Webinar: Addressing Lien Law 3A claims in and out of Bankruptcy Court
Article 3A of the New York Lien Law sets up a system of trusts to make sure that construction moneys received by owners and contractors are applied to pay for the cost of the improvement. It also provides a mechanism for owners and subcontractors to claim diversion of funds against contractors who fail to apply those funds properly. Contractors face serious consequences for failing to use construction funds as the statute requires, including personal liability against the contractor’s principals. The statute applies to all construction projects, regardless of size and scope. Therefore, all owners and contractors need to understand what Lien Law Article 3A requires of contractors as “trustees”, what rights are afforded to owners and subcontractors, as “beneficiaries” under the statute, and what claims and defenses may be asserted in the context of a Lien Law 3A claim.
Review presentation materials here.
This program was presented by the Associated General Contractors of New York State.
For more information contact: