The maintenance of a prescribed hold-back defeats all claims for liens even if they exceed the amount held back, and an order vacating the liens shall issue.

Question

Quizplus · Accepted Answer

A prescribed hold-back is a sum of money retained by the owner from the contract price until the completion of the work and the satisfaction of all claims for liens. The purpose of a hold-back is to ensure that there is sufficient money available to pay for any liens that may be filed against the property. If the hold-back is properly maintained, it will defeat all claims for liens, even if they exceed the amount held back.

The Maintenance of a Prescribed Hold-Back Defeats All Claims for Liens