§ 38-1a-303. Limits on attachment, garnishment, and execution levy -- Subcontractor lien not affected by payments, debts, offsets, and counterclaims involving other parties.

(1) An assignment, attachment, or garnishment of or encumbrance or execution levy on money that an owner owes to an original contractor is not valid as against a subcontractor's preconstruction or construction lien.

(2) An assignment, attachment, or garnishment of or encumbrance or execution levy on money that an original contractor owes to a subcontractor is not valid as against a lien of a laborer employed by the day or piece.

(3) The preconstruction or construction lien of a subcontractor may not be diminished, impaired, or otherwise affected by:

(a) a payment, whether in cash or in-kind, to the original contractor or another subcontractor;

(b) a debt owed by the original contractor to the owner;

(c) a debt owed by another subcontractor to the original contractor or to a third subcontractor; or

(d) an offset or counterclaim in favor of the owner against the original contractor, or in favor of the original contractor against another subcontractor, or in favor of another subcontractor against a third subcontractor.

Enacted by Chapter 278, 2012 General Session