Legal Alert - Utah Court of Appeals to Lenders Relying Upon Their Own Boilerplate Lien Release Language in Form Draw Requests: Use the Legislature's Form and Elements


by Stewart O. Peay and Mark O. Morris

In Utah, to obtain a waiver of lien rights from a subcontractor, material man, laborer, supplier or any other potential mechanics’ lien claimant, a lender should use the lien waiver and release form incorporated in Utah Code Ann. §38-1a-802 in its draw request form. A Utah Court of Appeals decision last week found that “use of those forms provides a dependable safe harbor for lenders and others who wish to be assured that a contractor’s written waiver and release of statutory lien rights is enforceable under the act.”

[Read the full alert.]