Code of Virginia
Chapter 1 - Mechanics' and Materialmen's Liens
§ 43-13. Funds paid to general contractor or subcontractor must be used to pay persons performing labor or furnishing material

Any contractor or subcontractor or any officer, director or employee of such contractor or subcontractor who shall, with intent to defraud, retain or use the funds, or any part thereof, paid by the owner or his agent, the contractor, or the lender to such contractor or by the owner or his agent, the contractor, or the lender to a subcontractor under any contract for the construction, removal, repair, or improvement of any building or structure permanently annexed to the freehold for any other purpose than to pay persons performing labor upon or furnishing material for such construction, repair, removal, or improvement is guilty of larceny in appropriating such funds for any other use while any amount for which the contractor or subcontractor may be liable or become liable under his contract for such labor or materials remains unpaid and may be prosecuted upon complaint of any person or persons who have not been fully paid any amount due them.
The use by any such contractor or subcontractor or any officer, director, or employee of such contractor or subcontractor of any moneys paid under the contract before paying all amounts due or to become due for labor performed or material furnished for such building or structure for any other purpose than paying such amounts due on the project shall be prima facie evidence of intent to defraud. Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor's or subcontractor's right to withhold payment for failure to properly perform labor or furnish materials on the project. Any contract or subcontract provision that allows a contracting party to withhold funds due under one contract or subcontract for alleged claims or damages due on another contract or subcontract is void as against public policy.
1932, p. 483; Michie Code 1942, § 6429b; 1968, c. 568; 1980, c. 390; 1982, c. 391; 1992, c. 713; 1998, c. 754; 2020, c. 873.

Structure Code of Virginia

Code of Virginia

Title 43 - Mechanics' and Certain Other Liens

Chapter 1 - Mechanics' and Materialmen's Liens

§ 43-1. Definitions

§ 43-2. Structures, materials, etc., deemed permanently annexed to freehold

§ 43-3. Lien for work done and materials furnished; waiver of right to file or enforce lien

§ 43-4. Perfection of lien by general contractor; recordation and notice

§ 43-4.1. Liens to be recorded in deed books and indexed in general index of deeds

§ 43-4.01. Posting of building permit; identification of mechanics' lien agent in building permit; notice to mechanics' lien agent; effect of notice

§ 43-5. Sufficiency of memorandum and affidavit required by § 43-4

§ 43-6. Repealed

§ 43-7. Perfection of lien by subcontractor; extent of lien; affirmative defense; provisions relating to time-share estates

§ 43-8. Sufficiency of memorandum, affidavit and notice required by § 43-7

§ 43-9. Perfection of lien by person performing labor or furnishing materials for a subcontractor; extent of lien

§ 43-10. Sufficiency of memorandum, affidavit and notice required by § 43-9

§ 43-11. How owner or general contractor made personally liable to subcontractor, laborer or materialman

§ 43-12. Repealed

§ 43-13. Funds paid to general contractor or subcontractor must be used to pay persons performing labor or furnishing material

§ 43-13.1. Use of lien waiver form; forgery or signing without authority

§ 43-13.2. When an affidavit or a signed statement of payment required of owner prior to sale

§ 43-13.3. An affidavit or a signed statement of payment required of owner prior to sale or refinance; penalty

§ 43-14. Repealed

§ 43-14.1. Service of notices

§ 43-15. Inaccuracies in memorandum or description not affecting lien

§ 43-16. What owner may do when contractor fails or refuses to complete building, etc.

§ 43-17. Limitation on suit to enforce lien

§ 43-17.1. Hearing on validity of lien

§ 43-18. Lien of general contractor to inure to benefit of subcontractor

§ 43-19. Validity and priority of lien not affected by assignments

§ 43-20. Extent of lien where owner has less than fee in land

§ 43-21. Priorities between mechanics' and other liens

§ 43-22. How liens enforced

§ 43-23. Priority among liens perfected under this chapter

§ 43-23.1. Forfeiture of lien

§ 43-23.2. Remedies cumulative