38-1a-309.  Interest rate — Preconstruction service or construction contract — Lien.

(1)  Subject to Subsection (2), the interest rate that applies to a lawful contract for preconstruction service or construction work on or for a project property, or to a lien claimed under this chapter against the project property, is, unless otherwise provided in the lawful contract, the rate described in Subsection 15-1-1(2).

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Terms Used In Utah Code 38-1a-309

  • Contract: A legal written agreement that becomes binding when signed.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Owner: means a person who possesses an interest in a project property and contracts with an original contractor for preconstruction service or construction work. See Utah Code 38-1a-102
  • Owner-builder: means an owner, including an owner who is also an original contractor, who:
(a) contracts with one or more other persons for preconstruction service or construction work for an improvement on the owner's real property; and
(b) obtains a building permit for the improvement. See Utah Code 38-1a-102
  • Person: means :Utah Code 68-3-12.5
  • Project property: means the real property interest on or for which preconstruction service or construction work is or will be provided. See Utah Code 38-1a-102
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
    • (2)  If a person that claims a lien against project property under this chapter is not in privity of contract with the owner or owner-builder, the interest rate that applies to the person’s lien may not exceed the rate described in Subsection 15-1-1(2).

    Amended by Chapter 373, 2017 General Session

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