Kentucky
Lien on State Funds-Public Work

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Note: This information is limited in scope and applies only to this document. Please see the general information, all forms memo, and the general information memo for this type of document, for additional information.

Document Title: Lien on State Funds and Claim on Payment Bond, Publicly-Owned Property.

Scope: State of Kentucky, Public Works where the improvements are ordered by a state or county agency and the property is publicly owned.

Time Constraints: You must have filed a statement of furnishing labor, materials or equipment with the County Clerk's (Recorder's) Office and served and attested (that is, stamped by the county clerk) copy upon the public entity within the statutory time frames before you can make a lien claim. Failure to do so may negate your lien rights. See the State of Kentucky memo on Preliminary Notices, Public Works, for more information.

Within 30 days of your last furnishing of labor, materials or services you must file your Lien on State Funds and Claim on Payment Bond with the county clerk's (recorder's) office and serve attested copies by certified mail, return receipt requested, on the public entities, prime contractors or sub-contractors. In any case, you can only lien any unpaid balance due your contractor.

Perfection: If the contractor does not file a written protest to your claim within 30 days, the public entities will pay over to you any amount withheld by them for your claim. If the contractor does file a written protest to your claim, you must file suit within 30 days of the written protest to protect the funds withheld.

Not withstanding the above, you must in any case file suit within 6 months of filing your claim with the county clerk’s office to enforce your lien on public funds.

In addition, if the property is owned by the state, a county or a municipality, the lien claimant shall only have a right to a lien against public funds due the prime contractor from the public entity, or from the payment bond.

Warning: Making a claim for more than the amount actually due to you under the contract can result in civil litigation by the public entity. Do not make claims for more than your remaining balance due.

Payment Bond: Recovery of payment bond funds is not specifically covered by Kentucky law. Where a Payment Bond has been provided by a surety, after you have served a copy of the Lien on State Funds and Claim of Payment Bond on the surety file suit against the surety within the time frame required by the bond.

The usual remedy is to file to enforce all claims in one suit (see below, Procedures). In any case, we strongly recommend that your attorney handle the enforcement action to perfect your lien claims.

Information Requirements: Program information and information for Exhibits A-D and any additional costs as to legal fees, court costs and interest charges (don't pass these up. Estimate if necessary. Public entities and sureties will reserve only the amount for which you make claim), and the county of the state where the recording will be made.

Form Types: Lien on State Funds and Claim on Payment Bond, Exhibits A-D, if needed, and county recorder's (clerk's) letter.

Procedures: Prepare your documents using the required information. Within the time frames listed above, file a copy with the County Clerk's office, and serve attested copies immediately on the public entities, prime contractors, sureties, if known, and your subcontractor. If your claim is protested, file suit within 30 days of the date of protest.

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