§ 34-27.2-2 - Legislative findings.
SECTION 34-27.2-2
§ 34-27.2-2 Legislative findings. –The general assembly finds and declares that the uniqueness of the constructionindustry requires a special system to ensure that payment is received by thosebusinesses, contractors and owners who expend materials and/or labor prior tothe completion of a construction project, but then must wait to be madefinancially compensated for the materials and/or labor. The general assemblyalso recognizes that once the materials and labor are placed into the building,or other construction project, it is impossible to reclaim the goods orservices so that the only means of compensation is to receive monetary payment.In addition, the general assembly finds that the Comprehensive BankruptcyReform Act of 2005 expanded § 523(a) of the Uniform Code of chapter 13,and created a new section known as UC Bankruptcy Code 1328 that gives buildingmaterial suppliers recourse when a contractor, "commits fraud or defalcationwhile acting in a fiduciary capacity." Under the new UC Bankruptcy Code 1328,if any person commits fraud or defalcation while acting in a fiduciarycapacity, embezzlement, or larceny the debt is nondischargeable under chapter 7(liquidation), chapter 11 (adjustment of debt) or chapter 13 (reorganization).