N.Y. General Business Law 756-D – Exceptions for failure of lender to disburse funds
§ 756-d. Exceptions for failure of lender to disburse funds. The date of payment required by the owner, the contractor and/or subcontractor pursuant to section seven hundred fifty-six-a of this article, shall be extended to the seventh day after the owner, contractor or subcontractor, as the case may be, receives loan proceeds necessary to make such payment in the event that:
Terms Used In N.Y. General Business Law 756-D
- Contract: A legal written agreement that becomes binding when signed.
- Contractor: means any person, firm, partnership, corporation, association, company, organization or other entity, including a construction manager, or any combination thereof, which enters into a construction contract with an owner. See N.Y. General Business Law 756
- Owner: means any person, firm, partnership, corporation, company, association or other organization or other entity, or a combination of any thereof, (with an ownership interest, whether the interest or estate is in fee, as vendee under a contract to purchase, as lessee or another interest or estate less than fee) that causes a building, structure or improvement, new or existing, to be constructed, altered, repaired, maintained, moved or demolished or that causes land to be excavated or otherwise developed or improved. See N.Y. General Business Law 756
- Subcontractor: means any person, firm, partnership, corporation, company, association, organization or other entity, or any combination thereof, which is a party to a contract with a contractor or another subcontractor to perform a portion of work pursuant to a construction contract. See N.Y. General Business Law 756
1. the owner, contractor or subcontractor, as the case may be, has obtained a loan intended to pay for all or part of the construction contract;
2. the owner, contractor or subcontractor, as the case may be, has timely requested disbursement of proceeds from that loan; and
3. the lender is legally obligated to disburse such proceeds to the owner, contractor or subcontractor, as the case may be, but has failed to do so in a timely manner.