N.Y. Lien Law § 2: Definitions

§ 2. Definitions. 1. Lienor. The term "lienor," when used in this

chapter, means any person having a lien upon property by virtue of its

provisions, and includes his successor in interest.

2. Real property. The term "real property," when used in this chapter,

includes real estate, lands, tenements and hereditaments, corporeal and

incorporeal, fixtures, and all bridges and trestle work, and structures

connected therewith, erected for the use of railroads, and all oil or

gas wells and structures and fixtures connected therewith, and any lease

of oil lands or other right to operate for the production of oil or gas

upon such lands, and the right of franchise granted by a public

corporation for the use of the streets or public places thereof, and all

structures placed thereon for the use of such right or franchise.

3. Owner. The term "owner," when used in this chapter, includes the

owner in fee of real property, or of a less estate therein, a lessee for

a term of years, a vendee in possession under a contract for the

purchase of such real property, and all persons having any right, title

or interest in such real property, which may be sold under an execution

in pursuance of the provisions of statutes relating to the enforcement

of liens of judgment, and all persons having any right or franchise

granted by a public corporation to use the streets and public places

thereof, and any right, title or interest in and to such franchise. The

purchaser of real property at a statutory or judicial sale shall be

deemed the owner thereof from the time of such sale. If the purchaser at

such sale fails to complete the purchase, pursuant to the terms of the

sale, all liens created by his consent after such sale shall be a lien

on any deposit made by him and not on the real property sold.

4. Improvement. The term "improvement," when used in this chapter,

includes the demolition, erection, alteration or repair of any structure

upon, connected with, or beneath the surface of, any real property and

any work done upon such property or materials furnished for its

permanent improvement, and shall also include any work done or materials

furnished in equipping any such structure with any chandeliers, brackets

or other fixtures or apparatus for supplying gas or electric light and

shall also include the drawing by any architect or engineer or surveyor,

of any plans or specifications or survey, which are prepared for or used

in connection with such improvement and shall also include the value of

materials actually manufactured for but not delivered to the real

property, and shall also include the reasonable rental value for the

period of actual use of machinery, tools and equipment and the value of

compressed gases furnished for welding or cutting in connection with the

demolition, erection, alteration or repair of any real property, and the

value of fuel and lubricants consumed by machinery operating on the

improvement, or by motor vehicles owned, operated or controlled by the

owner, or a contractor or subcontractor while engaged exclusively in the

transportation of materials to or from the improvement for the purposes

thereof and shall also include the performance of real estate brokerage

services in obtaining a lessee for a term of more than three years of

all or any part of real property to be used for other than residential

purposes pursuant to a written contract of brokerage employment or

compensation.

5. Cost of improvement. The term "cost of improvement," when used in

this chapter, means expenditures incurred by the owner in paying the

claims of a contractor, an architect, engineer or surveyor, a

subcontractor, laborer and materialman, arising out of the improvement,

and in paying the amount of taxes based on payrolls including such

persons and withheld or required to be withheld and taxes based on the

purchase price or value of materials or equipment required to be

installed or furnished in connection with the performance of the

improvement, payment of taxes and unemployment insurance and other

contributions due by reason of the employment out of which any such

claim arose, and payment of any benefits or wage supplements or the

amounts necessary to provide such benefits or furnish such supplements,

to the extent that the owner, as employer, is obligated to pay or

provide such benefits or furnish such supplements by any agreement to

which he is a party, and shall also include fair and reasonable sums

paid for obtaining building loan and subsequent financing, premiums on

bond or bonds filed pursuant to section thirty-seven of this chapter or

required by any such building loan contract or by any lease to be

mortgaged pursuant thereto, or required by any mortgage to be

subordinated to the building loan mortgage, premiums on bond or bonds

filed to discharge liens, sums paid to take by assignment prior existing

mortgages, which are consolidated with building loan mortgages and also

the interest charges on such mortgages, sums paid to discharge or reduce

the indebtedness under mortgages and accrued interest thereon and other

encumbrances upon real estate existing prior to the time when the lien

provided for in this chapter may attach, sums paid to discharge building

loan mortgages whenever recorded, taxes, assessments and water rents

existing prior to the commencement of the improvement, and also those

accruing during the making of the improvement, and interest on building

loan mortgages, ground rent and premiums on insurance likewise accruing

during the making of the improvement. The application of the proceeds of

any building loan mortgage or other mortgage to reimburse the owner for

any payments made for any of the above mentioned items for said

improvement prior to the date of the initial advance received under the

building loan mortgage or other mortgage shall be deemed to be an

expenditure within the "cost of improvement" as above defined; provided,

however, such payments are itemized in the building loan contract and/or

other mortgage other than a building loan mortgage, and provided

further, that the payments have been made subsequent to the commencement

of the improvement.

5-a. Benefits and wage supplements. The term "benefits and wage

supplements" as used in this chapter means all remuneration for

employment paid in any medium other than cash, or reimbursement for

expenses, or any payments which are not "wages" within the meaning of

the law, including, but not limited to, health, welfare,

non-occupational disability, retirement, vacation benefits, holiday pay

and life insurance.

6. Public corporation. The term "public corporation," when used in

this chapter, means a municipal corporation or a district corporation or

a public benefit corporation as such corporations are defined in section

three of the general corporation law.

7. Public improvement. The term "public improvement," when used in

this chapter, means an improvement of any real property belonging to the

state or a public corporation; however, if the beneficial interest of an

improvement is in an entity other than the state or a public corporation

notwithstanding legal title being vested in an industrial development

agency created under article eighteen-A of the general municipal law,

then such improvement shall be considered an improvement of real

property subject to mechanics' liens on real property as provided in

section three of this chapter. Nothing contained in this section shall

create or be deemed to create any liability upon any industrial

development agency for the payment of the cost of any improvement, or

otherwise. For the purposes of this subdivision the term "beneficial

interest" shall mean the beneficial incidents of ownership of the

improvement to include, but not be limited to, the right to possession,

the right to claim tax benefits, if any, and the right to purchase or

secure title to the improvement pursuant to an executory contract of

sale, option agreement or lease.

8. Improvement of real property. The term "improvement of real

property," when used in this chapter, means any improvement of real

property not belonging to the state or a public corporation.

9. Contractor. The term "contractor," when used in this chapter, means

a person who enters into a contract with the owner of real property for

the improvement thereof, or with the state or a public corporation for a

public improvement.

10. Subcontractor. The term "subcontractor" when used in this chapter,

means a person who enters into a contract with a contractor and/or with

a subcontractor for the improvement of such real property or such public

improvement or with a person who has contracted with or through such

contractor for the performance of his contract or any part thereof.

11. Laborer. The term "laborer," when used in this chapter, means any

person who performs labor or services upon such improvement.

12. Materialman. The term "materialman" when used in this chapter,

means any person who furnishes material or the use of machinery, tools,

or equipment, or compressed gases for welding or cutting, or fuel or

lubricants for the operation of machinery or motor vehicles, either to

an owner, contractor or subcontractor, for, or in the prosecution of

such improvement.

The expression "furnishes material" or other similar expression

wherever used in this chapter, shall be deemed to mean and include the

reasonable rental value for the period of actual use of machinery, tools

or equipment, and the value of compressed gases furnished for welding or

cutting, and the value of fuel and lubricants consumed by machinery

operating on, or by motor vehicles owned, operated or controlled by the

owner, or a contractor or subcontractor while engaged exclusively in the

transportation of materials to or from the improvement for the purposes

thereof.

13. Building loan contract. The term "building loan contract," when

used in this chapter, means a contract whereby a party thereto, in this

chapter termed "lender," in consideration of the express promise of an

owner to make an improvement upon real property, agrees to make advances

to or for the account of such owner to be secured by a mortgage on such

real property, whether such advances represent moneys to be loaned or

represent moneys to be paid in purchasing from or in selling for such

owner bonds or certificates secured by such mortgage upon such real

property, providing, however, nothing herein contained shall be deemed

to construe as a building loan contract a preliminary application for a

building loan made by such owner and accepted by such lender if,

pursuant to such application and acceptance, a building loan contract is

thereafter entered into between the owner and the lender and filed as

provided in section twenty-two of this chapter.

14. Building loan mortgage. The term "building loan mortgage," when

used in this chapter, means a mortgage made pursuant to a building loan

contract and includes an agreement wherein and whereby a building loan

mortgage is consolidated with existing mortgages so as to constitute one

lien upon the mortgaged property.

15. Subsequent financing. By the term "subsequent financing" is meant

moneys borrowed upon the security of the improvement after the recording

of a building loan contract and/or mortgage other than a building loan

mortgage upon the premises to be improved and within four months after

the completion thereof.

16. Prior mortgage. By the term "prior mortgage" is meant a mortgage

on real property and/or leasehold recorded prior to the commencement of

an improvement thereon.

17. Consideration. The term "consideration" when used in this chapter,

includes real property as defined in section two hereof, and personal

property as defined in section thirty-nine of the general construction

law.

18. Advances. The term "advances" when used in this chapter, includes

money, real property as defined in section two hereof and/or personal

property as defined in section thirty-nine of the general construction

law.

19. Funds. The term "funds" when used in this chapter, includes money,

real property as defined in section two hereof and/or personal property

as defined in section thirty-nine of the general construction law.

20. Persons. The term "persons" when used in this chapter, includes an

individual, partnership, association, trust or corporation.