Utah Code 38-1a-403. Effective time and priority of preconstruction lien — Subordination to bona fide loan
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(1) Except as otherwise provided in this chapter, a preconstruction lien:
Terms Used In Utah Code 38-1a-403
- Anticipated improvement: means an improvement:(2)(a) for which preconstruction service is performed; and(2)(b) that is anticipated to follow the performing of preconstruction service. See Utah Code 38-1a-102
- Bona fide loan: means a loan to an owner or owner-builder by a lender in which the owner or owner-builder has no financial or beneficial interest greater than 5% of the voting shares or other ownership interest. See Utah Code 38-1a-102
- Claimant: means a person entitled to claim a preconstruction or construction lien. See Utah Code 38-1a-102
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Preconstruction lien: means a lien under this chapter for a preconstruction service. See Utah Code 38-1a-102
(1)(a) relates back to and takes effect as of the time of filing of the earliest timely filed notice of preconstruction service under Section 38-1a-401 for the anticipated improvement for which the preconstruction lien is claimed; and(1)(b) has priority over:(1)(b)(i) any lien, mortgage, or other encumbrance that attaches after the earliest timely filed notice of preconstruction service is filed; and(1)(b)(ii) any lien, mortgage, or other encumbrance of which the claimant had no notice and that was unrecorded at the time the earliest timely filed notice of preconstruction service is filed.
(2) A preconstruction lien is subordinate to an interest securing a bona fide loan if and to the extent that the lien covers preconstruction service provided after the interest securing a bona fide loan is recorded.