As requested, here is an example of a statutory interpretation issue. I chose this example because the statutory scheme at issue -- the Construction Lien Act -- is fairly brief and self-contained (as these things go) and has been subject to a recent, memorable judicial construction. First, I have copied the act itself, and second follows the case construing the filing deadline provision of the act.

For the purpose of the case, Northern Concrete Pipe, Inc v Sinacola Cos, 461 Mich 316; 603 NW2d 257 (1999), the most pertinent provisions of the Construction Lien Act are sections 111 and 302. Briefly, those provisions say, (1) a subcontractor's lien is not valid unless the claim of lien is recorded in the office of the register of deeds within ninety days after the lien claimant's last furnishing of labor or material for the improvement, and (2) the Construction Lien Act is remedial and must be liberally construed to secure the beneficial results, intents, and purposes of the act, and substantial compliance with the provisions of the act are sufficient for the validity of the construction liens provided for in the act. The particular issue presented in Northern Concrete Pipe arose when the lien claimant attempted to file a notice of lien within the ninety-day period, but because of defects in the property description, the notice was not accepted for filing until after the expiration of the ninety-day period.

Interestingly, and the reason I remembered this case in particular, the textualist-driven Michigan Supreme Court resorted to policy considerations -- in fact, policy considerations pertaining to interests not identified in the act as the focal ones -- to resolve the tension between the absolute language of the deadline provision and the substantial compliance language of the construction provision. In the year before Northern Concrete Pipe was issued, the Court had been lecturing the bench and bar regarding the impropriety of considering matters outside the statutory language, leading me to summarize Northern Concrete Pipe as "the statute says what it says unless it doesn't."

570.1101 Short title. [M.S.A. 26.316(101) ]
Sec. 101. This act shall be known and may be cited as the “construction lien act”.
History: 1980, Act 497, Eff. Jan. 1, 1982 .


570.1102 Meanings of words and phrases. [M.S.A. 26.316(102) ]
Sec. 102. For the purposes of this act, the words and phrases defined in sections 103 to 106 have the meanings ascribed to them in those sections.
History: 1980, Act 497, Eff. Jan. 1, 1982 .


570.1103 Definitions. [M.S.A. 26.316(103) ]
Sec. 103. (1) “Actual physical improvement” means the actual physical change in, or alteration of, real property as a result of labor provided, pursuant to a contract, by a contractor, subcontractor, or laborer which is readily visible and of a kind that would alert a person upon reasonable inspection of the existence of an improvement. Actual physical improvement does not include that labor which is provided in preparation for that change or alteration, such as surveying, soil boring and testing, architectural or engineering planning, or the preparation of other plans or drawings of any kind or nature. Actual physical improvement does not include supplies delivered to or stored at the real property.
(2) “Co-lessee” means a person having an interest in real property, the nature of which is identical to that of the interest of the lessee who contracted for the improvement to the real property, whether the extent of such interest is identical or not.
(3) “Construction lien” means the lien of a contractor, subcontractor, supplier, or laborer, as described in section 107.
(4) “Contract” means a contract, of whatever nature, for the providing of improvements to real property, including any and all additions to, deletions from, and amendments to the contract.
(5) “Contractor” means a person who, pursuant to a contract with the owner or lessee of real property, provides an improvement to real property.
(6) “Co-owner” means a person having an interest in real property, the nature of which is identical to that of the interest of the owner who contracted for the improvement to the real property, whether the extent of such interest is identical or not.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1104 Additional definitions. [M.S.A. 26.316(104) ]
Sec. 104. (1) “Court” means the circuit court in which an action to enforce a construction lien through foreclosure is pending.
(2) “Department” means the department of licensing and regulation.
(3) “Designee” means the person named by an owner or lessee to receive, on behalf of the owner or lessee, all notices or other instruments whose furnishing is required by this act. The owner or lessee may name himself or herself as designee. The owner or lessee may not name the contractor as designee. However, a contractor who is providing only architectural or engineering services may be named as designee.
(4) “Fringe benefits and withholdings” means compensation due an employee pursuant to a written contract or written policy for holiday, time off for sickness or injury, time off for personal reasons or vacation, bonuses, authorized expenses incurred during the course of employment, and any other contributions made to or on behalf of an employee.
(5) “Fund” means the homeowner construction lien recovery fund created under part 2.
(6) “General contractor” means a contractor who contracts with an owner or lessee to provide, directly or indirectly through contracts with subcontractors, suppliers, or laborers, substantially all of the improvements to the property described in the notice of commencement.
(7) “Improvement” means the result of labor or material provided by a contractor, subcontractor, supplier, or laborer, including, but not limited to, surveying, engineering and architectural planning, construction management, clearing, demolishing, excavating, filling, building, erecting, constructing, altering, repairing, ornamenting, landscaping, paving, leasing equipment, or installing or affixing a fixture or material, pursuant to a contract.
(8) “Laborer” means an individual who, pursuant to a contract with a contractor or subcontractor, provides an improvement to real property through the individual's personal labor.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1105 Additional definitions. [M.S.A. 26.316(105) ]
Sec. 105. (1) “Lessee” means a person, other than the owner, who holds an interest, other than a security interest, in real property.
(2) “Lien claimant” means a person having a right to a construction lien under this act.
(3) “Owner” means a person holding a fee interest in real property or an equitable interest arising out of a land contract.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1106 Additional definitions. [M.S.A. 26.316(106) ]
Sec. 106. (1) “Person” means an individual, corporation, partnership, sole proprietorship, association, other legal entity, or any combination thereof.
(2) “Project” means the aggregate of improvements contracted for by the contracting owner.
(3) “Residential structure” means an individual residential condominium unit or a residential building containing not more than 2 residential units, the land on which it is or will be located, and all appurtenances thereto, in which the owner or lessee contracting for the improvement is residing or will reside upon completion of the improvement.
(4) “Subcontractor” means a person, other than a laborer or supplier, who pursuant to a contract between himself or herself and a person other than the owner or lessee performs any part of a contractor's contract for an improvement.
(5) “Supplier” means a person who, pursuant to a contract with a contractor or a subcontractor, leases, rents, or in any other manner provides material or equipment which is used in the improvement of real property.
(6) “Wages” means all earnings of an employee whether determined on the basis of time, task, piece, commission, or other method of calculation for labor or services except those defined as fringe benefits and withholdings.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1107 Construction lien generally. [M.S.A. 26.316(107) ]
Sec. 107. (1) Each contractor, subcontractor, supplier, or laborer who provides an improvement to real property shall have a construction lien upon the interest of the owner or lessee who contracted for the improvement to the real property, as described in the notice of commencement provided for by section 108 or 108a, the interest of an owner who has subordinated his or her interest to the mortgage for the improvement of the real property, and the interest of an owner who has required the improvement. A construction lien acquired pursuant to this act shall not exceed the amount of the lien claimant's contract less payments made on the contract.
(2) A construction lien under this act shall attach to the entire interest of the owner or lessee who contracted for the improvement, including any subsequently acquired legal or equitable interest.
(3) Each contractor, subcontractor, supplier, or laborer who provides an improvement to real property to which the person contracting for the improvement had no legal title shall have a construction lien upon the improvement for which the contractor, subcontractor, supplier, or laborer provided labor, material, or equipment. The forfeiture, surrender, or termination of any title or interest held by any owner or lessee who contracted for an improvement to the property or by any owner who subordinated his or her interest to the mortgage for the improvement, or by any owner who has required the improvement shall not defeat the lien of the contractor, subcontractor, supplier, or laborer upon the improvement.
(4) If the rights of a person contracting for an improvement as a land contract vendee or a lessee are forfeited, surrendered, or otherwise terminated, any lien claimant who has provided a notice of furnishing or is excused from providing a notice of furnishing pursuant to section 108, 108a, or 109 and who performs the covenants contained in the land contract or lease within 30 days after receiving actual notice of the forfeiture, surrender, or termination shall be subrogated to the rights of the contracting vendee or lessee as those rights existed immediately before the forfeiture, surrender, or termination.
(5) For purposes of this act, if the real property is owned or leased by more than 1 person, an improvement to real property pursuant to a contract which was entered into by an owner or lessee shall be presumed to have been consented to by any other co-owner or co-lessee, but the presumption shall in all cases be rebuttable. If enforcement of a construction lien through foreclosure is sought and the court finds that the improvement has been consented to by a co-owner or co-lessee who did not contract for the improvement, the court shall order the entire interest of that co-owner or co-lessee, including any subsequently acquired legal or equitable interest, to be subject to the construction lien. A deficiency judgment shall not be entered against a noncontracting owner, co-owner, lessee, or co-lessee.
(6) If the real property of an owner or lessee is subject to construction liens, the sum of the construction liens shall not exceed the amount which the owner or lessee agreed to pay the person with whom he or she contracted for the improvement as modified by any and all additions, deletions, and any other amendments, less payments made by or on behalf of the owner or lessee, pursuant to either a contractor's sworn statement or a waiver of lien, in accordance with this act.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1108 Physical improvements to real property; notice of commencement; form; recording; contents of notice; blank notice of furnishing; incorrect information in notice; providing copy of notice and blank notice of furnishing form to subcontractor, supplier, or laborer upon request; posting copy of notice; failure of owner, lessee, or designee to record, provide, or post required notice; failure of contractor or subcontractor to provide notice; section inapplicable to residential structure improvement. [M.S.A. 26.316(108) ]
Sec. 108. (1) Before the commencement of any actual physical improvements to real property, the owner or lessee contracting for the improvements shall record in the office of the register of deeds for each county in which the real property to be improved is located a notice of commencement, in the form set forth in this section. If all improvements relate to a single project only 1 notice of commencement need be recorded. A subsequent notice of commencement need not be recorded for an improvement to any real property which currently has a notice of commencement recorded in the office of the register of deeds if that recorded notice of commencement contains the same information as the subsequent notice of commencement.
(2) The notice of commencement shall contain the following information: (a) The legal description of the real property on which the improvement is to be made. A description conforming to section 212 or 255 of Act No. 288 of the Public Acts of 1967, being sections 560.212 and 560.255 of the Michigan Compiled Laws, shall be a sufficient legal description.
(b) The name, address, and capacity of the owner or lessee of the real property contracting for the improvement.
(c) The name and address of the fee owner of the real property, if the person contracting for the improvement is a land contract vendee or lessee.
(d) The name and address of the owner's or lessee's designee.
(e) The name and address of the general contractor, if any.
(f) The following statement: “To lien claimants and subsequent purchasers: Take notice that work is about to commence on an improvement to the real property described in this instrument. A person having a construction lien may preserve the lien by providing a notice of furnishing to the above named designee and the general contractor, if any, and by timely recording a claim of lien, in accordance with law.
A person having a construction lien arising by virtue of work performed on this improvement should refer to the name of the owner or lessee and the legal description appearing in this notice. A person subsequently acquiring an interest in the land described is not required to be named in a claim of lien.
A copy of this notice with an attached form for notice of furnishing may be obtained upon making a written request by certified mail to the above named owner or lessee; the designee; or the person with whom you have contracted.”
(g) The name and address of the person preparing the notice.
(h) An affidavit of the owner or lessee or the agent of the owner or lessee which verifies the notice.
(3) Each copy of the notice of commencement shall have a blank notice of furnishing as described in section 109 attached to it. The blank notice of furnishing shall be easily detachable from the copy of the notice and need not be recorded.
(4) Incorrect information contained in the notice of commencement furnished by or for an owner or lessee shall not affect adversely the rights of a lien claimant as against the property of that owner or lessee.
(5) The owner, lessee, or designee, within 10 days after the date of mailing of a written request by certified mail from a subcontractor, supplier, or laborer, shall provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the subcontractor, supplier, or laborer requesting a copy of the notice of commencement.
(6) A contractor who has been provided with a notice of commencement from the owner, lessee, or designee, within 10 days after the date of mailing of a written request by certified mail from a subcontractor, supplier, or laborer who has a direct contract with the contractor, shall provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the subcontractor, supplier, or laborer requesting a copy of the notice of commencement.
(7) A subcontractor who has been provided with a notice of commencement from the owner, lessee, designee, contractor, or subcontractor, within 10 days after the date of mailing of a written request by certified mail from a subcontractor, supplier, or laborer who has a direct contract with the subcontractor, shall provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the subcontractor, supplier, or laborer requesting a copy of the notice of commencement.
(8) The owner, lessee, or designee shall post and keep posted a copy of the notice of commencement in a conspicuous place on the real property described in the notice during the course of the actual physical improvement to the real property.
(9) The owner, lessee, or designee shall provide a copy of the notice of commencement to the general contractor, if any. Failure of the owner, lessee, or designee to provide the notice of commencement to the general contractor shall render the owner or lessee liable to the general contractor for all actual expenses sustained by the general contractor in obtaining the information otherwise provided by the notice of commencement.
(10) Failure of the owner, lessee, or designee to record the notice of commencement, in accordance with this section, shall operate to extend the time within which a subcontractor or supplier may provide a notice of furnishing, as described in section 109, until 20 days after the notice of commencement has been recorded.
(11) Failure of the owner, lessee, or designee to provide, upon written request, the notice of commencement, in accordance with this section, shall operate to extend the time within which a subcontractor or supplier may provide a notice of furnishing, as described in section 109, until 20 days after the notice of commencement actually has been furnished to the subcontractor or supplier.
(12) Failure of the owner, lessee, or designee to record the notice of commencement, in accordance with this section, shall operate to extend the time within which a laborer may provide a notice of furnishing, as described in section 109, until 30 days after the notice of commencement has been recorded, or until the time in which to provide the notice of furnishing in accordance with section 109 expires, whichever is later.
(13) Failure of the owner, lessee, or designee to provide the notice of commencement, in accordance with this section, shall operate to extend the time within which a laborer may provide a notice of furnishing, as described in section 109, until 30 days after the notice of commencement has been provided, or until the time in which to provide the notice of furnishing in accordance with section 109 expires, whichever is later.
(14) Failure of the owner, lessee, or designee to post or keep posted a copy of the notice of commencement as provided in subsection (8) shall render the owner or lessee liable to a subcontractor, supplier, or laborer who becomes a lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the posting.
(15) Failure of a contractor, who has been provided with a notice of commencement from the owner, lessee, or designee, to provide the notice of commencement upon the request of a lien claimant who has a direct contract with the contractor for an improvement to property shall render the contractor liable to the lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the notice of commencement.
(16) Failure of a subcontractor, who has been provided with a notice of commencement from the owner, lessee, designee, contractor, or subcontractor to provide the notice of commencement upon the request of a subcontractor, supplier, or laborer who has a direct contract with the subcontractor shall render the subcontractor liable to such subcontractor, supplier, or laborer for all actual expenses sustained by the subcontractor, supplier, or laborer in obtaining the information otherwise provided by the notice of commencement.
(17) If the owner, lessee, or designee fails to provide, record, and post the notice of commencement as provided in this act and if, after the first actual physical improvement, the contractor by certified mail makes a written request to the owner, lessee, or designee to provide, record, and post the notice of commencement and the owner, lessee, or designee fails within 10 days after receipt of the request to do so, the owner or lessee shall be barred from requiring the contractor to hold the owner or lessee harmless from liens of lien claimants to the extent such lien claims could have otherwise been avoided through proper payment, had such request been complied with. If the contractor pays a valid lien claim at the direction of the owner, lessee, or designee after the owner, lessee, or designee has failed to comply with this section, the owner or lessee shall be liable to the contractor to the extent the lien claim could have otherwise been avoided through proper payment had such request been complied with. This subsection shall not apply if the lien claimant appears on a sworn statement provided to the contractor and the claim of the lien claimant appearing on the sworn statement could have been avoided had payment been made in accordance with the sworn statement.
(18) This section shall not apply to an improvement to a residential structure.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1109 Subcontractor, supplier, or laborer contracting to provide improvement to real property; service of notice of furnishing; form of notice; effect of failure by lien claimant to provide notice within time specified; failure of laborer to provide notice of furnishing; authorization of agent by laborers to prepare and serve notice. [M.S.A. 26.316(109) ]
Sec. 109. (1) Except as otherwise provided in sections 108, 108a, and 301, a subcontractor or supplier who contracts to provide an improvement to real property shall provide a notice of furnishing to the designee and the general contractor, if any, as named in the notice of commencement at the address shown in the notice of commencement, either personally or by certified mail, within 20 days after furnishing the first labor or material. If a designee has not been named in the notice of commencement, or if the designee has died, service shall be made upon the owner or lessee named in the notice of commencement. If service of the notice of furnishing is made by certified mail, service is complete upon mailing. A contractor is not required to provide a notice of furnishing to preserve lien rights arising from his or her contract directly with an owner or lessee.
(2) Except as otherwise provided in sections 108 and 108a, a laborer who contracts to provide an improvement to real property shall provide a notice of furnishing to the designee and the general contractor, if any, as named in the notice of commencement at the address shown in the notice of commencement, either personally or by mail, within 30 days after wages were contractually due but were not paid. If a designee has not been named in the notice of commencement, or if the designee has died, service shall be made upon the owner or lessee named in the notice of commencement. If service of the notice of furnishing is made by mail, service is complete upon mailing by first class mail with postage prepaid.
(3) Except as otherwise provided in sections 108 and 108a, a laborer who provides an improvement to real property shall provide a notice of furnishing to the designee and the general contractor, if any, named in the notice of commencement at the address shown in the notice of commencement, either personally or by certified mail, by the fifth day of the second month following the month in which fringe benefits or withholdings from wages were contractually due but were not paid. If a designee has not been named in the notice of commencement, or if the designee has died, service shall be made upon the owner or lessee named in the notice of commencement. If service of the notice of furnishing is made by certified mail, service is complete upon mailing.
(4) The notice of furnishing, if not given on the form attached to the notice of commencement, shall be in substantially the following form:
NOTICE OF FURNISHING
To:
(name of designee (or owner or lessee) from notice of commencement)

(address from notice of commencement)
Please take notice that the undersigned is furnishing to

(name and address of other contracting party)
certain labor or material for,
(describe type of work)
in connection with the improvements to the real property described in the notice
of commencement recorded in liber , on page , records,
(name of county)

or (a copy of which is attached hereto)

WARNING TO OWNER: THIS NOTICE IS REQUIRED BY THE MICHIGAN CONSTRUCTION LIEN ACT. IF YOU HAVE QUESTIONS ABOUT YOUR RIGHTS AND DUTIES UNDER THIS ACT, YOU SHOULD CONTACT AN ATTORNEY TO PROTECT YOU FROM THE POSSIBILITY OF PAYING TWICE FOR THE IMPROVEMENTS TO YOUR PROPERTY.

(name and address of lien claimant)
by
(name and capacity of party signing for lien claimant)

(address of party signing)

Date: ......................................... .
(5) The failure of a lien claimant to provide a notice of furnishing within the time specified in this section shall not defeat the lien claimant's right to a construction lien for work performed or materials furnished by the lien claimant after the service of the notice of furnishing.
(6) The failure of a lien claimant, to provide a notice of furnishing within the time specified in this section shall not defeat the lien claimant's right to a construction lien for work performed or materials furnished by the lien claimant before the service of the notice of furnishing except to the extent that payments were made by or on behalf of the owner or lessee to the contractor pursuant to either a contractor's sworn statement or a waiver of lien in accordance with this act for work performed or material delivered by the lien claimant. This subsection does not apply to a laborer.
(7) The failure of a laborer to provide a notice of furnishing to the designee as required by subsection (2) shall defeat the laborer's lien for those wages for which the notice of furnishing is required.
(8) The failure of a laborer to provide a notice of furnishing to the designee as required by subsection (3) shall defeat the laborer's lien for those fringe benefits and withholdings for which the notice of furnishing is required.
(9) The failure of a laborer to provide a notice of furnishing to the general contractor within the time specified in subsection (2) or (3) shall not defeat the laborer's right to a construction lien, but the laborer shall be liable for any actual damages sustained by the general contractor as a result of the failure.
(10) One or more laborers may authorize an agent to prepare and serve a notice of furnishing in the manner provided in this section. Notice of furnishing under this section may contain the notice of furnishing of more than 1 laborer and shall contain the information required in susbsection (4) as to each laborer for whom it is prepared. The notice of furnishing of each lien claimant under this subsection shall be considered by the court on its own merits.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .
Compiler's Note: In the second sentence of subsection (10), the word “susbsection” evidently should read “subsection”.

570.1110 Sworn statement by contractor or subcontractor; contents; form; withholding from contractor or subcontractor amount due subcontractors, suppliers, laborers, or lien claimants; direct payments to lien claimants; notice; itemized statement; reliance on sworn statement to avoid claim; failure of contractor or subcontractor to provide sworn statement to owner or lessee prior to recording claim of lien; giving false sworn statement to owner or lessee as crime; total amount; prior convictions; prohibited use.
Sec. 110. (1) A contractor shall provide a sworn statement to the owner or lessee in each of the following circumstances: (a) When payment is due to the contractor from the owner or lessee or when the contractor requests payment from the owner or lessee.
(b) When a demand for the sworn statement has been made by or on behalf of the owner or lessee.
(2) A subcontractor shall provide a sworn statement to the owner or lessee when a demand for the sworn statement has been made by or on behalf of the owner or lessee.
(3) A subcontractor shall provide a sworn statement to the contractor when payment is due to the subcontractor from the contractor or when the subcontractor requests payment from the contractor.
(4) The sworn statement shall list each subcontractor and supplier with whom the person issuing the sworn statement has contracted relative to the improvement to the real property. The sworn statement shall contain a list of laborers with whom the person issuing the sworn statement has contracted relative to the improvement to the real property and for whom payment for wages or fringe benefits and withholdings are due but unpaid and the itemized amount of such wages or fringe benefits and withholdings. The sworn statement shall be in substantially the following form:
SWORN STATEMENT
State of Michigan )
) ss.
County of ........ )
......................... (deponent), being sworn, states the following:
............... is the (contractor) (subcontractor) for an improvement to the following real property in ........................... County, Michigan, described as follows:

(insert legal description of property)
The following is a statement of each subcontractor and supplier, and laborer for whom payment of wages or fringe benefits and withholdings is due but unpaid, with whom the (contractor) (subcontractor) has (contracted) (subcontracted) for performance under the contract with the owner or lessee of the property, and the amounts due to the persons as of the date of this statement are correctly and fully set forth opposite their names:
Name of subcontractor, supplier, or laborer Type of improvement furnished Total contract price Amount already paid Amount currently owing Balance to complete (optional) Amount of laborer wages due but unpaid Amount of laborer fringe benefits and withholdings due but unpaid

Totals
(Some columns are not applicable to all persons listed)
The contractor has not procured material from, or subcontracted with, any person other than those set forth and owes no money for the improvement other than the sums set forth.
I make this statement as the (contractor) (subcontractor) or as ......... of the (contractor) (subcontractor) to represent to the owner or lessee of the property and his or her agents that the property is free from claims of construction liens, or the possibility of construction liens, except as specifically set forth in this statement and except for claims of construction liens by laborers that may be provided under section 109 of the construction lien act, 1980 PA 497, MCL 570.1109.
WARNING TO OWNER OR LESSEE: AN OWNER OR LESSEE OF THE PROPERTY MAY NOT RELY ON THIS SWORN STATEMENT TO AVOID THE CLAIM OF A SUBCONTRACTOR, SUPPLIER, OR LABORER WHO HAS PROVIDED A NOTICE OF FURNISHING OR A LABORER WHO MAY PROVIDE A NOTICE OF FURNISHING UNDER SECTION 109 OF THE CONSTRUCTION LIEN ACT, 1980 PA 497, MCL 570.1109, TO THE DESIGNEE OR TO THE OWNER OR LESSEE IF THE DESIGNEE IS NOT NAMED OR HAS DIED.

Deponent
WARNING TO DEPONENT: A PERSON WHO GIVES A FALSE SWORN STATEMENT WITH INTENT TO DEFRAUD IS SUBJECT TO CRIMINAL PENALTIES AS PROVIDED IN SECTION 110 OF THE CONSTRUCTION LIEN ACT, 1980 PA 497, MCL 570.1110.
Subscribed and sworn to before me on ............................................................................ (DATE)

Notary Public, ................................... County, Michigan.
My commission expires: ............................................................................................................ .
(5) The contractor or subcontractor is not required to list in the sword statement material furnished by the contractor or subcontractor out of his or her own inventory that was not purchased specifically for performing the contract.
(6) After the contractor or subcontractor provides the sworn statement, the owner or lessee may withhold or, upon written demand from the contractor shall withhold, from the amount due or to become due to the contractor or to the subcontractor for work already performed an amount sufficient to pay all sums due to subcontractors, suppliers, or laborers, as shown by the sworn statement, or due to lien claimants who have provided a notice of furnishing under section 109. From the amount withheld, the owner or lessee may directly pay subcontractors, suppliers, or laborers the amount they are due as shown by the sworn statement. If the contract provides for payments by the owner to the general contractor in the normal course of construction, but the owner elects to pay lien claimants directly under this section, the first time the owner elects to make payment directly to a lien claimant, he or she shall provide at least 5 business days' notice to the general contractor of the intention to make direct payment. Subsequent direct disbursements to lien claimants need not be preceded by the 5-day notice provided in this section unless the owner first returns to the practice of paying all sums to the general contractor. As between the owner or lessee and the contractor or subcontractor, all payments made under this subsection are considered the same as if paid directly to the contractor or subcontractor. If an amount is withheld under this subsection from the contractor or subcontractor, the owner or lessee, upon request, shall prepare and provide to the contractor or subcontractor an itemized statement of the sums withheld. If an amount is paid directly to a lien claimant under this section, the owner or lessee shall, if requested by the contractor or subcontractor, provide to the contractor or subcontractor an itemized statement of the sums paid.
(7) An owner, lessee, designee, mortgagee, or contractor may rely on a sworn statement prepared by a party other than himself or herself to avoid the claim of a subcontractor, supplier, or laborer unless the subcontractor, supplier, or laborer has provided a notice of furnishing as required under section 109 or unless the notice of furnishing is excused under section 108 or 108a.
(8) If a contractor fails to provide a sworn statement to the owner or lessee before recording the contractor's claim of lien, the contractor's construction lien is not invalid. However, the contractor is not entitled to any payment, and a complaint, cross-claim, or counterclaim may not be filed to enforce the construction lien, until the sworn statement has been provided.
(9) If a subcontractor fails to provide a sworn statement under subsection (2) to the owner or lessee before recording the subcontractor's claim of lien, the subcontractor's construction lien is valid. However, a complaint, cross-claim, or counterclaim may not be filed to enforce the construction lien until the sworn statement has been provided.
(10) A contractor or subcontractor who desires to draw money and gives or causes to be given to any owner or lessee a sworn statement required by this section that is false, with intent to defraud, is guilty of a crime as follows: (a) If the statement involved is for less than $200.00, the contractor or subcontractor is guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00 or 3 times the statement amount, whichever is greater, or both imprisonment and a fine.
(b) If any of the following apply, the contractor or subcontractor is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $2,000.00 or 3 times the statement amount, whichever is greater, or both imprisonment and a fine: (i) The statement involved is for $200.00 or more but less than $1,000.00.
(ii) The contractor or subcontractor violates subdivision (a) and has 1 or more prior convictions for committing or attempting to commit an offense under this act.
(c) If any of the following apply, the contractor or subcontractor is guilty of a felony punishable by imprisonment for not more than 5 years or a fine of not more than $10,000.00 or 3 times the statement amount, whichever is greater, or both imprisonment and a fine: (i) The statement involved is for $1,000.00 or more but less than $20,000.00.
(ii) The contractor or subcontractor violates subdivision (b)(i) and has 1 or more prior convictions for violating or attempting to violate this act. For purposes of this subparagraph, however, a prior conviction does not include a conviction for violating or attempting to violate subdivision (a) or (b)(ii).
(d) If any of the following apply, the contractor or subcontractor is guilty of a felony punishable by imprisonment for not more than 10 years or a fine of not more than $15,000.00 or 3 times the statement amount, whichever is greater, or both imprisonment and a fine: (i) The statement involved is for $20,000.00 or more.
(ii) The contractor or subcontractor violates subdivision (c)(i) and has 2 or more prior convictions for committing or attempting to commit an offense under this act. For purposes of this subparagraph, however, a prior conviction does not include a conviction for violating or attempting to violate subdivision (a) or (b)( ii).
(11) Statements involved in separate incidents pursuant to a scheme or course of conduct within any 12-month period may be aggregated to determine the total amount involved in the statements.
(12) If the prosecuting attorney intends to seek an enhanced sentence based upon the defendant having 1 or more prior convictions, the prosecuting attorney shall include on the complaint and information a statement listing the prior conviction or convictions. The existence of the defendant's prior conviction or convictions shall be determined by the court, without a jury, at sentencing or at a separate hearing for that purpose before sentencing. The existence of a prior conviction may be established by any evidence relevant for that purpose, including, but not limited to, 1 or more of the following: (a) A copy of the judgment of conviction.
(b) A transcript of a prior trial, plea-taking, or sentencing.
(c) Information contained in a presentence report.
(d) The defendant's statement.
(13) If the sentence for a conviction under this section is enhanced by 1 or more convictions, those prior convictions shall not be used to further enhance the sentence for the conviction pursuant to section 10, 11, or 12 of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.10, 769.11, and 769.12.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 ;--Am. 2001, Act 151, Eff. Jan. 1, 2002 .

570.1111 Claim of lien; recording; validity; form; assignment; statement; proof of service of notice of furnishing; serving copy of claim of lien and recorded proof of service on designee, owner, or lessee; claim of lien of more than 1 laborer; consideration by court. [M.S.A. 26.316(111) ]
Sec. 111. (1) Notwithstanding section 109, the right of a contractor, subcontractor, laborer, or supplier to a construction lien created by this act shall cease to exist unless, within 90 days after the lien claimant's last furnishing of labor or material for the improvement, pursuant to the lien claimant's contract, a claim of lien is recorded in the office of the register of deeds for each county where the real property to which the improvement was made is located. A claim of lien shall be valid only as to the real property described in the claim of lien and located within the county where the claim of lien has been recorded.
(2) A claim of lien shall be in substantially the following form:
CLAIM OF LIEN
Notice is hereby given that on the ........... day of ............., 19 ..........,
(name)

(address)
first provided labor or material for an improvement to
.......................................................................................................................................................,
(legal description of real property from notice of comencement)
the (owner) (lessee) of which property is .......................................................................................... .
(name of owner or lessee from notice of commencement)
The last day of providing the labor or material was the ............ day of ................., 19 .......... .
TO BE COMPLETED BY A LIEN CLAIMANT WHO IS A CONTRACTOR, SUBCONTRACTOR, OR SUPPLIER:
The lien claimant's contract amount, including extras, is $......................... .The lien claimant has received payment thereon in the total amount of $............................ , and therefor claims a construction lien upon the above-described real property in the amount of $ .......................... .
TO BE COMPLETED BY A LIEN CLAIMANT WHO IS A LABORER:
The lien claimant's hourly rate, including fringe benefits and withholdings, is $............................... .
There is due and owing to or on behalf of the laborer the sum of $ .............................. for which the laborer claims a construction lien upon the above-described real property.

(lien claimant)
by
(signature of lien claimant, agent, or attorney)

(address of party signing claim of lien)
Date: ...................... .
State of Michigan )
) ss.
County of ........... )
Subscribed and sworn to before me this ............. day of ................... , 19 ....... .

Signature of Notary Public
My commission expires:
Prepared by:
(name and address of party)
(3) If the claim of lien has been assigned, the claim of lien shall state: “The construction lien having been assigned, this claim of lien is made by .......... as assignee thereof”.
(4) A claim of lien by a subcontractor, supplier, or laborer shall have attached to it a proof of service of a notice of furnishing described in section 109.
(5) Each contractor, subcontractor, supplier, laborer, or agent of a group of laborers authorized under subsection (6) recording a claim of lien, within 15 days after the date of the recording, shall serve on the designee personally or by certified mail, return receipt requested, at the address shown on the notice of commencement, a copy of the claim of lien and a copy of any proof of service recorded in connection with the claim of lien. If a designee has not been named in the notice of commencement, or if the designee has died, service shall be made upon the owner or lessee named in the notice of commencement. If the service is made by certified mail, service is complete upon mailing. Proof of making the service shall be attached to any complaint, cross-claim, or counterclaim filed to enforce a construction lien.
(6) One or more laborers may authorize an agent to prepare, record, and serve a claim of lien in the manner provided in this section. A claim of lien under this section may contain the claim of lien of more than 1 laborer and shall contain the information required in subsection (2) as to each laborer for whom it is prepared. The claim of lien of each lien claimant under this subsection shall be considered by the court on its own merits.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1112 Endorsing and indexing instrument by register of deeds; recording fee; constructive notice. [M.S.A. 26.316(112) ]
Sec. 112. (1) If a notice of commencement, claim of lien, certificate of discharge of lien, or a certificate of a county clerk that no proceedings to enforce a statement or claim of lien have been commenced within the period provided by law is recorded in the office of a register of deeds, the register shall endorse thereon the date of its recording and shall properly index the instrument.
(2) The fee for recording an instrument described in subsection (1) shall be the same as the fee that is provided by law for the recording of a real estate mortgage.
(3) The recording of a notice of commencement or a claim of lien shall operate as constructive notice to subsequent purchasers or encumbrancers in the same manner as the recording of a real estate mortgage.
History: 1980, Act 497, Eff. Jan. 1, 1982 .

570.1113 Making available to lien claimant copy of contract and statement of amount due and unpaid; liability of owner or lessee; providing to owner, lessee, or designee statement of labor and material furnished; liability of lien claimant failing to provide statement; honoring request for payment by lien claimant. [M.S.A. 26.316(113) ]
Sec. 113. (1) An owner or lessee who contracts for an improvement, upon receipt of a written demand by a lien claimant, shall make available for inspection and copying to the lien claimant, within 10 days after receipt of the written demand, a copy of the contract for the improvement between the owner or lessee and the contractor, and a written statement of the amount due and unpaid on that date on the contract. Any owner or lessee who fails to make available for inspection and copying a copy of the contract and the written statement of the amount due and unpaid, within 10 days after receipt of a written demand, shall be liable to the lien claimant for all actual damages sustained by the lien claimant due to the failure.
(2) Each lien claimant, upon receipt of a written demand by an owner, lessee, designee, or contractor, shall provide to the owner, lessee, designee, or contractor, within 10 days after receipt of the written demand, a written statement of the amount of labor and material furnished to the date of the statement in connection with the improvement for which a construction lien is claimed, any amount remaining due for the labor and material furnished, and the contractual amount of any work remaining to be performed. A lien claimant who fails to provide a statement within 10 days after receipt of a written demand shall be liable to the owner, lessee, or contractor for actual damages sustained by the owner, lessee, or contractor due to the failure. In addition, the owner, lessee, or contractor, after the expiration of the 10-day period without receipt of the requested statement, shall not be required to honor a request for payment by the lien claimant until the statement has been received by the person who requested it.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1114 Construction lien upon interest of owner or lessee in residential structure; providing improvement pursuant to written contract required; statement; contents. [M.S.A. 26.316(114) ]
Sec. 114. A contractor shall not have a right to a construction lien upon the interest of any owner or lessee in a residential structure unless the contractor has provided an improvement to the residential structure pursuant to a written contract between the owner or lessee and the contractor and any amendments or additions to the contract also shall be in writing. The contract required by this section shall contain a statement, in type no smaller than that of the body of the contract, setting forth all of the following: (a) That a residential builder or a residential maintenance and alteration contractor is required to be licensed under article 24 of Act 299 of the Public Acts of 1980, as amended, being sections 339.2401 to 339.2412 of the Michigan Compiled Laws. That an electrician is required to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being sections 338.881 to 338.892 of the Michigan Compiled Laws. That a plumber is required to be licensed under Act No. 266 of the Public Acts of 1929, as amended, being sections 338.901 to 338.917 of the Michigan Compiled Laws.
(b) If the contractor is required to be licensed to provide the contracted improvement, that the contractor is so licensed.
(c) If a license is required, the contractor's license number.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1115 Waiver of construction lien. [M.S.A. 26.316(115) ]
Sec. 115. (1) A person shall not require, as part of any contract for an improvement, that the right to a construction lien be waived in advance of work performed. A waiver obtained as part of a contract for an improvement is contrary to public policy, and shall be invalid, except to the extent that payment for labor and material furnished was actually made to the person giving the waiver. Acceptance by a lien claimant of a promissory note or other evidence of indebtedness from an owner, lessee, or contractor shall not of itself serve to waive or discharge otherwise valid construction lien rights.
(2) A lien claimant who receives full payment for his or her contract shall provide to the owner, lessee, or designee a full unconditional waiver of lien.
(3) A lien claimant who receives partial payment for his or her contract shall provide to the owner, lessee, or designee a partial unconditional waiver of the lien for the amount which the lien claimant has received, if the owner, lessee, or designee requests the partial unconditional waiver.
(4) A partial conditional waiver of lien or a full conditional waiver of lien shall be effective upon payment of the amount indicated in the waiver.
(5) For purposes of this act, retainage which is not payable under a contract until the happening of a certain event in addition to the providing of an improvement, is not due as of the date of the providing of the improvement.
(6) A waiver of a lien under this section shall be effective when a person makes payment relying on the waiver unless at the time payment was made the person making the payment has written notice that the consideration for the waiver has failed.
(7) An agent who is authorized to prepare and serve a notice of furnishing on behalf of a laborer or group of laborers or an agent who is authorized to prepare, record, and serve a claim of lien on behalf of a laborer or group of laborers is automatically authorized to provide waivers of lien, unless or until the laborer or group of laborers notifies the designee in writing that someone other than a previously authorized agent is duly authorized to provide appropriate waivers. An agent who is authorized to prepare and serve a notice of furnishing or a claim of lien on behalf of a laborer or group of laborers shall be responsible for providing waivers on behalf of such laborer or laborers pursuant to this section. An agent who is authorized to prepare and serve a claim of lien on behalf of a laborer or group of laborers shall be responsible for providing waivers of lien on behalf of such laborer or laborers pursuant to this section. An individual laborer may also provide waivers pursuant to this section instead of the agent.
(8) The following forms shall be used in substantially the following format in executing waivers of construction liens:
(a) PARTIAL UNCONDITIONAL WAIVER
I/we have a contract with ..................................................................................... to
(other contracting party)
provide ................................ for the improvement to the property described as ......... ,
and hereby waive my/our construction lien to the amount of $ ............ , for
labor/materials provided through ....................................................... .
(date)
This waiver, together with all previous waivers, if any, (circle one) does does not cover all amounts due to me/us for contract improvement provided through the date shown above.

.
(signature of lien claimant)
Signed on: Address:
(date)
Telephone:
DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.
(b) PARTIAL CONDITIONAL WAIVER
I/we have a contract with ..................................................................................... to
(other contracting party)
provide .................. for the improvement to the property described as ....................... ,
and hereby waive my/our construction lien to the amount of $..............., for
labor/materials provided through .................................................................. .
(date)
This waiver, together with all previous waivers, if any, (circle one) does does not cover all amounts due to me/us for contract improvement provided through the date shown above.
This waiver is conditioned on actual payment of the amount shown above.


(signature of lien claimant)
Signed on: Address:
(date)
Telephone:
DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.
(c) FULL UNCONDITIONAL WAIVER
My/our contract with ............................................................................................ to
(other contracting party)
provide .......................... for the improvement of the property described as:
having been fully paid and satisfied, all my/our construction lien rights against such property are hereby waived and released.


(signature of lien claimant)
Signed on: Address:
(date)
Telephone:
DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.
(d) FULL CONDITIONAL WAIVER
My/our contract with ............................................................................................ to
(other contracting party)
provide ............................... for the improvement of the property described as:
having been fully paid and satisfied, all my/our construction lien rights against such property are hereby waived and released.
This waiver is conditioned on actual payment of ....................................................... .


(signature of lien claimant)
Signed on: Address:
(date)
Telephone:
DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1116 Claim of lien; vacation and discharge; bond; penal sum; filing; notification of lien claimant; objection to sufficiency of surety; appearance by surety; approval of bond; certificate; recordation; discharge of claim of lien and notice of lis pendens; action by obligee; court order or other relief. [M.S.A. 26.316(116) ]
Sec. 116. (1) The claim of lien of a contractor, subcontractor, supplier, or laborer may at any time be vacated and discharged if a bond, with the lien claimant as obligee, is filed with the county clerk for the county in which the property covered by the lien is located and a copy is given to the obligee lien claimant. The bond shall be in the penal sum of twice the amount for which the lien is claimed and shall be conditioned on the payment of any sum for which the obligee in the bond may obtain judgment on the claim for which the claim of lien was filed. The bond may be either a cash bond executed by a principal, or a surety bond executed by a principal and a surety company authorized to do business in this state.
(2) Within 10 days after receiving the bond, the county clerk shall notify each lien claimant that a bond has been filed and indicate the amount of the bond and the name of the surety on the bond. The lien claimants shall have 10 days after being notified of the bond within which to file an objection to the sufficiency of the surety on the bond, in which case the county clerk shall not approve the bond until the surety has appeared before the county clerk and answered under oath those questions asked by or on behalf of the lien claimant touching on the surety's financial responsibility. If an objection to the surety is not filed within the 10 days after being notified of the bond or if the county clerk approves the bond after the questioning of the surety, the county clerk shall at once give to the principal and the obligee named in the bond a certificate that a good and sufficient bond has been filed in accordance with this act. The certificate shall state the names of the obligor and obligee, the amount of the bond, and the description of the property covered by the claim of lien being discharged. Upon the recording of the certificate in the office of the register of deeds where the claim of lien was recorded, the claim of lien of the obligee lien claimant named in the claim of lien shall be discharged. If because of the pendency of proceedings to enforce the claim of lien, a notice of lis pendens has been recorded, the recording of the certificate shall also operate as a discharge of the notice of lis pendens. The obligee may make any obligor on the bond a party to an action to enforce a claim under the bond, and a judgment may be recovered in the action against all or any of the obligors.
(3) In an action brought in connection with the claim of the obligee, the court may do 1 or more of the following: (a) Order the amount of the bond to be reduced.
(b) Order other or additional surety to be provided.
(c) Grant any other relief the court considers to be equitable.
History: 1980, Act 497, Eff. Jan. 1, 1982 .

570.1117 Action for enforcement of construction lien through foreclosure; notice of lis pendens; agent appointed to represent laborers; parties; action on contract by lien claimant; enforcement of lien by cross-claim or counterclaim where lien claimant party; sworn statement. [M.S.A. 26.316(117) ]
Sec. 117. (1) Proceedings for the enforcement of a construction lien and the foreclosure of any interests subject to the construction lien shall not be brought later than 1 year after the date the claim of lien was recorded.
(2) At the time of commencing an action for the enforcement of a construction lien through foreclosure, the plaintiff shall record a notice of lis pendens with respect to the action in the office of the register of deeds for the county in which the real property involved in the action is located.
(3) As provided in section 111(6), an action to foreclose on a construction lien may be maintained by an agent appointed to represent laborers.
(4) Each person who, at the time of filing the action, has an interest in the real property involved in the action which would be divested or otherwise impaired by the foreclosure of the lien, shall be made a party to the action.
(5) In connection with an action for foreclosure of a construction lien, the lien claimant also may maintain an action on any contract from which the lien arose.
(6) Except as otherwise provided in subsection (1), a lien claimant who has been made a party to an action for foreclosure of a construction lien may enforce his or her own construction lien in the action by a cross-claim or counterclaim, and the owner or lessee may timely join other or potential lien claimants in the action.
(7) In an action brought by a contractor or subcontractor to enforce a construction lien through foreclosure, the complaint, cross-claim, or counterclaim must show that the owner or lessee was provided a sworn statement, if a sworn statement was requested or required, pursuant to section 110.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1981, Act 191, Eff. Jan. 1, 1982 .

570.1118 Action to enforce construction lien through foreclosure; circuit court; equitable nature of action; enforcement of lien by cross-claim or counterclaim filed in pending action; duties of court; attorney fees. [M.S.A. 26.316(118) ]
Sec. 118. (1) An action to enforce a construction lien through foreclosure shall be brought in the circuit court for the county where the real property described in the claim of lien is located. If the real property is located in more than 1 county or judicial circuit, the action may be brought in any of the counties where the real property is located. An action to enforce a construction lien through foreclosure shall be equitable in nature. A construction lien also may be enforced by a cross-claim or counterclaim timely filed in a pending action involving title to, or foreclosure of mortgages or encumbrances on, real property.
(2) In each action in which enforcement of a construction lien through foreclosure is sought, the court shall examine each claim and defense that is presented, and determine the amount, if any, due to each lien claimant or to any mortgagee or holder of an encumbrance, and their respective priorities. The court may allow reasonable attorneys' fees to a lien claimant who is the prevailing party. The court also may allow reasonable attorneys' fees to a prevailing defendant if the court determines the lien claimant's action to enforce a construction lien under this section was vexatious. Attorneys' fees allowed under this section shall not be paid from the homeowner construction lien recovery fund created under part 2.
History: 1980, Act 497, Eff. Jan. 1, 1982 ;--Am. 1982, Act 17, Eff. Mar. 1, 1982 .

570.1119 Claims of lien having equal priority; priority of construction lien over garnishments and over other interests, liens, or encumbrances; attachment; effect of recording; priority of recorded mortgage, lien, encumbrance, or other interest over construction lien; advances; retainage. [M.S.A. 26.316(119) ]
Sec. 119. (1) Except as otherwise provided by subsection (4), as between parties entitled to claim construction liens under this act, their claims of lien shall be treated as having equal priority.
(2) A construction lien under this act shall take priority over all garnishments for the contract debt made after commencement of the first actual physical improvement, without regard to the date of recording of the claim of lien.
(3) A construction lien arising under this act shall take priority over all other interests, liens, or encumbrances which may attach to the building, structure, or improvement, or upon the real property on which the building, structure, or improvement is erected when the other interests, liens, or encumbrances are recorded subsequent to the first actual physical improvement.
(4) A mortgage, lien, encumbrance, or other interest recorded before the first actual physical improvement to real property shall have priority over a construction lien arising under this act. The priority of the mortgage shall exist as to all obligations secured by the mortgage except for indebtedness arising out of advances made subsequent to the first actual physical improvement. An advance made pursuant to the mortgage, but subsequent to the first actual physical improvement shall have priority over a construction lien if, for that advance, the mortgagee has received a contractor's sworn statement as provided in section 110, has made disbursements pursuant to the contractor's sworn statement, and has received waivers of lien from the contractor and all subcontractors, laborers, and suppliers who have provided notices of furnishing. The construction lien of any lien claimant not set forth on the sworn statement upon which an advance was made shall be subordinate to the lien of the mortgage, including the advance, unless prior to t