The Trust Fund Provisions of the Construction Lien Act (Ontario): New developments relating to Suppliers and Tracing


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.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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