N.Y. Lien Law Section 25
Priority of liens and assignments under contracts for public improvements


Parity of liens of same class. In an action to enforce a lien under a contract for a public improvement, or an assignment of moneys, or any part thereof, due or to become due under such contract, parties having liens and parties having assignments unless such assignments be set aside as diversions of trust assets as provided in article 3-A (Definition and Enforcement of Trusts)article three-a of this chapter shall have priority as follows:

(1)

. Except as provided in section five an assignee of moneys, or any part thereof, due or to become due under a contract for public improvement, whose assignment is duly filed prior to the filing of a notice of lien or assignment of every other party to the action, shall have priority over those parties to the extent of advances made upon such assignment before the filing of the notice of lien or assignment next subsequent to his assignment, but as to advances made subsequent to a notice of lien or assignment filed and unsatisfied or not discharged such assignee for the purpose of determining his proportionate share of moneys available for distribution as provided in subdivision four of this section shall be treated as a lienor having a lien to the extent of advances so made.

(2)

An assignee of moneys or any part thereof, due or to become due under a contract for a public improvement whose assignment is duly filed subsequent to the filing of the notice of lien or assignment of any other party shall for the purpose of determining his proportionate share of moneys available for distribution, as provided in subdivision four of this section be treated as a lienor having a lien to the extent of advances actually made upon such assignment prior to the filing thereof.

(3)

Laborers for daily or weekly wages having liens under a contract for a public improvement, shall have preference as a class for the full amount of their unpaid wages over all other lienors having liens arising under the same contract and without reference to the time when such laborers shall have filed their notices of liens.

(4)

There shall be no priority among labor lienors, as a class or among other lienors as a class, and any moneys available for distribution among lienors of any class shall be distributed pro rata in accordance with their respective valid liens.

(5)

Every assignment of moneys, or any part thereof, due or to become due under a contract for a public improvement shall contain a covenant by the assignor that he will receive any moneys advanced thereunder by the assignee and will hold the right to receive such moneys as a trust fund to be first applied to the payment of trust claims as defined in Lien Law § 71 (Purpose of the trust)section seventy-one of the lien law, and that he will apply the same to such payments only, before using any part of the moneys for any other purpose.

Source: Section 25 — Priority of liens and assignments under contracts for public improvements, https://www.­nysenate.­gov/legislation/laws/LIE/25 (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

§ 25’s source at nysenate​.gov

Link Style