§ 70. Definition of trusts. 1. The funds described in this section\nreceived by an owner for or in connection with an improvement of real\nproperty in this state, including a home improvement loan, or received\nby a contractor under or in connection with a contract for an\nimprovement of real property, or home improvement, or a contract for a\npublic improvement in this state, or received by a subcontractor under\nor in connection with a subcontract made with the contractor for such\nimprovement of real property including a home improvement contract or\npublic improvement or made with any subcontractor under any such\ncontract, and any right of action for any such funds due or earned or to\nbecome due or earned, shall constitute assets of a trust for the\npurposes provided in section seventy-one of this chapter.\n For the purposes of this section: (a) any right to receive payment at\na future time shall be deemed a right of action therefor and an asset of\nthe trust even though it is contingent upon performance or upon some\nother event, but the fact that the right is a trust asset does not\nenlarge the right or excuse any performance or condition upon which it\ndepends; (b) "contract" and "subcontract" shall include any modification\nof the contract or subcontract to which reference is made; and (c) funds\ndue or earned under a contract or subcontract shall include any funds\npayable to the contractor or subcontractor in addition to the contract\nprice by reason of any transaction, event or circumstance in the making\nor in the performance of the contract or subcontract.\n 2. The funds received by an owner and the rights of action with\nrespect thereto, for or in connection with each improvement, shall be a\nseparate trust and the owner shall be the trustee thereof. The funds\nreceived by a contractor or subcontractor and the rights of action with\nrespect thereto, under or in connection with each contract or\nsubcontract, shall be a separate trust and the contractor or\nsubcontractor shall be the trustee thereof.\n 3. Every such trust shall commence at the time when any asset thereof\ncomes into existence, whether or not there shall be at that time any\nbeneficiary of the trust. The trust of which the owner is trustee shall\ncontinue with respect to every asset of the trust until every trust\nclaim arising at any time during the improvement has been paid or\ndischarged, or until all such assets have been applied for the purposes\nof the trust. The trust of which a contractor or subcontractor is\ntrustee shall continue with respect to every asset of the trust until\nevery trust claim arising at any time prior to the completion of the\ncontract or subcontract has been paid or discharged, or until all such\nassets have been applied for the purposes of the trust. Upon termination\nof the trust by payment or discharge of all the trust claims, the\nbeneficial interest in any remaining assets shall vest in the owner,\ncontractor or subcontractor, as the case may be.\n 4. The trusts described in this section shall arise whether or not a\ncovenant declaring or acknowledging the trust, as required in article\ntwo of this chapter, has been executed.\n 5. The assets of the trust of which the owner is trustee are the funds\nreceived by him and his rights of action for payment thereof\n (a) under a building loan contract;\n (b) under a building loan mortgage or a home improvement loan;\n (c) under a mortgage recorded subsequent to the commencement of the\nimprovement and before the expiration of four months after completion of\nthe improvement;\n (d) as consideration for a conveyance recorded subsequent to the\ncommencement of the improvement and before the expiration of four months\nafter the completion thereof;\n (e) as consideration for, or advances secured by, an assignment of\nrents due or to become due under an existing or future lease or tenancy\nof the premises that are the subject of the improvement, or of any part\nof
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