§ 34-27.2-4 - Funds held in trust. - Rhode Island Statutes

SECTION 34-27.2-4

   § 34-27.2-4  Funds held in trust. –(a) Any moneys paid under a contract by an owner to a contractor, or by theowner or contractor to a subcontractor, for work done for or about a buildingby any subcontractor shall be held in express trust by the contractor orsubcontractor, as trustee, for those subcontractors who did work for or aboutthe building, for purposes of paying those subcontractors or any successorand/or assign of such contractor or subcontractor that hold such funds.

   (b) Any money paid under a contract by an owner to acontractor, or by the owner or contractor to a subcontractor, for suppliesprovided by materialmen in contract for the construction, repair, remodeling,improvement or renovation of any building or structure shall be held in anexpress trust by the contractor or subcontractor for the materialmen or anysuccessor and/or assign of such contractor or subcontractors that holds suchtrust funds.

   (c) Nothing contained in this chapter shall be construed asrequiring moneys held in express trust by a contractor or subcontractor undersubsection (a) or (b) of this section to be placed in a separate account.

   (d) The existence of trust funds shall not prohibit thefiling or enforcement of a labor, mechanic or material men's lien against theaffected real property by any lien claimant, nor shall the filing of such alien release the holder of the funds from the obligations created under RhodeIsland law.