CHAPTER 302

FORMERLY

SENATE BILL NO. 304

AS AMENDED BY SENATE AMENDMENT NO. 1 AND HOUSE AMENDMENT NO. 5

AN ACT TO AMEND TITLE 25, DELAWARE CODE RELATING TO MECHANIC'S LIENS AND WAIVERS THEREOF.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend §2706 Chapter 27, Title 25 of the Delaware Code by

designating the existing paragraph as subsection (a) and adding thereto a new subsection to read as follows:

"(b) Notwithstanding the provisions of any other law, except as provided in this subsection: any contract, any agreement or understanding whereby the right to file or enforce any lien created under this Chapter is waived, shall be void as against public policy and wholly unenforceable. This Section shall not preclude a requirement for a written waiver of the right to file a mechanics' lien executed and delivered by a contractor, subcontractor, materialman or laborer simultaneously with or after payment for the labor performed or the materials supplied has been made to such contractor, subcontractor, materialman or laborer nor shall this Section be applicable to a written agreement to subordinate, release or satisfy all or part of such lien made after a statement of claim has been filed under this chapter. Nothing in this subsection shall amend, exempt, limit or qualify the provisions of Section 2707 of this Chapter."

Section 2. Amend Chapter 27, §2718(a), Title 25 of the Delaware Code by changing the period at the end of the sentence to a comma "," and adding the following phrase:

or the time immediately following the time of recording of a first mortgage, or a conveyance in the nature of a first mortgage, upon such structure which is granted to secure an existing indebtedness or future advances provided at least 50% of the loan proceeds are used for the payment of labor or materials, or both, for such structure, whichever shall last occur."

Section 3. Amend Chapter 27, §2712(b), Title 25 of the Delaware Code by adding a new subparagraph (11) to read as follows:

"(11) The time of recording of a first mortgage, or a conveyance in the nature of a first mortgage, upon such structure which is granted to secure an existing indebtedness or future advances provided at least 50% of the loan proceeds are used for the payment of labor or materials, or both, for such structure."

Approved July 2, 1992.