58-55-207. Payment -- Account designated.
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/ut/title-58/chapter-55/58-55-207·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 1/1/2027
58-55-207. Payment -- Account designated.
(1)A contractor that pays a material supplier, a contractor, or a subcontractor with which the contractor maintains a running account, holds multiple contracts, or owes an outstanding debt shall:
(a)clearly designate the contract for which the payment is made; and
(b)identify the specific items of account to which the payment applies.
(2)A subcontractor or material supplier that receives a payment for materials or labor shall require the person paying to:
(a)clearly designate the contract for which the payment is made; and
(b)identify the specific items of account to which the payment applies.
(3)In an action to enforce a lien for materials provided or labor performed by a subcontractor or material supplier, the owner may assert a defense to the lien if:
(a)the owner paid the contractor for the materials and the contractor designated the payment in accordance with Subsection
(1);
(b)the contractor transferred the payment to the subcontractor or material supplier; and
(c)the subcontractor or material supplier failed to require a designation of the account and the specific items of account when receiving the payment.
Enacted by Chapter 42 , 2026 General Session