CHAPTER 847
LIENS

Table of Contents

Sec. 49-32a. Federal liens.
Sec. 49-35b. Burden of proof at hearing. Authority of court.
Sec. 49-41. Public buildings and public works. Bonds for protection of employees and materialmen. Performance bonds. Limits on use of owner-controlled insurance programs.
Sec. 49-41a. Enforcement of payment by general contractor to subcontractor and by subcontractor to his subcontractors.
Sec. 49-92a. Purchaser's lien. Precedence. Foreclosure. Recording of notice.
Sec. 49-92g. Aircraft liens.

      Sec. 49-32a. Federal liens. (a)(1) Notices of liens upon real property for taxes payable to the United States and notices of liens upon real property for costs and damages payable to the United States, and certificates and notices affecting such liens shall be filed in the office of the clerk of the town in which the real property subject to a federal tax lien or other federal lien is situated. (2) Notices of liens upon personal property, whether tangible or intangible, for taxes payable to the United States and for costs and damages payable to the United States and certificates and notices affecting such liens shall be filed in the office of the Secretary of the State in accordance with subsection (a) of section 42a-9-516.

      (b) Certification by the Secretary of the Treasury of the United States or said secretary's delegate of notices of liens, certificates or other notices affecting tax liens or other federal liens entitles them to be filed and no other attestation, certification or acknowledgment is necessary.

      (c) (1) If a notice of federal tax lien or other federal lien, a refiling of a notice of tax lien or other federal lien or a notice of revocation of any certificate described in subdivision (2) of this subsection is presented to the filing officer and (A) the filing officer is the Secretary of the State, said secretary shall cause the notice to be marked, held and indexed in accordance with the provisions of section 42a-9-519 as if the notice were a financing statement within the meaning of that section; or (B) the filing officer is a town clerk, such town clerk shall endorse thereon such town clerk's identification and the date and time of receipt and forthwith record it in accordance with section 42a-9-519. (2) If a certificate of release, nonattachment, discharge or subordination of any tax lien or other federal lien is presented to the Secretary of the State for filing, said secretary shall (A) cause a certificate of release or nonattachment to be marked, held and indexed as if the certificate were a termination statement within the meaning of the Uniform Commercial Code, and (B) cause a certificate of discharge or subordination to be held, marked and indexed as if the certificate were a release of collateral within the meaning of the Uniform Commercial Code. (3) If a refiled notice of federal tax lien or other federal lien referred to in subdivision (1) of this subsection or any of the certificates or notices referred to in subsection (b) of this section is presented for filing with any other filing officer specified in subsection (a) of this section, such filing officer shall record it in accordance with section 42a-9-519 if the original was recorded or, if the original was filed, permanently attach the refiled notice or the certificate to the original notice of lien and enter the refiled notice or the certificate with the date of filing in any alphabetical federal tax lien index or other federal lien index on the line where the original notice of lien is entered. (4) Upon request of any person, the filing officer shall issue a certificate showing whether there is on file, on the date and hour stated therein, any notice of federal tax lien or other federal lien or certificate or notice affecting the lien, filed on or after July 1, 1967, naming a particular person, and if a notice or certificate is on file, giving the date and hour of filing of each notice or certificate. The fee for such a certificate and for a copy of any notice of federal tax lien or other federal lien or notice or certificate affecting a federal tax lien or other federal lien shall be computed in accordance with section 42a-9-525.

      (d) Except as provided by subsection (a) of section 42a-9-525, the fee for filing and indexing each notice of lien or certificate or notice affecting the tax lien or other federal lien is: (1) For a tax lien or other federal lien on real estate, as provided in section 7-34a; (2) for a tax lien on tangible and intangible personal property, three dollars; (3) for all other notices, including a certificate of release, discharge, subordination or nonattachment, one dollar.

      (1967, P.A. 456, S. 1-6; P.A. 87-589, S. 59, 87; P.A. 88-159, S. 1, 11; P.A. 90-117, S. 3; P.A. 01-132, S. 173; P.A. 05-288, S. 169.)

      History: P.A. 87-589 made provisions applicable to all federal liens and deleted Subsecs. (e) and (f) concerning references to uniform law; P.A. 88-159 amended Subsec. (a) by adding reference to Subsec. (1) of Sec. 42a-9-403 and amended Subsec. (d) by adding reference to Subsec. (5) of Sec. 42a-9-403; P.A. 90-117 amended Subdiv. (2) of Subsec. (c) to delete the provision prohibiting the secretary of the state from removing from the files the notice of lien to which a certificate of release or nonattachment relates; P.A. 01-132 amended Subsec. (a) to replace reference to Sec. 42a-9-403(1) with Sec. 42a-9-516(a), amended Subsec. (c) to replace references to Sec. 42a-9-403(4), Sec. 42a-9-409 and Sec. 42a-9-409(2) with Sec. 42a-9-519 and replace reference to Sec. 42a-9-407(2) with Sec. 42a-9-525, amended Subsec. (d) to replace reference to Sec. 42a-9-403(5) with Sec. 42a-9-525(a) and made technical changes for purposes of gender neutrality in Subsecs. (b) and (c); P.A. 05-288 made technical changes in Subsec. (c)(1) and (3), effective July 13, 2005.

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      Sec. 49-35b. Burden of proof at hearing. Authority of court.

      Subsec. (b):

      Nothing prevents a discharge order from being superseded by another discharge order made during a subsequent proceeding in the same case. 86 CA 692.

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      Sec. 49-41. Public buildings and public works. Bonds for protection of employees and materialmen. Performance bonds. Limits on use of owner-controlled insurance programs. (a) Each contract exceeding one hundred thousand dollars in amount for the construction, alteration or repair of any public building or public work of the state or a municipality shall include a provision that the person to perform the contract shall furnish to the state or municipality on or before the award date, a bond in the amount of the contract which shall be binding upon the award of the contract to that person, with a surety or sureties satisfactory to the officer awarding the contract, for the protection of persons supplying labor or materials in the prosecution of the work provided for in the contract for the use of each such person, provided no such bond shall be required to be furnished (1) in relation to any general bid in which the total estimated cost of labor and materials under the contract with respect to which such general bid is submitted is less than fifty thousand dollars, (2) in relation to any sub-bid in which the total estimated cost of labor and materials under the contract with respect to which such sub-bid is submitted is less than fifty thousand dollars, or (3) in relation to any general bid or sub-bid submitted by a consultant, as defined in section 4b-55. Any such bond furnished shall have as principal the name of the person awarded the contract.

      (b) Nothing in this section or sections 49-41a to 49-43, inclusive, shall be construed to limit the authority of any contracting officer to require a performance bond or other security in addition to the bond referred to in subsection (a) of this section, except that no such officer shall require a performance bond in relation to any general bid in which the total estimated cost of labor and materials under the contract with respect to which such general bid is submitted is less than twenty-five thousand dollars or in relation to any sub-bid in which the total estimated cost of labor and materials under the contract with respect to which such sub-bid is submitted is less than fifty thousand dollars.

      (c) No contract for the construction, alteration or repair of any public building or public work of the state or a municipality that requires a person to supply the state or municipality with a bond may include a provision that requires the person to obtain the bond from a specific surety, agent, broker or producer. No contracting officer may require that a bond be obtained from a specific surety, agent, broker or producer.

      (d) In the event that any political subdivision of the state enters into a contract described in subsection (a) of this section and fails to obtain delivery from the contractor of the bond required by this section, any person who has not been paid by the contractor for labor or materials supplied in the performance of work under the contract shall have the same legal right of action against such political subdivision of the state as such person would have had against a surety under the provisions of section 49-42. Nothing in this section shall be construed to extend liability to the state for any person's right to payment or constitute a waiver of the state's sovereign immunity.

      (e) (1) As used in this subsection, "owner-controlled insurance program" means an insurance procurement program under which a principal provides and consolidates insurance coverage for one or more contractors on one or more construction projects.

      (2) No contract for the construction, alteration or repair of any public building or public work of the state or a municipality may include a provision that allows or requires the state or municipality to maintain an owner-controlled insurance program, except for (A) a project approved pursuant to section 10a-109e, or (B) one or more municipal projects totaling one hundred million dollars or more (i) under the supervision of one construction manager, or (ii) located within the boundaries of a municipality if under the supervision of more than one construction manager.

      (3) Each contract or policy of insurance issued under an owner-controlled insurance program pursuant to this subsection shall provide that:

      (A) Coverage for work performed and materials furnished shall continue from the completion of the work until the date all causes of action are barred under any applicable statute of limitations.

      (B) Any notice of a change in coverage under the contract or policy or of a cancellation or refusal to renew the coverage under the contract or policy shall be provided to the principal and all contractors covered under the program.

      (C) The effective date of a (i) change in coverage under the contract or policy shall be at least thirty days after the date the principal and contractors receive the notice of change in coverage as required under subparagraph (B) of this subdivision, and (ii) cancellation or refusal to renew shall be at least sixty days after the principal and contractors receive the notice of change in coverage as required under subparagraph (B) of this subdivision.

      (4) Each principal or contractor shall disclose in the project plans or specifications at the time the principal or contractor is soliciting bids for the construction project that the project will be covered by an owner-controlled insurance program.

      (1949 Rev., S. 7214; P.A. 79-602, S. 98; P.A. 82-358, S. 9, 10; P.A. 87-345, S. 1; P.A. 89-27, S. 1, 2; P.A. 91-23; P.A. 93-104; P.A. 96-235, S. 13, 19; June 18 Sp. Sess. P.A. 97-11, S. 33, 65; P.A. 01-21; P.A. 05-38, S. 1; 05-193, S. 1; 05-229, S. 1.)

      History: P.A. 79-602 substituted "that" or "the" for "such" where appearing; P.A. 82-358 specified when bonds shall not be required in Subsecs. (a) and (b); P.A. 87-345 amended Subsec. (a) to make contracts in excess of twenty-five thousand dollars, instead of one thousand dollars, subject to bond requirement, to exempt general bids in which the cost is less than twenty-five thousand dollars, instead of ten thousand dollars, and to exempt sub-bids in which the cost is less than fifty thousand dollars, instead of twenty thousand dollars, and amended Subsec. (b) to provide that performance bonds shall not be required in relation to general bids in which cost is less than twenty-five thousand dollars, instead of ten thousand dollars, and in relation to sub-bids in which cost is less than fifty thousand dollars, instead of twenty thousand dollars; P.A. 89-27 exempted design professionals from Subsec. (a); P.A. 91-23 amended Subsec. (a) to require that any bond furnished shall have as principal the name of the person awarded the contract; P.A. 93-104 amended Subsec. (a) to rephrase provision requiring person performing the contract to provide the state with a surety bond before the award date; P.A. 96-235 amended Subsec. (a) by substituting "consultant" for "design professional", effective June 6, 1996; June 18 Sp. Sess. P.A. 97-11 amended Subsec. (a) by increasing contract threshold for including bond provision, from twenty-five thousand dollars to fifty thousand dollars, and making corresponding change in Subdiv. (1), effective July 1, 1997; P.A. 01-21 made a technical change in Subsec. (b) and added new Subsec. (c) prohibiting contract provisions that require the use of a specific surety, agent, broker or producer; P.A. 05-38 amended Subsec. (a) by increasing the value of a contract that requires the furnishing of a bond from fifty thousand dollars to one hundred thousand dollars; P.A. 05-193 amended Subsecs. (a) and (c) to substitute "municipality" for "subdivision" and added Subsec. (e) re owner-controlled insurance programs, effective July 1, 2005; P.A. 05-229 added Subsec. (d) re the failure of a political subdivision to obtain required bond, effective July 8, 2005.

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      Sec. 49-41a. Enforcement of payment by general contractor to subcontractor and by subcontractor to his subcontractors. (a) When any public work is awarded by a contract for which a payment bond is required by section 49-41, the contract for the public work shall contain the following provisions: (1) A requirement that the general contractor, within thirty days after payment to the contractor by the state or a municipality, pay any amounts due any subcontractor, whether for labor performed or materials furnished, when the labor or materials have been included in a requisition submitted by the contractor and paid by the state or a municipality; (2) a requirement that the general contractor shall include in each of its subcontracts a provision requiring each subcontractor to pay any amounts due any of its subcontractors, whether for labor performed or materials furnished, within thirty days after such subcontractor receives a payment from the general contractor which encompasses labor or materials furnished by such subcontractor.

      (b) If payment is not made by the general contractor or any of its subcontractors in accordance with such requirements, the subcontractor shall set forth his claim against the general contractor and the subcontractor of a subcontractor shall set forth its claim against the subcontractor through notice by registered or certified mail. Ten days after the receipt of that notice, the general contractor shall be liable to its subcontractor, and the subcontractor shall be liable to its subcontractor, for interest on the amount due and owing at the rate of one per cent per month. In addition, if a surety bond is not in place, the general contractor, upon written demand of its subcontractor, or the subcontractor, upon written demand of its subcontractor, shall be required to place funds in the amount of the claim, plus interest of one per cent, in an interest-bearing escrow account in a bank in this state, provided the general contractor or subcontractor may refuse to place the funds in escrow on the grounds that the subcontractor has not substantially performed the work according to the terms of his or its employment. In the event that such general contractor or subcontractor refuses to place such funds in escrow, and the party making a claim against it under this section is found to have substantially performed its work in accordance with the terms of its employment in any arbitration or litigation to determine the validity of such claim, then such general contractor or subcontractor shall pay the attorney's fees of such party.

      (c) No payment may be withheld from a subcontractor for work performed because of a dispute between the general contractor and another contractor or subcontractor.

      (d) This section shall not be construed to prohibit progress payments prior to final payment of the contract and is applicable to all subcontractors for material or labor whether they have contracted directly with the general contractor or with some other subcontractor on the work.

      (1969, P.A. 427, S. 1, 2; P.A. 75-626; P.A. 76-164; P.A. 79-602, S. 99; P.A. 80-115; P.A. 86-12, S. 1; P.A. 05-229, S. 5.)

      History: P.A. 75-626 added provisions re deposit of claim amount in escrow account and prohibiting withholding of payment from subcontractor for work performed because of dispute between general or prime contractor and another contractor or subcontractor; P.A. 76-164 substituted reference to requirements included in contract for reference to requirements issued by public works commissioner and added references to payments by municipalities; P.A. 79-602 divided section into Subsecs. and made minor changes in wording, substituting "the" or "that" for "such", etc.; P.A. 80-115 restated provisions, eliminating references to "prime" contractors and added Subdiv. (2) in Subsec. (a) re requirements of subcontracts; P.A. 86-12 changed time limits for payment by general contractor to subcontractor and subcontractor to subcontractor from forty-five and twenty days respectively, to thirty days in each case; P.A. 05-229 amended Subsec. (b) to require the general contractor to place funds claimed in an escrow account if a surety bond is not in place.

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      Sec. 49-92a. Purchaser's lien. Precedence. Foreclosure. Recording of notice.

      Language of statute clearly expresses a derogation of the common-law right to an equitable lien on property and thus mechanisms specified in the statute for creating a purchaser's lien on property replace procedures for creating an equitable lien on that property. 91 CA 442.

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      Sec. 49-92g. Aircraft liens. Any person who stores, cares for, maintains, repairs, or furnishes any services, gasoline, accessories, materials or other supplies at the request of or with the consent of the owner, his agent or legal possessor of an aircraft, as defined in section 15-34, has a lien upon the aircraft until the sum due for any fees, expenses or charges for such storage, care, maintenance or repair or the furnishing of such services, gasoline, accessories, materials or other supplies has been paid. The lienor shall be entitled to retain possession of the aircraft until the amount of fees, expenses or charges for such storage, care, maintenance or repair or the furnishing of such services, gasoline, accessories, materials or other supplies has been paid or the lien has been dissolved. The lien shall be superior to all other liens, except liens for taxes. Any person entitled to a lien pursuant to this section shall, within ninety days after the date upon which work or services were performed or when such fees, expenses or charges were incurred, file a verified statement in the office of the Secretary of the State, pursuant to the provisions of sections 49-92h and 49-92i.

      (P.A. 93-433, S. 21, 26; P.A. 05-288, S. 170.)

      History: P.A. 93-433 effective July 1, 1993; P.A. 05-288 made technical changes and added provisions re payment of fees, expenses or charges and dissolution of lien, effective July 13, 2005.

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