31-5-31 - Provider to subcontractor of equipment used in road construction contract shall notify general contractor of payments not timely made. - Mississippi Statutes

§ 31-5-31. Provider to subcontractor of equipment used in road construction contract shall notify general contractor of payments not timely made.
 

Any person, firm or corporation who leases, rents or sells to any subcontractor any equipment to be used in a road construction contract, wherein a performance and payment bond is required of the general contractor, shall notify the general contractor involved in such contract that credit is being extended by them to the subcontractor and stating the terms of the credit agreement. In the event the subcontractor does not meet his payment obligations as set forth in the credit agreement, the creditor shall notify the general contractor of the nonpayment within thirty (30) days after such payment is due. The creditor shall notify the general contractor upon receipt of any payment which had been reported as past due. 
 

Failure of the creditor to comply with the nonpayment notice provision of this section shall void the terms of the general contractor's performance and payment bond as to such creditor for such equipment leased, rented or sold. 
 

Sources: Laws,  1976, ch. 378, eff from and after July 1, 1976.