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Subordination Of Liens Not Enforced Liens; Project Financing

Monday, May 09, 2005 02:51 pm

Subordination Of Liens Not Enforced Liens; Project Financing

A Washington court has refused to hold contractors to an agreement where they subordinated their statutory mechanic's lien rights to the security interest of the project owner's lender.

Bellevue Technology Tower, LLC (BTT) was developing a 20-story office building. BTT awarded the prime contract to DPR Construction, Inc. DPR awarded numerous subcontracts in conjunction with the project. BTT encountered financial difficulties and fell behind in its payments to DPR. The prime contractor in turn failed to pay its subcontractors. Several of [...]

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