Any sums received by the prime contractor as payment for work, services, equipment, and materials supplied by the remote contractor for improvements to real property must be held by the prime contractor in trust for the benefit and use of the remote contractor, and are subject to all legal and equitable remedies.
Tenn. Code Ann. § 66-34-304
Payments to be held in trust by prime contractor
Known as the Prompt Pay Act
The act spans §§ 66-34-101 to 66-34-704 (22 sections).
Applied in 3 court decisions — leading case Westview Investments, Ltd. v. U.S. Bank National Ass'n (2006)
Most recently applied in Interstate Plywood Co. v. Blankenship (In re Blankenship) (February 2015)
Acts 1991, ch. 45, § 1; 2020, ch. 749, § 26.
Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.