The Lien Law trust laws are something that most contractors have heard of but very few understand. This is unfortunate since the Lien Law trust laws are one of the few areas of the law that are, arguably, intended to protect contractors (as opposed to owners). In a nutshell, Article 3A of the Lien Law requires every "trustee" to keep all funds that he receives on a construction project in a "trust account" for the benefit of the trust beneficiaries. Just who is a trustee is not always clear but the following general guidelines may be helpful...
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