Acts and Regulations

M-6 - Mechanics’ Lien Act

Full text
Effect of notice of lien
16(1)Where a lienholder gives the owner notice in writing of his lien, stating under oath the amount claimed, the owner shall retain from the amount payable to the contractor under whom the lien is derived the amount stated in the notice, in addition to the amount retained under section 15.
16(2)The amounts retained pursuant to subsection (1) constitute a fund, separate from that constituted by the amounts retained pursuant to section 15, for the benefit of lienholders who give notice under this section.
16(3)The lien of each lienholder who gives notice under this section is a charge in his favour upon the amount directed by this section to be retained; and each of such lienholders ranks pari passu on the amount retained under this section for the amount for which his lien may be enforced, and the amount so retained shall be distributed among such lienholders pro rata as hereinafter provided.
16(4)A payment made to a lienholder under this section does not disentitle him to claim for any balance remaining payable to him and to be paid therefor from money retained under section 15.
R.S., c.142, s.15