We are a GC doing a private commercial job in MN. Currently, we require Conditional waivers from our subs with each payment application they submit. We are currently working with a lender who is adamant about us requiring Unconditionals from our subs after each payment and before subsequent payments. We have a bit more leverage with Conditionals as subs must turn it in with their payment application, and then we know when it becomes valid because we directly pay them. Additionally, our subs are safer and more willing to sign a Conditional vs an Unconditional. We have offered to provide the bank with the Conditionals and then confirm payment with a check register as proof that those subs have been paid, but the bank is determined to get the Unconditionals. We are concerned that if ONE sub does not turn in an unconditional waiver or is late, it will delay owner payment to us and thus delay payment to the rest of our subs. The bank is concerned about, and our question is: Is a lender who records a mortgage after construction starts at risk (of the sub being in first position for a lien) for the duration of the project? Managing the lien waivers - does the type matter or not if the lender is in 2nd position for a lien and if they do matter, does being in 2nd position get absolved as of a certain date? We usually don't encounter this issue, but post-covid, A LOT of banks are now asking us for extra waivers and paperwork and pushing back on our solutions to mitigate that paperwork, while still ensuring and proving that we are tracking waivers and paying our subs. Every bank has a different request, and usually, they are fine with getting the Conditionals and check register as proof, but this bank is really pushing back because they are concerned about being in this "2nd position" for a lien, and say the Unconditional will protect them from that. We are pretty confused and are not sure how to proceed here. Any guidance or proposed solutions would be greatly appreciated.