§ 756-D — Exceptions for failure of lender to disburse funds

§ 756-d. Exceptions for failure of lender to disburse funds. The date\nof payment required by the owner, the contractor and/or subcontractor\npursuant to section seven hundred fifty-six-a of this article, shall be\nextended to the seventh day after the owner, contractor or\nsubcontractor, as the case may be, receives loan proceeds necessary to\nmake such payment in the event that:\n 1. the owner, contractor or subcontractor, as the case may be, has\nobtained a loan intended to pay for all or part of the construction\ncontract;\n 2. the owner, contractor or subcontractor, as the case may be, has\ntimely requested disbursement of proceeds from that loan; and\n 3. the lender is legally obligated to disburse such proceeds to the\nowner, contractor or subcontractor, as the case may be, but has failed\nto do so in a timely manner.\n