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Fill a Valid Mechanics Lien California Form

A Mechanics Lien California form is a crucial document that enables contractors, subcontractors, and suppliers to ensure they are paid for the materials and labor they have provided in construction projects. It acts as a security interest against the property, essentially allowing the property itself to be used as a guarantee of payment. This legal tool is particularly important in the construction industry, safeguarding the rights and financial interests of those involved in improving property values.

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In California, contractors, subcontractors, and material suppliers have a powerful legal tool to ensure they are paid for the work and materials they provide for a project: the Mechanics Lien. This instrument, when filed, serves as a public declaration that the filer claims a right to payment that is secured by the property itself. It effectively creates a sort of "hold" on the property's title, potentially affecting the owner's ability to sell or refinance until the dispute is resolved. The process for filing a mechanics lien in California is governed by specific statutes, and strict compliance with these laws is essential for the lien to be valid. This includes adhering to prescribed timelines for filing the lien after the work has been completed or materials supplied, as well as ensuring the correct completion and submission of the Mechanics Lien California form. Failure to accurately follow these steps can invalidate the lien, leaving laborers and suppliers without this valuable protection. Understanding the intricacies of this form and the process surrounding it is thus crucial not only for those in the construction industry but also for property owners who may find themselves on the receiving end of a lien.

Preview - Mechanics Lien California Form

Recording requested by (name):

____________________________________________

When recorded, mail to (name and address):

____________________________________________

____________________________________________

____________________________________________

____________________________________________

Recorder’s Use Only

CLAIM OF MECHANICS LIEN

(Cal. Civ. Code § 8416)

Declaration of Exemption From Gov’t Code § 27388.1 Fee

Transfer is exempt from fee per GC § 27388.1(a)(2):

recorded concurrently “in connection with” transfer subject to DTT

recorded concurrently “in connection with” a transfer of residential dwelling to an owner-occupier

Transfer is exempt from fee per GC 27388.1(a)(1):

Fee cap of $225.00 reached

Not related to real property

1._________________________________________________ (“claimant”) claims a mechanics lien for the labor or services or equipment or materials described in paragraph 2, furnished for a work of improvement on that certain real property located in the County of ____________________________, State of California, and more particularly described as (address and/or sufficient description):______________________________________________________________

_______________________________________________________________________________________________

2.After deducting all just credits and offsets, the sum of _______________________, together with interest at the rate of ________ per annum from __________________ (date when balance became due), is due claimant for the following labor, materials, services, or equipment: _______________________________________________________

_______________________________________________________________________________________________

_______________________________________________________________________________________________

3.Claimant furnished the labor or services or equipment or materials, at the request of _____________________

_________________________________________________________________ (employer, person, or entity to whom labor, materials, services, or equipment were furnished).

4.The name and address of the owner or reputed owner of the real property is/are: _______________________

_______________________________________________________________________________________________

5.Claimant's address is: _______________________________________________________________________

Dated __________________________________ _____________________________________________

Claimant

_____________________________________________

Signature of Claimant or Authorized Agent

_____________________________________________

Print Name and Title

VERIFICATION

I, _______________________________________, am the: __________________________________ (“owner,”

“president,” “authorized agent,” “partner,” etc.) of claimant on the foregoing claim of mechanics lien, and am authorized to make this verification for and on its behalf. I have read the foregoing claim of mechanics lien and know the contents of the claim of mechanics lien to be true of my own knowledge.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Dated __________________________________ _____________________________________________

Signature

NOTICE OF MECHANICS LIEN CLAIM

ATTENTION!

Upon the recording of the enclosed MECHANICS LIEN with the county recorder's office of the county where the property is located, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must be filed with the court no later than 90 days after the date the mechanics lien is recorded.

The party identified in the enclosed mechanics lien may have provided labor or materials for improvements to your property and may not have been paid for these items. You are receiving this notice because it is a required step in filing a mechanics lien foreclosure action against your property. The foreclosure action will seek to pay for unpaid labor, materials, or improvements provided to your property. This may affect your ability to borrow against, refinance, or sell the property until the mechanics lien is release.

BECAUSE THE LIEN AFFECTS YOUR PROPERTY, YOU MAY WISH TO SPEAK WITH YOUR CONTRACTOR IMMEDIATELY, OR CONTACT AN ATTORNEY, OR FOR MORE INFORMATION ON MECHANICS LIENS GO TO THE CONTRACTORS' STATE LICENSE BOARD WEB SITE AT www.cslb.ca.gov.

PROOF OF SERVICE AFFIDAVIT

California Civil Code section 8416

Failure to serve the Mechanic’s Lien and Notice of Mechanic’s Lien on the owner, or alternatively if the owner cannot be served on the lender or direct contractor, shall cause the Mechanic’s Lien to be unenforceable as a matter of law (Civil Code Section 8024(d)). Service of the Mechanic’s Lien and Notice of Mechanic’s Lien must be by (1) registered mail, (2) certified mail, or (3) first-class mail evidenced by a certificate of mailing, postage prepaid, and to a residence or business address for the owner, lender or contractor. Further, a Proof of Service Affidavit (below) must be completed and signed by the person serving the Mechanic’s Lien and Notice of Mechanic’s Lien. This page should be completed (either one of the sections below) and recorded with the County Recorder along with the Mechanic’s Lien and Notice of Mechanic’s Lien.

PROOF OF SERVICE AFFIDAVIT (ON OWNER)

California Civil Code section 8416(a)(7) and (c)(1)

I, ______________________________ (name), declare that I served a copy of this Mechanic’s Lien and

Notice of Mechanic’s Lien by registered mail, certified mail, or first-class mail evidenced by a certificate of mailing, postage prepaid, addressed as follows to the owner(s) or reputed owner(s) of the property:

Company/Person Served: ________________________________________________________________

Title or capacity of person served (if appropriate): ______________________________________________

Service address: ________________________________________________________________________

Said service address is the owner’s residence, place of business, or address showed by the building permit on file with the permitting authority for the work.

Executed on ___________, 20_____ (date) at __________________ (city), _____________________

(county), California.

By: _____________________________________

(Signature of person making service)

ALTERNATE PROOF OF SERVICE AFFIDAVIT (ON LENDER OR DIRECT CONTRACTOR)

California Civil Code Section 8416(a)(7) and (c)(2)

I, ____________________________________________________ (name), declare that the owner or

reputed owner cannot be served with a copy of this Mechanic’s Lien and Notice of Mechanic’s Lien by registered mail, certified mail, or first-class mail. Pursuant to California civil Code section 8416(c )(2), I served a copy of this Mechanic’s Lien and Notice of Mechanic’s Lien by registered mail, certified mail, or first-class mail evidenced by a certificate of mailing, postage prepaid, addressed as follows to the construction lender or direct contractor as follows:

Company/Person Served: ________________________________________________________________

Title or capacity of person served (if appropriate): ______________________________________________

Service address: ________________________________________________________________________

Executed on ___________, 20_____ (date) at __________________ (city), _____________________

(county), California.

By: _____________________________________

(Signature of person making service)

Form Characteristics

Fact Name Description
Governing Law The Mechanics Lien form in California is governed by the California Civil Code, particularly sections 8000-8848 and 9000-9566.
Purpose It is used by contractors, subcontractors, laborers, and material suppliers to claim a security interest in the property they have worked on or supplied materials for, to ensure payment for their services.
Eligibility Individuals or entities who contribute labor, service, equipment, or materials to a construction project may be eligible to file a mechanics lien.
Timeframe for Filing The form must be filed within 90 days after the completion of the work or delivery of the materials.
Preliminary Notice Requirement Before filing a lien, a 20-day Preliminary Notice must be given to the property owner and the general contractor to inform them of the contributions and potential lien.
Enforcement Once filed, a lawsuit to enforce the lien must be initiated within 90 days from the lien recording date; otherwise, the lien expires.
Mandatory Information The form requires detailed information, including the claimant’s information, a description of labor or materials provided, the hiring party’s details, and the property location.
Release Requirement After receiving payment, the claimant is required to release the lien to clear the property title.
Electronic Filing Some counties in California allow for the electronic recording of mechanics liens, though the availability and process vary by county.

How to Use Mechanics Lien California

Filing a Mechanics Lien in California is a pivotal step for contractors, subcontractors, and suppliers to ensure they are compensated for their work and materials provided in a construction project. This legal document is filed with the county recorder's office where the property is located. It serves as a public claim against the property for the amount owed, potentially affecting the property's sale or refinancing until the dispute is resolved. It's crucial to understand the procedural steps to ensure the Mechanics Lien is correctly completed and filed, as mistakes can invalidate your claim. Below are the steps necessary to navigate this process, providing a structured approach to securing your rights and remuneration.

Filling Out the Mechanics Lien California Form
  1. Gather Necessary Information: Before you start the form, make sure you have all the required information including the full legal name of the property owner, accurate description of the property (legal description and street address), your name or your company's name, address, and the total amount owed.
  2. Obtain the Form: The Mechanics Lien form can be downloaded from the official website of the California county recorder's office where the property is situated. Ensure you are using the latest version of the form.
  3. Fill Out the Form: Begin by entering the full legal name of the property owner as it appears on the property deed. Next, provide a detailed legal description of the property; this can often be found on a recent deed or mortgage document. If available, also include the property's street address.
  4. Enter your name (or your company's name), address, and the nature of the work or materials provided, ensuring to specify the first and last dates of work.
  5. Specify the total amount owed to you. If partial payments have been made, include the total contract amount and the outstanding balance.
  6. Some forms may require notarization, so review the form's instruction to see if this step is necessary. If so, do not sign the form until you are in the presence of a notary public.
  7. Verify all the information entered on the form is accurate and complete. Mistakes or incomplete information can lead to its rejection.

After completing the form, the next step involves serving a copy to the property owner, often through certified mail, and then filing the original with the county recorder's office, along with the required filing fee. The timing for filing the Mechanics Lien is critical, as California law mandates it must be filed within a specific period after work is completed or materials are provided. After filing, you'll receive a confirmation or receipt, which you should keep for your records. Filing a Mechanics Lien is a powerful tool for securing payment on construction projects, but it's essential to follow these steps carefully to ensure your lien is valid and enforceable.

Important Queries on Mechanics Lien California

What is a Mechanics Lien in California?

A Mechanics Lien in California is a legal claim against a property by an individual or business that has supplied labor or materials for a construction project on that property but hasn't been fully paid. It's designed to ensure payment to the subcontractors, laborers, and material suppliers. Essentially, it makes the property itself responsible for the debt, potentially leading to a forced sale if the lien is not satisfied or removed.

Who can file a Mechanics Lien in California?

In California, a wide range of individuals and businesses can file a Mechanics Lien. This includes general contractors, subcontractors, laborers, equipment lessors, and materials suppliers who have provided labor or materials to a construction project and have not been paid. Architects, designers, and engineers who provide professional services and contribute to the value of the property also have the right to file a lien under certain conditions.

What are the deadlines for filing a Mechanics Lien in California?

The deadlines for filing a Mechanics Lien in California are strict. Generally, claimants must file the lien within 90 days after completing their work on the project. For those under direct contract with the property owner, the time frame is from the date the entire construction project is completed or the property owner begins using the project or parts of it. It's crucial for lien claimants to also serve the property owner with a copy of the lien shortly after filing, typically within 20 days.

How do you file a Mechanics Lien in California?

To file a Mechanics Lien in California, one must first prepare the lien document, ensuring all required information is accurately included. This document should then be filed with the county recorder’s office in the county where the property is located. The filing must comply with the strict deadlines set by California law. After the lien has been filed, the claimant must serve a copy of the lien on the property owner, usually by certified mail, personal delivery, or through a process server to provide proof of service.

What information is required on a Mechanics Lien form in California?

The California Mechanics Lien form requires specific pieces of information to be valid. This includes the claimant's name and address, a description of the labor or materials provided, the amount unpaid, the name of the person who contracted for the work, and a legal description of the property. Accurate details are crucial, as any mistake can invalidate the lien or delay its enforcement.

Can a Mechanics Lien in California be contested or removed?

Yes, a Mechanics Lien in California can be contested or removed. The property owner can dispute the validity of the lien or its amount. This can be done by filing a petition in the county where the lien was recorded. Additionally, the property owner can remove the lien by paying the amount claimed or by posting a bond. If a lien is proven to be frivolous or made in error, the court may also order its removal.

What happens if a Mechanics Lien is not paid in California?

If a Mechanics Lien in California is not paid, the claimant may enforce the lien by initiating a foreclosure action against the property. This process must start within 90 days of recording the lien. If successful, the property can be sold under court order, with proceeds used to pay the lien. Failure to enforce the lien within the legal timeframe may result in the lien expiring and the claimant losing the secured interest in the property.

Common mistakes

Filling out the Mechanics Lien California form requires attention to detail and a thorough understanding of the process. Unfortunately, many people inadvertently make mistakes that can jeopardize their lien rights. Let's explore nine common errors to avoid.

  1. Not verifying the property owner's information: Failing to accurately identify and verify the property owner's details can lead to the rejection of the lien claim. It's essential to research and confirm this information before filing.

  2. Misidentifying the property: Another critical error is incorrectly describing the property or providing insufficient details. The legal description and address must match public records exactly.

  3. Missing deadlines: There are strict deadlines for filing a mechanics lien in California. Missing these deadlines, even by a day, can invalidate your claim.

  4. Overstating the claim amount: Claiming more than the amount owed not only undermines the credibility of the lien but can also lead to legal penalties. It's crucial to claim only the unpaid portion of the work or materials provided.

  5. Not providing a proper Notice of Mechanics Lien: California law requires that a preliminary notice is sent before or shortly after beginning work. Failing to do this can affect your rights to file a mechanics lien.

  6. Ignoring the requirement to serve the lien: After filing the lien, California law mandates that the lien claimant must serve the lien on the property owner. Failure to properly serve the document can lead to the lien being considered unenforceable.

  7. Omitting required information: Every field on the form is important. Omitting details like the claimant's address, the job location, or the date work was completed can result in the lien being dismissed.

  8. Using incorrect or outdated forms: Laws and regulations change, and so do the forms. Using an outdated or incorrect form can lead to rejection of the lien.

  9. Lack of documentation: Not attaching the necessary documents, such as contracts, work orders, and invoices, can weaken the claim. Proper documentation supports the validity of your lien.

In summary, to successfully file a Mechanics Lien in California, it's crucial to pay attention to detail, meet all legal requirements, and avoid the common mistakes listed above. Being diligent and accurate in completing the form can help secure your rights and ensure that you are compensated for your work or materials provided.

Documents used along the form

When dealing with a Mechanics Lien in California, several forms and documents often accompany the primary lien form to ensure that the lien process is thorough and complies with California law. These supporting documents help clarify the claim, provide legal notice, and enhance the claimant's ability to secure payment for services or materials provided. Understanding each document's purpose can make the lien process smoother and more effective.

  • Preliminary Notice: This document is typically sent before filing a Mechanics Lien, informing the property owner, general contractor, and lender about the claimant's involvement in the project and their right to file a lien if not paid.
  • Notice of Completion: Filed by the property owner with the county recorder's office, this document signifies the completion of the construction project, which triggers a shortened timeframe for filing a Mechanics Lien.
  • Notice of Cessation: Similar to the Notice of Completion, this document is filed if the work on the project ceases for a continuous period of 60 days, affecting the deadline for filing a Mechanics Lien.
  • Release of Mechanics Lien: Once the claimant receives payment, this document releases the Mechanics Lien claim from the property title, clearing any encumbrances created by the lien.
  • Conditional Waiver and Release on Progress Payment: This waiver is used when receiving a progress payment, indicating that rights to a Mechanics Lien are waived to the extent of the payment received, contingent on the payment clearing.
  • Unconditional Waiver and Release on Progress Payment: This document also relates to progress payments but signifies an unconditional waiver of lien rights for the portion of work paid for, regardless of the payment clearing.
  • Conditional Waiver and Release on Final Payment: Used when claiming the final payment on a project, it conditionally waives all claimant rights for filing a Mechanics Lien, assuming the final payment is made and clears the bank.
  • Unconditional Waiver and Release on Final Payment: This acts as an absolute forfeiture of the right to file a Mechanics Lien upon receipt and clearance of the final payment for the project.
  • Stop Payment Notice: This document is a claim made to the lender or financier of the project, requesting that all funds or a specific amount be withheld due to nonpayment for services or materials provided.

A complete understanding and careful management of these documents can significantly impact the success of a Mechanics Lien claim in California. Each plays a vital role in either initiating, processing, or concluding the lien process, providing both protection and clarity for all parties involved.

Similar forms

The Mechanics Lien California form shares similarities with a Notice of Intent to Lien. Both documents serve as a preliminary step in securing a claimant's right over a property due to unpaid services or materials provided. The Notice of Intent to Lien, much like the Mechanics Lien, acts as a warning to the property owner, showcasing the seriousness of the claimant's intent to ensure payment. This document generally must be sent before filing a Mechanics Lien, making the two a powerful combination in the construction industry for safeguarding payment rights.

Another related document is the Construction Bond. This type of bond, often required in public and private projects, guarantees the project owner that the contractor will fulfill all of their duties, including paying subcontractors and suppliers. The connection lies in the protection offered – while a Construction Bond provides a form of insurance for the project owner against default by the contractor, a Mechanics Lien secures the subcontractors' and suppliers' right to be compensated, potentially activating the bond if payments are not made.

The Preliminary Notice, in many states, is a requisite document that must be filed before a Mechanics Lien can be validly submitted. This notice informs the property owner, general contractor, and other stakeholders of the contributors’ involvement in the project and their right to file a lien if not paid. The Mechanics Lien and Preliminary Notice work closely together, with the notice acting as an essential step to establish the legal groundwork for filing a lien, signifying their interconnected roles in the lien process.

A Payment Bond is akin to a Mechanics Lien in that it is designed to ensure that subcontractors and suppliers are paid for their work and materials on a project. However, a Payment Bond is typically used on public projects where Mechanics Liens cannot be filed against the property, given its public ownership. In this sense, while a Mechanics Lien provides a direct claim against the property being improved, a Payment Bond offers a similar assurance against non-payment through a claim against the bond itself, serving as a substitute for the lien on public projects.

Dos and Don'ts

When filling out the Mechanics Lien form in California, it's essential to be meticulous and precise to protect your right to payment for work done or materials supplied. Below are ten dos and don'ts to guide you through the process effectively.

  • Do verify the property description is accurate. This includes double-checking the address and legal description against public records to ensure there are no mistakes.
  • Do include a detailed description of the labor or materials provided. Being specific about the services or supplies delivered will support your claim.
  • Do ensure the lien amount reflects the actual, unpaid portion of the contract. Overstating your claim can lead to complications and may invalidate your lien.
  • Do sign the form in the presence of a notary. California law requires that your Mechanics Lien be notarized to be considered valid.
  • Do file the Mechanics Lien within the statutory deadline. In California, this is typically 90 days after the overall completion of the work on the project, but timelines vary based on project and role, so verify the specific deadlines applicable to your situation.
  • Don't leave any required fields blank. Failure to complete the form in its entirety can render the lien unenforceable.
  • Don't ignore necessary preliminary notice requirements. In California, sending a preliminary notice to the property owner and general contractor is often required before a Mechanics Lien can be filed.
  • Don't attempt to file a lien for amounts not related to direct labor or materials supplied. Including unrelated debts in the lien amount can invalidate your claim.
  • Don't forget to serve the lien on the property owner. After filing the lien with the county recorder, the lien must be officially served to the property owner, typically within a specific time frame.
  • Don't neglect to seek professional advice if you're unsure about the process. Consulting with a knowledgeable professional can prevent mistakes and ensure your rights are fully protected.

Misconceptions

Understanding the intricacies of a Mechanics Lien in California is pivotal for those in the construction industry, yet several misconceptions often cloud its true nature and application. Shedding light on these misunderstandings can help stakeholders navigate their rights and obligations with clarity and confidence.

  • Only contractors can file a Mechanics Lien: A widespread misconception is that Mechanics Liens are exclusively available to contractors. In reality, subcontractors, laborers, equipment suppliers, and even design professionals can file a lien if they have contributed to the improvement of a property and have not received due payment.
  • Filing a lien immediately secures payment: While filing a Mechanics Lien is a powerful tool to secure payment, it does not guarantee immediate payment. It serves as a claim against the property that can complicate its sale or refinancing, pressuring the property owner to settle the debt. Legal proceedings may still be required to enforce the lien.
  • A Mechanics Lien affects the property owner's credit score: Mechanics Liens are claims against a property, not against the property owner personally. Therefore, they do not directly impact the owner's credit score. However, if the lien leads to foreclosure, that process could negatively affect the owner's creditworthiness.
  • There is no deadline to file a Mechanics Lien: California law stipulates strict timelines for filing a Mechanics Lien. Generally, a claimant must file the lien within 90 days after completing the work on the property. Missing this deadline can result in losing the right to file the lien.
  • All involved parties are automatically notified of the lien filing: The responsibility to notify parties involved, such as the property owner, prime contractor, and lender, falls on the claimant. California requires that these parties be served with a copy of the lien after it is filed with the county recorder’s office.
  • A Mechanics Lien can be filed for any type of property: In California, Mechanics Liens can only be placed on private projects. Public properties are exempt from Mechanics Liens, although claimants may have other remedies such as making a claim against a payment bond.
  • Any dispute can be resolved with a Mechanics Lien: Mechanics Liens are specifically designed to resolve disputes over payment for work performed or materials supplied. They cannot be used to settle other types of disputes between a contractor and property owner.
  • Filing a Mechanics Lien is straightforward and requires no legal assistance: While the process of filing a lien may seem straightforward, it involves specific legal requirements, including precise wording and timely notifications. Errors in the filing process can invalidate the lien, making it wise to seek legal guidance.
  • Once filed, a Mechanics Lien lasts indefinitely: After a Mechanics Lien is filed, there is a limited period during which the claimant must take action to enforce the lien, usually by initiating a foreclosure lawsuit. In California, this period is 90 days from the filing of the lien. If no action is taken, the lien expires and is no longer enforceable.
  • A Mechanics Lien can only be released by the claimant: While typically, a lien is released when the claimant is paid or agrees to release the lien, there are other circumstances where a lien can be removed. For instance, a court can order the removal of a lien if it deems the lien to be invalid or if the claimant fails to enforce the lien within the stipulated timeframe.

Dispelling these misconceptions is crucial for all parties engaged in the construction industry in California. By understanding the legal framework of Mechanics Liens, they can effectively manage their risks and protect their financial interests with informed actions.

Key takeaways

Filing a Mechanics Lien in California is an important process for construction professionals seeking to ensure payment for the labor or materials they've provided. Whether you're a contractor, subcontractor, or material supplier, understanding the nuances of this legal document is crucial. Here are key takeaways to consider:

  • Understand Deadlines: In California, you must file your Mechanics Lien within 90 days after the completion of the project, or 60 days if the owner files a Notice of Completion or Cessation. Missing these deadlines can forfeit your right to claim.
  • Accurate Information is Crucial: Make sure all the information you include in your Mechanics Lien is accurate, especially details about the property, the owner, the work done, and the amount owed.
  • Pre-Lien Notice: Most parties must serve a preliminary notice within 20 days of beginning work to preserve their right to file a Mechanics Lien. This notice should go to the owner, the general contractor, and the lender, if applicable.
  • Serve the Lien Properly: After filing the lien with the county recorder’s office, you must serve the property owner with a copy of the lien. This ensures they are officially notified of your claim.
  • Enforce Your Lien: Simply filing a Mechanics Lien does not guarantee payment. If the owner doesn't pay, you may need to enforce the lien by filing a lawsuit, typically within 90 days of your lien claim.
  • Waivers and Releases: Be aware of lien waivers and releases. Signing one may compromise your ability to file a Mechanics Lien or limit the amount you can claim.
  • Legal Description of Property: Your lien must include a legal description of the property. This isn’t just an address but a detailed description that might require research or professional assistance to obtain.
  • Professional Help: Considering the complexity and strict deadlines, consulting with a legal professional familiar with California's construction law can be immensely helpful in navigating the process correctly.
  • Electronic Filing: Some counties in California allow or require the filing of Mechanics Liens and related documents electronically. Check with the local county recorder’s office for specific filing requirements.

Filing a Mechanics Lien in California is a powerful tool for securing payment for construction-related work. However, it's a procedure that requires attention to detail, adherence to specific timing, and often, legal advice to navigate successfully. By keeping these key points in mind, you can increase your chances of successfully filing and enforcing a Mechanics Lien.

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