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Session Laws, 1995
Volume 793, Page 4246   View pdf image
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H.B. 708

VETOES

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Real Property

9-201.

(A) FOR THE PURPOSES OF THIS SUBTITLE, "MANAGING AGENT" MEANS AN
EMPLOYEE OF A CONTRACTOR OR SUBCONTRACTOR WHO IS RESPONSIBLE FOR THE
DIRECTION OVER OR CONTROL OF MONEY HELD IN TRUST FOR BY THE
CONTRACTOR OR SUBCONTRACTOR UNDER SUBSECTION (B) OF THIS SECTION.

[(a)](B) (1) Any moneys paid under a contract by an owner to a contractor, or
by the owner or contractor to a subcontractor for work done or materials furnished, or
both, for or about a building by any subcontractor, shall be held in trust by the contractor
or subcontractor, as trustee, for those subcontractors who did work or furnished
materials, or both, for or about the building, for purposes of paying those subcontractors.

(2) AN OFFICER, DIRECTOR, OR MANAGING AGENT OF A CONTRACTOR
OR SUBCONTRACTOR WHO HAS ACTUAL DIRECTION OVER OR CONTROL OF MONEY
HELD IN TRUST BY A CONTRACTOR OR SUBCONTRACTOR UNDER PARAGRAPH (1)
OF THIS SUBSECTION IS A TRUSTEE FOR THE PURPOSE OF PAYING THE MONEY TO
THE SUBCONTRACTORS WHO ARE ENTITLED TO IT.

[(b)](C) (1) Nothing contained in this subtitle shall be construed as requiring
moneys held in trust by a contractor or subcontractor under subsection (a) of this section
to be placed in a separate account.

(2) If a contractor or subcontractor commingles moneys held in trust under
this section with other moneys, the mere commingling of the moneys does not constitute
a violation of this subtitle.

9-202.

Any officer, director, or [employee] MANAGING AGENT of any contractor or
subcontractor, who, with intent to defraud, KNOWINGLY retains or uses the moneys held
in trust under § 9-201 of this subtitle, or any part thereof, for any purpose other than to
pay those subcontractors for whom the moneys are held in trust, shall be personally liable
to any person damaged by the action.

9-203.

The use by a contractor or subcontractor or any officer, director, or [employee]
MANAGING AGENT of a contractor or subcontractor of any moneys held in trust under §
9-201 of this subtitl
e, for any other purpose than to pay those subcontractors who did
work or furnished mat
erials, or both, for or about the building, shall be prima facie
evidence of intent to defraud in a civil action.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1995.

- 4246 -

 

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Session Laws, 1995
Volume 793, Page 4246   View pdf image
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