2014 Kentucky Revised Statutes CHAPTER 376 - STATUTORY LIENS 376.250 Withholding by public authority of funds due contractor and their payment to lien claimant -- Protest by contractor -- Suit by lien claimant.
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376.250 Withholding by public authority of funds due contractor and their
payment to lien claimant -- Protest by contractor -- Suit by lien claimant.
(1)
(2)
(3)
(4)
(5)
When an attested copy of the lien statement and proof of the delivery of an
attested copy as provided in KRS 376.240 is delivered to any public authority
which has contracted for the construction or improvement of any bridge, public
highway, or other public property owned by the state, a subdivision or agency
thereof, or by any city, county, urban-county, or charter county government, the
public authority shall endorse on the attested copy the date of its receipt, file
the copy and deduct and withhold the amount thereof, plus pursuant to KRS
64.012 to cover the fee of the county clerk for filing the statement and attesting
a copy, from any amount then due the contractor, and if a sufficient amount is
not then due the contractor from the next payments which become due.
Unless the contractor, within thirty (30) days from the date of the delivery of the
attested copy, files with the public authority a written protest putting in issue the
correctness of the amount due the lien claimant or the liability of the fund for
payment thereof, the amount withheld shall be paid by the public authority to
the lien claimant and charged to the account of the contractor, which payment
shall operate as a pro tanto release of the public authority from any claim of the
contractor under the contract for the amount so paid. The filing in the county
clerk's office of the statement of lien provided for in KRS 376.230(2) shall be
constructive notice to the contractor of the filing of the claim.
If the contractor files a written protest as provided in subsection (2) of this
section, the public authority with whom the protest is filed shall endorse
thereon the date of its receipt. The public authority shall promptly send written
notice of the protest to the lien claimant by certified mail, return receipt
requested and shall not pay over to the lien claimant any of the money withheld
from the contractor until authorized to do so by the contractor or until directed
to do so by an order or judgment of court.
If suit is not instituted by the lien claimant for the enforcement of the lien and
summons in the suit is not served on the public authority or its chairman within
thirty (30) days after the written notice of the protest is mailed to the claimant,
then the lien shall automatically be released and the funds withheld pursuant to
the filing of the lien statement shall be released and promptly paid to the
contractor. If suit is filed and summons served within the time provided, the
payment of the funds shall be withheld until ordered to be released or paid over
by an order or judgment of the court, and then paid as directed by the order or
judgment.
All suits for the enforcement of these liens on public funds shall be instituted in
the Circuit Court of the county in which is located the property on which the
improvement is made, except where the property is owned by a public
university. Where the property is owned by a public university, the suit shall be
instituted in the Circuit Court of the county in which is located the main campus
of the public university. This court shall have exclusive jurisdiction for the
enforcement of liens asserted against the public funds due the contractors,
subject to the same rights of appeal as in other civil cases.
Effective:January 1, 2007
History: Amended 2006 Ky. Acts ch. 255, sec. 29, effective January 1, 2007. --
Amended 2000 Ky. Acts ch. 250, sec. 1, effective July 14, 2000. -- Amended
1998 Ky. Acts ch. 397, sec. 1, effective July 15, 1998. -- Recodified 1942 Ky.
Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 2494,
2494-1.
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