Legislation
SECTION 2
Definitions
Lien (LIE) CHAPTER 33, ARTICLE 1
§ 2. Definitions. 1. Lienor. The term "lienor," when used in this
chapter, means any person having a lien upon property by virtue of its
provisions, and includes his successor in interest.
2. Real property. The term "real property," when used in this chapter,
includes real estate, lands, tenements and hereditaments, corporeal and
incorporeal, fixtures, and all bridges and trestle work, and structures
connected therewith, erected for the use of railroads, and all oil or
gas wells and structures and fixtures connected therewith, and any lease
of oil lands or other right to operate for the production of oil or gas
upon such lands, and the right of franchise granted by a public
corporation for the use of the streets or public places thereof, and all
structures placed thereon for the use of such right or franchise.
3. Owner. The term "owner," when used in this chapter, includes the
owner in fee of real property, or of a less estate therein, a lessee for
a term of years, a vendee in possession under a contract for the
purchase of such real property, and all persons having any right, title
or interest in such real property, which may be sold under an execution
in pursuance of the provisions of statutes relating to the enforcement
of liens of judgment, and all persons having any right or franchise
granted by a public corporation to use the streets and public places
thereof, and any right, title or interest in and to such franchise. The
purchaser of real property at a statutory or judicial sale shall be
deemed the owner thereof from the time of such sale. If the purchaser at
such sale fails to complete the purchase, pursuant to the terms of the
sale, all liens created by his consent after such sale shall be a lien
on any deposit made by him and not on the real property sold.
4. Improvement. The term "improvement," when used in this chapter,
includes the demolition, erection, alteration or repair of any structure
upon, connected with, or beneath the surface of, any real property and
any work done upon such property or materials furnished for its
permanent improvement, and shall also include any work done or materials
furnished in equipping any such structure with any chandeliers, brackets
or other fixtures or apparatus for supplying gas or electric light and
shall also include the drawing by any architect or engineer or surveyor,
of any plans or specifications or survey, which are prepared for or used
in connection with such improvement and shall also include the value of
materials actually manufactured for but not delivered to the real
property, and shall also include the reasonable rental value for the
period of actual use of machinery, tools and equipment and the value of
compressed gases furnished for welding or cutting in connection with the
demolition, erection, alteration or repair of any real property, and the
value of fuel and lubricants consumed by machinery operating on the
improvement, or by motor vehicles owned, operated or controlled by the
owner, or a contractor or subcontractor while engaged exclusively in the
transportation of materials to or from the improvement for the purposes
thereof and shall also include the performance of real estate brokerage
services in obtaining a lessee for a term of more than three years of
all or any part of real property to be used for other than residential
purposes pursuant to a written contract of brokerage employment or
compensation.
5. Cost of improvement. The term "cost of improvement," when used in
this chapter, means expenditures incurred by the owner in paying the
claims of a contractor, an architect, engineer or surveyor, a
subcontractor, laborer and materialman, arising out of the improvement,
and in paying the amount of taxes based on payrolls including such
persons and withheld or required to be withheld and taxes based on the
purchase price or value of materials or equipment required to be
installed or furnished in connection with the performance of the
improvement, payment of taxes and unemployment insurance and other
contributions due by reason of the employment out of which any such
claim arose, and payment of any benefits or wage supplements or the
amounts necessary to provide such benefits or furnish such supplements,
to the extent that the owner, as employer, is obligated to pay or
provide such benefits or furnish such supplements by any agreement to
which he is a party, and shall also include fair and reasonable sums
paid for obtaining building loan and subsequent financing, premiums on
bond or bonds filed pursuant to section thirty-seven of this chapter or
required by any such building loan contract or by any lease to be
mortgaged pursuant thereto, or required by any mortgage to be
subordinated to the building loan mortgage, premiums on bond or bonds
filed to discharge liens, sums paid to take by assignment prior existing
mortgages, which are consolidated with building loan mortgages and also
the interest charges on such mortgages, sums paid to discharge or reduce
the indebtedness under mortgages and accrued interest thereon and other
encumbrances upon real estate existing prior to the time when the lien
provided for in this chapter may attach, sums paid to discharge building
loan mortgages whenever recorded, taxes, assessments and water rents
existing prior to the commencement of the improvement, and also those
accruing during the making of the improvement, and interest on building
loan mortgages, ground rent and premiums on insurance likewise accruing
during the making of the improvement. The application of the proceeds of
any building loan mortgage or other mortgage to reimburse the owner for
any payments made for any of the above mentioned items for said
improvement prior to the date of the initial advance received under the
building loan mortgage or other mortgage shall be deemed to be an
expenditure within the "cost of improvement" as above defined; provided,
however, such payments are itemized in the building loan contract and/or
other mortgage other than a building loan mortgage, and provided
further, that the payments have been made subsequent to the commencement
of the improvement.
5-a. Benefits and wage supplements. The term "benefits and wage
supplements" as used in this chapter means all remuneration for
employment paid in any medium other than cash, or reimbursement for
expenses, or any payments which are not "wages" within the meaning of
the law, including, but not limited to, health, welfare,
non-occupational disability, retirement, vacation benefits, holiday pay
and life insurance.
6. Public corporation. The term "public corporation," when used in
this chapter, means a municipal corporation or a district corporation or
a public benefit corporation as such corporations are defined in section
three of the general corporation law.
7. Public improvement. The term "public improvement," when used in
this chapter, means an improvement of any real property belonging to the
state or a public corporation; however, if the beneficial interest of an
improvement is in an entity other than the state or a public corporation
notwithstanding legal title being vested in an industrial development
agency created under article eighteen-A of the general municipal law,
then such improvement shall be considered an improvement of real
property subject to mechanics' liens on real property as provided in
section three of this chapter. Nothing contained in this section shall
create or be deemed to create any liability upon any industrial
development agency for the payment of the cost of any improvement, or
otherwise. For the purposes of this subdivision the term "beneficial
interest" shall mean the beneficial incidents of ownership of the
improvement to include, but not be limited to, the right to possession,
the right to claim tax benefits, if any, and the right to purchase or
secure title to the improvement pursuant to an executory contract of
sale, option agreement or lease.
8. Improvement of real property. The term "improvement of real
property," when used in this chapter, means any improvement of real
property not belonging to the state or a public corporation.
9. Contractor. The term "contractor," when used in this chapter, means
a person who enters into a contract with the owner of real property for
the improvement thereof, or with the state or a public corporation for a
public improvement.
10. Subcontractor. The term "subcontractor" when used in this chapter,
means a person who enters into a contract with a contractor and/or with
a subcontractor for the improvement of such real property or such public
improvement or with a person who has contracted with or through such
contractor for the performance of his contract or any part thereof.
11. Laborer. The term "laborer," when used in this chapter, means any
person who performs labor or services upon such improvement.
12. Materialman. The term "materialman" when used in this chapter,
means any person who furnishes material or the use of machinery, tools,
or equipment, or compressed gases for welding or cutting, or fuel or
lubricants for the operation of machinery or motor vehicles, either to
an owner, contractor or subcontractor, for, or in the prosecution of
such improvement.
The expression "furnishes material" or other similar expression
wherever used in this chapter, shall be deemed to mean and include the
reasonable rental value for the period of actual use of machinery, tools
or equipment, and the value of compressed gases furnished for welding or
cutting, and the value of fuel and lubricants consumed by machinery
operating on, or by motor vehicles owned, operated or controlled by the
owner, or a contractor or subcontractor while engaged exclusively in the
transportation of materials to or from the improvement for the purposes
thereof.
13. Building loan contract. The term "building loan contract," when
used in this chapter, means a contract whereby a party thereto, in this
chapter termed "lender," in consideration of the express promise of an
owner to make an improvement upon real property, agrees to make advances
to or for the account of such owner to be secured by a mortgage on such
real property, whether such advances represent moneys to be loaned or
represent moneys to be paid in purchasing from or in selling for such
owner bonds or certificates secured by such mortgage upon such real
property, providing, however, nothing herein contained shall be deemed
to construe as a building loan contract a preliminary application for a
building loan made by such owner and accepted by such lender if,
pursuant to such application and acceptance, a building loan contract is
thereafter entered into between the owner and the lender and filed as
provided in section twenty-two of this chapter.
14. Building loan mortgage. The term "building loan mortgage," when
used in this chapter, means a mortgage made pursuant to a building loan
contract and includes an agreement wherein and whereby a building loan
mortgage is consolidated with existing mortgages so as to constitute one
lien upon the mortgaged property.
15. Subsequent financing. By the term "subsequent financing" is meant
moneys borrowed upon the security of the improvement after the recording
of a building loan contract and/or mortgage other than a building loan
mortgage upon the premises to be improved and within four months after
the completion thereof.
16. Prior mortgage. By the term "prior mortgage" is meant a mortgage
on real property and/or leasehold recorded prior to the commencement of
an improvement thereon.
17. Consideration. The term "consideration" when used in this chapter,
includes real property as defined in section two hereof, and personal
property as defined in section thirty-nine of the general construction
law.
18. Advances. The term "advances" when used in this chapter, includes
money, real property as defined in section two hereof and/or personal
property as defined in section thirty-nine of the general construction
law.
19. Funds. The term "funds" when used in this chapter, includes money,
real property as defined in section two hereof and/or personal property
as defined in section thirty-nine of the general construction law.
20. Persons. The term "persons" when used in this chapter, includes an
individual, partnership, association, trust or corporation.
chapter, means any person having a lien upon property by virtue of its
provisions, and includes his successor in interest.
2. Real property. The term "real property," when used in this chapter,
includes real estate, lands, tenements and hereditaments, corporeal and
incorporeal, fixtures, and all bridges and trestle work, and structures
connected therewith, erected for the use of railroads, and all oil or
gas wells and structures and fixtures connected therewith, and any lease
of oil lands or other right to operate for the production of oil or gas
upon such lands, and the right of franchise granted by a public
corporation for the use of the streets or public places thereof, and all
structures placed thereon for the use of such right or franchise.
3. Owner. The term "owner," when used in this chapter, includes the
owner in fee of real property, or of a less estate therein, a lessee for
a term of years, a vendee in possession under a contract for the
purchase of such real property, and all persons having any right, title
or interest in such real property, which may be sold under an execution
in pursuance of the provisions of statutes relating to the enforcement
of liens of judgment, and all persons having any right or franchise
granted by a public corporation to use the streets and public places
thereof, and any right, title or interest in and to such franchise. The
purchaser of real property at a statutory or judicial sale shall be
deemed the owner thereof from the time of such sale. If the purchaser at
such sale fails to complete the purchase, pursuant to the terms of the
sale, all liens created by his consent after such sale shall be a lien
on any deposit made by him and not on the real property sold.
4. Improvement. The term "improvement," when used in this chapter,
includes the demolition, erection, alteration or repair of any structure
upon, connected with, or beneath the surface of, any real property and
any work done upon such property or materials furnished for its
permanent improvement, and shall also include any work done or materials
furnished in equipping any such structure with any chandeliers, brackets
or other fixtures or apparatus for supplying gas or electric light and
shall also include the drawing by any architect or engineer or surveyor,
of any plans or specifications or survey, which are prepared for or used
in connection with such improvement and shall also include the value of
materials actually manufactured for but not delivered to the real
property, and shall also include the reasonable rental value for the
period of actual use of machinery, tools and equipment and the value of
compressed gases furnished for welding or cutting in connection with the
demolition, erection, alteration or repair of any real property, and the
value of fuel and lubricants consumed by machinery operating on the
improvement, or by motor vehicles owned, operated or controlled by the
owner, or a contractor or subcontractor while engaged exclusively in the
transportation of materials to or from the improvement for the purposes
thereof and shall also include the performance of real estate brokerage
services in obtaining a lessee for a term of more than three years of
all or any part of real property to be used for other than residential
purposes pursuant to a written contract of brokerage employment or
compensation.
5. Cost of improvement. The term "cost of improvement," when used in
this chapter, means expenditures incurred by the owner in paying the
claims of a contractor, an architect, engineer or surveyor, a
subcontractor, laborer and materialman, arising out of the improvement,
and in paying the amount of taxes based on payrolls including such
persons and withheld or required to be withheld and taxes based on the
purchase price or value of materials or equipment required to be
installed or furnished in connection with the performance of the
improvement, payment of taxes and unemployment insurance and other
contributions due by reason of the employment out of which any such
claim arose, and payment of any benefits or wage supplements or the
amounts necessary to provide such benefits or furnish such supplements,
to the extent that the owner, as employer, is obligated to pay or
provide such benefits or furnish such supplements by any agreement to
which he is a party, and shall also include fair and reasonable sums
paid for obtaining building loan and subsequent financing, premiums on
bond or bonds filed pursuant to section thirty-seven of this chapter or
required by any such building loan contract or by any lease to be
mortgaged pursuant thereto, or required by any mortgage to be
subordinated to the building loan mortgage, premiums on bond or bonds
filed to discharge liens, sums paid to take by assignment prior existing
mortgages, which are consolidated with building loan mortgages and also
the interest charges on such mortgages, sums paid to discharge or reduce
the indebtedness under mortgages and accrued interest thereon and other
encumbrances upon real estate existing prior to the time when the lien
provided for in this chapter may attach, sums paid to discharge building
loan mortgages whenever recorded, taxes, assessments and water rents
existing prior to the commencement of the improvement, and also those
accruing during the making of the improvement, and interest on building
loan mortgages, ground rent and premiums on insurance likewise accruing
during the making of the improvement. The application of the proceeds of
any building loan mortgage or other mortgage to reimburse the owner for
any payments made for any of the above mentioned items for said
improvement prior to the date of the initial advance received under the
building loan mortgage or other mortgage shall be deemed to be an
expenditure within the "cost of improvement" as above defined; provided,
however, such payments are itemized in the building loan contract and/or
other mortgage other than a building loan mortgage, and provided
further, that the payments have been made subsequent to the commencement
of the improvement.
5-a. Benefits and wage supplements. The term "benefits and wage
supplements" as used in this chapter means all remuneration for
employment paid in any medium other than cash, or reimbursement for
expenses, or any payments which are not "wages" within the meaning of
the law, including, but not limited to, health, welfare,
non-occupational disability, retirement, vacation benefits, holiday pay
and life insurance.
6. Public corporation. The term "public corporation," when used in
this chapter, means a municipal corporation or a district corporation or
a public benefit corporation as such corporations are defined in section
three of the general corporation law.
7. Public improvement. The term "public improvement," when used in
this chapter, means an improvement of any real property belonging to the
state or a public corporation; however, if the beneficial interest of an
improvement is in an entity other than the state or a public corporation
notwithstanding legal title being vested in an industrial development
agency created under article eighteen-A of the general municipal law,
then such improvement shall be considered an improvement of real
property subject to mechanics' liens on real property as provided in
section three of this chapter. Nothing contained in this section shall
create or be deemed to create any liability upon any industrial
development agency for the payment of the cost of any improvement, or
otherwise. For the purposes of this subdivision the term "beneficial
interest" shall mean the beneficial incidents of ownership of the
improvement to include, but not be limited to, the right to possession,
the right to claim tax benefits, if any, and the right to purchase or
secure title to the improvement pursuant to an executory contract of
sale, option agreement or lease.
8. Improvement of real property. The term "improvement of real
property," when used in this chapter, means any improvement of real
property not belonging to the state or a public corporation.
9. Contractor. The term "contractor," when used in this chapter, means
a person who enters into a contract with the owner of real property for
the improvement thereof, or with the state or a public corporation for a
public improvement.
10. Subcontractor. The term "subcontractor" when used in this chapter,
means a person who enters into a contract with a contractor and/or with
a subcontractor for the improvement of such real property or such public
improvement or with a person who has contracted with or through such
contractor for the performance of his contract or any part thereof.
11. Laborer. The term "laborer," when used in this chapter, means any
person who performs labor or services upon such improvement.
12. Materialman. The term "materialman" when used in this chapter,
means any person who furnishes material or the use of machinery, tools,
or equipment, or compressed gases for welding or cutting, or fuel or
lubricants for the operation of machinery or motor vehicles, either to
an owner, contractor or subcontractor, for, or in the prosecution of
such improvement.
The expression "furnishes material" or other similar expression
wherever used in this chapter, shall be deemed to mean and include the
reasonable rental value for the period of actual use of machinery, tools
or equipment, and the value of compressed gases furnished for welding or
cutting, and the value of fuel and lubricants consumed by machinery
operating on, or by motor vehicles owned, operated or controlled by the
owner, or a contractor or subcontractor while engaged exclusively in the
transportation of materials to or from the improvement for the purposes
thereof.
13. Building loan contract. The term "building loan contract," when
used in this chapter, means a contract whereby a party thereto, in this
chapter termed "lender," in consideration of the express promise of an
owner to make an improvement upon real property, agrees to make advances
to or for the account of such owner to be secured by a mortgage on such
real property, whether such advances represent moneys to be loaned or
represent moneys to be paid in purchasing from or in selling for such
owner bonds or certificates secured by such mortgage upon such real
property, providing, however, nothing herein contained shall be deemed
to construe as a building loan contract a preliminary application for a
building loan made by such owner and accepted by such lender if,
pursuant to such application and acceptance, a building loan contract is
thereafter entered into between the owner and the lender and filed as
provided in section twenty-two of this chapter.
14. Building loan mortgage. The term "building loan mortgage," when
used in this chapter, means a mortgage made pursuant to a building loan
contract and includes an agreement wherein and whereby a building loan
mortgage is consolidated with existing mortgages so as to constitute one
lien upon the mortgaged property.
15. Subsequent financing. By the term "subsequent financing" is meant
moneys borrowed upon the security of the improvement after the recording
of a building loan contract and/or mortgage other than a building loan
mortgage upon the premises to be improved and within four months after
the completion thereof.
16. Prior mortgage. By the term "prior mortgage" is meant a mortgage
on real property and/or leasehold recorded prior to the commencement of
an improvement thereon.
17. Consideration. The term "consideration" when used in this chapter,
includes real property as defined in section two hereof, and personal
property as defined in section thirty-nine of the general construction
law.
18. Advances. The term "advances" when used in this chapter, includes
money, real property as defined in section two hereof and/or personal
property as defined in section thirty-nine of the general construction
law.
19. Funds. The term "funds" when used in this chapter, includes money,
real property as defined in section two hereof and/or personal property
as defined in section thirty-nine of the general construction law.
20. Persons. The term "persons" when used in this chapter, includes an
individual, partnership, association, trust or corporation.