There is one section in the Construction Lien Act that does not involve filing a lien, and involves basic principles of trust law. That is Section 8 of the Act.

Section 8 gives each contractor, sub-contractor and supplier a right to share in the funds owing down the chain of those who have improved the lands of an owner. Those funds constitute a trust fund for all persons below the person owing the funds.

This paper will examine two important developments relating to the trust fund provisions of the Act.