Unpaid premiums or charges for the furnishing of workmen's compensation insurance furnished to any contractor or subcontractor, who is required by the terms of his contract or by law to obtain and carry such insurance, shall be and is hereby defined to be material furnished to the contractor or subcontractor for use in the performance of the contract, and the person, firm or corporation so furnishing the same shall have the same rights and remedies against any performance bond given in connection with such contract as if the workmen's compensation insurance so furnished were physical property, and as though a lien had been filed against the improved premises, but shall have no lien against the improved premises.

History: 1953 Comp., § 61-2-17, enacted by Laws 1967, ch. 127, § 1.

The remedy provided under this section is treated as a lien right. State ex rel. Mountain States Mut. Cas. Co. v. KNC, Inc., 1987-NMSC-063, 106 N.M. 140, 740 P.2d 690.

The phrase "in connection with such contract" refers to the general construction contract and does not require that the bond be executed in connection with the insured's subcontract. State ex rel. Mountain States Mut. Cas. Co. v. KNC, Inc., 1987-NMSC-063, 106 N.M. 140, 740 P.2d 690.

Notice requirement governed by this act, not Little Miller Act. — Notice requirement for a workers' compensation insurer's claim of a lien right against a performance bond, given in connection with a state construction project, was governed by the Mechanics' Lien Act, Section 48-2-1 et seq. NMSA 1978, and not by the Little Miller Act, Sections 13-4-18 to 13-4-20 NMSA 1978.State ex rel. Mountain States Mut. Cas. Co. v. KNC, Inc., 1987-NMSC-063, 106 N.M. 140, 740 P.2d 690.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 53 Am. Jur. 2d Mechanics' Liens § 314.

56 C.J.S. Mechanics' Liens §§ 290 to 306.