§ 34-27.2-3 - Definitions.
SECTION 34-27.2-3
§ 34-27.2-3 Definitions. – The following definitions apply in the interpretations of the provisions ofthis chapter, unless the context requires another meaning:
(1) "Express Trust" means funds that have been paid by anowner, for or in connection with materials used in an improvement of realproperty, which are to be held by a contractor or subcontractor, in expresstrust, for material men. Any such contractor or subcontractor who accepts moneyfrom any owner or contractor shall become the trustee of the express trust thatis created under this act. The amounts received by such contractor orsubcontractor under or in connection with each building project shall be aseparate trust and the contractor or subcontractor, or any successor and/orassign of such contractor or subcontractor that hold such trust funds, shall bea trustee thereof. These funds are not required to be held in any separateaccount by a contractor or subcontractor. Such trust shall be effective againstand shall have priority over any interest of a party seeking payment from suchcontractor or subcontractor for claims other than those that are due and owingby reason of the specific building project for which the trust was created,whether such creditors are foreign attachment or other judicial lien creditors,a trustee in bankruptcy or similar creditors or representatives or creditors ofthe contractor or subcontractor.
(2) "Material men" means those retailers of lumber who areengaged in the business primarily of selling lumber and building materials tocontractors, subcontractors, or repairmen to be used for the construction,erection, alteration, or repairing a building or other structure or in themaking of any other improvements on land or the preparation thereof, and whoselumber and building material sales comprise of at least fifty percent (50%) oftheir total sales as defined in § 44-19-41.