§ 38-26-102 — Railroad and irrigation contractor's bond - action - limitation

Colorado § 38-26-102

• Jurisdiction: Colorado
• Title 38: Property -
• Art.: Contractor's Bonds and Lien on Funds

Text

(1)
Whenever any railroad, reservoir, or irrigating canal company contracts with any
person or corporation for the construction of its railroad, reservoir, or irrigating
canal, or any part thereof, such company shall take from the person or corporation
with whom such contract is made a good and sufficient bond, conditioned that such
contractor shall pay or cause to be paid to all laborers, mechanics, materialmen,
ranchmen, farmers, merchants, and other persons who supply such contractor, or
any of his or her subcontractors, with labor, work, laborers, materials, ranch or farm
products, provisions, goods, or supplies of any kind all just debts incurred therefor
in carrying on such work, which bond shall be filed by such company in the office of
the county clerk and recorder in the county where the principal work of such
contractor is carried on. If any such railroad, reservoir, or irrigation canal company
fails to take such bond, such company shall be liable to the persons mentioned to
the full extent of all such debts so contracted by such contractor or any of his or
her subcontractors. Any such contractor may take a similar bond from each of his or
her subcontractors to secure the payment of all debts of the kind mentioned
incurred by such contractor and file the same.

(2) All such persons mentioned in this section to whom any debt of the kind
mentioned is due from any such contractor or subcontractor shall severally have a
right of action upon any such bond covering such debt taken as provided for the
recovery of the full amount of such debt. A certified copy of the bond shall be
received as evidence in any such action. In order that the right of action upon such
bonds may exist, such person or parties granted such right shall comply with either
of the following conditions:

(a) An action in a court of competent jurisdiction in the county where such
bond is filed shall be commenced within ninety days after the last item of
indebtedness has accrued; or

(b) An itemized statement of the indebtedness duly verified shall be filed
within ninety days after the last item of such indebtedness has accrued in the office
of the county clerk and recorder of the proper county, and an action shall be
brought in any court of competent jurisdiction of such county within three months
after the filing of such statement.

(3) In case an action is commenced upon the bond of a contractor, such
contractor may give notice thereof to the subcontractor liable for the claim. In such
case the result of such action shall be binding upon the subcontractor and his
sureties. In any case when a contractor has paid a claim for which a subcontractor is
liable, such contractor shall bring action against the subcontractor and his sureties
within sixty days after the payment of such claim.

Legislative History

Source: L. 11: p. 490, � 1. C.L. � 6481. CSA: C. 39, � 1. CRS 53: � 86-7-1. C.R.S. 1963: � 86-7-1. L. 2000: (1) amended, p. 212, � 15, effective August 2.