§ 34-27.2-2. Legislative findings. The general assembly finds and declares that the uniqueness of the construction industry requires a special system to ensure that payment is received by those businesses, contractors and owners who expend materials and/or labor prior to the completion of a construction project, but then must wait to be made financially compensated for the materials and/or labor. The general assembly also recognizes that once the materials and labor are placed into the building, or other construction project, it is impossible to reclaim the goods or services so that the only means of compensation is to receive monetary payment. In addition, the general assembly finds that the Comprehensive Bankruptcy Reform Act of 2005 expanded § 523(a) of the Uniform Code of chapter 13, and created a new section known as UC Bankruptcy Code 1328 that gives building material suppliers recourse when a contractor, "commits fraud or defalcation while acting in a fiduciary capacity." Under the new UC Bankruptcy Code 1328, if any person commits fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny the debt is nondischargeable under chapter 7 (liquidation), chapter 11 (adjustment of debt) or chapter 13 (reorganization).
History of Section. (P.L. 2007, ch. 150, § 1; P.L. 2007, ch. 288, § 1.)
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.