Legal Question in Construction Law in New York
If a contractor is defaulted on a construction project, can the bonding agency or surety on the project take money from the principal's family assets such as a trust fund for kids in order to fund the project to completion?
Asked on 9/30/12, 12:33 pm
1 Answer from Attorneys
Kevin Connolly
Kevin J. Connolly
No. They have to use their own money to finish the job. Then they use whatever collateral was deposited. When it comes to realizing money from a contractor's personal assets, most lawyers would say fuggedaboudid but I would recommend a financial checkup to make sure that any grantor trusts are irrevocable, so they can't touch those assets; and to see what assets are protectable as part of the marital estate; and other vehicles may be available.
Answered on 10/05/12, 12:57 pm
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