
  Notice of Assignment" or "Third Notice of Assignment", which  identifies
  the  prior  "Notice  of  Assignment"  to  which it relates and otherwise
  conforms to the requirements of subdivision two of this section.
    4. The term "Notice of Assignment" as used in  this  section  includes
  any  amendments  but  if  any  amendment extends the assignment to cover
  additional contracts it is effective as to the added contracts only from
  the date of the filing.

Last modified: August 24, 2006