§ 5806. Priority and Satisfaction
TITLE 4: ECONOMIC RESOURCES DIVISION 5: BUSINESS REGULATION § 5806. Priority and Satisfaction. The lien shall relate to and take effect from the time of the visible com- mencement of operations for the improvement; it shall rank equally in priority subject to the provisos hereinafter contained with all other mechanics’ 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; 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 mechanics’ liens 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 or material suppliers 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, a written notice thereof shall, at the expense of the lienor, be filed with the clerk of court, which all be noted in the Mechan- ics’ Lien Record. Source: PL 10-65, § 7.
Source: CNMI Law Revision Commission