58-55-601 - Payment -- Account designated.
58-55-601. Payment -- Account designated.
When making any payment to a materialman, supplier, contractor, or subcontractor withwhom he has a running account, or with whom he has more than one contract, or to whom he isotherwise indebted, the contractor shall designate the contract under which the payment is madeor the items of account to which it is to be applied. When a payment for materials or labor ismade to a subcontractor or materialman, the subcontractor or materialman shall demand of theperson making the payment a designation of the account and the items of account to which thepayment is to apply. In cases where a lien is claimed for materials furnished or labor performedby a subcontractor or materialman, it is a defense to the claim that a payment was made by theowner to the contractor for the materials and was so designated and paid over to the subcontractoror materialman, if when the payment was received by the subcontractor or materialman, he didnot demand a designation of the account and of the items of account to which the payment was tobe applied.
Renumbered and Amended by Chapter 181, 1994 General Session