N.Y. Lien Law Section 15
Assignments of contracts and orders to be filed


1.

No assignment of one or more contracts for the performance of labor or the furnishing of materials for the improvement of real property or of the money or any part thereof due or to become due therefor, nor an order drawn by a contractor upon the owner of such real property for the payment of such money, nor an order drawn by a subcontractor upon a contractor or subcontractor for such payment, nor an order drawn by an owner upon the maker of a building loan, nor an assignment of moneys due or to grow due under a building loan contract, shall operate to reduce the lien of a subcontractor, laborer or materialman, except as provided in sections thirteen and twenty-six of this chapter; nor shall any such assignment or order be valid for any purpose, unless a “Notice of Assignment” meeting the requirements of subdivision two of this section or the contract (other than a building loan contract) or a statement containing the substance thereof and such assignment or a copy of each or a copy of such order, be filed within ten days after the date of such assignment or such order, in the office of the county clerk of each county wherein real property improved or to be improved to which the assignment or order relates is situated and such assignment or order shall have effect and be enforceable from the time of such filing, and no such assignment or order shall have any validity until the same shall have been so filed, and every such assignment or order, not filed shall be absolutely void as against a subsequent assignee in good faith and for valuable consideration, whose assignment or order is first duly filed. Such clerk shall enter the facts relating to such assignment or order in the “lien docket” or in another book provided by him for such purpose. Each such assignment shall be indexed by the name of the assignor and each such order shall be indexed by the name of the drawer.

2.

A “Notice of Assignment” filed pursuant to subdivision one of this section shall be used only in the case of money advanced or to be advanced to a contractor or subcontractor upon the assignment of one or more contracts for the performance of labor or the furnishing of materials for the improvement of real property, or of the money or any part thereof due or to become due therefor. The said notice shall contain (a) the names and addresses of the assignor and assignee, (b) the date of the assignment, and the date the assignment will terminate, which termination date shall not be more than two years after the date of the assignment, (c) the maximum balance of advances outstanding to be secured by the assignment, (d) a statement of each county wherein the real property involved in the contracts is or may be situated, and

(e)

either a specific description of the substance of the contract or contracts assigned, including an identification of the real property involved in each such contract, or a statement that the assignment covers all or a specified class of the assignor’s accounts or contract rights. If the contract or contracts assigned are described specifically the real property identification shall be sufficient if it includes the name of the record owner and the location of the real estate by street and number and town or city or, if the real estate is in the city of New York, by county, except that if the real estate is in the city of New York or counties of Nassau or Onondaga, where the block system of recording or registering and indexing conveyances is in use, the notice must also specify the block in which the real estate is situated.

3.

A “Notice of Assignment” may be continued in effect beyond the stated termination date by filing within sixty days prior to the termination date a subsequent “Notice of Assignment” entitled “Second Notice of Assignment” or “Third Notice of Assignment”, which identifies the prior “Notice of Assignment” to which it relates and otherwise conforms to the requirements of subdivision two of this section.

4.

The term “Notice of Assignment” as used in this section includes any amendments but if any amendment extends the assignment to cover additional contracts it is effective as to the added contracts only from the date of the filing.

Source: Section 15 — Assignments of contracts and orders to be filed, https://www.­nysenate.­gov/legislation/laws/LIE/15 (updated Sep. 22, 2014; accessed Mar. 2, 2024).

3
Mechanic’s lien on real property
4
Extent of lien
4–A
Insurance proceeds liable for demands
5
Liens under contracts for public improvements
6
Liens for labor on railroads
7
Liability for advance payments, collusive mortgages and incumbrances
8
Terms of contract may be demanded
9
Contents of notice of lien
10
Filing of notice of lien
11
Service of copy of notice of lien
11–A
Notice of completion and acceptance may be demanded
11–B
Copy of notice of lien to a contractor or subcontractor
11–C
Copy of notice of lien to a contractor or subcontractor with respect to public improvements liens
12
Notice of lien on account of public improvements
12–A
Amendment
13
Priority of liens
14
Assignment of lien
15
Assignments of contracts and orders to be filed
16
Assignment of contracts and orders for public improvement to be filed
17
Duration of lien
18
Duration of lien under contract for a public improvement
19
Discharge of lien for private improvement
20
Discharge of lien after notice of lien filed by payment of money into court
21
Discharge of lien for public improvement
21–A
Vacating lien for a public improvement, by order of court
22
Building loan contract
23
Construction of article
24
Enforcement of mechanic’s lien
25
Priority of liens and assignments under contracts for public improvements
26
Subordination of liens after agreement with owner
28
Lien of certain judgments postponed
29
Subordination of liens to subsequent mortgage
30
Subordination of notices of lis pendens
31
Discharge of liens on sale of real property
32
Certain liens and claims not to be affected
33
Certain sections not to apply to laborers’ liens
34
Waiver of lien
35
Waiver of arbitration
37
Bond to discharge all liens
38
Itemized statement may be required of lienor
39
Lien wilfully exaggerated is void
39–A
Liability of lienor where lien has been declared void on account of wilful exaggeration
39–C
Repossession of materials not used

Accessed:
Mar. 2, 2024

Last modified:
Sep. 22, 2014

§ 15’s source at nysenate​.gov

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