Rhode Island § 34-27.2-4 § 34-27.2-4. Funds held in trust.

Rhode Island Statutes

§ 34-27.2-4 — § 34-27.2-4. Funds held in trust.

Rhode Island § 34-27.2-4

Title 34Property

Ch. 34-27.2The Rhode Island Construction Trust Act

This text of Rhode Island § 34-27.2-4 (§ 34-27.2-4. Funds held in trust.) 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 § 34-27.2-4 (2026).

Text

§ 34-27.2-4. Funds held in trust.
(a) Any moneys paid under a contract by an owner to a contractor, or by the owner or contractor
            to a subcontractor, for work done for or about a building by any subcontractor shall
            be held in express trust by the contractor or subcontractor, as trustee, for those
            subcontractors who did work for or about the building, for purposes of paying those
            subcontractors or any successor and/or assign of such contractor or subcontractor
            that hold such funds.
         
(b) Any money paid under a contract by an owner to a contractor, or by the owner or contractor
            to a subcontractor, f

Free access — add to your briefcase to read the full text and ask questions with AI

§ 34-27.2-4. Funds held in trust.

(a) Any moneys paid under a contract by an owner to a contractor, or by the owner or contractor to a subcontractor, for work done for or about a building by any subcontractor shall be held in express trust by the contractor or subcontractor, as trustee, for those subcontractors who did work for or about the building, for purposes of paying those subcontractors or any successor and/or assign of such contractor or subcontractor that hold such funds.

(b) Any money paid under a contract by an owner to a contractor, or by the owner or contractor to a subcontractor, for supplies provided by materialmen in contract for the construction, repair, remodeling, improvement or renovation of any building or structure shall be held in an express trust by the contractor or subcontractor for the materialmen or any successor and/or assign of such contractor or subcontractors that holds such trust funds.

(c) Nothing contained in this chapter shall be construed as requiring moneys held in express trust by a contractor or subcontractor under subsection (a) or (b) of this section to be placed in a separate account.

(d) The existence of trust funds shall not prohibit the filing or enforcement of a labor, mechanic or material men's lien against the affected real property by any lien claimant, nor shall the filing of such a lien release the holder of the funds from the obligations created under Rhode Island law.