Are an owner's payments to general contractor part of its bankruptcy estate?
Some state laws declare that an owner's payments to a general contractor are trust funds for the benefit of subcontractors and others supplying labor or materials to the general contractor.
One of those states is New York. The Bankruptcy Litigation Blog reports on a recent Bankruptcy Court decision that New York's designation of owner's payments as trust funds means the payments are not property of the general contractor's bankruptcy estate.
Thanks for the mention. Much appreciated.
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