C.R.S. Section 38-22-126
Disburser

  • notice
  • duty of owner and disburser

(1)

For the purposes of this section, the word “disburser” means any lender who has agreed to make any loan to the owner or contractor, the proceeds of which are to be disbursed from time to time as work upon a structure or other improvement progresses, or any part of which is to be withheld until all or any part of such work is completed; or, any person who receives funds from any lender, contractor, or owner to be disbursed from time to time as work upon a structure or other improvement progresses, or any part of which is to be withheld until all or any part of such work is completed; or, any owner who has agreed to pay any sum to any contractor from time to time as work upon a structure or other improvement progresses, or any part of which is to be withheld until all or any part of such work is completed.

(2)

It is the duty of the disburser, prior to the first disbursement, to see that there has been recorded in the office of the county clerk and recorder of the county where the land to be improved is situated, a notice stating the name and address of the owner, the names, addresses, and telephone numbers of the principal contractor, if any, and the disburser, and the legal description of the land and its address, if any. One notice may include as many parcels as desired, providing that all the information is stated as to each parcel. Such notice shall be indexed by the county clerk and recorder under the name of the owner and each principal contractor as grantors and according to address.

(3)

It is the duty of any person upon ordering or contracting for any labor, services, machinery, tools, equipment, laborers, or materials to be used as provided in section 38-22-101, upon demand of the person from whom he or she is so ordering or with whom he or she is so contracting, to furnish to such person a statement of the names, addresses, and telephone numbers of the owner or reputed owner of the land to be improved, the principal contractor, if any, and the disburser, if any, as defined in subsection (1) of this section, together with a legal description or the address, if any, of the land to be improved.

(4)

Any lien claimant who is entitled to a lien under this article may give notice to the disburser stating the property by address or legal description, or by such other description as will identify the real property; the claimant’s name, address, and telephone number; the person with whom he has contracted; and a general statement of his contract.

(5)

Such notice shall be in writing and shall be served upon the disburser by certified mail or by delivering the same personally to such disburser, or by leaving a copy at his residence or at his place of business with some person in charge.

(6)

Upon such notice being received by the disburser, it is the duty of the disburser, before disbursing any funds to the person designated in said notice with whom said claimant has contracted, to ascertain the amount due to the claimant on any disbursement date, and to pay such amount directly to the claimant out of any undisbursed funds available for and due to said person designated in said notice on such date; except that any amounts actually paid by the disburser to others for labor, services, machinery, tools, equipment, and laborers or materials performed, supplied, or furnished for such structure or improvement that are chargeable to said person designated in said notice shall not be deemed available for said person designated in said notice; and further except that if the amount claimed by said claimant is disputed by said person designated in said notice, the disburser may impound such amount until the amount due is settled by agreement or final judicial determination.

(7)

If the disburser fails to comply with subsection (6) of this section and the said claimant suffers loss by reason of said failure the disburser shall be liable to said claimant for the amount which the disburser should have paid claimant to the extent of claimant’s loss.

Source: Section 38-22-126 — Disburser - notice - duty of owner and disburser, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-38.­pdf (accessed Oct. 20, 2023).

38‑22‑101
Liens in favor of whom - when filed - definition of person 38‑22‑102
Payments - effect 38‑22‑103
Attaching of lien - enforcement 38‑22‑104
Lien on mining property 38‑22‑105
Property subject to lien - notice 38‑22‑105.5
Notice of lien law 38‑22‑106
Priority of lien - attachments 38‑22‑107
Lien attaches to water rights and franchises 38‑22‑108
Rank of liens 38‑22‑109
Lien statement 38‑22‑110
Action commenced within six months 38‑22‑111
Joinder of parties - consolidation of actions 38‑22‑112
Allegations of complaint 38‑22‑113
Hearing - judgment - summons - defense 38‑22‑114
Disposition of proceeds - execution 38‑22‑115
Parties to action 38‑22‑116
Costs 38‑22‑117
Assignment of lien - failure to support lien 38‑22‑118
Satisfaction of lien - failure to release 38‑22‑119
Agreement to waive - effect 38‑22‑120
Rules of civil procedure apply 38‑22‑121
Liens of surveyors and engineers 38‑22‑122
Lien under two contracts - effect 38‑22‑123
Payment to avoid invalid 38‑22‑124
Other remedies not barred 38‑22‑125
Bona fide purchaser 38‑22‑126
Disburser - notice - duty of owner and disburser 38‑22‑127
Moneys for lien claims made trust funds - disbursements - penalty 38‑22‑128
Excessive amounts claimed 38‑22‑129
Principal contractor may provide bond prior to commencement of work 38‑22‑130
Payment of claims by surety 38‑22‑131
Substitution of bond allowed 38‑22‑132
Lien to be discharged 38‑22‑133
Action to be brought on bond or undertaking
Green check means up to date. Up to date

Current through Fall 2024

§ 38-22-126’s source at colorado​.gov