507-46 Priority, record of; satisfaction. The lien shall relate to and take effect from the time of the visible commencement of operations for the improvement; it shall rank equally in priority subject to the provisos hereinafter contained with all other mechanics' and materialmen's liens and shall have priority over all other liens of any nature, except liens in favor of any branch of the government and mortgages, liens or judgments recorded or filed prior to the time of the visible commencement of operation; provided that all liens for wages for labor performed in the completion of the improvement, but not exceeding $300 for each claimant, shall have priority as a class over all other mechanics' and materialmen's liens where claims are filed by:

(1) The person who actually performed the labor;

(2) The person's legal representative in the event of death or incapacity; or

(3) The director of labor and industrial relations pursuant to chapter 371;

and provided further that where a mortgage is recorded prior to the date of completion, and all or a portion of the money advanced under and secured by the mortgage is thereafter used for the purpose of paying for the improvement, the mortgagee shall be entitled, to the extent of the payments, to priority over liens of mechanics and materialmen, but no such priority shall be allowed unless the mortgage recites that the purpose of the mortgage is to secure the moneys advanced for the purpose of paying for the improvement in whole or in part. Payments made in good faith to the general contractor for such purposes shall be presumed to have been used for the purpose of paying for the improvement. Whenever the lien or claim of lien herein provided is satisfied (other than by the limitations expressed in section 507-43), a written notice thereof shall, at the expense of the lienee, be filed with the clerk of the circuit court, which shall be noted in the mechanics' lien record, and if title to the land involved is registered in the land court and the lien did not attach solely to the interest of the lessee in one or more leasehold time share interests, it shall also be filed in the office of the assistant registrar of the court. [L 1888, c 21, 4; RL 1925, 2894; am L 1933, c 143, 3; RL 1935, 4368; RL 1945, 8772; am L 1949, c 241, 5; am L 1951, c 95, 1; RL 1955, 193-44; HRS 507-46; gen ch 1985; am L 1998, c 219, 12; am L 2005, c 22, 35]

 

Case Notes

 

Priority of claim where garnishment and mechanic's lien are involved. 9 H. 23 (1893).

Satisfaction of debt occurs in the order of charges accruing whether covered by notice of lien or not. 10 H. 273 (1896).

Construction mortgage lien had priority over mechanic's lien to extent of principal indebtedness devoted to construction costs under building and loan agreement, but no priority in payment of interest claim. 66 H. 32, 657 P.2d 1004 (1982).

Cited: 12 H. 358 (1900); 23 H. 744 (1917).

 

 

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