If the clerk of court receives an exception to the sufficiency of the sureties within seven days of the date of service, the clerk shall schedule a hearing before the district court judge at which the sureties may be justified. The clerk shall provide notice of the hearing to both the lien claimant and the applicant for the discharge by undertaking. Chapter 32 -02 governs the justification of the sureties. If the clerk of court does not receive an exception to the sufficiency of the sureties, within seven days from the date of service, the clerk of court shall issue an order stating that the lien is discharged by undertaking and directing either the recorder or the secretary of state, as appropriate, to file the order of discharge to terminate the lien and to remove the lien from any computerized index system on which it appears or, in the case of a lien that is filed manually, to indicate in the margin of the record "discharged by undertaking". If the sureties justify as provided in this section, and if the undertaking is approved, the judge shall enter an order that the lien is discharged by undertaking and direct the recorder or the secretary of state, as appropriate, to file the order of discharge and terminate the lien on any computerized index system on which it appears or, in the case of a lien that is filed manually, to indicate in the margin of the record "discharged by undertaking". After the order, the lien is of no effect.
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