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Architect's Consent to Assigment

Construction Lawyer

What if the borrower defaulted because it ran out of money and was left with no other choice but to file for bankruptcy protection? How can the architect get paid if the borrower has filed for bankruptcy protection? This gives the architect substantial bargaining power. contracts general'

Banking 45
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#67:  Paying Your Subcontractor's Employees

NH Construction Law

The main advantage of such “trust fund” provisions is in bankruptcy; trust funds are not considered assets of the subcontractor/debtor that can be distributed to general creditors. But hey, who ever said that general contracting was risk-free?