MHHS · Prompt Payment and Construction Lien Act
Part 2 — Creation of Lien
22 Money held in trust
(a) a certificate of substantia l performance is issued, and
(b) a payment is made by the owner after a certificate of
substantial performance is issued
the person who receives the payment, to the extent that the person
owes money to persons who provided work or furnished materials
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PROMPT PAYMENT
for the work or materials in respect of which the certificate was
issued, holds that money in trust for the benefit of those persons.
(2) When a person other than a person who received the payment
referred to in subsection (1)
(a) is entitled to the money hel d in trust under this section,
and
(b) receives payment pur suant to that trust,
the person, to the extent that the person owes money to other
persons who provided work or furnished materials for the work or
materials in respect of which the payment referred to in clause (b)
was made, holds that money in trust for the benefit of those other
persons.
(3) A person who is subject to the obligations of a trust established
under this section is released from any obligations of the trust when
that person pays the money to
(a) the person for whom that person holds the money in trust,
or
(b) another person for the purposes of having it paid to the
person for whom the money is held in trust.
1985 c14 s8