Utah Code 38-1a-802. Waiver or limitation of a lien right — Forms

(1)

As used in this section:

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Terms Used In Utah Code 38-1a-802

Claimant: means a person entitled to claim a preconstruction or construction lien. See Utah Code 38-1a-102
Contract: A legal written agreement that becomes binding when signed.
Lien: A claim against real or personal property in satisfaction of a debt.

(a)

“Check” means a payment instrument on a depository institution including:

(i)

a check;

(ii)

a draft;

(iii)

an order; or

(iv)	other instrument.

(b)	“Depository institution” is as defined in Section 7-1-103.

(c)	“Receives payment” means, in the case of a restrictive endorsement, a payee has endorsed a check and the check is presented to and paid by the depository institution on which it is drawn.

(2)

Notwithstanding Section 38-1a-105, a claimant‘s written consent that waives or limits the claimant’s lien rights is enforceable only if the claimant:

(a)

(i)	executes a waiver and release that is signed by the claimant or the claimant’s authorized agent; or

(ii)

for a restrictive endorsement on a check, includes a restrictive endorsement on a check that is:

(A)	signed by the claimant or the claimant’s authorized agent; and

(B)	in substantially the same form set forth in Subsection (4)(d); and

(b)

receives payment of the amount identified in the waiver and release or check that includes the restrictive endorsement:

(i)	including payment by a joint payee check; and

(ii)	for a progress payment, only to the extent of the payment.

(3)

(a)

Notwithstanding the language of a waiver and release described in Subsection (2), Subsection (3)(b) applies if:

(i)	the payment given in exchange for any waiver and release of lien is made by check; and

(ii)	the check fails to clear the depository institution on which it is drawn for any reason.

(b)

If the conditions of Subsection (3)(a) are met:

(i)	the waiver and release described in Subsection (3)(a) is void; and

(ii)

the following will not be affected by the claimant’s execution of the waiver and release:

(A)

any lien;

(B)	any lien right;

(C)	any bond right;

(D)	any contract right; or

(E)	any other right to recover payment afforded to the claimant in law or equity.

(4)

(a)	A waiver and release given by a claimant meets the requirements of this section if it is in substantially the form provided in this Subsection (4) for the circumstance provided in this Subsection (4).

(b)

A waiver and release may be in substantially the following form if the claimant is required to execute a waiver and release in exchange for or to induce the payment of a progress billing:

“UTAH CONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT

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Utah Code 38-1a-802. Waiver or limitation of a lien right — Forms — Scope

Terms Used In Utah Code 38-1a-802