Rhode Island § 34-27.2-2 § 34-27.2-2. Legislative findings.

Rhode Island Statutes

§ 34-27.2-2 — § 34-27.2-2. Legislative findings.

Rhode Island § 34-27.2-2

Title 34Property

Ch. 34-27.2The Rhode Island Construction Trust Act

This text of Rhode Island § 34-27.2-2 (§ 34-27.2-2. Legislative findings.) is published on Counsel Stack Legal Research, covering Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

R.I. Gen. Laws § 34-27.2-2 (2026).

Text

§ 34-27.2-2. Legislative findings.
The general assembly finds and declares that the uniqueness of the construction industry
            requires a special system to ensure that payment is received by those businesses,
            contractors and owners who expend materials and/or labor prior to the completion of
            a construction project, but then must wait to be made financially compensated for
            the materials and/or labor. The general assembly also recognizes that once the materials
            and labor are placed into the building, or other construction project, it is impossible
            to reclaim the goods or services so that the only means of compensation is to receive
            monetary p

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§ 34-27.2-2. Legislative findings.

The general assembly finds and declares that the uniqueness of the construction industry requires a special system to ensure that payment is received by those businesses, contractors and owners who expend materials and/or labor prior to the completion of a construction project, but then must wait to be made financially compensated for the materials and/or labor. The general assembly also recognizes that once the materials and labor are placed into the building, or other construction project, it is impossible to reclaim the goods or services so that the only means of compensation is to receive monetary payment. In addition, the general assembly finds that the Comprehensive Bankruptcy Reform Act of 2005 expanded § 523(a) of the Uniform Code of chapter 13, and created a new section known as UC Bankruptcy Code 1328 that gives building material suppliers recourse when a contractor, "commits fraud or defalcation while acting in a fiduciary capacity.â€� Under the new UC Bankruptcy Code 1328, if any person commits fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny the debt is nondischargeable under chapter 7 (liquidation), chapter 11 (adjustment of debt) or chapter 13 (reorganization).